Why the push for leasing, Kia?

[Montanaman]

Interesting there. When I leased my 2021 GT1 AWD I acted as though I was paying cash for it and negotiated the sales price as low as I could grind them to ( never fun with all the BS add ons) but once I was satisfied with the purchase price then I negotiated the lease based on that, the residual and the money factor ( .000019 of memory serves me right). The reason I ended up leasing it because I do tend to flip cars regularly and I didn't want to pay the full tax on a 40k plus vehicle. Here in Arizona that is almost 9%. With a lease I am only paying tax on the difference between the sale price and the residual which is a huge savings.

At the end of 3 years if I still love the car and it's been reliable I may buy it out if the residual is to my benefit. If not it's time for something new. The only time it makes sense to buy a vehicle is if you know your going to keep it for 5 years or more and or if it is a brand that tends to hold it's value. The last vehicle I bought was a 2011Toyota Tundra because I knew I was going to put some real miles on it and kept it for 9 years. Not to mention the money I got for it during a private party sale was incredible. Then it makes sense.

 

[namja]

...

The issue is that if the residual is too low on a lease then you are paying for that depreciation anyway. You just pay it throughout the lease instead of all at once at the end. Technically speaking it is better financially to pay the depreciation all at once at the end of the lease rather than in installments throughout the lease because that money could be earning you interest throughout the lease. In reality buyers won't save/invest that money during the lease so the lease acts like insurance against excessive depreciation.

...

or swapalease ...although it's risky and doing a lease swap with a Stinger is probably almost never sought after.

Could you elaborate what you mean by paying depreciation at end of lease? Considering I've only seen depreciation be part of monthly lease payment..

 

[Travis Wills]

Interesting there. When I leased my 2021 GT1 AWD I acted as though I was paying cash for it and negotiated the sales price as low as I could grind them to ( never fun with all the BS add ons) but once I was satisfied with the purchase price then I negotiated the lease based on that, the residual and the money factor ( .000019 of memory serves me right). The reason I ended up leasing it because I do tend to flip cars regularly and I didn't want to pay the full tax on a 40k plus vehicle. Here in Arizona that is almost 9%. With a lease I am only paying tax on the difference between the sale price and the residual which is a huge savings.

At the end of 3 years if I still love the car and it's been reliable I may buy it out if the residual is to my benefit. If not it's time for something new. The only time it makes sense to buy a vehicle is if you know your going to keep it for 5 years or more and or if it is a brand that tends to hold it's value. The last vehicle I bought was a 2011Toyota Tundra because I knew I was going to put some real miles on it and kept it for 9 years. Not to mention the money I got for it during a private party sale was incredible. Then it makes sense.

Your money factor wasn’t .000019. It has varied a bit lately but it wasn’t that low. That would be about .05% if converted to an interest rate. Stingers typically have a money factor greater than .0012. It was as high as .0019 when I bought mine.

 

[Travis Wills]

or swapalease ...although it's risky and doing a lease swap with a Stinger is probably almost never sought after.

Could you elaborate what you mean by paying depreciation at end of lease? Considering I've only seen depreciation be part of monthly lease payment..

I may be wrong on this but I think Kia doesn’t allow lease transfers.