To Deal or Not to Deal

[mberk3]

Hi All,
I just signed up to the forum and have been reading all of the helpful posts here. I'm hoping to get some feedback on this deal that I've been working via email with the dealer. Does this look pretty good?

Thanks in advance!

This is listed exactly as it was in the email.
GT2
MSRP - $50,100
Selling price - $47,500
Govt fees - $317.50
doc fees - $194
Acq fee - $595
Gross cap cost - $50,048.75
Residual - $26,052
rebate - $6700
cap cost reduction $5495
Net cap cost $37,853.75
amount paid by customer $5495

It Looks like three options were given for cap cost reduction $0=$665/mnth or $3,495=$558/mnth or $5495=$497)

 

[GTB]

Whats the money factor?

 

[mberk3]

Would the money factor matter if I quickly convert to purchase?

 

[iclicku]

Would the money factor matter if I quickly convert to purchase?

Nope.

 

[mberk3]

Ok good to know because it wasn’t stated on there.

Does this sound like a fair deal?

 

[iclicku]

Ok good to know because it wasn’t stated on there.

Does this sound like a fair deal?

I think so. But I would avoid putting money down on any lease.

 

[Mach_Tuck]

I think so. But I would avoid putting money down on any lease.

agreed, do not put money down on the lease. If you intend to buyout it quickly, put the money there. Should the car become totaled before the buyout is complete, you will be out that down payment. Kia covers the GAP on the lease so let them carry that risk until the buyout is complete.

 

[mberk3]

Oh ok, makes sense! Thanks for the advice guys! Hoping to join the ownership club soon!

 

[StungBlueGT2]

Hi All,
I just signed up to the forum and have been reading all of the helpful posts here. I'm hoping to get some feedback on this deal that I've been working via email with the dealer. Does this look pretty good?

Thanks in advance!

This is listed exactly as it was in the email.
GT2
MSRP - $50,100
Selling price - $47,500
Govt fees - $317.50
doc fees - $194
Acq fee - $595
Gross cap cost - $50,048.75
Residual - $26,052
rebate - $6700
cap cost reduction $5495
Net cap cost $37,853.75
amount paid by customer $5495

It Looks like three options were given for cap cost reduction $0=$665/mnth or $3,495=$558/mnth or $5495=$497)

Welcome to the forum and hope you join our Stinger HIVE!

I 3rd the others comments and suggest not putting any money down(cap cost reduction) on a lease.

But onto the deal, at first glance the number breakdown looks pretty good, however the monthly payments still seem to be a little high. I got my GT2 in February and dont have my breakdown in front of me but seems very similar. I paid a few hundred under invoice(about $47k), with $0 down I pay about $600m tax-included on a 48m/40k. I paid about $200 DMV fees and only my first payment to drive off the lot.

Now I can tell by your numbers your quoting a 36m/36k, but I debated between the two myself and was quoted $635/m with the same sales price, etc. They seem to be close but looks like they may be holding back about $1k or so from the deal. You may be able to haggle a little more, but either way its a pretty good deal.

Hope that helps and good luck on your deal!

 

[mberk3]

I was thinking that as well since the online calculator was also a bit lower. I just figured it had to do with some of those doc fees etc. Thanks for pointing that out...it can’t hurt to try haggling a bit more but at least based on the comments so far I feel pretty good about this deal.

Thanks so much for the great advice and feedback!

Looking forward to joining the hive!

 

[NYLAWBIZ]

Just watch your state's sales tax. In NY you pay sales tax up front on the total of all payments due under the lease, plus sales tax on the residual. If you are in NY or a state with a similar sales tax rule, then it makes sense to reduce the monthly payments under the lease to as small an amount as possible, to minimize the sales tax you are paying upon entering into the lease. Just lowers your cap cost when converting from lease to buy. So in this circumstance, a cap reduction in conjunction with a low mileage lease would be a way to reduce the monthly lease installments (and thus the initial sales tax).

 

[mberk3]

Oh! I’m in CA so I’ll have to look into how that works here. Like you said could make a big difference overall.

 

[NYLAWBIZ]

Also, in the small chance that you don't convert to a buyout, make sure you have a lease you can live with. BTW, I just completed my lease-buyout today. Worked like a charm.

 

[mberk3]

I was just thinking about that. I do want to do the buyout but I also want to make sure I’m happy either way.
Glad to hear you converted yours with no problem! Seems to be very smooth for most from what I’ve read here.

 

[NYLAWBIZ]

I was just thinking about that. I do want to do the buyout but I also want to make sure I’m happy either way.
Glad to hear you converted yours with no problem! Seems to be very smooth for most from what I’ve read here.

It was. I can imagine though KIA changing the terms of their lease if a lot of people start gaming the lease money. If they wanted to extend the big discount to purchasers, they would have. If anyone is planning on doing it, I would suggest to strike while the iron is hot.

 

[mberk3]

Good point. Will they ditch the lease cash next month? Who knows?? I’d hate to wait and lose the chance to take advantage now!

 

[NYLAWBIZ]

To me, the GT2 is not a $53K car. So, after the dust has settled in my purchase-lease-buyout extravaganza, "all in" my GT2 (with remote start, etc.) costed me $48,000.00. Out of that, sales tax was about a $5,000 bite. So before sales tax, with the dealer discount and lease cash, it sold for $43K. I wasn't in the market for a 53K car, but I am happy with the $43K car I purchased.

 

[mberk3]

Same here...wasn’t really in the market...especially at $50k plus. BUT then I saw this car and had to at least see what it was all about. One drive is all it took to hook me! Then factoring in the incentives it seemed like to good a deal to pass up for a car with this ride and performance. Similarly optioned and performing hatch back sedans like Audi S5 and BMW Grand Coupe are $15k-$20k more!

 

[mberk3]

Holy cow! I just heard back from another dealer in the area and he wasn’t even sure they could sell for MSRP...they have the GT2 marked at $57k! I better jump on my deal!

 

[NYLAWBIZ]

Holy cow! I just heard back from another dealer in the area and he wasn’t even sure they could sell for MSRP...they have the GT2 marked at $57k! I better jump on my deal!

Where are you located?