'19 Stinger GT AWD base with negative equity

[KIAFTW]

Good morning everyone!

I stopped by a local dealership right outside of Philadelphia last week and was wondering if I was getting a good deal.

I currently have about $4k-$5k in negative equity on my '17 Maxima that I'm leasing - which I'll be trading in. The Kia dealership is offering me 0% for 75 months for $590/month (MSRP: $43k). They're saying that they'll "take care" of my negative equity and that I don't have to worry about that. But I'm pretty sure they're just moving the numbers around to make it look like that since the VIN is eligible for one of the rebates ($2k) that can be combined with special financing yet the price of the vehicle doesn't reflect that on paper. I tried bringing down the price of the car a bit but they wouldn't budge.

Is it possible for me to get a better deal than this?

 

[Bonsai]

I know they have a promotion going on right now where Kia is giving dealers 3k on stinger sales but it is not a discount per say. As it is at the dealer discretion if they want to apply it or just profit it for themselves.

 

[KIAFTW]

I know they have a promotion going on right now where Kia is giving dealers 3k on stinger sales but it is not a discount per say. As it is at the dealer discretion if they want to apply it or just profit it for themselves.

Good to know, I'll try and push for that too and see if they lower the price. More than likely they'll make an excuse how they won't be making any money on this deal and what not. But definitely worth a try! Thanks!

 

[Revvdmedia]

You can push for a better deal (and it will take a while in your chair to do so), the worst they can do is say no. Typically you can push for a better deal at the end of the month or even moreso at the end of a fiscal break (quarter/half/year), but that's usually dependent on whether the dealer is falling short on general revenue (sales) or if they are very close to hitting a bonus for selling XX amount of a certain model.

 

[eflyguy]

The last thing you should do it let a dealer know you have negative equity in a trade.

The price of the new vehicle needs to be worked out in total, provided in writing, before you even begin to talk about a trade.

 

[JVsGT]

The last thing you should do it let a dealer know you have negative equity in a trade.

The price of the new vehicle needs to be worked out in total, provided in writing, before you even begin to talk about a trade.

Exactly. Remember, you're going in the dealership to "buy" not "trade". Always say that. Once you work the best price on the purchase, then you can mention a possible trade dependent on the trade allowance they offer. Remember, you can always sell your car privately or thru a number of other dealerships that don't require you to buy something off their lot. Obviously, the trade might be more beneficial when you're talking about tax savings and 0% financing to roll in the negative equity but that's not something you should volunteer initially.

 

[P22Tyler]

Good morning everyone!

I stopped by a local dealership right outside of Philadelphia last week and was wondering if I was getting a good deal.

I currently have about $4k-$5k in negative equity on my '17 Maxima that I'm leasing - which I'll be trading in. The Kia dealership is offering me 0% for 75 months for $590/month (MSRP: $43k). They're saying that they'll "take care" of my negative equity and that I don't have to worry about that. But I'm pretty sure they're just moving the numbers around to make it look like that since the VIN is eligible for one of the rebates ($2k) that can be combined with special financing yet the price of the vehicle doesn't reflect that on paper. I tried bringing down the price of the car a bit but they wouldn't budge.

Is it possible for me to get a better deal than this?

I'm not sure where you live but I think they could do a little better on the price based on what I've seen for the car as described, in my area. Maybe there are some options they've added driving up the price. If there are no options and they're not willing to negotiate on price, then that's where they're hiding the negative equity.

 

[Obxguy2000]

I agree with the others, if you got that deal with 1 visit to the dealership, there is more room to negotiate. I would not say there is a lot of room, but I would think $1000 for sure. Tell them you must have a payment below $550 per month. They will probably come down to $570. Then say $555 and they have to through in the remote start. I am about sure they will do something very close to that, especially if you are willing to push this until last day of the month. Don’t forget to check to see if you qualify for the competitive cash. It can be paired with 0% interest, it says so on Kias website.so if they have not mentioned this rebate, use it to your advantage, it should equate to about $40 in payment.

 

[eflyguy]

Tell them you must have a payment below $550 per month.

Have to disagree with this. Telling them how much you can afford per month opens you up to all kinds of manipulation.

 

[Obxguy2000]

Have to disagree with this. Telling them how much you can afford per month opens you up to all kinds of manipulation.

I agree with that when you start the negotiations and when have not secured the finance rates, but once you start to see no more movement on the dealer side, always throw out a payment or a price you are not willing to go over. If the buyer has aleardy agreed to take the 0%, not much manipulation can be done and you will find out how low the dealer will go before they decide to pass.

 

[KIAFTW]

Thanks for all the advice and help guys! I did go to two different dealers this week. First one was a complete disaster. I saw a GTS for 43k on Route 23 Kia's site. Called them and verified that the discounted price (MSRP $47k) was a dealer discount and not because of any incentives/rebates. The lady named Tiffany said it was a dealer discount and that I'll also be able to add the competitive bonus cash plus also any other rebates (If I qualify) WITH 0% financing special!

So, I tell her that sounds great and will come in within 3 hours (almost a 3 hour drive). I also tell her to keep me posted just in case someone else buys it so that I can turn around and she tells me that she'll keep me posted and will also wait for me to arrive at 6pm. When I get there, no one greets me or anything, I walk up to a sales person and tell him who I was looking for and that's when I'm told she left at 5pm. And the price for the GTS is actually $5k ABOVE MSRP! They didn't wanna work out any numbers or include any incentives to work out a price either! The price listed right now is STILL at $43k!

Basically, I ended up driving 6 hours round trip with my wife (it was her birthday that day too) just to be scammed and forced into an overpriced vehicle. Apparently there was a google review that said they were also scammed in a similar way. I'd definitely suggest anyone in the area to avoid Route 23 Kia's dealer as they seem to not care about their customers.

I then went to another dealer the next day that had a great color combo (White on red GT base) who were really nice but they didn't want to take my trade in and wanted me to turn in my Maxima early to Nissan instead because they didn't really know how much it'd cost them to repair a couple of door dings and a scrape on the driver's side bumper. They offered to give me a check of up to $2k for any repairs after the deal was done. The price they gave me for the GT base was $558 (Sign & drive w/8% tax, fees included) for 75 months.

I wasn't comfortable with getting the repairs done on my own and trying to go through the process of ending my lease early and dealing with Nissan for over a month while also having the Stinger GT payments. I'm still currently looking around for any other dealers that'd give me a better offer. I was about to go to a dealer in Delaware today until they told me how I can't combine the dealer cash nor the Competitive Bonus cash with special financing. Dodged that bullet!

 

[Rob M]

I hate to be the party pooper, but why not just wait until your Maxima lease is over? It seems illogical and impulsive to try to roll negative equity from one sporty premium vehicle to another slightly more sporty premium vehicle. You aren't likely going to get any really good offers with the Max as part of the deal. More likely that dealerships will try to take advantage of you at every turn.

 

[eflyguy]

Bait and switch. Oldest trick in the book.

If the current vehicle needs repairs, and you can't afford to write a check and turn it in to the lease finance company, in my opinion you're making a very bad financial decision to roll that into the price of a new vehicle. You know what they say about opinions, though..

 

[KIAFTW]

I hate to be the party pooper, but why not just wait until your Maxima lease is over? It seems illogical and impulsive to try to roll negative equity from one sporty premium vehicle to another slightly more sporty premium vehicle. You aren't likely going to get any really good offers with the Max as part of the deal. More likely that dealerships will try to take advantage of you at every turn.

Due to lifestyle changes, I'm on track to go over my mileage by at least 15k miles by the end of my lease which is why I want to go down the financing route so I don't have to worry about my mileage. Plus I need more trunk area space now, which would be okay if the seats folded down but in the Maxima only one side goes down, not both of them. Surprisingly, the interior room is less than the Altima which is a midsize. And even though it's a 5 passenger vehicle, you can't have 5 passengers in the car and drive around in the city areas without scraping your undercarriage (picture attached for reference). I can go on & on with other issues and dealing with Nissan service dept being a headache I just want to get rid of the car.

 

[KIAFTW]

Bait and switch. Oldest trick in the book.

If the current vehicle needs repairs, and you can't afford to write a check and turn it in to the lease finance company, in my opinion you're making a very bad financial decision to roll that into the price of a new vehicle. You know what they say about opinions, though..

I don't really want to fix the cosmetics of the vehicle that I don't own. I'd rather take a bit of a hit on the value of the car and get rid of it than have it repaired. Plus the other repairs are supposed to be covered under warranty. Some of them were fixed after two years of mentioning it at every oil change. But just dealing with the Nissan Service dept has been a nightmare.

 

[SKStinger]

There is some sound advice above. I think you should step back and think about this some more before you jump into a poor financial decision.

You're going to have a hard time getting any salesman to negotiate with you. It's a two-sided transaction and you currently have nothing to offer that the dealership is going to find enticing.

 

[Drago]

I can go on & on with other issues and dealing with Nissan service dept being a headache I just want to get rid of the car.

Sounds like you need to look into paying the lease off and getting out of it before you go trying to make deals on a new car. Dealers will help you but you will get screwed on price because of the negative equity. If you are ok with being screwed that hop to it. You have made your bed with the lease you are currently in, you can either lie in it or pay to get out of it, but complaining about your situation will not change your choices.

 

[hughanis]

All I'm gonna say is, I bought a 2019 GT2 for $40k before taxes and such. So you paying $43k for a GT base model makes no sense, even if you factor in the negative equity.

 

[SKStinger]

All I'm gonna say is, I bought a 2019 GT2 for $40k before taxes and such. So you paying $43k for a GT base model makes no sense, even if you factor in the negative equity.

Right. This is exactly how people get into financial trouble. By rolling negative equity into a new purchase, the Dealer has inflated your purchase price above market value, the $43K in this scenario. They will NEVER just do you a solid and "take care of it" like the salesman may tell you. They also will not negotiate with you on purchase price because you have no bargaining power thanks to your "little friend" (negative equity).

In going ahead with this transaction, you haven't even made a payment yet on your new car and already owe more than its market value. You now have MORE negative equity than you had in your previous lease/finance transaction as the Dealer has rolled it into the purchase price on top of selling the car to you at a price above market.

Dealer's will often lure customers into these types of transactions by reducing or matching your existing payment or interest rate but extending the amortization and/or inflating the financed amount to do so. This is a bad cycle to get caught up in as it just leads to more negative equity.

This is also why the general rule is to never finance/lease a vehicle longer than 60 months as anything beyond that is a recipe for negative equity. AND as has been said above and before on this forum, don't negotiate on interest rate, payments and trade-in. Negotiate the cash purchase price first, based on what you can afford, get it in writing and then throw in a trade and start talking about finance/lease structure.