Test drove a 2018 Kia Stinger GT2 over the weekend. I liked it enough to ask the sales manager to provide a quote.
$50,100 MSRP, $36,950 sales price after discounts and $6900 lease cash, around 27% off MSRP. 36 months, 12k miles (yes the paper says 10k, sales manager confirmed they didn’t put that on this quote, I’ll get it in writing if I actually complete a transaction).
I’m trading a financed vehicle with $4k negative equity.
Their math on the actual payment seems way off. All of the calculations I’ve done (LH calculator and Excel), even with the negative equity rolled in, makes it look like the payment should be in the $600s with $0 down (yes, too much for a Kia, I’m looking for other alternatives). They have the payment at $703 after $1k down.
Being a bit new to calculating a lease by hand and living in Georgia where the tax is based on the total payments, either I’m doing the math wrong or they are doing the math wrong. I’m trying to make sure I have the math right as I look for alternatives so I know what I’m looking at. Any help deciphering this would be appreciated!
LH Calculator here - I rolled the 4000 negative equity into the sales price. Not sure if that’s right: leasehackr.com/calculator?make=Kia&msrp=50100&sales_price=44950&months=36&mf=.002&dp=0&doc_fee=853&acq_fee=595&taxed_inc=6900&untaxed_inc=0&rebate=0&resP=50®_fee=696&sales_tax=7&memo=&zero_driveoff=true&totalLeaseTax_radio=true&miles=12000&msd=0
Edit: With the current $6,900 lease cash incentive, MF is fixed at 0.002, residual of 50%.
Edit 2: My math was wrong. I had the sales price off (thanks @Jon and @Qbrozen): https://leasehackr.com/calculator?make=Kia&msrp=50100&sales_price=47850%20&months=36&mf=.002&dp=0&doc_fee=853&acq_fee=595&taxed_inc=6900&untaxed_inc=0&rebate=0&resP=50®_fee=696&sales_tax=7&memo=&zero_driveoff=true&totalLeaseTax_radio=true&miles=12000&msd=0
Money factor seems to be high. if they use 0.0001 for instance (good credit, MSD, or one-pay might do the trick) you save 150 per month or so.
The lease cash comes with a mandatory money factor. .002 seems right.
For reference, when I did my lease deal, the lease cash (4k) was tied to a .0022 mf which couldn’t be changed, set by Kia Finance. I don’t know if they do MSDs, but I don’t think you could do enough MSDs with them to get anywhere near .0001 mf.
The money factor is set to a point where Kia can make the money back on the initial lease cash they offer to get people in the door. There’s always a kicker.
Sorry, I forgot to put that in the OP.
With the current $6,900 lease cash incentive, MF is fixed at 0.002, residual of 50%.
Lease cash, MF and residual change based on trim being purchased, so an AWD GT2 has $7700 lease cash, .00203 MF, 49% residual (as an example). This is based on some info I found for SeptemberOctober promotions on a Kia Stinger forum.
The negative equity is rolled into the monthly term. So $4k/36 months is $111 a month paying for the negative equity.
Plus interest. Which, at .002 MF or 4.8% APR, is not negligible
Not a good lease. If you can afford to finance. Lease the car, then buyout the car shortly after leasing. The rental charge on that car is no joke.
I understand that the negative equity adds $111/month. Even with that in mind, calculations on my own (Excel) come up to about $680 or so with $1k down and $4k negative equity rolled in.
I don’t see where you rolled in the negative equity. Shouldn’t the sales price be $47850 with the neg equity?
You’re exactly right! Well, that was my issue…I can’t add and subtract quite as well as I thought.
Now the numbers work. Nothing to see here.
Yup, @Jon caught it too. I done goofed.
Took me too long to type. Ha
Does that 6k discount include loyalty / conquest? If not, please ask if they want to do anymore deals like that for out-of-state…