Kia Stinger Introductory Lease Deal

[CtK]

Nah, I aint paying more then $550 for either a G80 Sport or Stinger GT2 with 0-1000 down. Id rather get a Q60 or Giulia, for less or 440i for more.

 

[Checkin]

If you have to have the car now. The lease is by far the better deal. (It is not a great deal by any means though - if you can wait 6 months odds are high you would get a better one)

The lease is *not* the better deal right now. The $5000+ incentives that Kia is offering on each trim is offset by the money factor and residual values. AT BEST the lease and financing deal will come out to be a wash, but it is more likely you pay a bit **more** on the lease than just straight financing. (Especially since you can beat the interest rate on financing with prepayments)

The only way to save money on a Stinger right now is to convince the dealer to go sub-MSRP.

 

[Ryan Autry]

im just now finding out that my lease was not to great actually. 2k due at signing and 630 a month. there was a guy on leasehackr whowas offered 550 and didnt take it. but if your looking for it under 600 is possible with a 51k sale price. mine was 53k btw

Armen, GT2 AWD I presume? What lease terms? 3/10k, 12k, or 15k?

 

[MarkyMark]

Hey. Check this out. It's not too bad. $299/month for the base model with a $3000 down payment. $410/month zero down. On the downside you only get 10k miles per year. For 12k miles the payment goes up to $430/month.

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The advertisement for $299 and $2,999 down is for the base $32,800 model. Add it up, divide by 36 months, and it's $382 a month to rent a car... with $19,037 remaining (assuming the customer didn't know to negotiate the starting price in the first place - which most do not when it comes to leases).

Of course, the consumer is on the hook for any scratches, dings, anything wrong with the vehicle and will be billed accordingly.

Now, let's by the car, with a great 1.9% financing rate (which doesn't exist on used cars, but still, let's pretend that's available somewhere), and you make it a 24 month loan. Now it's a "mere" $809 a month.

And go over the mileage - which is only 10k a year - and pay additional costs (anywhere from $.15 - $.25 per mile over).

Of course, you could negotiate to, say $30,000 (it's a new car and you aren't a good negotiator), and get a loan for $1.9% for 60 months (same as the 3yr lease, and 2yr loan), put down $2,999 - same as the lease requirement - and it would run you $472 a month for 60 months.

Purchase Total 5yrs: $31,319
Lease/Purchase Total 5yrs: $32,800 plus damages, and costs over 30k miles (assume 3k over a year x 3 years x $.20 per mile = $2,250) = $35,050

Now, perhaps the largest consideration is after 36 months, you would own nothing of any value. Just rented the car with all the liability of owning that (that stinks! DO NOT GET IN ANY FORM OF ACCIDENT!).

But in 36 months of owning, you have a residual left, but are not upside down in the loan, and can sell the car, keep it, whatever.... And the payments will not be a crazy $800+ a month to end at the same time.

Most do NOT have $800 a month for a 3 year old car to purchase. So then people get a 5 year loan... Now you WILL be upside down almost assuredly so. And with that, you now are paying $333 or so a month for another 5 years. Oh what fun to be driving a 7 or 8 year old Stinger still paying $333 a month for it!

Excruciating!

If you have money to burn, go for it. Get a lease. AKA, also known as a Fleece.

 

[Chris]

The advertisement for $299 and $2,999 down is for the base $32,800 model. Add it up, divide by 36 months, and it's $382 a month to rent a car... with $19,037 remaining (assuming the customer didn't know to negotiate the starting price in the first place - which most do not when it comes to leases).

Of course, the consumer is on the hook for any scratches, dings, anything wrong with the vehicle and will be billed accordingly.

Now, let's by the car, with a great 1.9% financing rate (which doesn't exist on used cars, but still, let's pretend that's available somewhere), and you make it a 24 month loan. Now it's a "mere" $809 a month.

And go over the mileage - which is only 10k a year - and pay additional costs (anywhere from $.15 - $.25 per mile over).

Of course, you could negotiate to, say $30,000 (it's a new car and you aren't a good negotiator), and get a loan for $1.9% for 60 months (same as the 3yr lease, and 2yr loan), put down $2,999 - same as the lease requirement - and it would run you $472 a month for 60 months.

Purchase Total 5yrs: $31,319
Lease/Purchase Total 5yrs: $32,800 plus damages, and costs over 30k miles (assume 3k over a year x 3 years x $.20 per mile = $2,250) = $35,050

Now, perhaps the largest consideration is after 36 months, you would own nothing of any value. Just rented the car with all the liability of owning that (that stinks! DO NOT GET IN ANY FORM OF ACCIDENT!).

But in 36 months of owning, you have a residual left, but are not upside down in the loan, and can sell the car, keep it, whatever.... And the payments will not be a crazy $800+ a month to end at the same time.

Most do NOT have $800 a month for a 3 year old car to purchase. So then people get a 5 year loan... Now you WILL be upside down almost assuredly so. And with that, you now are paying $333 or so a month for another 5 years. Oh what fun to be driving a 7 or 8 year old Stinger still paying $333 a month for it!

Excruciating!

If you have money to burn, go for it. Get a lease. AKA, also known as a Fleece.

Good post but maybe a little one sided.
Let's look at it a different way.
Lease 3 years 382 a month. After 3 years you paid 13,752. Your numbers on the loan, after 3 years have you paying 16,992. At the this point in the loan assuming the same car and same miles you have paid 3k+ more than the guy who leased. If we assume Kia's residual is accurate you are upside down in the car. The guy who leased it then at least has an option on what to do. Keep the car or give it back. The benefit to the leaser is Kia took the risk on the value. Maybe the car is now only worth 15k instead of 19k. Leaser still wants the car but turns it in to the dealer and the buys it back for 15k. Who's ahead now?

Also your comment on the better not wreck your leased car.. you have that backwards. The lease comes with gap coverage so if you total the leased car 3 months that in, you are off the hook, if you buy it and total it 3 months in, unless you paid for your own gap coverage you are going to owe the bank what 5k maybe?
Leases are not always the best deal, but sometimes they are. You have to look at all the numbers to determine what is best..

I can tell you if I had to buy the stinger now, I would take the lease in a heartbeat. I would take the 6800 they are offering as lease cash. Their money factor sucks, but I wouldn't care as I could dump 20k on it and the MF wouldn't really apply. Even if I couldn't pay any down the MF still only comes to what, 1200. 6800 is more than 1200 every day of the week.. add in the fact it's a brand new car and who really knows what it will be worth in 3 years, I think the lease is by far the better option. Just my opinion.

 

[Checkin]

Let's look at it a different way.
Lease 3 years 382 a month. After 3 years you paid 13,752. Your numbers on the loan, after 3 years have you paying 16,992. At the this point in the loan assuming the same car and same miles you have paid 3k+ more than the guy who leased.

On a GT2 RWD with an MSRP of 50,100, you will pay $23,220 to lease, then still owe $26,553 to buy it out. That's nearly 52K paid in total. This doesn't include fees, markups, tax, etc. (Like the acquisition fee, which is probably $500 bucks)

On the other hand, if you finance for 60 months, Kia will give you $750 on the hood and 1.9% financing. After 60 months, you'll pay between $0 to $2700 dollars in interest (remember, you can pay down the principal when financing). The total paid is about $51,700, which is exactly what I said: Almost a total wash with the lease, but the lease costs more and comes with limitations.

The numbers don't change for other trims - the lease is always a bit more than financing, especially with the $750 on the hood.

I can appreciate that you all want good news when it comes to Kia's "amazing" $6100 incentive, but it is just math...and the math doesn't work at all. If you aren't keeping the car, lease it. If this is your new 5-year daily, buy it and save money.

 

[Chris]

I totally get your side. Just cause I like to argue let's look at the numbers from one more angle.

With you numbers posted above, after 3 years you would have paid 31,533 and owe 20,612 (not including TTL)

If you go to Kia's web page same priced car again excluding TTL after 3 years you would have paid 585 a month for a total of 21,060 and owe 26,553

Loan = 31,533 + 20,612 = 52,145
Lease = 21,060 + 26,553 = 47,613
That is a difference of 4532
Now I realize at this point you still have to finance that last 26,553 but anyone should be able to get a loan with WAY less than 4532 interest on 26k.

Edit: I left out the 2k down you have to pay to get the lease. So instead of 4532 difference it's a 2532 difference. Still the better deal IMO.
Obviously the numbers just get better the more you put down on the lease as the MF is not good. (Not financing 10k at 4% interest for three years on the lease helps more than 10k at 1.9 on the loan.)

I welcome all the thumbs down and anyone to show me how those numbers don't add up.

View attachment 1514
View attachment 1515

 

[Jon1]

This is the problem with the Stinger right now, the residual is low and the mf is high. I wanted to get a Stinger GT2, but the lease payment would be around $700/month, 36 month, 10K miles, first month down. If I could somehow get the car for invoice, it would be ~$650. As said above, you could lease a $32,800 base Stinger for $382/month + taxes and fees. But I just leased a $58K Q50 Red Sport 400 for $445/month including taxes and fees and $0 down. I would expect the Base Stinger to come to about $445/month after including the taxes, fees, and the fact that I paid nothing for the first month.

Thats the comparison you need to make. Although at comparable MSRPs, the Stinger is the better car, at least right now, for the price of a base Stinger, you can lease a loaded $58K Q50 Red Sport with 400HP.

Unfortunately the Stinger lease doesn't make any sense right now. For the same price as a GT2 Stinger lease, you can lease a Maserati Ghibli or 7 series ($700/month) if you are a good negotiator. I'd recommend waiting if you plan on leasing a Stinger.

 

[iclicku]

Too late. I leased one already. Might as well enjoy it...lol

 

[CtK]

Too late. I leased one already. Might as well enjoy it...lol

Gratz!!!! Im jealous, I really want one. But I just dont want to overpay for a Kia. When I can lease a 440i or S5 Sportback, for what they are asking for a GT2.

 

[iclicku]

Well, for what it's worth, I don't feel like I'm over paying and I am coming from a previously leased 15' 428xi. To each their own!

The base S5 SB starts at 54k... doesn't have the same equipment options until you dump 10-15k in options. I would know since I cross shopped and almost bought the S5. That lease was wayyyy more expensive than the stinger.

If you manage to lease the S5 SB for KIA lease money then I'll be the jealous one

 

[Morristl]

I totally get your side. Just cause I like to argue let's look at the numbers from one more angle.

With you numbers posted above, after 3 years you would have paid 31,533 and owe 20,612 (not including TTL)

If you go to Kia's web page same priced car again excluding TTL after 3 years you would have paid 585 a month for a total of 21,060 and owe 26,553

Loan = 31,533 + 20,612 = 52,145
Lease = 21,060 + 26,553 = 47,613
That is a difference of 4532
Now I realize at this point you still have to finance that last 26,553 but anyone should be able to get a loan with WAY less than 4532 interest on 26k.

Edit: I left out the 2k down you have to pay to get the lease. So instead of 4532 difference it's a 2532 difference. Still the better deal IMO.
Obviously the numbers just get better the more you put down on the lease as the MF is not good. (Not financing 10k at 4% interest for three years on the lease helps more than 10k at 1.9 on the loan.)

I welcome all the thumbs down and anyone to show me how those numbers don't add up.

View attachment 1514
View attachment 1515

Chris,

I agree with your analysis. I did a pretty elaborate spreadsheet a few weeks ago and my numbers were pretty similar to yours. What my numbers showed is that even if you want to "buy" now it would be a better deal to start as a "lease" and then buy it out later. Yes, the MF sucks but the (up to) $6800 offsets that because you can't get that incentive on a purchase. I can't find the spreadsheet right now but seem to recall that the lease/buy combination was ~$3000 less in total cost over 5 years than the straight up 60 month financed purchase.

I believe you will pay ~$900 more in interest during the 3 year lease period to get the $6800 incentive. Not a bad trade.

After 3 years you would finance with whomever offers the best used car rate at that time. Of course all of this assumes your driving habits don't exceed the allowed mileage.

 

[Kia Stinger]

Of course all of this assumes your driving habits don't exceed the allowed mileage.

Unless I'm mistaken, the exceeded mileage doesn't raise the price of the car if you decide to buy it at the end of the lease.

 

[Morristl]

Unless I'm mistaken, the exceeded mileage doesn't raise the price of the car if you decide to buy it at the end of the lease.

You are 100% correct. I merged a couple of posts together and should have left that piece off. If you're buying it after lease you could blow past the 36K miles.

 

[Gilgamesh]

The dealership I've been working with says that I'm able to buy out the lease after a three week period to take advantage of the lease cash then purchase like I originally wanted to without have to pay extra fees (For buying out early). That allows me to get a better deal on financing through my credit union.. Might be worth looking into for those on the fence about leasing, buying, or exploring other options.

 

[ralzod]

The dealership I've been working with says that I'm able to buy out the lease after a three week period to take advantage of the lease cash then purchase like I originally wanted to without have to pay extra fees (For buying out early). That allows me to get a better deal on financing through my credit union.. Might be worth looking into for those on the fence about leasing, buying, or exploring other options.

I've never leased, but I thought there were early termination penalties? Does that only apply when you turn in the car, rather than buy it out?

 

[STNGRNV]

The dealership I've been working with says that I'm able to buy out the lease after a three week period to take advantage of the lease cash then purchase like I originally wanted to without have to pay extra fees (For buying out early). That allows me to get a better deal on financing through my credit union.. Might be worth looking into for those on the fence about leasing, buying, or exploring other options.

The credit union financing would be on a used car, even after 3 weeks, right? How do you think that will affect rates?

 

[ralzod]

The credit union financing would be on a used car, even after 3 weeks, right? How do you think that will affect rates?

Depends on your bank. As an example looking at Navy Federal, not necessarily much difference for a low-mileage, late-model "used" car:

https://www.navyfederal.org/products-services/loans/auto/auto-rates.php

​

Also, under terms and conditions, they could even still treat that used lease-buyout as a new car:

New Vehicle
Year models 2016, 2017 and 2018 with 7,499 miles or less​

 

[Gilgamesh]

I've never leased, but I thought there were early termination penalties? Does that only apply when you turn in the car, rather than buy it out?

I've never leased either, but from what I was told there isn't to be any penalties if I buy it out after 3 weeks, but I have to lease for at least that long to qualify for lease cash.

I'm still researching and trying to figure everything out and even though I have a $1,000 deposit down on an AWD Snow White Pearl GT1 with red interior I can back out for any reason at anytime. So when the car finally gets here if the price isn't where I want it to be or the leasing option isn't making sense financially I can either choose to buy it or back away if they can't make me a better deal.

@STNGRNV

I've been quoted from 2-3.5%; the 3.5% is for 78 months (weird amount I know) and that is the worst it would be for that term. I've been with this credit union for years though.

 

[Jayce]

I've never leased either, but from what I was told there isn't to be any penalties if I buy it out after 3 weeks, but I have to lease for at least that long to qualify for lease cash.

I'm still researching and trying to figure everything out and even though I have a $1,000 deposit down on an AWD Snow White Pearl GT1 with red interior I can back out for any reason at anytime. So when the car finally gets here if the price isn't where I want it to be or the leasing option isn't making sense financially I can either choose to buy it or back away if they can't make me a better deal.

@STNGRNV

I've been quoted from 2-3.5%; the 3.5% is for 78 months (weird amount I know) and that is the worst it would be for that term. I've been with this credit union for years though.

How do you have a deposit down on a configuration that according to the Kia website doesn't exist? You're in the US, correct? I'm just curious cause it would be cool if we could custom order stuff.