New to lease buy out method, some quick advise

[Leesrt]

I'm looking at doing the lease buy out for a GT2 RWD. From what I can see with the current lease incentive, military, and conquest cash I can get $9700 off MSRP on the lease.
Just based on the Kia website the final lease amount would be $41,990 with no money down.

I would probably use the Costco program to get the MSRP lower as well so those numbers are based on MSRP.

What other things do I need to look for so that a lease buy out makes sense? What lease rate should I go for or does that mater?

 

[Rob M]

Here are some considerations:
- compare lease incentives vs. any purchase incentives that aren't applicable to a lease to determine the "preliminary benefit" of leasing
- subtract from that amount the typical Kia lease acquisition fee ($650) and buyout ($300) fee, total of $950
- find out how leases are taxed in your state and compare that amount to an outright purchase (in some states, such as TX, you will get double taxed on the entire agreed upon price of the car which will negate much of the potential benefit with the lease; subtract any additional tax burden beyond what an outright purchase would require from the "preliminary benefit" of the lease deal
- determine any additional tag, title, and registration fees that will be imposed when you become the owner of the car and have to reregister it; subtract these costs from the "preliminary benefit"
- find out whether you can pay the lease off directly through Kia or whether you are required to go to a dealership in your state to handle the transaction, keeping in mind that the latter may require you to pay significant additional dealer processing fees; subtract any such dealer fees from the "preliminary benefit"
- the money factor (lease interest rate) is not particularly important if you buyout the lease immediately since you would only be paying interest on 1 or 2 payments (make sure to subtract this interest from the "preliminary benefit"); if keeping the vehicle for the term of the lease the, money factor is critical
- if the final result reflects a substantial $ savings with the lease, then it should be considered; for a small difference (IMHO ~$2K or less) it is probably not worth the trouble