Stinger Deals and financing help

[ghettozoo]

best way to summarize:

Lease Buyout strategy works best only if the lease incentives are greater than the amount of interest you'll pay performing a lease buyout.

If prevalent used cars rates charge you $4,000 in interest over 6 years but the incentives are $6,500 then absolutely lease then buy it out.

However, if your used car rate charges you $4,000 in interest over 6 years and your lease incentive is $3,500 then you'd be better off taking their promotional finance rate.

I know right now 2021's are getting 0% for 66 months on all trims which, is pretty damn good these days. Negotiate $3,000 off of sticker due to the 2022's hitting lots, why not.

Since you're unfamiliar with leasing, heres a cheat sheet for you:

RESIDUAL VALUE = What Kia estimates your leased vehicle will be worth in 2/3/4 years. This is expressed as a percent. I've seen Stingers have a 55% residual value which, is pretty darn good.

MONEY FACTOR = Because legally they can't call it an interest rate but, thats basically what it is. Some people call it a usage charge. They're technically correct but it functions like interest. To convert MONEY FACTOR TO APR: money factor x 2400. As an example: MF 0.00180 x 2400 = 4.32% apr.

CAP COST or CAPITALIZED COST = The amount that is being financed in a lease ( amount you're paying on the lease over 2/3/4 years.)

CAP COST REDUCTION = Down payment and/or incentives

CAP COST usually factors negotiated price the of car and any taxes/fees/finance bullshit you might decide to buy.

LEASE END VALUE or LEV = The Guaranteed amount your vehicle will be worth at the end of lease.

When looking to do a lease buyout here are a few things to keep in mind:

NEVER TELL THE DEALER WHAT YOU'RE DOING.
Its none of their business and they'll try to steer you into a situation where they actually make a profit on these cars.

PAY CLOSE ATTENTION TO HIDDEN FEES.
I've seen dealers try and sneak in "Warranty extensions" and "Exterior coatings" in the CAP COST area. It'll look good to the untrained eye because of the lower payment but, if you look close you'll see it doesn't make sense.

NEVER BUY IT BACK AT THE DEALER
If you have a great relationship with your credit union, take advantage of that. A credit union or your local bank will simply create an auto loan for the car. No dealership "processing charge" or "loan origination charge" or any of the other horseshit.
Another EXCELLENT resource is an Auto Broker. I was an Auto Broker for a while and had 3 times as many financing options as any dealership I had worked for. I would do lease buyouts using credit unions for their stellar rates and make a flat fee from the CU as my fee. Clean and simple.

DM me if you have questions. I know more about dealership crap than I want to from working at dealerships 90% of my career.

So my lease is up this month and I can contact my credit union to pay off the residual value, taxes, licensing and AVOID the dealership 100%?

 

[ghettozoo]

I have approached one dealer about purchasing a 2021 GT2AWD The sticker is $54275 ($5290 +mats, remote start) There internet deal is a whopping $1000 off plus KIA $2500 rebate. They also posted that they had added tinit of $299 which I will refuse. Their admin fee is $698 which negates that big $1000 off. I also have not mentioned I am at the end of a 2018 Stinger lease which I want to turn in and have the KIA Corp $900 customer retainment added to the deal and no over mileage charges etc... What are most dealers offering off a 2021?

 

[Nocostinger]

So my lease is up this month and I can contact my credit union to pay off the residual value, taxes, licensing and AVOID the dealership 100%?

You 100% can dodge the dealership. The only thing you'll need to do is get a 20 day payoff from Kia, either your dealership or KMFUSA.

Theres approximately $3,000 in markup from Invoice to MSRP. Right there, they should be willing to discount a good portion of that if not all. Its not a Telluride for f*cks sake.

That said:

directly from Kia USA's website:

$2,500 rebate on all 2021's for cash buying or financing. If you're talking 2022 models thats a different story.

But, between $2,500 rebate, $3,000 between MSRP and invoice, plus the fact that the dealer risks sitting on a unit that won't lease worth a damn...I'd say see if they'll go $7k off and you'll go for it.

Thats far more reasonable.

A great way to take advantage of this is to get preapproved with your credit union.

Unlike the dealership, they won't mark your finance rate up.

Stroll into the dealership with your preapproval, Let them know what you'll do on "cash purchase' (you kind of are if you're using your own financing) and when thats said and done, see if they network directly with your credit union. Two scenarios branch off of this:

Either they'll just use your credit unions pre-approval rate

or

They'll try and beat it with another finance company just to get the finance flat fee from the bank to make something.

They'll usually try to beat your credit union just to make a $400 flat from the bank.

 

[4wheelpilot]

I could have never imagined but in Pennsylvania, regarding a leased vehicle, Kia customer service will not give you any buyout information. Stating you HAVE to go back to the original dealer for any snd all info. This limits our options and gives the dealer a lot of leverage. I would think you could go to another Kia dealer to finish up a lease but I’m not sure. My lease was about to end. I decided to sell my leased GT1 instead to carmax. Although the appraisal was good the experience at carmax was an absolute disaster. I couldn’t believe how badly run the company is.

 

[andyecon]

I have approached one dealer about purchasing a 2021 GT2AWD The sticker is $54275 ($5290 +mats, remote start) There internet deal is a whopping $1000 off plus KIA $2500 rebate. They also posted that they had added tinit of $299 which I will refuse. Their admin fee is $698 which negates that big $1000 off. I also have not mentioned I am at the end of a 2018 Stinger lease which I want to turn in and have the KIA Corp $900 customer retainment added to the deal and no over mileage charges etc... What are most dealers offering off a 2021?

Where are you located? I have gotten multiple dealers to around 8.6% off of MSRP before any Kia incentives, $0 in add ons, and minimal doc fees. I can share some contacts in the Midwest if you like.

 

[Nocostinger]

I could have never imagined but in Pennsylvania, regarding a leased vehicle, Kia customer service will not give you any buyout information. Stating you HAVE to go back to the original dealer for any snd all info. This limits our options and gives the dealer a lot of leverage. I would think you could go to another Kia dealer to finish up a lease but I’m not sure. My lease was about to end. I decided to sell my leased GT1 instead to carmax. Although the appraisal was good the experience at carmax was an absolute disaster. I couldn’t believe how badly run the company is.

You can go through an auto broker and get 90% of this stuff done without putting up with the dealership bs.
A good auto broker will have a solid dealer relationship and subsequently, exclusive auto pricing
They'll often have better financing available than the dealership will.
Often times, brokers will bring the car and the paperwork to you and be up front about what you do and don't need. You're basically paying them to advise you on the best way to acquire your next car, not paying their comission to ram a bad deal down your throat.

 

[4wheelpilot]

Thanks for the advise regarding an auto broker. It's not something i've thought about sounds like it could be the best way to go.
In Pennsylvania, it's a problem at the end of a lease as apparently the automobile dealer lobby has convinced the State to give them control at the end of the lease by preventing the lessee from getting any information from i.e. Kia Lease End Department and being able to buy out the car directly from Kia (or ANY auto brand).

 

[PNut5280]

You can go through an auto broker and get 90% of this stuff done without putting up with the dealership bs.
A good auto broker will have a solid dealer relationship and subsequently, exclusive auto pricing
They'll often have better financing available than the dealership will.
Often times, brokers will bring the car and the paperwork to you and be up front about what you do and don't need. You're basically paying them to advise you on the best way to acquire your next car, not paying their comission to ram a bad deal down your throat.

Edit, sent you an email.

 

[Nocostinger]

Edit, sent you an email.

Oh shoot, I need to put up a post about this as i'm no longer brokering. Free advice tho!

 

[PNut5280]

Oh shoot, I need to put up a post about this as i'm no longer brokering. Free advice tho!

Thanks man, If anything comes up I’ll be sure to ask you.

 

[trooper1414]

Double post by accident... Deleted

 

[trooper1414]

Interested in a GT2 2021/2022 AWD. can someone help me with what pricing I should expect for a lease buyout. maybe an auto broker could help to or anyone that could do a video call with me would be greatly appreciated.

 

[trooper1414]

Oh shoot, I need to put up a post about this as i'm no longer brokering. Free advice tho!

Could you help me with some guidance. I can't PM, but if you do I'll respond

 

[Nocostinger]

Could you help me with some guidance. I can't PM, but if you do I'll respond

I can help. Whats up?