Kia.com Lease Calculator vs Real Life

[Mainfinger]

Also peak kia in littleton has one less than a month out wolf gray sxp

 

[Lith_SXPN]

I didn’t know residual values are negotiable. Isn’t it determined by mileage and zip and set based on the market projections?

I've seen dealers play games with residual value lower than value set by Kia. Of course I was only guessing as his numbers were high without details.

 

[wchjr56]

I just went through this. Even though I was paying only MSRP I could not get my payment equal to the dealers. What I found out was that the dealers are allowed to up the money factor and they took it from .00114 to .00154 which was about 1% of interest rate. It took the payment up about $50 per month over the Kia site. They also say there is a $650 acquisition fee that is also not included. Someone pointed out the Kia site does not take into consideration the sales tax as well. I finally when with the 1.9% financial over 66 months for only $20 more to own.

 

[cbaker89]

I just went through this. Even though I was paying only MSRP I could not get my payment equal to the dealers. What I found out was that the dealers are allowed to up the money factor and they took it from .00114 to .00154 which was about 1% of interest rate. It took the payment up about $50 per month over the Kia site. They also say there is a $650 acquisition fee that is also not included. Someone pointed out the Kia site does not take into consideration the sales tax as well. I finally when with the 1.9% financial over 66 months for only $20 more to own.

Very smart move!!! Financing is ALWAYS a better option if you can afford it. Leases are good for people that can't really afford a car but can rent it long term.

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[tetuanrp]

Re: financing always a better option, yeah agreed from a financial perspective. And leases aren't always for people that can't afford a car - i can easily afford this car, I'm just not sure certain I want to commit to owning it. I really want an electric SUV w /3 rows, so had a deposit on a Rivian SUV - but the build date was 2022 for my car. So I pulled out of that, and saw the Telluride (I need 3 rows w/ kiddos). So reason I'm not buying, is I'm hoping more options for electric in 3 years.

If financing pricing comes out the same - I'm open to exploring that, but what if I want out after 3 years? Then I think it's about even? I guess then I don't have to worry about mileage limits.

 

[wchjr56]

Very smart move!!! Financing is ALWAYS a better option if you can afford it. Leases are good for people that can't really afford a car but can rent it long term.

I guess it always comes down to how long you want to own a car and whether the residual on the lease reflects the FMV at the time the lease ends based on the miles you bought. My residual on the Kia was 57% for 36 months and 15k miles. I ran the loan out and the loan value with 0 down was $3k lower then the 57% so I felt it was a wash at 36 months lease vs buy residual at 36 months out after considering the $20/mo extra payment. So at a wash, I liked owning and not leasing since COVID I don't drive nearly as much and don't know what the future holds at this point.

Go here (2021 Kia Telluride Lease Deals and Prices - Page 8) to find the actual lease deals offered by Kia and then reconcile that with what the dealer is charging you. I had my dealer walk me through all the differences. They were not happy because they just said the Kia site was wrong, then when we went through the reconciliation out comes the $650 and the markup of the lease factor. Good luck

 

[Mainfinger]

Re: financing always a better option, yeah agreed from a financial perspective. And leases aren't always for people that can't afford a car - i can easily afford this car, I'm just not sure certain I want to commit to owning it. I really want an electric SUV w /3 rows, so had a deposit on a Rivian SUV - but the build date was 2022 for my car. So I pulled out of that, and saw the Telluride (I need 3 rows w/ kiddos). So reason I'm not buying, is I'm hoping more options for electric in 3 years.

If financing pricing comes out the same - I'm open to exploring that, but what if I want out after 3 years? Then I think it's about even? I guess then I don't have to worry about mileage limits.

Yeah with a 66 month loan at 1.99% by the time you are looking for that car in “3 years” you should for sure have positive equity imo. I think once you own this car you’ll be content owning it for a while. Things are amazing. Let us know how it works out!

 

[cbaker89]

Re: financing always a better option, yeah agreed from a financial perspective. And leases aren't always for people that can't afford a car - i can easily afford this car, I'm just not sure certain I want to commit to owning it. I really want an electric SUV w /3 rows, so had a deposit on a Rivian SUV - but the build date was 2022 for my car. So I pulled out of that, and saw the Telluride (I need 3 rows w/ kiddos). So reason I'm not buying, is I'm hoping more options for electric in 3 years.

If financing pricing comes out the same - I'm open to exploring that, but what if I want out after 3 years? Then I think it's about even? I guess then I don't have to worry about mileage limits.

That and you will already have some equity.

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