Kia must not want to sell many GT's

[Mike_TX]

Ok so I'd be looking at wanting to do 48 months. Which I haven't seen much consensus on, is it a bad idea to do 48 month lease term? Honestly I plan to buy the car out at the end of the lease but for now I just have a set budget per month I'm looking to achieve.

Hmmm. A lot of 'car people' say you shouldn't go beyond 36 months on a lease, but that's up to you.

48 months would probably reduce the payment to more like $500, although I'm not sure what the residual would be at 48 months so that's a guess.

Consider, though, that after 48 months you will have paid $24,000 in payments, after which the buyout on the lease (the residual amount) is maybe another $20,000, for a total cost to you of $44,000. And at that point, your 4 year old car with maybe 60,000 miles on it, will be worth what? Maybe $18-19k?

You could probably buy a pre-owned car identical to yours at that point for $17-18, and you're paying $20k to buy yours out of your lease.

I've seen worse deals, but buying a car at the end of a lease isn't usually a good proposition.

(Don't take anything I've said as gospel - it's just for illustration. )

 

[Berzerker]

Just out of curiosity, is that just so you don't have to make monthly payments?

You also pay nearly $0 in interest since it's not compounding.

 

[Rufus]

You also pay nearly $0 in interest since it's not compounding.

Agreed! We leased so we could get the lease cash to reduce cap cost, and just got our approval for a 2.74% loan to buy out our lease and residual. Because of the lease cash, doing this will end up costing, after 72 mos with our credit union loan, being about MSRP all in.

 

[iclicku]

Agreed! We leased so we could get the lease cash to reduce cap cost, and just got our approval for a 2.74% loan to buy out our lease and residual. Because of the lease cash, doing this will end up costing, after 72 mos with our credit union loan, being about MSRP all in.

Would you mind letting me know which credit union you worked with? Would love to but out my lease as well.

 

[Mike_TX]

You also pay nearly $0 in interest since it's not compounding.

Wouldn't that just be the case if you negotiate a buyout that's less than the sum of the payments?

And does Kia Finance actively negotiate with you on that? I'd think you would have to negotiate the buyout at the time of the lease signing. (?)

How does all that work?

 

[Rufus]

Wouldn't that just be the case if you negotiate a buyout that's less than the sum of the payments?

And does Kia Finance actively negotiate with you on that? I'd think you would have to negotiate the buyout at the time of the lease signing. (?)

How does all that work?

Hey, @Mike_TX your best bet would be to check out the "how to buy a Stinger" sub forum. Plenty of great info there. Cheers!

 

[Rufus]

Would you mind letting me know which credit union you worked with? Would love to but out my lease as well.

I replied directly...I think? Lol Did you receive it?

 

[iclicku]

I replied directly...I think? Lol Did you receive it?

I did thanks! I'll be replying in depth when I get a chance.

 

[MarkyMark]

The residual on a lease isn't negotiable - it's set by the mfr. The things that ARE negotiable are the cap cost (the bottom line price you pay), the money factor, the length of the lease and the miles, and your trade-in (if any).

I actually calculate the lease payment on this car at $608, based on a 4% interest rate (.000016 money factor), 53% residual (not sure if that's right), and 36 month term. That's assuming the $37,000 is a final cap cost, with no other charges involved, and nothing due at signing except maybe the first payment.

So I would say the $600 offer is pretty legit!

Okay, this is a bit dated and I need to fix some stuff, but it's pretty pickin' close. Plug in your own numbers and away you go. Hope this helps!

 

[Randal]

I'm looking at a GT awd price dropped to 37,500 over the weekend they are still trying to give me a lease of 600 a month with 1k down, I'm baffled by this am I in the wrong to think this is ridiculous monthly lease price for a 37k car with 1k down

Check on the thread "Lease option to buy"... alot of great information on leasing...

 

[MarkyMark]

Check on the thread "Lease option to buy"... alot of great information on leasing...

Hi Randal, there is a TON of data on how a lease is constructed on this site. A TON! That said, you can literally take the KMF (Kia Motors Finance) Lease Sheet and make a simple spreadsheet to walk through the numbers at the dealer step-by-step. I guarantee you it won't come out at $600!!! Well, it could. They could be starting with an MSRP or dealer mark-up price. They probably threw in the title, license fee, document fee - everything into the pricing after the Lease Cash. They probably used the highest Money Factor they could (which is .00040 higher than the lower figure they "could" use), etc...

I suggest if you don't understand all the details of how a lease is constructed and don't get complete transparency on how it was built, I'd stay away and purchase.

However, if you do, and/or you dive into how leases are built, then you'll be completely comfortable in building it out and seeing where you and the dealer differ and can confidently go from there!

Good luck!

 

[mldavis2]

Know the MSRP from the Kia website. Add the $900 shipping charge. Base total car price on what you can get OFF of MSRP, less trade-in allowance.
Know the trade-in value (Kelly Blue Book fair trade) for your trade-in if any.
Do NOT accept any dealer-installed "add-ons" or options that you do not want, especially totally stupid stuff like nitrogen in the tires which all cars have when the tires are inflated.
Know your credit score to compare to the dealer's chart for interest rates.

 

[MarkyMark]

Know the MSRP from the Kia website. Add the $900 shipping charge. Base total car price on what you can get OFF of MSRP, less trade-in allowance.

Know the trade-in value (Kelly Blue Book fair trade) for your trade-in if any.
Do NOT accept any dealer-installed "add-ons" or options that you do not want, especially totally stupid stuff like nitrogen in the tires which all cars have when the tires are inflated.
Know your credit score to compare to the dealer's chart for interest rates.

Nitrogen charge! LOL! Nice!

I'm less likely to move into a lease-to-buyout direction. We'll see. But yah, Nitrogen, ha! Still laughing at that one. If I do go with the lease-to-buyout direction, I'm paying all the Title, License and Reg and Dock fees in cash. Why finance that stuff and have it all packed into the program?... Clean as possible. Just the car. Nothing else.

 

[mldavis2]

Nitrogen charge! LOL! Nice!

I'm less likely to move into a lease-to-buyout direction. We'll see. But yah, Nitrogen, ha! Still laughing at that one. If I do go with the lease-to-buyout direction, I'm paying all the Title, License and Reg and Dock fees in cash. Why finance that stuff and have it all packed into the program?... Clean as possible. Just the car. Nothing else.

Another way you can do it is to finance the car, get the cash discount from Kia Financing, then find a better loan rate and pay off the load with Kia Finance immediately. If you do a straight finance, you lose the cash discount but not if you can pay it off (or use the bank to pay it off). Check your state to make sure that's an option where you live.

 

[jrhodes87]

Check on the thread "Lease option to buy"... alot of great information on leasing...

haha thanks for info, I have gotten my Stinger a few months ago!

 

[MarkyMark]

Another way you can do it is to finance the car, get the cash discount from Kia Financing, then find a better loan rate and pay off the load with Kia Finance immediately. If you do a straight finance, you lose the cash discount but not if you can pay it off (or use the bank to pay it off). Check your state to make sure that's an option where you live.

Thanks for the tip!

 

[G-548050]

Question: I've heard a few people say no sunroof/moonroof is better for tall people. Is there more head room without sunroof?

Yes