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Question about rebate/money off

Discussion in 'How to Buy a Kia Stinger' started by EBdiesel08, May 25, 2018.

  1. EBdiesel08

    EBdiesel08 United States Member

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    So I’m going on Monday to see if I can get a new stinger. Let’s see what they say.

    When I build a stinger online, check dealer inventory, and play with the (rough) monthly payments I see kmf $ off ranging from $5000-$5500 depending on the stinger model. For the gt1 it’s $5500 off.

    So this amount, is that what the dealership will offer? Or do they have a different amount off?

    Also, my local kia dealership sent an email that bc of Memorial Day sales, stingers would start to sell $1k less. Plus possibly upto $1500 off on top of current offers. So would that be $1500 on top of the $5500?
    Thanks for the help.
     
  2. Mach_Tuck

    Mach_Tuck United States Stinger Enthusiast

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    Phoenix, AZ
    The $5500 is lease cash. That should come off of whatever price you can negotiate with the dealer. So if dealer is offering 1-1.5k off for Memorial Day then you should use that to come to a final purchase price. Then say, Ill lease it, and that other amount will come off since that is a KMF to Consumer rebate.

    Then turn around and buy the lease out.

    There are multiple threads on this strategy. I recommend a thorough read before you go in and sign up for something you dont fully understand the details on.
     
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  3. Zac

    Zac United States Newish Member

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    Spot on. Check the forum or Google how a lease works. If you're not going to do a lease buyout, the deal is only so so. The $5500 is washed out by the rent charge.

    Here's a fair price/payment you should shoot for based on Kia pushing hard to sell Stingers.

    10% off MSRP plus any rebates.

    Example: If you lease a GT1 w MSRP of 48k, you should get $4800 off MSRP, plus the $5500 lease cash...plus any other Kia rebates. I don't think Kia has any other rebates, except $400 military, for a lease though. With $0 down, the lease payment should be around $550. $50 more for a GT2, or $50 less for a GT. Take more off depending on AWD vs RWD and options.

    Good luck. I have a GT1 and love it!
     
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  4. EBdiesel08

    EBdiesel08 United States Member

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    Thank you very much for the breakdown. I will definitely look more into this. But your simple example makes sense.
     
  5. EBdiesel08

    EBdiesel08 United States Member

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    Thank you! I never really thought anything other than a lease is to borrow and finance to keep. So I would assume you can’t negotiate the price of the vehicle. Only when you would finance.
     
  6. NYLAWBIZ

    NYLAWBIZ United States Active Member

    Break a car purchase into three components: price of the car; amount being paid for a trade-in, and financing. First negotiate a deal as if you are paying all cash. Get around 10% of sticker. Once that price is locked in, if you have a trade-in, get the best deal on that. When you're ready to pull the trigger, tell them you want to lease the vehicle and make sure you get the applicable lease cash taken off the cap value of the lease. About three weeks into the lease, you will be able to pay off the lease, only paying simple interest for the three week period. Then go to a credit union or other lower cost lender (or pay cash if you have it) to buy out the lease. Just make sure you get a KIA Motor Finance lease. My GT2 AWD with remote start ended up costing me around $41,000 plus tax. There are some nuances depending upon which state you live and the sales tax system there. Ask if you have any more questions.

    Best of luck, and buy the GT2 if you can do it - more lease cash and total enjoyment :).
     
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  7. EBdiesel08

    EBdiesel08 United States Member

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    Thank you. I live in nyc. But I’m going to NJ to a dealership. I’m torn between the gt1 or 2. I would be ok with gt but want the sun roof. I want to go in with a good game plan. My lease does end in November so I’m not in a rush, but I’m going in to hear what they have to offer.
     
  8. NYLAWBIZ

    NYLAWBIZ United States Active Member

    In NYS, you pay sales tax on the total monthly rental payments under the lease, plus the residual amount. So, to minimize the double taxation, structure the lease with the lowest total amount of monthly payments (since you can't change the residual amount). The way to do this is to pay as large a down payment as you can, to reduce the monthly payment amount., Of course, this makes no difference but for the sales tax savings, since you will be paying off the lease during the first month.

    If you wait until November, you will likely be buying a 2019. No indication that there will be any significant changes to the car,, as it is current the first model year but the lease cash may go away, which currently is $6,500 on a GT2.

    Buy the GT2, it is worth it. AWD if you plan to drive in the snow.

    Hardest part is choosing the color! I bought my car from Route23 KIA in NJ - Emily gave me one killer deal - GT@ with AWD, remote start, cargo liner, $47.700 less lease cash.
     
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  9. EBdiesel08

    EBdiesel08 United States Member

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    Thank you. So basically I have to go in there and get that msrp as low as possible, then put as much money down as I can?
     
  10. NYLAWBIZ

    NYLAWBIZ United States Active Member

    Yes, if you want to minimize sales tax. The cap cost of your lease will include sales tax equal to the total of your monthly payments times the sales tax rate of the municipality you will be registering the car.
    if even if payoff the lease early, you still pay sales tax on all scheduled payments, whether you make the payments or not (the signing of the lease is the "taxable event." Then, if you buyout the lease, then you pay sales tax again (a second "taxable event") on the residual value amount times the sales tax rate of the municipality you will be registering the car.
    In other words, you pay sales tax on the money factor as well as the capital cost of the car. Still, converting the lease cash into a price reduction is well worth paying the extra sales tax. And btw, although some have reported horror stories with KMF, they really aren't that bad, and its worth the effort. Based upon your image, I guess you are on the job?
     
  11. EBdiesel08

    EBdiesel08 United States Member

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    Ok sounds good. I should’ve taken that money out (8-10k), I’ll only have 3k available to me by Monday. I was thinking that you he more I put down the lower the monthly payments. I want low monthly payments and then keep the car. Yes, I am.
     
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