Lease then Buyout - Contract Explanation

[MerlintheMad]

Price (MSRP) - Dealer Discount - lease cash + fees + taxes = final price

Hope this helps.

It does and did. I read through this entire thread back when I was trying to decide whether or not to buyout the lease. It was the $40,954.79 buyout quote, plus avoiding 33 more months of "monthly rent charge" and "monthly use tax", that decided me. It didn't look like the $5,900 rebate was impacting anything much if at all: those monthly added on costs "for the privilege of leasing" (heh!) were going to use up all of it and then some by lease end. The original MSRP for a GT1 AWD of c. $45.5K was now, after two months of "ownership", down to just under $41K, and I knew that included all taxes and fees. So, I sent the cheque. Glad I did.

 

[RockTrooper]

So, I am looking to purchase a Stinger with out taking out a loan. Paying Cash. Based on what I am seeing above, seems that I would be better to follow your steps. The MSRP is $52,535 for a GT2 AWD. I have not started negotiations but I am 100% going to buy the car. There is 3 exact cars I am looking for at 3 different dealers within my area.

My question is, do to the huge discount Kia is giving for a Lease, would I be saving allot of money by do the above versus just writing a check?

Did you end up buying and if you don't mind telling me, what price did you get? I'm thinking about buying as well. Thanks!

 

[CAPTDK]

First, I can't say thanks enough to hosting this site and thread. I am about to pull the trigger on a Stinger GT2 and I have literally read every single post regarding the Lease/Buyout plan. My head is spinning but I feel like I've learned a lot. Now a question that's probably impossible to answer, but I'm going to ask it anyway just to get some educated guesses/input. It's not completely impossible, but it's very unlikely I'll be able to do this until November. And I see the current $6900 lease credit expires at the end of October. I know we can't predict the future, but for those of you who have been following Kia's practices longer than I have, is it reasonable to assume they will most likely still offer something similar in November (I realize it could go up or down)? Or in the past has it periodically come and gone? Thanks again for all the great info and advice. Hope to join the Stinger Owner's Club soon.

 

[MerlintheMad]

@CAPTDK As I understand it, the lease credit/rebate is recalculated on a month by month basis, and nobody knows what next month's incentives are going to be. For example, in my case, mine was "only" $5,900. A month earlier it had been $7,300. And of course, after I bought, it went way up again. And it appears to be variable based on where you live? Don't know.

In any case, it appears to be more of a gimmick to get you to "pull the trigger". Most of my rebate seems to have gone toward "out the door" costs. When you add and take away, fees, taxes, registration, hidden costs, my GT1 seems to have finally sold for c. $2K under MSRP (not including the same taxes and etc.). In the first three months payments and with the final lease buyout, total cash laid out was $43,420. MSRP was $45,500. So where did the $5,900 incentive go? Meh. After taxes and etc., I got the car for a reasonable price, just not a killing. All I wanted was to drive the car, not massage my ego.

 

[CAPTDK]

So I went ahead and got the ball rolling today, in an effort to try to lock this in before the end of the month, and the dealer and I are fairly close, except for these charges that appear on the quote sheet.

Environmental Package $895 (no idea, is that like the old clearcoat/rust protection?)
Wheel Locks $119 (looks like I can buy them online for $30-$45)
Custom Strip $89 (haven't a clue what this is)
Spare Tire Kit $495 (I know I've read that the Stinger does come with a spare tire, can anyone confirm? If so, why would I need an additional kit?Especially when it looks like I can buy one online for under $300)

Thoughts?

 

[Waynerm002]

All of those items are money makers, you don't need them. The pin stripes might be already on the car but that cost is nothing like I see at other places. If you haven't gone to see the car yet, go look at the window sticker. It might already have the wheel lock in the price. You are correct in that the car already comes with a spare.

 

[GronkSoyFiesta]

@CAPTDK As I understand it, the lease credit/rebate is recalculated on a month by month basis, and nobody knows what next month's incentives are going to be. For example, in my case, mine was "only" $5,900. A month earlier it had been $7,300. And of course, after I bought, it went way up again. And it appears to be variable based on where you live? Don't know.

In any case, it appears to be more of a gimmick to get you to "pull the trigger". Most of my rebate seems to have gone toward "out the door" costs. When you add and take away, fees, taxes, registration, hidden costs, my GT1 seems to have finally sold for c. $2K under MSRP (not including the same taxes and etc.). In the first three months payments and with the final lease buyout, total cash laid out was $43,420. MSRP was $45,500. So where did the $5,900 incentive go? Meh. After taxes and etc., I got the car for a reasonable price, just not a killing. All I wanted was to drive the car, not massage my ego.

My experience was very different. I got the car for over $12k off MSRP using lease cash. More than $6k difference from straight purchase with incentives. I bought mine out immediately and only had the $300 buyout as a fee.

 

[MerlintheMad]

My experience was very different. I got the car for over $12k off MSRP using lease cash. More than $6k difference from straight purchase with incentives. I bought mine out immediately and only had the $300 buyout as a fee.

How fortunate for you. I've been driving mine since late March, so no late MY18 discounts. I know that really terrific deals have been made. My price was just average, a couple thousand savings is all. It's all good. The title does say that the Sale Price was $37,742.41; so the bulk of the difference was taxes and added on closing costs.

 

[GronkSoyFiesta]

How fortunate for you. I've been driving mine since late March, so no late MY18 discounts. I know that really terrific deals have been made. My price was just average, a couple thousand savings is all. It's all good. The title does say that the Sale Price was $37,742.41; so the bulk of the difference was taxes and added on closing costs.

Yup, but I think your point about the lease cash being a gimmick is misleading. If one does the lease buyout immediately it is anything but.

 

[MerlintheMad]

Yup, but I think your point about the lease cash being a gimmick is misleading. If one does the lease buyout immediately it is anything but.

It seems gimmicky to me. But then, car sales are just one endless round of gimmicks played to get people to buy from "us".

As already said, the only real figure to be one hundred percent sure about is the final price of the car, no matter how you arrive there. You don't sign if you don't feel good about it, period.

 

[LawnMan]

I need some help, please.
2018 Stinger GT2 AWD with remote start
MSRP $52,795
Selling Price $49,023
Fees: $397
Acq Fee $650
Gross Capitalized Cost $52,449
Residual Value $25,870
Lease Rebate $7,700
Net Cap Cost $44,748.94
Amount Paid by Customer $696
To me this seem like out the door this car will cost me $25,870 plus $696.05 X 36 = $50,928.
If I didn't do the lease, it would be $49,023.00+397+tax (4902) = $54,322
Both options seem a lot to me or is this what people are paying?

 

[MerlintheMad]

I need some help, please.
2018 Stinger GT2 AWD with remote start
MSRP $52,795
Selling Price $49,023
Fees: $397
Acq Fee $650
Gross Capitalized Cost $52,449
Residual Value $25,870
Lease Rebate $7,700
Net Cap Cost $44,748.94
Amount Paid by Customer $696
To me this seem like out the door this car will cost me $25,870 plus $696.05 X 36 = $50,928.
If I didn't do the lease, it would be $49,023.00+397+tax (4902) = $54,322
Both options seem a lot to me or is this what people are paying?

That selling price isn't much off the MSRP for a MY18 selling this late in the game.

 

[LawnMan]

That is what I thought. They said this is $500 under invoice. I can't see this is a good price. I might as well get the 2019 or am I wrong?

 

[MerlintheMad]

That is what I thought. They said this is $500 under invoice. I can't see this is a good price. I might as well get the 2019 or am I wrong?

My discount was $2,995, back in March, off an MSRP of c. $45,500. I guess the dealership I bought from went in the hole, poor things. No. I don't buy "$500 under invoice" for one second.

 

[LawnMan]

For the begining of the year, that is a very good deal. My dealership wants me to come back to them with what I feel is a fair deal. I wish all these posts can be summarized with price ranges for each model. Maybe with MSRP, selling price, out the door price (tax, title fee).

 

[Waynerm002]

Might be fair for a brand new 2019 car but for a practically 1 year old car, nope. Tell them you want 10% off MSRP then the lease cash. Look at other dealers in and outside your area. Your fair price offer is, i’ll take that car you have that you need to move since it’s last year’s model or I’ll get it some place else.

 

[LawnMan]

Thank you for the guidance!

 

[CAPTDK]

Pulled the trigger today, proud new owner of a 2018 red GT2.

MSRP - $50,300
- Negotiated Sale Price - $46,829
+ Fees/Taxes/Etc. - $1663
Final Sales Price - $48,492
- Lease Cash Rebate - $6900
- First Payment - $723
Adjusted Cap/Balance Due (Actual Final Sale Price) - $41,592

Would have never considered leasing before reading everything on this site, but will now buy it outright in a month or two. Saved several thousand dollars with your help and info. Thank you!

 

[Cbr09123]

I called KMF yesterday and asked about the lease buyout process. I was told I would have to just pay the buyout amount (sent to HCA Exchange) listed online and also include the odometer reading. I was told that the dealer was no longer involved in this process and there were no additional fees, taxes, etc...

Does this sound right?

 

[Stinger Girl]

Wow, this thing is looking difficult to process. Let me try. The lease cash is taken out after any dealer discount, some don't break it down and you think the KIA rebate is all you can get but the dealer can discount the car independent of the lease cash. In this instance the dealer makes a higher profit if they don't discount the car and use only the manufacturer rebate.

The lease cash is to help soften the price of the lease however, KIA's MF (money factor) is high so you end up paying it back over the term of the lease, if you pay the lease to term. If you then choose the buyout the lease and add financing to that, the amount you end up paying can end up being more than if you did a straight finance from the beginning (especially if you didn't negotiate a great deal).

If you are doing the lease buyout, the monthly payment is not a concern, the residual is not a concern. The final price is what you want to know (minus a payment or 2, depending on ow long the buyout process takes), as that is what you are going to take to your bank/financing company to get a loan on after the deal is done. Don't get caught up in the other numbers, pay attention to them but focus on the total price. Things to know, what is the discount off MSRP, how much is the lease cash (which further reduces the price). Keep in mind that some states will tax the lease cash, so it isn't entirely free and will increase the final price. The tax man always gets his cut.

I know for some the math don't seem to add up but look at it like this:

Price (MSRP) - Dealer Discount - lease cash + fees + taxes = final price

Hope this helps.

Question - I was reading the lease details on the Kia site and it talks about a termination fee. How does this factor in to the early buy out (if at all)? Thanks