Lease vs Finance Discussion

[redgt]

And yes WA taxes suck but hey at least we don't have state income tax... :/

you got me on this one...

 

[iclicku]

So let me rephrase a couple things.
This scenario I am talking about ONLY applies:
-if you have taken advantage of the lease rebate.
-have negotiated a good sales price
-intend to outright own the car.
-do not account for payment structure and focus on total cost for a 5 year term.

I also want to point out that leases are not intended to save people money. I can appreciate @MarkyMark 's opinion and why he thinks that way. However, if you work the numbers right...they can work...

I think...LOL

 

[redgt]

haven't seen your contract but with the numbers given it's a good deal. look at this as a cash buyer

zero drive off, 24472.80 total lease payments, 27287 residual * 1.1 = 30015.70 lease buyout with tax = total OTD cash price of 54488.50

a cash buyer would have to pay 49533*1.1 = 54486.30 to match

and that doesn't take into account having use of $$$ before payments and eventual buyout

 

[iclicku]

haven't seen your contract but with the numbers given it's a good deal.

I previously uploaded a picture of my contract in "what did you pay" thread. I'll throw it up here as well.

Leasing can work for some people if done smartly.

 

[redgt]

damn. nice work.

funny i had not seen that contract and i calculated 49533 would have to be the cash price to match and it boom it's on the doc

never thought I'd say this ... leases can work and this is a good lease

 

[Marco Moran]

your stinger is a GT2 AWD, what is the MSRP and the lease Cash was $6800 making your net price?

 

[iclicku]

MSRP $52,475
Sale price $49,533.99
Gross cap cost $51,175.26 (includes all fees excluding tax)
The rest of the info you're asking for is in the attachments...

Btw I finally set up my KMFUSA account to set up my payment account. I was curious as to what my buy out would be at this time. It comes to $48493.64 which includes all applicable taxes.

So I've only made one payment ($680) + the buy out and my total would be $49,173.64 out the door.

$49,173.64 OTD. So leases can work.

 

[Kia Stinger]

$49,173.64 out the door

At a time when people are being asked to pay $5k to $10k for the Stinger, you got a great deal... Congratulations...

 

[iclicku]

My hope is that my experience can be reproduced so that many others can enjoy this car!

 

[redgt]

MSRP $52,475
Sale price $49,533.99
Gross cap cost $51,175.26 (includes all fees excluding tax)
The rest of the info you're asking for is in the attachments...

Btw I finally set up my KMFUSA account to set up my payment account. I was curious as to what my buy out would be at this time. It comes to $48493.64 which includes all applicable taxes.

So I've only made one payment ($680) + the buy out and my total would be $49,173.64 out the door.

$49,173.64 OTD. So leases can work.
View attachment 1953

you would have to pay local sales tax on the 48493.64

OTD prices include all taxes, doc fees and registration fees

 

[redgt]

sales tax is only collected on payment by payment in leases and then on the full residual amount should lessee choose to purchase

in a traditional purchase the entire sales tax is collected and added to contract. a buyout of loan here would not require any more sales tax

 

[iclicku]

Right I missed that. Thanks.

 

[Marco Moran]

I am in southern CA orange/irvine/san diego
I have asked a few dealers to match this deal on their stock GT2 AWD and so far all of them are playing hardball.

 

[Freelancer]

Am I the only person reading this that pays ZERO attention to the residual value on a buy back? (because I would NEVER buy a car back at that price)

You want the HIGHEST RV at the time of purchase, your leasing less money that way, and the LOWEST factor number (interest %). Then you want the VALUE of the car to fall through the fall in 24-36 months. If your want to purchase the car you NEGOTIATE the buy back with the dealership for substantially less money than the original RV. Make every effort to find someone that works in the industry

The only time you ever buy a vehicle at the end of your lease is when its worth more money than the RV, which is NEVER, or close enough to call it never.

There are soooo many leasing options out there that are never explained to the buyer. Pick your length of lease. 24month, awesome. New car your seriously thing about hits in 31 month, then do a 31 month lease. Cadillac used to offer a prepaid leasing option and gave back 2 months of payments if you paid everything up front. Not sure if anyone is doing that any longer, but you can always ask the finance guy, which a lot of them just will not bother helping you get the best deal or even give you a straight answer.

Cover your asses and make sure you research everything, compare multiple dealerships against one another.

I personally will not pay over dealer invoice for any car, ever. I always hand them my business card with a note on the back that says what I am looking for and the price I am willing to pay. I then tell them if they ever want to sell a car that day in under an hour to call me. I've done that with 3 dealers for the Stinger, my guess is I will not be hearing from any of them for at least the next 6 months as they were all selling the Stinger at 5k above MSPR.

-cheers

 

[Kia Stinger]

I always hand them my business card with a note on the back that says what I am looking for and the price I am willing to pay. I then tell them if they ever want to sell a car that day in under an hour to call me.

That's awesome! I think I'll try this. I'm just going to change the "hour" to "five minutes"...

 

[MarkyMark]

That's awesome! I think I'll try this. I'm just going to change the "hour" to "five minutes"...

If you intend to close on a car in a given month, this isn't a bad approach. However, 2 months go by and there is now an additional $1000 Factory to consumer rebate, and $1000 factory to dealer incentive to play with also... The dealer says "we can do that" but now you'd be leaving money on the table with your target figure... Then what?... "Oh, I want lower now?" Dealers don't take to kindly to that. You are expected to keep your word, they are expected to play games...

 

[Kia Stinger]

If you intend to close on a car in a given month, this isn't a bad approach. However, 2 months go by and there is now an additional $1000 Factory to consumer rebate, and $1000 factory to dealer incentive to play with also... The dealer says "we can do that" but now you'd be leaving money on the table with your target figure... Then what?... "Oh, I want lower now?" Dealers don't take to kindly to that. You are expected to keep your word, they are expected to play games...

I hear ya. Maybe when all was said and done, I'd ask for a little something that may not add up entirely to whatever the new rebate or promotion is - but something. If I set a price I'm happy with - I'd probably be pretty happy with it even if other people were getting a better deal. I got my 2016 V6 Accord Touring fully loaded out the door for $33k. That's a great deal but it was very easy so I'm sure there was even a better deal to be had - but I was happy with it.

 

[MarkyMark]

I hear ya. Maybe when all was said and done, I'd ask for a little something that may not add up entirely to whatever the new rebate or promotion is - but something. If I set a price I'm happy with - I'd probably be pretty happy with it even if other people were getting a better deal. I got my 2016 V6 Accord Touring fully loaded out the door for $33k. That's a great deal but it was very easy so I'm sure there was even a better deal to be had - but I was happy with it.

Did you lease it or purchase it - the Accord?

 

[CoconutRob]

Here is some math to consider...

The total amount of payments for my lease is $679.80 x 36 which is $24,472.80

My residual is $27,287 which I can choose to finance at the end of the lease. With tax it will come to $29,789. Let's say hypothetically my rate is 2.84 and I choose to pay it off in 24 mo. The total of my payments would be $30,678.

Now with the $24,472.80 from my lease payments plus $30,678 I have to pay to own it we come to a grand total of $55,150 over 5 years.

If I were to originally finance the car for 5 years at MSRP at the same rate (2.84) I would be paying $62k (52k msrp + 10% tax + finance)
for the car total.

Here's some math for you. I plan on purchasing for MSRP or below at 0% for 60 months. For a grand total of MSRP or less

 

[CoconutRob]

Oh I forgot and I will be putting some cash down