Interest Rate and Rebates Question! HELP!

[JP1012]

The dealer that I am working with is saying I can only get a 4-5% interest rate on a 2019 GT1 AWD (I plan on financing) if I take the rebates. I have an above 740 CS, probably near 800. (I have a 3000 conquest, i think the car has the 2000 Summer Vin Rebate too, but idk if that applies). Does that only apply to the 2750 rebate for financing? He said I can refinance with a bank after 3 months of payments. I have talked to my bank and I can get 3.9% from them. Do you guys have any insight into this. I am getting a mix of information form the research I have done on the forums for the past 2 weeks, so I am confused. I am a Finance major so I can easily calculate what will be the most cost effective; I just need help with what the policy is. On Kias stinger builder site, I can finance at 0 percent but idk if the site is inaccurate as it happens sometime. Depending on what rebates I lose and if I am going to refinance anyways, I would rather do the Lease Buyout option which save me some more on sales price. Its hard to make a decision without knowing these things. Thanks in advance! Hope to join the Stinger family soon.

 

[Ruturaj]

What state are you in?

 

[JP1012]

What state are you in?

Illinois!

 

[Ruturaj]

Looks like your state charges tax on down payment and monthly payment. Lease buyout would be a way to go.

 

[JP1012]

Looks like your state charges tax on down payment and monthly payment. Lease buyout would be a way to go.

Simply based off of that? Can you provide some more explanation, please! I would really appreciate it. I am going in in around a week to finalize everything.

 

[Ruturaj]

Simply based off of that? Can you provide some more explanation, please! I would really appreciate it. I am going in in around a week to finalize everything.

Lease buyout is bad in 2 cases
1. Refinancing costs you more (much higher interest rate that negates the lease cash)
2. Your state charges you full tax twice and it negates the lease cash

 

[Thomas-Hawk]

Looks like your state charges tax on down payment and monthly payment. Lease buyout would be a way to go.

Where can we find out what states would be good for the lease buyout option?

 

[Ruturaj]

Where can we find out what states would be good for the lease buyout option?

You need to find out how your state taxes on lease. Then find out how much you will end up paying extra compared to direct buy, how much you might end up paying in interest difference in both routes. Subtract that amount + 1000 from lease incentive. Now look at that number and figure out if it's better for you.