Lease then Buyout - Contract Explanation

[stingerstevo]

did you guys have your credit pulled at a bunch of these dealers when you were shopping? I'm starting to have them ask me to fill out a credit application.

 

[stingerstevo]

Take 0.9*MSRP, subtract lease cash (check Edmunds or Autobytel), add acq fee and any misc.

and then just to make sure when you lease the only rebates you get are the lease cash?

 

[AYip31]

did you guys have your credit pulled at a bunch of these dealers when you were shopping? I'm starting to have them ask me to fill out a credit application.

Never pull credit, until your ready to sign.
you should already know your credit score before going in, or show them on your score on your phone

 

[stingerstevo]

Never pull credit, until your ready to sign.
you should already know your credit score before going in, or show them on your score on your phone

thanks you for responding. Thats what I was thinking. It was pretty high when I bought my house back in November shouldn't have changed much

 

[Nocostinger]

thanks you for responding. Thats what I was thinking. It was pretty high when I bought my house back in November shouldn't have changed much

Don't bite on the "we cant give you payments till we know your credit" bullhockey. Kia gives dealers a spreadsheet showing the money factor based on credit score. The residual is the same regardless of what your credit looks like. 720 and above is top tier leasing. If you're a 710 and the finance guy/manager actually wants to do something other than sit on their thumbs you can get a tier bump up to top tier by calling it in. Easy stuff for the right dealership.

Incentives right now are trickling off. If you're looking at lease buyout vs. long term financing, run the numbers.

Always look at:
Savings from lease incentives + buyout interest

Vs.

Interest on financing

With incentives on leases being far less, it may make more sense to take a promotional finance term if you can stomach the higher payment.
However, if you're payment sensitive, leasing is a good option to keep your payments in check. you'll pay more overall but if you're more worried about your monthly payment keep that in mind.

 

[captainstevo]

Hey guys, I've read through most of this thread and have a question for those that are very familiar with the lease buyout experience. At what point is the lease buyout not worth it? As an example, the '22's have around a 4500 lease cash on a GT2. I am thinking correct that this would be mitigated by $300 buyout fee, and also by the fact that the lease cash is taxed in most states? So assuming that here in KY you don't pay taxes twice (I'm trying to validate this), would it still be worth it if the net lease cash is around 3800? I think there might be a $1000 rebate if not leasing, so this would beat that for sure. Thanks for sharing your thoughts!

 

[AYip31]

Hey guys, I've read through most of this thread and have a question for those that are very familiar with the lease buyout experience. At what point is the lease buyout not worth it? As an example, the '22's have around a 4500 lease cash on a GT2. I am thinking correct that this would be mitigated by $300 buyout fee, and also by the fact that the lease cash is taxed in most states? So assuming that here in KY you don't pay taxes twice (I'm trying to validate this), would it still be worth it if the net lease cash is around 3800? I think there might be a $1000 rebate if not leasing, so this would beat that for sure. Thanks for sharing your thoughts!

In my opinion, just top of my head, $4,500 lease rebate is not worth it.
you would have to really crunch the numbers. Even ifs a $500 savings, too many things, out of your control can F-things up, ie KMF, DMV, title, dragging their feet’s etc. making you pay on the lease terms until the final buyout is completed.

i got a 2020 GT RWD back in Aug 2020. Lease rebate was

Hey guys, I've read through most of this thread and have a question for those that are very familiar with the lease buyout experience. At what point is the lease buyout not worth it? As an example, the '22's have around a 4500 lease cash on a GT2. I am thinking correct that this would be mitigated by $300 buyout fee, and also by the fact that the lease cash is taxed in most states? So assuming that here in KY you don't pay taxes twice (I'm trying to validate this), would it still be worth it if the net lease cash is around 3800? I think there might be a $1000 rebate if not leasing, so this would beat that for sure. Thanks for sharing your thoughts!

In my opinion, just top of my head, $4,500 lease rebate is not worth it.
you would have to really crunch the numbers. Even ifs a $500 savings, too many things, out of your control can F-things up, ie KMF, DMV, title, dragging their feet’s etc. making you pay on the lease terms until the final buyout is completed.

i got a 2020 GT RWD back in Aug 2020. Lease rebate was $7,100

in my opinion, 6K-6.5K lease rebate would be my minimum.

 

[stingerstevo]

Don't bite on the "we cant give you payments till we know your credit" bullhockey. Kia gives dealers a spreadsheet showing the money factor based on credit score. The residual is the same regardless of what your credit looks like. 720 and above is top tier leasing. If you're a 710 and the finance guy/manager actually wants to do something other than sit on their thumbs you can get a tier bump up to top tier by calling it in. Easy stuff for the right dealership.

Incentives right now are trickling off. If you're looking at lease buyout vs. long term financing, run the numbers.

Always look at:
Savings from lease incentives + buyout interest

Vs.

Interest on financing

With incentives on leases being far less, it may make more sense to take a promotional finance term if you can stomach the higher payment.
However, if you're payment sensitive, leasing is a good option to keep your payments in check. you'll pay more overall but if you're more worried about your monthly payment keep that in mind.

Thank you for the advice!

 

[fc528e]

I received $10,950 for my rebate incentive on my 2020 GT2 (on 6/30/2020), but that was right before things started to dip and get worse. I think AYip31 has the right of it, that $6k should be your target minimum.

 

[stingerstevo]

So just to clarify, What are the incentives for purchasing a 2021? You've got the 2500$ customer cash, military discount and isn't their some customer loyalty discount which I'm not sure about. Then there is also the low interest rate deal which doesn't stack with the 2500 customer cash.

 

[Nocostinger]

So just to clarify, What are the incentives for purchasing a 2021? You've got the 2500$ customer cash, military discount and isn't their some customer loyalty discount which I'm not sure about. Then there is also the low interest rate deal which doesn't stack with the 2500 customer cash.

run your own finance numbers on both scenarios. Unless you have a smokin' deal on financing outside of the dealership, the incentive isn't worth it.
If you're trying to stack things, see if your local bank or credit union will match what Kia is offering for financing.
If your local credit union will do the same promo financing as Kia, take the $2500 customer cash and enjoy the cheap financing.

That would be your best strategy there.

 

[stingerstevo]

run your own finance numbers on both scenarios. Unless you have a smokin' deal on financing outside of the dealership, the incentive isn't worth it.
If you're trying to stack things, see if your local bank or credit union will match what Kia is offering for financing.
If your local credit union will do the same promo financing as Kia, take the $2500 customer cash and enjoy the cheap financing.

That would be your best strategy there.

Thank You. Happy Friday!

 

[trooper1414]

Folks, I have been tired in the bay area. No dealer is giving me any discount, max I have been able to get is $3500 off...if i hit close to $10,000 -$12000 I will pull the trigger. What can I do to achieve this? Can someone please help or advise me.

 

[AYip31]

Folks, I have been tired in the bay area. No dealer is giving me any discount, max I have been able to get is $3500 off...if i hit close to $10,000 -$12000 I will pull the trigger. What can I do to achieve this? Can someone please help or advise me.

If you want a great deal, your only option is to wait. Overall car market is crazy stupid inflated.
also to get anywhere close to $10K-$12K off the lease rebate needs to be high too, which as of now, there are not.
In years pass, was able to get 10% or more off on dealer discount with a little bit of work.
no way getting anything close to 10% now.
If you can wait on getting a vehicle, then wait.

 

[Travis Wills]

If you want a great deal, your only option is to wait. Overall car market is crazy stupid inflated.
also to get anywhere close to $10K-$12K off the lease rebate needs to be high too, which as of now, there are not.
In years pass, was able to get 10% or more off on dealer discount with a little bit of work.
no way getting anything close to 10% now.
If you can wait on getting a vehicle, then wait.

The only exception to this are the very few 2021 cars still left on some dealers lots. They will discount those in some areas.

I had to drive 120 miles to get a nearly $10k discount but it worked a few months ago. Ironically my local dealer got the exact same 2021 Stinger in a few weeks ago and it is one of the very few cars they still have sitting on their lot.

 

[AYip31]

The only exception to this are the very few 2021 cars still left on some dealers lots. They will discount those in some areas.

I had to drive 120 miles to get a nearly $10k discount but it worked a few months ago. Ironically my local dealer got the exact same 2021 Stinger in a few weeks ago and it is one of the very few cars they still have sitting on their lot.

It depends on which trim a person gets to get close to 10k off.
using my trim as an example. GT RWD.
at current incentive, lease rebate is only $4,500 vs $7,100 back in Oct 2020 when I lease buyout my Stinger.
i got 10% off mrsp back then too.
I highly doubt at current market anyone is getting 10% off.
Let’s say able to find a 2021 GT RWD, let’s say able to get 8% off of a 41K mrsp.
so total discount on this car is $7,780.
vs my back in Oct of $13K

Vs a GT2 AWD
Current lease rebate $6,600
Not sure exactly lease rebate was back in Oct for GT2 but it was close to 9K

Also to do a lease buyout. The lease rebate needs to be big enough to be worth it for the hassle, headache, and if the off chance of anything going sideways. ie KMF F-ing you, banks, DMV,

 

[AYip31]

Folks, I have been tired in the bay area. No dealer is giving me any discount, max I have been able to get is $3500 off...if i hit close to $10,000 -$12000 I will pull the trigger. What can I do to achieve this? Can someone please help or advise me.

Which trim your looking at?

 

[trooper1414]

Which trim your looking at?

Sorry either a 2021 GT2 OR a 2022 GT2. Preferably AWD

 

[AYip31]

Sorry either a 2021 GT2 OR a 2022 GT2. Preferably AWD

if your ultimate goal is to get at least $10k off on a 2021 GT2 AWD. Your already there.
$3,500 dealer discount $6,600 lease rebate.

But if your goal is to get the good to best deal. Probably still have to wait, or try and get a better % off mrsp on dealer discount.
your only getting 6.66% off for dealer discount on your best deal

 

[trooper1414]

if your ultimate goal is to get at least $10k off on a 2021 GT2 AWD. Your already there.
$3,500 dealer discount $6,600 lease rebate.

But if your goal is to get the good to best deal. Probably still have to wait, or try and get a better % off mrsp on dealer discount.
your only getting 6.66% off for dealer discount on your best deal

The challenge is not too many 2021 out here. What's the best I can expect on a 2022