Looking to Buy 2019 GT2 - Any advice appreciated

[nadal43]

Hello everyone, I've been lurking here for a while and finally believe I found a price I'd like for a new 2019 GT2.
I'm wondering if this breakdown seems correct to you guys and whether you'd recommend financing or doing a lease to buy option for a better discount. The breakdown from their website is:

MSRP: $51,345
Dealer Discount: $3,985 (can try to haggle for more?)
Customer Cash: $5,000
KMF Bonus Cash: $4,000
Lease Cash incentive according to Autobytel for my zip: $12,120

Now if I believe I understand this correctly, the Dealer Discount is separate from the others and the Customer Cash and KMF can be combined for an additional $9,000 if I finance. This would bring it to
51,345-3985-5000-4000=$38,360 before taxes.

However, if I go the lease route then the 24 month option gives me $12,120 cash back. I've read this can only be combined with a Dealer Discount. So
51,345-3985-12,120=$35,240 before taxes

My questions are:
1. Am I correct in assuming these figures? Or will the dealer try to lower their dealer discount if I try to lease instead of finance?

2. I've read that if you later buyout your lease you might have to pay taxes twice or other fees, etc. Is leasing to buy still the more obvious deal even with all of this? This is all in CA btw.

3. Do you guys recommend adding the service package from Kia after you settle on a price? If so, what are some of the lowest prices you've experienced when trying to haggle this.

4. I have a Mazda3 GT that I could use as a trade in. It's KBB trade in value is around $12,000, and private party ~$16,000. Should I bring this up during negotiations, or try to wait until a price and route is decided on and then see what they would offer me?

Any information from you guys would help me tremendously and I really hope to join the Stinger fam soon. Thanks again!

 

[Sabs]

Lotta questions! I'll try to help out.

1) Dealer discounts are certainly separate from cash rebates. When attempting to combine two cash back offers, you should check with the dealer to see if they can do it.

2) I don't live in CA but I believe you'll just pay tax on the full buyout amount (not double tax like TX and some states). This document seems to back that up but you should confirm with the DMV. As for which is the more obvious better deal - yes, immediate lease buyouts will save you more money than either financing or paying cash. There's a $300 lease acquisition fee you'd need to pay at the time of buyout, but that's it for extra fees.

3) I don't know much about service plans, but I would buy it separately from the vehicle purchase as long as the dealership allows. They probably have fixed prices, so anything you negotiate off a service plan will just raise what you pay for the car.

4) If you're doing a lease buyout, you won't want to trade in toward the lease. You shouldn't put any money down on the lease, and that included trade-ins. Reason being, if you total the new car before the lease buyout goes through, you're out your trade-in amount.
If you want to finance, be upfront about your trade-in. They don't like it when you try to be sneaky and hide important details. The dealer needs to make their profit regardless... if they give you a good price on the Stinger and you later mention the trade, they likely won't give you a great offer on your trade-in.
Personally, I went the lease buyout route. I got quotes on my old car from CarMax, Carvana, and Vroom. I asked the dealer if they could do slightly better, and they did. I got paid with a check for the old car and it was handled as a separate transaction.
If you're willing to sell your Mazda3 private party, you'll easily get the most money that way. It comes down to whether you have the time and patience for a private party sale.

Now, the dealer discount - that's a bit under 8% off MSRP which would be pretty good for a 2020 but not so much on a 2019. I would aim for 10% off. If negotiating on cash/finance, only deal with the OTD price (total after taxes and all fees). If negotiating a lease buyout, familiarize yourself with lease sheets and the terminology. You'll want to negotiate on the net cap cost.
Many dealers will advertise a good dealer discount but tack on high fees for VIN etching, nitrogen in the tires, and other accessories that are nearly pure profit for them. Skip all that back-and-forth by negotiating the final price.

 

[2Slo4u]

On a lease you'll also need to add back in an Acquisition Fee of $650 and some sort of Documentation Fee. You'll also need to consider the buyout fee of $300 which will be on the back end when you buyout the lease.

 

[Sabs]

Good catch - there is also the lease acquisition fee, so in total $950 in extra fees on a lease buyout.

 

[NIU_Huskies]

MSRP: $51,345
Dealer Discount: $3,985 (can try to haggle for more?)
Customer Cash: $5,000
KMF Bonus Cash: $4,000
Lease Cash incentive according to Autobytel for my zip: $12,120

Definitely negotiate a minimum of 10% off MSRP for dealer discount. 2019s are old now and that car has been sitting on their lot for likely a year or so now. 2020s have been out for 6 months. I would shoot for invoice price, no one is buying new cars right now and that car is old. I'm surprised there are even 2019s still on lots.

Despite what a dealer tells you, they still make a profit even selling at invoice. Manufacturers give dealers money for every car they sell and offer incentives to move vehicles off the lots. They also make money off financing, extended warranties, pre-paid service contracts, vehicle trade-ins, etc.

 

[nadal43]

Thank you so much for this written out response, this helps me immensely. Currently in negotiations to get that discount to at least 9%.

Just to clarify that I understood everything correctly, you did indeed trade in your vehicle but as a completely separate transaction from the new lease? I probably won’t even bring it up until this is all over then.

I’m completely sure I’m going the lease buyout route now. I’ve never done this before so I’ll do some research on Net Cap like you said, I really don’t want to get screwed over. What do you think would be a fair price added on for Vin etching, accessories, etc? Or a final negotiated price after all of that. Really want to be able to go into the dealership prepared.

There’s no way they can put in some small print that prevents me from purchasing the car early right? I would want to purchase it as soon as possible.

thanks again for your help!

 

[nadal43]

Lotta questions! I'll try to help out.

1) Dealer discounts are certainly separate from cash rebates. When attempting to combine two cash back offers, you should check with the dealer to see if they can do it.

2) I don't live in CA but I believe you'll just pay tax on the full buyout amount (not double tax like TX and some states). seems to back that up but you should confirm with the DMV. As for which is the more obvious better deal - yes, immediate lease buyouts will save you more money than either financing or paying cash. There's a $300 lease acquisition fee you'd need to pay at the time of buyout, but that's it for extra fees.

3) I don't know much about service plans, but I would buy it separately from the vehicle purchase as long as the dealership allows. They probably have fixed prices, so anything you negotiate off a service plan will just raise what you pay for the car.

4) If you're doing a lease buyout, you won't want to trade in toward the lease. You shouldn't put any money down on the lease, and that included trade-ins. Reason being, if you total the new car before the lease buyout goes through, you're out your trade-in amount.
If you want to finance, be upfront about your trade-in. They don't like it when you try to be sneaky and hide important details. The dealer needs to make their profit regardless... if they give you a good price on the Stinger and you later mention the trade, they likely won't give you a great offer on your trade-in.
Personally, I went the lease buyout route. I got quotes on my old car from CarMax, Carvana, and Vroom. I asked the dealer if they could do slightly better, and they did. I got paid with a check for the old car and it was handled as a separate transaction.
If you're willing to sell your Mazda3 private party, you'll easily get the most money that way. It comes down to whether you have the time and patience for a private party sale.

Now, the dealer discount - that's a bit under 8% off MSRP which would be pretty good for a 2020 but not so much on a 2019. I would aim for 10% off. If negotiating on cash/finance, only deal with the OTD price (total after taxes and all fees). If negotiating a lease buyout, familiarize yourself with lease sheets and the terminology. You'll want to negotiate on the net cap cost.
Many dealers will advertise a good dealer discount but tack on high fees for VIN etching, nitrogen in the tires, and other accessories that are nearly pure profit for them. Skip all that back-and-forth by negotiating the final price.

Thank you so much for this written out response, this helps me immensely. Currently in negotiations to get that discount to at least 9%.


Just to clarify that I understood everything correctly, you did indeed trade in your vehicle but as a completely separate transaction from the new lease? I probably won’t even bring it up until this is all over then.


I’m completely sure I’m going the lease buyout route now. I’ve never done this before so I’ll do some research on Net Cap like you said, I really don’t want to get screwed over. What do you think would be a fair price added on for Vin etching, accessories, etc? Or a final negotiated price after all of that. Really want to be able to go into the dealership prepared.


There’s no way they can put in some small print that prevents me from purchasing the car early right? I would want to purchase it as soon as possible.


thanks again for your help!

 

[Sabs]

I sold my vehicle to the dealership as a separate transaction, so not technically a trade in.

I was able to get a net cap cost of $38,400 with $10,500 in lease incentives available at the time. It was an aggressive deal at the time, but with the higher lease incentives now you should be able to do even better. I'd aim for a net cap cost of $37,500, or even $37,000 if you're prepared to haggle and shop around some more.

Nothing the dealership does will prevent you from buying out the lease. The lease is handled through Kia Motors Finance, as is the buyout. The dealership is simply working out the deal with you - the lease sheet you'll sign off on is from KMF themselves, so all terms and conditions are direct from Kia.

 

[jd284]

I did this last Friday but with a GT1 since I couldn’t find a GT2 near me.
49180 msrp
- 3680 dealer discount
- 10420 lease cash
+1500 fees + doc
There is also first payment plus 650 in sales tax for CT
I decided to include my trade equity and add 1k down which came out to a net cap cost of 34,260. I just got my KMF Portal set up and the buyout is 36k including sales tax. Not seeing any type of buyout fee

 

[nadal43]

I sold my vehicle to the dealership as a separate transaction, so not technically a trade in.

I was able to get a net cap cost of $38,400 with $10,500 in lease incentives available at the time. It was an aggressive deal at the time, but with the higher lease incentives now you should be able to do even better. I'd aim for a net cap cost of $37,500, or even $37,000 if you're prepared to haggle and shop around some more.

Nothing the dealership does will prevent you from buying out the lease. The lease is handled through Kia Motors Finance, as is the buyout. The dealership is simply working out the deal with you - the lease sheet you'll sign off on is from KMF themselves, so all terms and conditions are direct from Kia.

Got it, I’ll shoot for one of those two numbers then. Was your net cap of $38,400 including taxes? So basically an out the door price? Or was that just the price including fees?

 

[Sabs]

Got it, I’ll shoot for one of those two numbers then. Was your net cap of $38,400 including taxes? So basically an out the door price? Or was that just the price including fees?

net cap is basically all fees except lease buyout fees and taxes.

 

[nadal43]

I did this last Friday but with a GT1 since I couldn’t find a GT2 near me.
49180 msrp
- 3680 dealer discount
- 10420 lease cash
+1500 fees + doc
There is also first payment plus 650 in sales tax for CT
I decided to include my trade equity and add 1k down which came out to a net cap cost of 34,260. I just got my KMF Portal set up and the buyout is 36k including sales tax. Not seeing any type of buyout fee

Awesome thanks for the info! So before first payment and sales tax you were at $36,580. I’m guessing with first payment and sales tax it brought you to $37,580ish? Then subtracting 1k down and trade in, it brought you down ~$3,300 to $34,260?

Is there double tax in CT bringing you back to $36k to buy out? And do you know if that “first payment” you made goes toward lowering the final value of the what you buyout the lease at?

Sorry, just trying to figure out all the details before I go in. Thanks again!

 

[Lonz]

On a lease you'll also need to add back in an Acquisition Fee of $650 and some sort of Documentation Fee. You'll also need to consider the buyout fee of $300 which will be on the back end when you buyout the lease.

If you do the buy-out directly via Kia Financing, and do not "ground" the lease with the dealership, you do not have to pay the $300 fee. The $300 fee is something that the dealership charges for "handling" the buy-out for you. I recommend just paying Kia Financing directly. I did this back in November of 2019. It was a very easy process. Best part: No buy-out fee .

 

[Lonz]

Definitely negotiate a minimum of 10% off MSRP for dealer discount.

Agreed! For a 2019, you need at least 10% off of MSRP, before all rebates are applied. In fact, since it's a 2019, I would argue that you need to be somewhere around 12%-14% off of MSRP, and 10% off of MSRP for a 2020.

 

[jd284]

Agreed! For a 2019, you need at least 10% off of MSRP, before all rebates are applied. In fact, since it's a 2019, I would argue that you need to be somewhere around 12%-14% off of MSRP, and 10% off of MSRP for a 2020.

Props to you if you can negotiate this. After just going through this process that seems overly aggressive. That is significantly below invoice. If you can get 8% you’re good

 

[jd284]

Awesome thanks for the info! So before first payment and sales tax you were at $36,580. I’m guessing with first payment and sales tax it brought you to $37,580ish? Then subtracting 1k down and trade in, it brought you down ~$3,300 to $34,260?

Is there double tax in CT bringing you back to $36k to buy out? And do you know if that “first payment” you made goes toward lowering the final value of the what you buyout the lease at?

Sorry, just trying to figure out all the details before I go in. Thanks again!

here you go I attached so you can see. The 653 is the upfront sales tax in CT. The $116 a month service charge is what the money factor comes out to be at a monthly cost. Many have claimed “I paid lower for a gt2” but when I ask about the numbers, they never turn up. I think I got a great deal.

 

[jd284]

Also to note I looked at a 19 GT2 as well - was able to get a 4700 discount before rebates. They would not budge on that. Deal fell through because they were shady. All dealers I talked to in MA/CT/RI held their ground pretty well and would not go beyond 7-8%

 

[nadal43]

If you do the buy-out directly via Kia Financing, and do not "ground" the lease with the dealership, you do not have to pay the $300 fee. The $300 fee is something that the dealership charges for "handling" the buy-out for you. I recommend just paying Kia Financing directly. I did this back in November of 2019. It was a very easy process. Best part: No buy-out fee .

how would I go about doing this? Talk about this with the dealer?

Or when I do the buyout just do it online on the Kia Financing website so that I don’t have anything to do with the dealership anymore?

 

[nadal43]

here you go I attached so you can see. The 653 is the upfront sales tax in CT. The $116 a month service charge is what the money factor comes out to be at a monthly cost. Many have claimed “I paid lower for a gt2” but when I ask about the numbers, they never turn up. I think I got a great deal.

thanks for this, yeah I got the same discount offer you did for the GT2, but they’re not budging further. Going to continue to try for more, but 12-14% seems highly unlikely

 

[jd284]

how would I go about doing this? Talk about this with the dealer?

Or when I do the buyout just do it online on the Kia Financing website so that I don’t have anything to do with the dealership anymore?

yeah 7-10 days after you sign the lease you’ll get an email with the link to the portal. You just need your vin to sign up. Once logged in there is an area to see a buyout quote and it includes the mailing address for the check. Your bank will need at least the the lease contract and this address.