Hey! I see you! Please take two seconds to sign up! We'd love to have you as a member of our Kia Stinger club. You have nothing to lose and so much to gain... :)

High Trade-in value for a lease

Discussion in 'How to Buy a Kia Stinger' started by SilverNitr8, Aug 3, 2018.

  1. SilverNitr8

    SilverNitr8 United States Active Member

    294
    77
    28
    Location:
    Ashburn, VA
    Hi All,

    I wanted to take advantage of the lease cash offer and do a lease buyout. I do have a trade-in vehicle worth 16k. Will this cause me some problems or is it better to do the lease without any trade-in? I'm new to the leasing world so any advice is greatly appreciated.
     
  2. NS_Stinger

    NS_Stinger Canada Active Member

    216
    39
    28
    I don't think the trade-in will really matter it would just be applied as if you were doing a down payment on the lease. What I will say is that you're likely to get low-balled on the trade. If you don't need to trade the car and plan to buy out the lease directly afterward you might want to explore selling your car privately if you have the time. One thing you also need to consider is the tax savings on the trade, for example if they offer you 10k for it you actually save 10k plus the taxes it will save you on the purchase price. Lots of variables here.
     
    • Like Like x 1
  3. NYLAWBIZ

    NYLAWBIZ United States Stinger Enthusiast

    buying a car is really three business deal negotiations: (1) negotiating the best sales price for your old car; (2) negotiating a purchase price [cap cost for lease] on your new car; and (3) negotiating the financing terms, whether it is a lease or a loan. Treat it as three separate transactions. Dealerships like to mix the three deals together in some sort of bargaining swirl, making it extremely difficult for the typical car purchaser to know whats going on. Never buy a car based only on the monthly carrying cost.
     
    Last edited: Aug 3, 2018
    • Agree Agree x 1
  4. SilverNitr8

    SilverNitr8 United States Active Member

    294
    77
    28
    Location:
    Ashburn, VA
    Thanks for the response. I plan to get my car estimated at carmax so I have a baseline of what I will get for it if the dealer low blow me. If they wont match it, I'll sell it to carmax.
     
  5. MisterMac

    MisterMac United States Active Member

    202
    88
    28
    Location:
    El Paso, TX
    Your Carmax offer will also be a lowball, guaranteed. You can negotiate better through the dealer you are buying from. However, in many states, you will not receive a sales tax savings for the value of your trade vehicle when leasing. If that is the case in your state, sell your car yourself and apply the proceeds to the lease payoff.

    However, if you are set on trading it in, research your trade values on kbb and NADA, then shoot for a grand above the best book value. There are often cash to dealer incentives that we aren't aware of that help the dealers "give more" for a trade than what the car is worth. I always tap into that. On my 2015 ES350, the initial dealer offer was $20,100. NADA clean-trade value was $22,550. I ended up getting $23,400 for it. When I factored in sales tax savings at 6.25%, the actual all-in trade value was $24,862.50 which was $138.00 below the NADA clean retail value. AT that point it was worth it to me to trade it in.

    Bottom line is, know exactly the minimum you will accept for your trade and the maximum you are willing to pay for the new car BEFORE you starting negotiating. Then drag the process out as long as you can to get the figures you need. NEVER be afraid to walk if they won't meet your expectations.

    Good luck!
     
  6. Waynerm002

    Waynerm002 United States 1000 Posts Club!

    1,398
    470
    88
    Location:
    DC Metro Area
    Good advice there!
     
  7. SilverNitr8

    SilverNitr8 United States Active Member

    294
    77
    28
    Location:
    Ashburn, VA
    Thank you for the great advice. I did look up my state and sure enough I don't get relief from the tax. I did find out the clean trade for my car from NADA as you pointed out and if I shoot for 1k more, I'm looking at around 17-17500 for my trade.
     
    • Like Like x 1
Draft saved Draft deleted

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.