Kia Stinger Introductory Lease Deal

[Chris]

Question: How would the residual affect me if my plan is to buy it after the lease? Does it make it a bad deal?

If you are sure you're going to buy it at the end of the lease, and you have to have it right now, then no it doesn't make it a bad deal. If you can wait a year or two and pick up a used one at a heavy discount, that is obviously a better deal..

 

[damtachoa]

So I've never leased a car. I've always heard that leases were bad deals. What are the benefits? What are the downsides?

The benefits are for people who love the car but don't have big cash to buy. The payment is their only option. No repair cost up the hill after few years lease.
The bad is that you have to pay $8K+ lease per year to use the car, instead of $5K per year in 8 years when you buy it. The car insurance is high. The car must be in good condition in and out after the lease.

 

[admonite]

Here is an odd question, but a possible gotcha I don't want to get caught in. The 100,000 mile powertrain warranty is for the original owner only. If I lease for 3 years, then buy the car at the end of the lease. Am I still considered the original owner and therefore eligible for the entire warranty?

 

[Chris]

Here is an odd question, but a possible gotcha I don't want to get caught in. The 100,000 mile powertrain warranty is for the original owner only. If I lease for 3 years, then buy the car at the end of the lease. Am I still considered the original owner and therefore eligible for the entire warranty?

My guess would be yes as you are in fact the original owner, it would be best to see it in writing though..

 

[Jayce]

Here is an odd question, but a possible gotcha I don't want to get caught in. The 100,000 mile powertrain warranty is for the original owner only. If I lease for 3 years, then buy the car at the end of the lease. Am I still considered the original owner and therefore eligible for the entire warranty?

Yes, you are. I looked into this because I toyed with the idea of purchasing my Optima and waiting for the 2019 Stinger to see if they came to their senses with these options. If you don't want to take my word for it though, you can look in the warranty section of the manual. I believe it also says it in there.

 

[Chris]

Yes, you are. I looked into this because I toyed with the idea of purchasing my Optima and waiting for the 2019 Stinger to see if they came to their senses with these options. If you don't want to take my word for it though, you can look in the warranty section of the manual. I believe it also says it in there.

I looked at the warranty manual and can confirm this is correct. If you buy the car after your lease the 100k warranty is still in effect. Here is the pertinent section of the warranty manual.

Original Owner
An Original Owner is defined as the first retail
purchaser or lessee of the Kia Vehicle who takes
delivery of the Kia Vehicle on its Date of First
Service. If the Kia Vehicle was first placed in service
as a lease vehicle, and the lessee purchases the
vehicle at the end of the lease, the 120
month/100,000 mile Power Train Limited Warranty
remains in effect. The Power Train Limited
Warranty is not transferable to subsequent owners.​

 

[BarryLI]

The benefits are for people who love the car but don't have big cash to buy. The payment is their only option. No repair cost up the hill after few years lease.
The bad is that you have to pay $8K+ lease per year to use the car, instead of $5K per year in 8 years when you buy it. The car insurance is high. The car must be in good condition in and out after the lease.

Really unsure of what you are saying here, lease prices per year will be substantially lower than a purchase because you are only paying for depreciation plus a small finance charge, not for the entire purchase price of the vehicle. If you don't believe me take a look at the lease/sale configurator on the website, a Premium AWD Stinger costs $437 a month to lease (10,000 miles) for 36 months, or $610 per month for 66 months to purchase, the reason I lease exclusively. Leasing also provides you with a low or no down payment, for a few hundred dollars you can drive out of the showroom in a brand new car, and be assured it will be under warranty the entire time you lease it, too. Also when you have had it 3 years and have an itch to try something new it's time to turn it in and go shopping. As to car insurance whether you buy or lease the premium isn't going to change unless you buy minimum limits in which case you're an idiot.

 

[damtachoa]

@Barry - I'm talking about GT2, not 2.0 L.

 

[BarryLI]

@Barry - I'm talking about GT2, not 2.0 L.

36 month 10,000 miles per year lease is $600 a month, 66 month purchase price is $803 (both with $2k down) still missing your point.

 

[Jayce]

@Barry - I'm talking about GT2, not 2.0 L.

@BarryLI is correct. It's going to be cheaper to lease. It's almost always cheaper to lease, especially if you don't keep your vehicles for long.

 

[Ckstinger]

It’s going to be more than $2k down for that $600 monthly payment. To drive off it’s going to be about $5k.
You have to read the fine print “Closed-end lease based on new 2018 Stinger (Model #H5312) subject to credit approval, dealer participation, and vehicle availability. Offer shown based on $2,999 due at lease signing including $299 first monthly payment, $2,050 capitalized cost reduction, $650 acquisition fee, plus tax, title, license and registration fees, dealer conveyance fee, processing fee or optional service fee and any emission testing charge.“
Add it up.
$2000 cap cost reduction
$1950 tax example 8%
$650 acquisition fee
$400 doc fee, dealer fee, reg, dmv.
So $600 per month with 5k down ain’t so hot for a $52k car, even with the $6800. That’s assuming paying msrp, which will probably be the case for the first few months.

36 month 10,000 miles per year lease is $600 a month, 66 month purchase price is $803 (both with $2k down) still missing your point.

 

[damtachoa]

@ BarryLi - Here is the math:

36 months / 10K miles
Est. Capitalized Cost $50,100
Offer -$6,100
Net Price $44,000
Additional Fees +$650
Adj. Capitalized Cost $44,650
Monthly Lease: $632 + 9% tax = $688.88
In 3 years: $24,799.68 + $400 Disposition fee = $25,199.68
Yearly Cost: $,8,399.89

If you don't purchase the car at lease end, you lost $25,199.68 in 3 years. I don't have a car.

 

[BarryLI]

@ BarryLi - Here is the math:

36 months / 10K miles
Est. Capitalized Cost $50,100
Offer -$6,100
Net Price $44,000
Additional Fees +$650
Adj. Capitalized Cost $44,650
Monthly Lease: $632 + 9% tax = $688.88
In 3 years: $24,799.68 + $400 Disposition fee = $25,199.68
Yearly Cost: $,8,399.89

If you don't purchase the car at lease end, you lost $25,199.68 in 3 years. I don't have a car.

Gotcha.

So where's the $5k yearly expense for a purchase coming from then?

 

[Jayce]

It’s going to be more than $2k down for that $600 monthly payment. To drive off it’s going to be about $5k.
You have to read the fine print “Closed-end lease based on new 2018 Stinger (Model #H5312) subject to credit approval, dealer participation, and vehicle availability. Offer shown based on $2,999 due at lease signing including $299 first monthly payment, $2,050 capitalized cost reduction, $650 acquisition fee, plus tax, title, license and registration fees, dealer conveyance fee, processing fee or optional service fee and any emission testing charge.“
Add it up.
$2000 cap cost reduction
$1950 tax example 8%
$650 acquisition fee
$400 doc fee, dealer fee, reg, dmv.
So $600 per month with 5k down ain’t so hot for a $52k car, even with the $6800. That’s assuming paying msrp, which will probably be the case for the first few months.

I attached a photo on what the numbers look like for me.
Taxes are less here though, we only pay 5% on our monthly payment each month. Not gonna be anywhere near 5k down and that's for 12k miles. It would be around 660 a month with taxes for me. If I end up getting one, I won't be putting anything down though. Not much point in a lease in my opinion.

@ BarryLi - Here is the math:

36 months / 10K miles
Est. Capitalized Cost $50,100
Offer -$6,100
Net Price $44,000
Additional Fees +$650
Adj. Capitalized Cost $44,650
Monthly Lease: $632 + 9% tax = $688.88
In 3 years: $24,799.68 + $400 Disposition fee = $25,199.68
Yearly Cost: $,8,399.89

If you don't purchase the car at lease end, you lost $25,199.68 in 3 years. I don't have a car.

You're right, but if you weren't going to keep the car if you bought it past 3 years it was actually probably cheaper to lease it. I'm not keeping any car more than 3 years. Just not the lifestyle I'm trying to live. I want my cars to always be under warranty, and I want to get rid of them when I'm bored. I've not even had my Optima for 3 years and I'm already itching to upgrade, ha. I can totally understand people who want to buy because they want to keep it for a long period of time. That's just about the only time buying is better though, especially with the Stinger and this lease cash they're offering.

 

[midlife crazy]

Have them give you the numbers for both and do the math and see what makes more sense.. if you know you are going to keep it for at least 6 years, my guess would be buying it will be cheaper in the long run. (Assuming you have the credit to get a good rate and can pay it off in no longer than 60 months)The only other thing to check, is some companies will force you to get gap coverage if you lease. (Gap coverage pays the difference between what the car is worth, and what you owe if it gets totaled)

My girlfriend just leased a Kia Niro. Kia pays for the gap coverage, no charge to the purchaser. Hopefully, the same for my GT2, which I plan to lease.

 

[Jayce]

My girlfriend just leased a Kia Niro. Kia pays for the gap coverage, no charge to the purchaser. Hopefully, the same for my GT2, which I plan to lease.

Yeah that is a feature of all Kia leases from what I can tell on their website. It is actually in the FAQs on KMFUSA. I've got that with my Optima as well. The fact that gap is included makes for an even bigger reason to not place a down payment in my opinion.

 

[damtachoa]

Gotcha.

So where's the $5k yearly expense for a purchase coming from then?

If I purchase this GT2 RWD at $50,100 and drive it in 9 years (still under 100K miles), I only pay $5,566.67 per year. After 9 years, I can sell this car to high school student for around $5,000 cash. So $5,000 per year to use the car is reasonable. Beside, car insurance and registration will be lower by year.

 

[SanDEngineer]

If I purchase this GT2 RWD at $50,100 and drive it in 9 years (still under 100K miles), I only pay $5,566.67 per year. After 9 years, I can sell this car to high school student for around $5,000 cash. So $5,000 per year to use the car is reasonable. Beside, car insurance and registration will be lower by year.

Well, the 10 year warranty is only a limited powertrain warranty. After 5 years, you're on the hook for most other things that will happen from time to time. But yes, if you buy a car and drive it for well after it's paid off, you will save money vs. leasing a new one every 3 years. For some of us, though, that's a price we're willing to pay. Under any circumstance, a luxury, near luxury, or performance vehicle is not a purely rational choice if all you're interested in is minimizing cost of what will almost always be a depreciating asset.

 

[Jayce]

If I purchase this GT2 RWD at $50,100 and drive it in 9 years (still under 100K miles), I only pay $5,566.67 per year. After 9 years, I can sell this car to high school student for around $5,000 cash. So $5,000 per year to use the car is reasonable. Beside, car insurance and registration will be lower by year.

Your math is correct. Whether I buy it or lease it, I'm not keeping it past 3, maybe 4 years though so it is a little different for me. Makes more sense to lease in my case.

 

[Mhol]

I put high miles on my cars. Does it make sense to lease knowing I will purchase it at the end of the lease? I know the dealer won’t care how many miles are on the car as long as I purchase it.