Lease then Buyout - Contract Explanation

[stasek]

Thanks Stasek! I just did a search on semi-local inventory near me. Hypothetically, are you saying this would be the outcome?:

2019 Stinger GT with MSRP of $42,500 at a dealership about 60 miles away from me.

What I do: Get a lease on this car for 24 months using Kia's financing
Math:
+42,500 msrp
-4,000 bonus cash / negotiation
-7,520 24 month lease incentive
= $30,980 before taxes, fees, etc
then after the dust settles after a week or so, I go to my credit union to buyout the car loan.

So considering a comparison between my current plan vs this plan it would be:

Buy Scenario (current):
2018 GT RWD with 22,600 miles on it for $28,000 selling price / $30,010 out the door

Lease & Buyout Scenario:
2019 GT RWD new for $30,980 selling price / ~$34,010 out the door

Pros:
- no miles and assurance of proper break-in
- One year newer model but I don't think this matters based on what I've read about changes
- 10yr/100k mile powertrain warranty vs. just the 5yr/60k on the used scenario

Cons:
About $4k more if my math is right.

Thanks for any feedback, this is a big decision for me.

The $4k “Bonus Cash” does not stack with leases - it’s for purchases only.

To be honest, if you crunch the numbers, leasing to buy the GT is not a slam dunk over regular purchase. The 24 month lease rebate on the GT is only $7520 (is it really that?), as opposed to 12,200 on the GT2. If you add the acquisition and buyout fee, you’re only netting ~$6500.
As I mentioned (in this thread or another?), around Chicago, Kia is throwing $3k dealer cash on top of the $4k retail cash, for a total of $7k. Say you add another $4k off through negotiations, and you can get $11k off MSRP, coming out ahead of the lease to buy numbers.

 

[General_Vodka]

I was trying to find a way that the math will add up in my favor. It didn't, so I went and bought a smashed GT2. So far the math is adding up in my favor. Good luck with all of you that brave the dealerships, I don't like to play their games.

 

[livingSmoke]

Thanks, Stasek I think I get it now. So it's pretty much I stick with the used one for $28,000 or attempt to get a new one for $11k off MSRP (42k - 11k = 31k). So 3 grand more for new if I can get the dealer to move $4k on top of the incentives. I think that is worth trying for.

And what's the worst that could happen..it doesn't work out and then I just get the 2018 GT with 22k miles on it for $28,000 / $30,000 OTD. That's not too bad right?

 

[2Slo4u]

Thanks, Stasek I think I get it now. So it's pretty much I stick with the used one for $28,000 or attempt to get a new one for $11k off MSRP (42k - 11k = 31k). So 3 grand more for new if I can get the dealer to move $4k on top of the incentives. I think that is worth trying for.

And what's the worst that could happen..it doesn't work out and then I just get the 2018 GT with 22k miles on it for $28,000 / $30,000 OTD. That's not too bad right?

try to get them to commit to a discount off msrp first. If they start talking about the cash back incentives first, then they are positioning you to pay msrp and you’ll lose the high ground.

 

[BigBallin]

I’m doing this currently. Buying a new 2020 gt2 for 41000 lease. To buy they where at 45000. Believe the lease buyout is still the way to go

 

[Lynix]

Need some quick help, Im finally about to take the plunge and do a lease buyout on a 2019 gt2 awd. My question is on GAP insurance, my dealer says KIA requires it for all leases and if this is true does it affect the adjusted cap cost? The gap is an additional $1000 and I dont know if that is included in the adj cap or if i have to pay that additionally or is it spread over payments on the lease and since i will be doing a buyout immediately it wont really matter as i wont be making the payments.

 

[stasek]

Need some quick help, Im finally about to take the plunge and do a lease buyout on a 2019 gt2 awd. My question is on GAP insurance, my dealer says KIA requires it for all leases and if this is true does it affect the adjusted cap cost? The gap is an additional $1000 and I dont know if that is included in the adj cap or if i have to pay that additionally or is it spread over payments on the lease and since i will be doing a buyout immediately it wont really matter as i wont be making the payments.

The dealer is full of you-know-what . KMF includes gap insurance in all their leases.

 

[puzzling1]

Call your insurance agent for a quote on the gap insurance. I purchased the gap for only ten dollars a month.

I was told by my dealer that Kia included it in all leases (in Calif). But I couldn't find it mentioned in any of the lease paperwork; so I went ahead and added the gap to my policy.

 

[Lynix]

The dealer is full of you-know-what . KMF includes gap insurance in all their leases.

Thank you I appreciate the help

 

[BigBallin]

So I did my lease today. To buy out do I just go to the Kia website? Got a 2020gt2 for 42000 otd

 

[namja]

So I did my lease today. To buy out do I just go to the Kia website? Got a 2020gt2 for 42000 otd

Probably gonna take longer than that. Just keep checking the KIA finance website

 

[2Slo4u]

So I did my lease today. To buy out do I just go to the Kia website? Got a 2020gt2 for 42000 otd

mine took a week to show up on kias website

 

[BigBallin]

mine took a week to show up on kias website

How do find it on the site? Contract number?

 

[namja]

How do find it on the site? Contract number?

 

[Lynix]

Can someone confirm for me, I am at the dealer in Florida. They are trying to tell me that the buy off is based on the residual value + any remaining payments. I read dozens of your posts and I don’t get why these guys don’t understand it

 

[Jay B.]

@Lynix The Florida dealer is completely wrong. The dealer is just clueless. It doesn't matter what they think as long as you negotiate a great adj. cap. basis for your buyout.

 

[BigBallin]

My dealer said the same. I don’t think I negotiated the adj cap was doing the overall price of the car. Which was 40k

 

[Lynix]

Thank you guys so much, you’ve been so helpful these last couple months with researching this car! I can’t wait to drive this home.

 

[Keigz]

Can someone confirm for me, I am at the dealer in Florida. They are trying to tell me that the buy off is based on the residual value + any remaining payments. I read dozens of your posts and I don’t get why these guys don’t understand it

I am about to buy one from a dealer here in Florida this week good luck!!!

 

[Lynix]

I am about to buy one from a dealer here in Florida this week good luck!!!

I got it but the dealer basically fought with me until and end saying that the buyout was residual + remaining payments. Honestly if it wasn’t for the deal they gave me and the low stock of 19s I wouldn’t have gone with them, the car was in horrible condition when I showed up, they had to run my credit twice because when I initially sent it to them they lost it. I’m pretty sure they filled my tank with 87 oct. Overall horrible experience but I got the car and the deal so it was worth. Definitely won’t be going back though