GT2 2018 for a 2019: DEAL DONE

[Jaymorz]

Ladies & Gents,

I would just like to share with you my experience trading in my 2018 GT2 for a 2019 GT2.

I had posted a thread earlier stating that this is something I wanted to accomplish due to positive equity I had on my 2018 GT2 fully loaded stinger - about 3-4k positive equity in-fact, w/ 0 money down from the original purchase dated 7/31/18.

A year later, and I was able to switch into a 2019 GT2 fully loaded as well with 0 out of pocket expense with the same low monthly lease I was paying for on my 2018. All TTL paid for by the positive equity i had.

Of course, in the grand scheme of things I still net a loss due to the 11 monthly payments already made but I consider that as a wash because of many reasons but mainly consider it as the cost to be able to start from 0 again, with ZERO defects/issues with the new vehicle.

Details below:

2018 GT2 Cer/red: Fully loaded/optioned
Net capitalized cost @ purchase: 36,500
Monthly: $430
Buyout: 33,000
Trade-In: 36,500

2019 GT2 Cer/red: Fully loaded/optioned
Net CC @ purchase: 37,000
Monthly: $440
(24 mo/12k miles - buyout option planned after 1 month)

The worst part is, this is NY state - so taxes are brutal. If I lived in the lower tax bracket states, I would've saved more. Hopefully this encourages the people who are on the fence of upgrading to a 2019 instead. Do your homework people and show up prepared

 

[cncBilly]

Good on you. Well done It will be interesting to see if you find any subtle differences in the 19 over the 18 as a little time goes by. Keep us posted. Enjoy the "New Ride". Cheers

 

[Kgh31386]

Interesting. How many miles on the 2018?

 

[Ruturaj]

I assume when you got your 2018, you had trade in as well.

I am thinking about trading in my 2019 for another 2019 (I had an accident a week ago). I was planning to buy out my car. If I loose 2k more for new one I would get it.

 

[Travis Wills]

A lot of people don’t understand how high the resell values are for the Stinger cars. I have seen several people say they got above water in the first year with their Stinger.

The zero interest loan on these Stingers looks like a great option right now. However, KBB.com hasn’t posted the 2019 resell values yet so I am not sure if those will hold their value as well as the 2018 cars have.

 

[Ruturaj]

A lot of people don’t understand how high the resell values are for the Stinger cars. I have seen several people say they got above water in the first year with their Stinger.

The zero interest loan on these Stingers looks like a great option right now. However, KBB.com hasn’t posted the 2019 resell values yet so I am not sure if those will hold their value as well as the 2018 cars have.

He got 36.5k for a 50k car after a year (even if he didn't pay 50k), it's still pretty big depreciation from MSRP.

 

[Jaymorz]

My 2018 had roughly 9k miles.
I didn't have any equity on my trade-in for a 2018 stinger. It was a wash.

If assuming the lease cash offer from Kia is a bait/mind-trap to lure in buyers. I would say roughly 44k-47k would be true MSRP for these vehicles which would put it at roughly a 15% depreciation after a year assuming one owner for the duration. This would be on-par with most major vehicle manufacturers.

In addition, Kia has forecasted better results with a 55% residual after 24 months and 51% after 3 months since it's first debut. These estimated values are, however, significantly worse than most major vehicle manufacturers.

You can't predict the market, but can measure the present and right now, from what I've mentioned above, it is very possible for a majority of 2018 owners to swap over with minimal cost.

Happy shopping!

 

[Remedy]

Ladies & Gents,

I would just like to share with you my experience trading in my 2018 GT2 for a 2019 GT2.

I had posted a thread earlier stating that this is something I wanted to accomplish due to positive equity I had on my 2018 GT2 fully loaded stinger - about 3-4k positive equity in-fact, w/ 0 money down from the original purchase dated 7/31/18.

A year later, and I was able to switch into a 2019 GT2 fully loaded as well with 0 out of pocket expense with the same low monthly lease I was paying for on my 2018. All TTL paid for by the positive equity i had.

Of course, in the grand scheme of things I still net a loss due to the 11 monthly payments already made but I consider that as a wash because of many reasons but mainly consider it as the cost to be able to start from 0 again, with ZERO defects/issues with the new vehicle.

Details below:

2018 GT2 Cer/red: Fully loaded/optioned
Net capitalized cost @ purchase: 36,500
Monthly: $430
Buyout: 33,000
Trade-In: 36,500

2019 GT2 Cer/red: Fully loaded/optioned
Net CC @ purchase: 37,000
Monthly: $440
(24 mo/12k miles - buyout option planned after 1 month)

The worst part is, this is NY state - so taxes are brutal. If I lived in the lower tax bracket states, I would've saved more. Hopefully this encourages the people who are on the fence of upgrading to a 2019 instead. Do your homework people and show up prepared

Can you give a break down how of you got the cap cost down to $37k? I've been working a deal here recently and I'm nowhere close to that.

 

[Travis Wills]

He got 36.5k for a 50k car after a year (even if he didn't pay 50k), it's still pretty big depreciation from MSRP.

The thing is that KBB hasn’t realized that yet. A lot of dealers rely pretty heavily on the KBB value when determining how much to give you on a trade.

The point is that you get a giant discount on them upfront but they still have a resell value that is above that almost a year later.

Eventually I would expect the KBB value to go down in proportion to the large initial discount. However, for now it remains that a brand new Stinger(with discounts) can often be had for less than a used Stinger.

 

[Ruturaj]

The thing is that KBB hasn’t realized that yet. A lot of dealers rely pretty heavily on the KBB value when determining how much to give you on a trade.

The point is that you get a giant discount on them upfront but they still have a resell value that is above that almost a year later.

Eventually I would expect the KBB value to go down in proportion to the large initial discount. However, for now it remains that a brand new Stinger(with discounts) can often be had for less than a used Stinger.

Yes. That's true.

 

[Sabs]

A lot of dealers rely pretty heavily on the KBB value when determining how much to give you on a trade.

Dealers actually have their own resources that aren't available to consumers. The dealers' tools look at a combination of auction and local market data for more accurate values.

KBB is a decent tool for consumers to get a ballpark value, though.

I think there's a good reason we're seeing used values so close to new with discounts. The majority of buyers don't know about or aren't willing to do a lease buyout for the best deal. The vast majority will finance or simply do a regular lease to full term.

Then there are buyers who are shopping the used market with the intent of saving some money. Many of them are also not aware of just how low Stingers can be discounted with a lease buyout. They see 20-25% off MSRP and think they're getting a great deal for a one year old car, then go ahead and finance it.

There's not a lot of used inventory out there. It doesn't take many sales of used Stingers at 20-25% off to set the market value at that point. If there are used buyers willing to pay the same amount as we can get a lease buyout for, that's what the used market value will be - regardless of whether it makes sense.

The only thing that might cause a sudden hit to used values (other than a recession) will be a large number of leases ending at the same time. Those who leased full term that don't wish to keep their cars would be wise to buy them out, then immediately sell to pocket a few thousand $.

 

[Travis Wills]

The discount you can get with traditional financing is quickly approaching the rebate you can get with leasing for most of the cars.

The traditional financing rebate is pretty much even across the GT models while the lease rebates vary greatly depending on whether it is a GT, GT1, or GT2.

Certainly leasing an AWD GT2 and the buying it out with cash is the best option. However, the financing rebate vs leasing aren’t all that different for a GT or GT1.

 

[MerlintheMad]

2018 GT2 Cer/red: Fully loaded/optioned
Net capitalized cost @ purchase: 36,500
Monthly: $430
Buyout: 33,000
Trade-In: 36,500

2019 GT2 Cer/red: Fully loaded/optioned
Net CC @ purchase: 37,000
Monthly: $440
(24 mo/12k miles - buyout option planned after 1 month)

And your neighbors never noticed "out with the 'old', in with the new"!

 

[Jaymorz]

And your neighbors never noticed "out with the 'old', in with the new"!

Hahah nope! Co-workers didn’t notice either until they saw the temp license plate on the back and drill-free front bumper