Lease or buy?

[Alejandro A Aguirre]

Hello

The firts image is a lease from Stevens creek kia in San Jose ca. I feel like I'm over paying 200 a month to lease this car. Gt2 stinger full loaded. My monthly is $840. The residual is 26k after done 3 years lease.

I think I'm Paying like I'm buying this car instead lease . I already signed all the paper work but I haven't being approved yet . I'm feeling like backing up of this deal.

Thank you

 

[Chris]

Unless your credit sucks or you are rolling in a balance from another car you are getting screwed at 840 a month for a lease.

 

[iclicku]

I agree with Chris. Given the numbers provided, I'm getting a $753 monthly payment via leasehackr.com calculator. Unless they are rolling in negative equity the number they gave you is $100 off.

 

[Alejandro A Aguirre]

My credit is 818 and no negative balance from other cars no down payment at all.

 

[iclicku]

Then I would walk away from that. See what other dealers are offering.

 

[Waynerm002]

Here is what I got from the photos you posted. As listed on the deal sheet, their selling price is different than what you are showing from KIA's site, $52,905 is with AWD and some options (trunk mat, wheel lock, etc.), are you getting AWD or RWD as the images priced up a RWD on KIA site but dealer sheet is listing info for an AWD version. Selling price is $52,255, you got a $550 discount, lease cash is listed as $7,200 subtract that and you should have a cap cost of $45,055. Taxes should be based on that not $47,732. Unless they are rolling in some upside money (@ $2K+) from another vehicle, the math is really off. Plus the money factor is high, that equates to 5.4% interest, if your credit score is 814 as listed on the KIA site calculator, the rate should be better than that, it's higher than others but that is higher for someone with that score.

If you can get a better discount on the car, $500 off MSRP is nothing in this day and age on any car, $5000 would sure be a great deal but they should be able to do $3k. Drop in the lease cash (which should be $6500 if you are getting RWD, $7200 is with AWD) then that number is your Cap Cost. With numbers like that you might as well purchase the car.

 

[Alejandro A Aguirre]

The car is AWD I'm definitely feeling like purchasing a car instead instead lease.

Now I'm wondering if I can just back off of the deal . ( i already sign paperwork ) but I haven't being approved yet. Today they will give me an answer

 

[Mach_Tuck]

Not sure the options is you've already signed the contract. Unless there is some "back out" provision therein. I suppose you could try and freeze your credit so that they could not approve your.

Or, you may be better off to secure outside financing and the buy out the lease after the first payment. With 800+ credit you should be able to secure a loan in the 2-3% range is my guess. This would mitigate that MF.

 

[Waynerm002]

Sounds like you took delivery of the vehicle already, I would go back and argue the numbers don't add up and have it changed. This is one reason to get numbers from multiple dealers and use a lease site to check the numbers.

 

[redgt]

payment on doc you provided says 752.40 plus sales tax 69.60 = 822

still 100 over kia's calculator but their 645 does not include sales tax

 

[jwhollan]

A few things that are causing this inflated rate that you absolutely should challenge:

- Kia's standard acquisition fee is $595, the $650 they have listed is inflation for extra profit. (they are allowed to charge whatever they want here, but you don't have to let them...)

- Kia's tier 1 Money Factor rate during this month's lease deal is .00198. The .00225 is inflated for profit (Kia allows for up to .00040 inflation by the dealers to pocket, but again you don't have to let them)

- What's with the $639.75 dealer fees? I would absolutely make them waive that. Doc. fees and acquisition fees are standard fees, but this dealer fee is a BS fee to add more to their pockets.

This dealer is penny pinching here to hide as much profit as they can into numbers that they hope you don't understand. Go in armed with what the numbers are supposed to be, per Kia themselves, and they won't have much of an argument against it. Dont just go in saying "this seems high, i think something might be off". Go in with actual numbers.

Edit: I entered all of the numbers the way the SHOULD be into leasehackr calculator and got around $714/mo. I estimated license/reg fees, and also assumed you do not live in VA, GA, NY, NJ or MN. You'd need to adjust the way tax is calculated if you live in any of those states. here's the link:

leasehackr.com/calculator?make=Kia&msrp=52255.05&sales_price=52255.05&months=36&mf=.00198&dp=0&doc_fee=80&acq_fee=595&taxed_inc=7200&untaxed_inc=0&rebate=0&resP=51&reg_fee=200&sales_tax=9.25&memo=&acqFee_check=true&monthlyTax_radio=true&miles=12000&msd=0

 

[Kia Stinger]

I suppose you could try and freeze your credit so that they could not approve you

This might be your only line of defense right now if you want to back out... Welcome to the community, @Alejandro A Aguirre...

 

[Alejandro A Aguirre]

I want to thank every one of you guys for your support and guidance in this matter I'm doing my best to fix the numbers and if you are won't be able at probably going to have to run in definitely by the lease so I will guys keep you updated let's see how that's going to be today thank you thank you thank you so much

 

[Alejandro A Aguirre]

I'm sorry I was voice testing ...talking to the phone what I'm saying is that I will definitely get off of this deal trying to freeze my credit if i cant I will fight the numbers worst case scenario I will buying the lease ...so I will make a loan and purchased the car with another bank after the firts lease payment

 

[Kia Stinger]

I'm sorry I was voice testing ...talking to the phone what I'm saying is that I will definitely get off of this deal trying to freeze my credit if i cant I will fight the numbers worst case scenario I will buying the lease ...so I will make a loan and purchased the car with another bank after the firts lease payment

Keep us posted. We hope this works out for you...

 

[max2382]

Hi, thank you for the forum, useful and amazing. I would like to get your opinions about the lease deal I recently signed for a GT2 in California. So I got a 36 months deal, with 20k miles per year, $5k at signing (that includes fees, tax, reg, first payment and all the other stuff), $6200 rebate for $670 each month (35 payments tax included). Now, I am sure is not the best deal and that the Stinger do not lease well, but I think it is not too bad considering the 20k miles per year. I posted this also on leasehackr and I have been repeatedly told how bad it is, how I could have gotten Audis, BMWs and Mercs for way less (even 2 Giulias was suggested). Whats your opinion?

 

[iclicku]

I'm not familiar what the rates are at 20k miles but even at 15k you should be around the $700 mark with zero down including taxes. So I think there is a lot of room for improvement in your deal. Just my humble opinion.

I.e. I got mine at 36 mo @ 680 with zero down including taxes for GT2 AWD. This was in Dec 2017 too.

Edit. I saw you already signed. If so then it's really not a good idea to ask how good a deal you got after the fact. Will only lead to heartache. If you're happy with your car and payment then let it be. Just make sure you do some more research the next time you lease.

 

[max2382]

Yea you're right, can't do much now. I will just enjoy it. Just out of curiosity how many miles for your deal? and which state?
Thank you

 

[iclicku]

Yea you're right, can't do much now. I will just enjoy it. Just out of curiosity how many miles for your deal? and which state?
Thank you

WA state 10.3% tax and 12k miles. I ended up purchasing right after signing to take advantage of the lease cash.

 

[max2382]

WA state 10.3% tax and 12k miles. I ended up purchasing right after signing to take advantage of the lease cash.

Thank you.