Shopping for a 2021 GT2

[Lazarus.Bird]

Hey guys,

Just registered here. Got a new job where I'm losing my fleet vehicle so I need a new car. As a previous BMW 335i GT owner, the Stinger has me all hot and bothered, and we love my wife's Telluride SX Prestige. Kia killing it lately.

I normally buy my cars a couple years used, but up in Western PA I'm having a very hard time finding anything (and I'd like to go at least 2019 to get the surround view, love that in our Telluride).

There are a couple dealerships in VA selling 2021s for well under MSRP. We basically paid MSRP for the new Telluride but that was the market value. No idea what I should really be expecting with the Stinger? I wasn't originally considering going new but found what I think is some good pricing (cheaper brand new 2021 compared to a 2020 with 7k miles I found in PA).

Here's pricing I got for a 2021 GT2 AWD:
MSRP $54,275
Rebate $2,500
Dealer Discount $6,732
End Price $45,043

Destination $1,500
Processing $899
State Taxes $3,061.10
Est Tag Fee $295.60
Balance $50,493.70

I've read on here that at least 10% off MSRP is a pretty good deal, which I think this meets with the dealer taking $6732 off. Is this a great deal? Am I missing something? Sorry for any dumb questions, not very experienced buying new.

Dealer also claimed I need to finance with them to get the Kia $2500 rebate which didn't seem to make sense to me. I thought it should be the option of the 0% APR or the $2500 cash back and if I went with the $2500 cash back I would finance through my credit union for a low rate. Is what the dealer telling me correct?

Thanks in advance for any help.

 

[Sunseeker]

I would go used...as in demo. One example would be a 2020 GT1 with just under 500 miles for 38k. The price should be negotiable since we are approaching 2021 but would have to add in taxes, etc. Probably won't have the same color choices. You would save money but only lose out on diff between GT1 and GT2. Either way, you win with the Stinger.....as I gave up a 335i.

 

[NIU_Huskies]

Dealer also claimed I need to finance with them to get the Kia $2500 rebate which didn't seem to make sense to me. I thought it should be the option of the 0% APR or the $2500 cash back and if I went with the $2500 cash back I would finance through my credit union for a low rate. Is what the dealer telling me correct?

Worst case you just finance with them then go to your credit union and refinance with them and cut a check to pay off Kia.

 

[G-958474]

That seems solid on a new 2021 GT2 if not doing lease buyout. It’s a little bit better than what I got on one a month ago.

 

[stasek]

Have you considered lease buyout to take advantage of the $7200 rebate?

 

[Lazarus.Bird]

Have you considered lease buyout to take advantage of the $7200 rebate?

I guess I misunderstood this when I saw it mentioned in another thread. Seems like I better check that out. Thanks for the heads up.

 

[stasek]

I guess I misunderstood this when I saw it mentioned in another thread. Seems like I better check that out. Thanks for the heads up.

Absolutely! It’s been THE way to buy new Stingers for a LONG time. The rebates on leases are generally substantially higher than on retail purchases, easily compensating for the added cost of acquisition and disposition fees.
While you’re at it - make sure they are not adding “blinker fluid” fees. That processing fee seems quite high(but some dealers get away with it, especially in FL, home of the $1k Doc fee), and the destination fee should be $1035 and is included in the $54275 MSRP (it appears they are double charging you).

 

[SoCalSHO]

I paid cash, and got the $2500 off, you do not need to finance through them. Dont forget veteran/military discount of $400. And the 2020's have a $4500 rebate.

 

[MerlintheMad]

Howdy. It looks like they're doing some bait and switch: starting with an impressive dealer discount and then adding costs back in. Even so, that's just a standard looking deal, not a bad one. If you want the car and can afford this then don't worry so much about winning the "killer deal" contest (just my attitude, ignore if you like).

 

[Koreanmissile]

do the lease buyout option others have detailed on these forums. I did it and got over 12k off a 2021 GT2 rwd a couple weeks ago. It works!! The deal is so insane it doesn’t seem real but it is. Some dealers don’t seem to know about the lease cash- so find one that does. Truecar was a good place to start- then get the best price and work the dealers against each other.

 

[Lazarus.Bird]

I was mainly only looking to buy new as I thought the discount off the MSRP was a crazy deal. Makes sense that they're advertising a heavily discounted price but then adding price back in with the dealer fees to make it average. I was really only looking new as the used inventory has been difficult and the deal seemed good.

I definitely need to dig into the lease buyout option. If I could get something like $10k+ off I would be tempted to go that route with a new car, especially with that warranty. Will a dealer order a car to meet a lease request? Or I guess I need to find dealers that already have the car I want. I'll go searching for those threads.

 

[Koreanmissile]

I used autotrader to search all dealer inventory within a few hundred miles of me. You can also search used. I planned on buying used too- but considering the crazy discount it made no sense. For example- it was only 7k more to buy néw compared to buying a three year old car from a private seller and only a few thousand more than buying a 2-3 year old car from a dealer. In the end I will pay about 40k (plus tax) for a 2021 GT2 rwd which is nuts.

 

[Lazarus.Bird]

Yeah, I would easily pay a similar amount for a new car considering that the money you save on used in comparison is not that much (thanks to the massive discount/lease cash back). Thanks for the tip. I could ask the same dealer I've been talking to about lease options since they have the car I want in stock.

 

[Sunseeker]

Are you allowed to add mods to leased vehicles i.e. Custom exhaust, etc?

 

[Nocostinger]

Lease buyouts only make sense if you can secure used car financing for a crazy low rate: 0.9% as an example OR if you can purchase the lease buyout for cash.

Basically, lease buyout benefit can be negated by used car interest over the term of loan.

That said, if you're going to make payments on a car and you're not sure you're going to keep it....take the lease. Keep in mind, you have the option to purchase the vehicle at the end of lease.

If you have the funds to pay cash - Lease buyout
If you need to finance it - Lease the car
If you want to buy it out and are payment sensitive - Lease for the 2-3 year period then purchase at the end of lease.

If my figures are correct, the 3 year lease end value on a GT2 should be around $25,000-$26,000.

Call or text me at 970-889-9835 i'm happy to answer questions on leasing, financing and car buying.

 

[Lazarus.Bird]

How do you figure? I can get a $7300 lease cash offer, and a 1.99% 65 months loan from DCU.

~$2500 in interest is way less than the $7300 lease cash.

 

[Koreanmissile]

Plus “rent” charges built into leases which are like $100 a month on my lease. I completely disagree. The lease buyout deal is incredible.

 

[MerlintheMad]

My "rent" charge over three years would total well in excess of $5K, so, even after three payments, the buyout (using cash) make a ton of sense.

 

[Nocostinger]

$7800 ($7,300 lease cash plus $500 loyalty) would be your lease incentives on a 24 month lease. If you can still get the 1.9% then do that. You are correct that $2,500 in interest is less than the incentive amount.

Like I said, this isn't a deal structure for people who are payment critical and it doesn't work for all trims.
In your case, yes. Lease buyout makes sense.

That said:
Don't let the Kia dealer tell you theres a buyout fee. There isn't. Theres no early termination fee. The finance manager will tell you this to recoup the chargeback he'll receive for the finance money on your deal if you do it before the 90 days post-deal.

Cleanest way to do this: Have your bank do a direct payoff to Kia Motors Finance. If you need help getting a letter of payoff let me know, I have access to all that. Doing it that way will dodge any dealership rate markup and any "associated fees" in the lease buyout. Don't forget you'll be charged sales tax on the lease buyout amount.

 

[NIU_Huskies]

Navy Federal is offering some pretty good rates on New auto loans and late model used. If you're active duty military or a veteran you reduce the rate by another 1/4 percent (.25%).

New Vehicles: Year models 2019, 2020 and 2021 with 7,499 miles or less.

Late Model Used Vehicles: Year models 2019, 2020 and 2021 with 7,500-30,000 miles.