2018 Kia Niro PHEV EX - New to leasing

I am brand new to leasing, I would really like to own my car I usually go used, but what I want and what I can afford to purchase doesn’t add up, because no used PHEV’s. A dealership suggested I go the lease route and buy out the car near the end of the lease term, since I would know the vehicle history, etc. So I started researching how leases work and stumbled onto this website plugged in numbers I got confused by the Leasehackr Score. Then started reading more topics and threads getting a little clearer picture of leasing but now I think I need to ask what you guys think.

Since I want to own the car, I figure I can use the tax credits/rebates as a downpayment for the buyout of the lease when that time comes.

Here is what my Calculator tells me: Calculator - score 62.9 years
Corrected calculator link - 11.8 years

Is this a good deal for me? Am I even going about this the right way?
Thank you for the help.

I think you’re not using the calc properly. First, which state are located? I’m going to assume CA.

  • What is involved in your “post-sale rebate” number? Is it $4500 federal rebate, $1500 CA rebate, $450 SCE? When you lease, you do not get the federal rebate… that goes to the leasing bank. The manufacturer has the option to pass that rebate to the consumer in the form of an incentive. In the end, this number should probably be $1950.
  • So your “incentive” number. This is what Kia is providing, and is most likely them passing on the federal ev rebate to you. If you’re in CA, this goes under “Taxed Incentives” since it is taxed.
  • Everything else is ok, if it’s correct (i don’t know the RV). The only thing to make sure is that sale price is the number BEFORE any manufacturer rebates/incentives. If you’re grabbing that number from a website, it’s possible that’s the price with rebate/incentives already applied.
  • I am in CA and I was using the calculator wrong.
    New calculator link
  • You are right, those are the rebate numbers I was using.
  • I was using the sales number as negotiation price.
    Thanks for that help, so I guess the question then lies, does it make sense for me to lease and purchase the lease?

IMPORTANT - California requires at least a 30 month lease to qualify for the rebate! Your 24 month lease will not qualify. There are also income limits, make sure you qualify!

If you think you’re likely to purchase the car, then I’d recommend asking for the numbers on a 36-month lease anyway. The numbers are likely to work out better per month.

Leasing and then purchasing is a perfectly good idea, it gives you the option at the end of the lease to change your mind if you decide not to purchase. To compare, add the total lease cost (from the calculator) to the residual (in this case, $32,625 MSRP x 54% Residual = $18,720) for calculate what you would be paying total in the end to own the car. If its not a lot higher than just buying it right now, then leasing is probably a good idea

Also zero down is very often the best way to go

Oh yeah, I forgot that 30-month stipulation.

What are your options? You mentioned purchase affordability, so am I assuming that the payments for purchasing are too high right now? Even if you want to purchase your lease, at the end of 3 years you’re going to either need to pay cash on ~$17.6k or finance it again.

Most people on this forum would never buy their car at the end of the lease. I think very special scenarios warrant that situation.

Good catch on the 30 month stipulation. I was told Incentives for 24 months, so I kept that in there. I’ll have to ask about specifics on 36 month lease.

Payments on purchasing new is too high, I was planning on financing after the lease term, to keep similar payments of the lease.

@racker15 I am well below the income limit, and just above the extra $2k unfortunately.

Is this vehicle eligible for the 7.5K Federal rebate?

If so, why are you giving that up to lease?

Also, it looks like they have special finance rates going on this car. Not sure that 2.21% is the buy MF on Kia’s to lease. Did you confirm the MF they are charging you on this lease?

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Vehicle is eligible for $4,543 according to https://www.fueleconomy.gov/feg/taxevb.shtml

I would apparently be giving that up to the incentives to get into the car at a price I can afford. This is why I am asking these questions :slight_smile:
The MF was for 24 months.

Think of it this way – because the car is eligible for $4500 tax credit, you should be getting at least a $4500 rebate somewhere in there to make up for them claiming it. Granted not every manufacturer does this, though, so YMMV.

Can you PM me what dealer you’re talking to in Socal because I am looking for the same car. Maybe there is some sort of discount if you can refer me or something.

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I know this thread is on the PHEV, but I hacked a regular Hybrid version a few months ago

By putting down $3k+taxes, you have an effective $360/month payment and my husbands Hybrid is $314. It’s not too far away from your number, but the Hybrid doesn’t have as high of incentives, so your payments should be lower. Try to negotiate by putting less down…

Assuming you can get 10% off of the MSRP, This should be a zero down, zero drive off, $350 a month lease for an EX.

You are up against a horrible MF, unless they are doing something special this month.

I asked on Edmunds what the rate is for the EX at least for my zip.
Niro PHEV EX
36/15 - .00228 and 51%; $5043 lease cash
48/15 - .00250 and 42%; $4543 lease cash
36/12 - .00228 and 53%; $5043 lease cash
48/12 - .00250 and 44%; $4543 lease cash

Looks like I would need 12% off MSRP to at least to get $350