Help me understand lease buyouts

[Nosnide]

I have never leased a vehicle. And I've only ever purchased 2-3 year old pre-owed vehicles. This is the first time I have read anything about lease buyouts, and I would like to understand it better. The reason is that I was looking to spend $36-38K on a 2018 GT2, but it seems some of you guys are finessing 2020 GT2s for just above that amount.

From my loose understanding the first step is to engage with a dealership and attempt to bargain a discount on MSRP ( 10% being the goal). Can anyone explain why the dealerships cut their prices this much? I'd feel much more confident asking for the discount if I understood why they should be able to provide it for me.

I believe the next step is to mention leasing the vehicle off of the price you have negotiated. And the intent is to buyout immediately after leasing? Also, the purpose of leasing is to avoid some fees? And to take advantage of the rebates? This is the part I don't understand the most. And when leasing you want to do it through KMF correct? But it seems that it is a process and I don't really understand what that process is for.

Ultimately you would end up lowering the vehicle from say 55K MSRP to something closer to $40K after rebates, avoided fees and negotiated price cuts. Oh man, I feel all types of special for not being able to wrap my head around it. Help me out if you think you can lol. Some tips on bargaining the price down, and whether the rebates are good at the moment would be good to know. I will make sure I pass the knowledge along.

 

[MerlintheMad]

Ah, here's your long post (it didn't disappear after all).

Kia attaches the biggest incentives to leasing. I don't know why. It's just a fact. So, if you can get a great deal on a loan (or best of all use cash), then the biggest lease incentive is the one to go for; two-year, I believe. The monthly lease payment amount is immaterial if you buyout. You'll make two payments minimum (I bought out at three months), unless you're lucky and get the whole ball rolling before the second monthly payment is due (Kia's processing speed is what you cannot control, sometimes quick, often dodgy).

As I said on the other thread, bargaining the price down wasn't a priority for me. The added benefit of accepting a dealership's discount without argument is that they treat you as one of their favorite people. Consider it "good will gathering". Of course, the dealership has to be a good one: nobody gets any benefit out of buying good will with crappy people So, first step, above all other considerations: LIKE the people you are working with, and get a good feeling about the establishment. If you can't be fortunate in your dealership experience, you'll be worried about future service.