Lease vs Financing Stinger

[jchan_stinger]

Hi All,

I just recently joined, but have been hovering the forums for a few days now. I am very interested in getting a Stinger GT1 or GT2 depending on whichever the dealership has.

I'm currently looking for a White or Ceramic GT1 / GT2 maybe.

I was wondering what a good deal would be like (as this would be my first car purchase/lease).

Some question I have:
I heard that you shouldn't put down too much cash down on a lease? Is 2K down a reasonable amount?

Also, in terms of a good deal: what should i target with lease and with finance? ex: lease 36 months, 2k down, 450/month... etc etc?

Apologies for all the newbie questions. Thanks!

 

[Blue Ox]

The best advice I could offer would be to do your homework. There are plenty of sites that will list current lease and purchase incentives. Just because the dealer may want to suggest a specific financing option doesn't mean that's the only financing option. Have them run the numbers and compare.

I purchased a Ceramic GT1 last week. The dealer offered me a cash back financing incentive and an interest rate through Kia of 3.9%. I asked them how that compared with the 0.9% rate Kia was offering with no incentive. The result - I saved $3K in interest (same length of loan) with the lower rate. Had I not known to ask, I would have assumed the first deal was my only choice.

I would also avoid starting any lease/purchase discussion by giving the dealer a payment number up front. Know what you can afford, negotiate on the car you want, and compare your options. If the numbers work for you, great. If they don't, be prepared to walk away. Better deals may be available when the current ones expire. Your goal is to get the most car for the least amount of money. If you say, "I can pay $X/mo.", the dealer's goal will be to sell you the least car they can for the money you're offering. Don't give up your negotiating power before you start.

Best of luck to you!

 

[jchan_stinger]

The best advice I could offer would be to do your homework. There are plenty of sites that will list current lease and purchase incentives. Just because the dealer may want to suggest a specific financing option doesn't mean that's the only financing option. Have them run the numbers and compare.

I purchased a Ceramic GT1 last week. The dealer offered me a cash back financing incentive and an interest rate through Kia of 3.9%. I asked them how that compared with the 0.9% rate Kia was offering with no incentive. The result - I saved $3K in interest (same length of loan) with the lower rate. Had I not known to ask, I would have assumed the first deal was my only choice.

I would also avoid starting any lease/purchase discussion by giving the dealer a payment number up front. Know what you can afford, negotiate on the car you want, and compare your options. If the numbers work for you, great. If they don't, be prepared to walk away. Better deals may be available when the current ones expire. Your goal is to get the most car for the least amount of money. If you say, "I can pay $X/mo.", the dealer's goal will be to sell you the least car they can for the money you're offering. Don't give up your negotiating power before you start.

Best of luck to you!

Thanks for the response! Yeah, I've been doing some research online and I actually did go into a Kia store to get somewhat of a quote. The associate originally offered me 599/mo for 36mos. on 10K/yr lease but with 5K down, then the manager came to me with 365/mo for 36mos. on 10k/yr lease also with 5k down. The offer on the spot sounded great but walked out because I wanted to check other stores. That's why I got confused with the cash down for leasing.

 

[Blue Ox]

I've never leased a car, and I don't want to offer anyone financial advice, so I can't comment on the specifics of your situation. It does sound like you're approaching this with the right mindset though.

Hopefully you live in an area with multiple dealers and available cars. Competition is your friend.

 

[eflyguy]

Never negotiate based on "what payment can you afford" - you may know, but NEVER admit it!

 

[jchan_stinger]

Thanks! Definitely going to try to get the best offer possible somehow...

Hopefully I will be driving a Stinger by the end of the month!

 

[Paul32]

Thanks! Definitely going to try to get the best offer possible somehow...

Hopefully I will be driving a Stinger by the end of the month!

Just leased a GT1 with the extra package, $46k msrp. Their lease program looks better than the purchase at this time. There was a $7.5 rebate/discount ending up with a $38+ discounted price. I would not offer more than $2k down.

 

[jchan_stinger]

Just leased a GT1 with the extra package, $46k msrp. Their lease program looks better than the purchase at this time. There was a $7.5 rebate/discount ending up with a $38+ discounted price. I would not offer more than $2k down.

Oh nice! Congrats on the Stinger! Yeah, I think their lease seems to be a better offer atm. Do you mind me asking what your rates are per month?

 

[Zac]

Oh nice! Congrats on the Stinger! Yeah, I think their lease seems to be a better offer atm. Do you mind me asking what your rates are per month?

Hopefully this helps...

If you don't get close this for a lease deal, shop around.

MSRP minus 5k minus lease cash = Stinger lease price. That's about 38k for a 48.5k GT1 (48k - 5k - 5.5k = 38k).

Assuming the above scenario you should be around $560 per month including fees/tax/registration/etc and absolutely zero down. Could be a little more or less depending on your state.

Good luck, and don't cave.

 

[jchan_stinger]

Will definitely try my best...

 

[Paul32]

Oh nice! Congrats on the Stinger! Yeah, I think their lease seems to be a better offer atm. Do you mind me asking what your rates are per month?

$600.00 per month with $2k down and the first month payment. I traded in a 2017 Santa Fe Sport with $2,300 negative equity which was added to the new lease. I was only 1/2 way through the 36 month lease.

 

[trancemode]

Hopefully this helps...

If you don't get close this for a lease deal, shop around.

MSRP minus 5k minus lease cash = Stinger lease price. That's about 38k for a 48.5k GT1 (48k - 5k - 5.5k = 38k).

Assuming the above scenario you should be around $560 per month including fees/tax/registration/etc and absolutely zero down. Could be a little more or less depending on your state.

Good luck, and don't cave.

Nice! Going to be visiting a dealership this saturday for a GT2. Was that price for RWD or AWD?

 

[Damien Tech]

I've noticed that there's a culture of leasing cars in the USA but every financial expert I've ever spoken to says that leasing cars is a terrible idea. Maybe I'm missing something.

 

[trancemode]

I've noticed that there's a culture of leasing cars in the USA but every financial expert I've ever spoken to says that leasing cars is a terrible idea. Maybe I'm missing something.

Possibly resale value, this is Stinger first gen here (so don't know about reliability, cost to repair, other factors long term). Also for people on a lease if you're a business owner or self-employed you can also write it off on your taxes, get a new car every 3-5 years, and the list can go on it just varies on the person.

 

[ns8013]

I would highly suggest putting as little down as possible when leasing. You unnecessarily shift a lot of financial risk to yourself rather than the insurance company providing the GAP insurance when you put a bunch of money down. Let's say you put $5,000 down, and then get t-boned a week after picking up the car. The GAP insurance will pay off the lease, but I can just about guarantee you will get little or none of that $5,000 back, due to the immediate depreciation when driving off the lot in a new car.

Instead just keep that $5,000 in savings and use it to help with the higher monthly payments. This of course assumes you can be responsible and not spend the $5,000 on something else and then struggle with the monthly payments, don't need a "lower" monthly payment to justify the purchase to yourself even though you had to put a bunch of money down to get there, and don't mind spending a few bucks more in interest to shift that risk back to the insurance company. That amount can be negligible if there is an aggressive rate available from the leasing bank.

Just my .02, good luck with your purchase!