Researching prices - Factory to dealer incentives?

[anniepeachie]

Hey all, recently found this forum. I know my husband has wanted this car for a long time, so I'm doing some secret research and reached out to a few dealers with a GT2 AWD I'm sure he'd like. I made some lowball offers which will probably tick them off, but if now's not the right time for us to buy, we can wait.

My question is, do you guys think there are considerable factory to dealer incentives on the 2020 Stinger right now? The dealers around here (Michigan) all have similar publized "discounts" usually at around 5%. I don't know if that is based on their normal wiggle room or drawn from hidden incentives on their end. They hammer their price after incentives which to me should be immaterial as those come from the manufacturer and I'm talking to the dealer . I've found some reports of possible $4,000+ factory to dealer incentives out there and I'd like to get a piece of that.

I'm the primary car buyer and negotiator in the family, and I am typically very firm on what I'll pay, but I make it quick and painless once we settle on a price.
Also, thanks for the leasing buyout tip! I wasn't really paying attention to the current lease incentives (looks like $10,200 around here) but after reading here I am strongly considering that approach.

Nice to meet you, and thanks so much!

 

[Chark]

Welcome! If your current husband doesn't work out, let me know. You sound like a keeper!

 

[Lonz]

I wasn't really paying attention to the current lease incentives (looks like $10,200 around here) but after reading here I am strongly considering that approach.

This is absolutely the way to go. Here's the deal you need to shoot for:

10% off of MSRP (for a 2020).
Less 24 month $10,200 lease rebate.
Plus Lease Acquisition fee of $650.
Plus Dealer Doc Fee - hopefully not more than $200.

Your bottom line cost is the "Adjusted Capital Cost." That's the number you need to focus on b/c this is the amount you will need to pay to Kia Finance to buy out the lease. You should buy out the lease immediately (within 30 days), so that you don't get charged too much interest. Interest rates on these leases are insanely high, around 8%. Also, do not put any money down, so that it's 100% clear how much you'll pay to buy out the lease.

Hope this helps! Don't let any of the dealers tell you this is not possible, or try to tell you "you're gaming the system." That's what one dealer told me. LOL! I've already done this once, and I just bought another Stinger this past Wednesday for the exact deal mentioned above. I will buy it out immediately, as soon as it shows up on Kia Finance's web portal. Kia Motors Finance.

Attached are pics of my deal that you can use as proof when negotiating with your dealer. The first pic shows the MSRP of $54,140. The second pic shows the dealer extended price, which is 10% off of MSRP.

 

[anniepeachie]

Thanks, Lonz! I did see your prior posts on your experience and they are very encouraging! I've done one "real" lease in my life which had a definite purpose in mind and worked out very well for me. So at the time I did do all my research on fully understanding lease terms and making sure all numbers added up and of course put $0 down. That was like 8 years ago though, so I'll refresh my memory and dig out my old spreadsheet calculator. I didn't look up current residuals and predicted money factors yet, but 8% is nuts!! My CU has 1.99% new car loans right now, so I plan on giving them a call next week to see if that could apply to a quick lease buyout, otherwise I could probably pony up the cash.

As of now, I think I've been ghosted by 3 dealers . Probably hurts I've only communicated in emails so far. I've never looked for a flat 10% discount, but it's a good benchmark. I'm asking them for something around 14% right now which I think is making them insane. But no one has even come back with a counter or even flat out rejection. The one car I've communicated the most about has been on the lot since January. Maybe they want it to hang around til the 2021's come out?

It just really ticks me off that they act like $3500 customer cash is coming out of THEIR pocket, when they're probably getting that much or more in dealer cash. But I can't confirm that, of course. Can anyone?

 

[MerlintheMad]

Welcome. Talk about jumping right in! I am a leasing greenie; this was the only lease I've ever entered, and I did the buyout after three months to avoid all that lease rent: once I knew I intended to keep this car, it didn't make sense to lose over $5K over the next 33 months. The buyout for me went flawlessly.