Used 2020 GT1 vs Buy/Lease New

[AYip31]

Completely agree! I've bought a lot of cars over the past 20 years, and by far, the absolute worst car buying experience for me has been with Kia salespeople. For example, one Kia salesperson tried to tell me that I could not do the "lease buyout trick," and that I was trying to "game the system." I was like, "Um, ok, is there some sort of rule that states I cannot buy out my lease immediately?" He said, "That doesn't seem right to me, and I'm pretty sure that's against the rules, otherwise everyone would do that!" I was like, "Um, ok dude, sure." I went to the finance guy, and he said, "Of course you can buy out the lease. Most people do not know about this loophole, or they cannot afford to buy out the lease." Hysterical!

Yep like I’ve said. 90% of salesperson will not know, 85% of sale managers will not know. Or give false info
also lease buyout does not need to pay all in cash.
Can get a traditional car loan, through a bank or credit union

 

[Gautam Beri]

Wow that almost sounds too good to be true. I do have a trade in (should be about $8k) so sounds like that helps in my favor to reduce the balance on the buyout - that all makes perfect sense. Now I'll need to figure out how sales tax plays into the formula. I live in taxachusetts so I'm wondering if it makes all of this not even worth it in the end. Thanks for helping me understand the logic though!

@Brandonfontes can you share your deal?
what did you pay? And what was your credit score? And how much lease rebate you got?
@AYip31 : so one thing I want to understand also. GT2 AWD
msrp : 54k
Selling price : 49k
Lease rebate: 8900
Total without tax : 41,100
Then taxes tags titles doc fee etc
if my monthly lease payment is 700, do I need to pay 700 for my first month when purchasing the vehicle? And if yes does that 700 get deducted from that total OTD?

 

[AYip31]

@Brandonfontes can you share your deal?
what did you pay? And what was your credit score? And how much lease rebate you got?
@AYip31 : so one thing I want to understand also. GT2 AWD
msrp : 54k
Selling price : 49k
Lease rebate: 8900
Total without tax : 41,100
Then taxes tags titles doc fee etc
if my monthly lease payment is 700, do I need to pay 700 for my first month when purchasing the vehicle? And if yes does that 700 get deducted from that total OTD?

Part of my deal, I did not have to make the 1st monthly lease payment
If you did, I would imagine parts of the $700 gets deducted.

 

[GPhenom]

Yep like I’ve said. 90% of salesperson will not know, 85% of sale managers will not know. Or give false info
also lease buyout does not need to pay all in cash.
Can get a traditional car loan, through a bank or credit union

Would the loan be considered a new car loan (usually lower rates) or a used car loan?

 

[AYip31]

Would the loan be considered a new car loan (usually lower rates) or a used car loan?

i took out the loan as a new car through a credit union, did not inform them. But I’m in Florida, had to go to a dealership to buyout, just told credit union I was getting a 2020 car from the dealership, took the check and fill it out and give it to the dealer.
If the bank or credit union ask questions or gives push back. Explain the lease buyout to them, as your still the original owner.

 

[thomas5986]

Correct. Thats what I'm being told.

Shoot, I cant find any incentives or rebates on 2020's!

 

[thomas5986]

update for the folks who have helped me research my options so far. yesterday I purchased a new 2020 GT1. after a LOT of math, comparison shopping and negotiating, I found a GT1 in the color combination of my preference (ceramic silver w/ red napa) and simply couldn't pass by the offer I was able to negotiate. Certainly could have spent a couple grand less for a more common color (best offer I had on the table was a black GT1 which was 17% off MSRP) which would have let me do the lease buyout option, however dealing with Kia dealers for a couple weeks and I was sick of the back and forth, ended up spending about 2k more to get my top choice in AWD and ended up dealing with a more realistic dealership (I can strongly say I'll probably never purchase direct from a Kia dealer again unless they give outstanding customer service). I'm excited the negotiating is over and most excited to pickup my GT1 this Friday. Pictures to come soon! Thanks everyone for helping me to understand my options and for giving recommendations based on personal experience. It helped a lot!

I'd love to know the deal you got with the adjusted cap cost, down payment, etc. I am trying to negotiate a 2 yr lease now. So your saying you did lease then or buy?

 

[Sine Qua Non]

Shoot, I cant find any incentives or rebates on 2020's!

2020 Kia Stinger Incentives and Rebates | Autobytel.com

Find out what standard Incentives and Rebates are being offered on the 2020 Kia Stinger. See both cash rebates and financing rates for every trim and model.

www.autobytel.com

2021 Kia Stinger Incentives and Rebates | Autobytel.com

Find out what standard Incentives and Rebates are being offered on the 2021 Kia Stinger. See both cash rebates and financing rates for every trim and model.

www.autobytel.com

pick your year above. Pick your trim and enter zipcode and it will show you all the incentives for that car

 

[AYip31]

I'd love to know the deal you got with the adjusted cap cost, down payment, etc. I am trying to negotiate a 2 yr lease now. So your saying you did lease then or buy?

Lease to get the lease rebate, then buyout when the buyout amount gets to Kia motor finance.


Cliff notes on lease buyout:
You will need very good to great credit score to do a lease buyout, about 760+
Always ask for 24 months, 12k miles on the lease terms
Start at Manufacturer MSRP, do NOT pay for addendum sticker,(dealer MSRP)
- 10% off for dealer discount
- lease rebate
- any trade-in
+ tax, tag, doc fees, acq fee (Beware of BS fees, don’t pay them)
= balance = Adj Cap Cost

Lease payment, money factor, residual does not matter
When signing the lease agreement, make sure your Adj Cap Cost is the same as the balance you and the dealer agreed to.
Also read sections 9, 22D, 23B

Congrats you now are driving away in your brand new stinger.

Once you get a email from KMF. Login, verified VIN, find and click get buyout quote.
Do not wait to buyout the lease, every lease payment you make, reduces your rebate.
You will have to have to pay a some fees and taxes.
also depending on some states, like FL (which I’m in) you will have to visit a dealership to buyout.
Also depending on which states, taxes will be more.
Read the sticky thread on the leases buyout, lots of good info.
also see my post #1122 in that thread about my deal I got.
Also there is a YouTube video: Kia stinger lease buyout. A little long winded. But very helpful.

 

[thomas5986]

You are dreamy, thank you!

 

[thomas5986]

Lease to get the lease rebate, then buyout when the buyout amount gets to Kia motor finance.


Cliff notes on lease buyout:
You will need very good to great credit score to do a lease buyout, about 760+
Always ask for 24 months, 12k miles on the lease terms
Start at Manufacturer MSRP, do NOT pay for addendum sticker,(dealer MSRP)
- 10% off for dealer discount
- lease rebate
- any trade-in
+ tax, tag, doc fees, acq fee (Beware of BS fees, don’t pay them)
= balance = Adj Cap Cost

Lease payment, money factor, residual does not matter
When signing the lease agreement, make sure your Adj Cap Cost is the same as the balance you and the dealer agreed to.
Also read sections 9, 22D, 23B

Congrats you now are driving away in your brand new stinger.

Once you get a email from KMF. Login, verified VIN, find and click get buyout quote.
Do not wait to buyout the lease, every lease payment you make, reduces your rebate.
You will have to have to pay a some fees and taxes.
also depending on some states, like FL (which I’m in) you will have to visit a dealership to buyout.
Also depending on which states, taxes will be more.
Read the sticky thread on the leases buyout, lots of good info.
also see my post #1122 in that thread about my deal I got.
Also there is a YouTube video: Kia stinger lease buyout. A little long winded. But very helpful.

So now I'm going back and forth with the idea of going slightly used. There are a handful of 2018 used cars with 5k-21k on them for $32K-$35K. On these new ones with the amount I'll have to finance after the buyout will be quite a bit more than $32-35k right?

 

[thomas5986]

Not true! You can always check edmunds or autobytel for incentives
99.5% of sales person will not know what your talking about.
Some sales manager might know about it, but will also give false info regarding the process of lease buyout.
Best to kept to yourself.
Negotiate 1st off MSRP, tell them not sure about buying vs leasing
get 10% or more off
Then once agreed apond price after dealer discount. Tell them you want to lease and get the highest lease rebate

Current lease rebates has gone down recently. But historically lease rebate for GT1 and GT2 has been highest after December.
But there is no guarantees what the future will hold.

I'm a bit confused at something you've written twice now. You say first get 10% or more off of the MSRP. So lets say the car I'm interested in is 54,275 your saying i should try to get them to knock 5500-6000 off the sticker price for the first order of business?

 

[AYip31]

So now I'm going back and forth with the idea of going slightly used. There are a handful of 2018 used cars with 5k-21k on them for $32K-$35K. On these new ones with the amount I'll have to finance after the buyout will be quite a bit more than $32-35k right?

Yep, I’ve got a brand new 2020 GT RWD for $31,500 otd, includes a trade-in of $2,750

 

[AYip31]

I'm a bit confused at something you've written twice now. You say first get 10% or more off of the MSRP. So lets say the car I'm interested in is 54,275 your saying i should try to get them to knock 5500-6000 off the sticker price for the first order of business?

Yep
It’s not easy, it’s definitely lots of work
Half the time is luck, right time right place, right sale manager
Easier with 2020 then 2021

 

[thomas5986]

Yep, I’ve got a brand new 2020 GT RWD for $31,500 otd, includes a trade-in of $2,750

Wow, well it looks like I need to go back to them and have them compete against one another. You feel like taking a road trip to MD and be my negotiator!

 

[AYip31]

Wow, well it looks like I need to go back to them and have them compete against one another. You feel like taking a road trip to MD and be my negotiator!

Pay for the ticket. Set it up. Lol

 

[AYip31]

Wow, well it looks like I need to go back to them and have them compete against one another. You feel like taking a road trip to MD and be my negotiator!

It’s definitely not fun. It sounds easy, but it’s lots of work.

 

[thomas5986]

It’s definitely not fun. It sounds easy, but it’s lots of work.

Darn right it is. Most of it is mind boggling!

 

[Sine Qua Non]

Darn right it is. Most of it is mind boggling!

Sadly, dealing with Kia as a dealership is one of the worst experience I have ever dealt with. BMW, GM, Honda and Mazda were all easy to deal with. Granted, the experience may be a whole lot different since this is a first having to go through the Lease route in order to do a lease buy out vs just buying a car in the first place.

 

[thomas5986]

Yep, I’ve got a brand new 2020 GT RWD for $31,500 otd, includes a trade-in of $2,750

So its looking like I may close this deal on a 21 GT2 AWD.
ceramic silver, Nappa leather, MF .00123, 56% residual, 2 yr lease, $50,275 for the sticker from $54,275.
Residual value $30,394? Sound right?