Do those have 3 rows?
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Doesnât the $7500 apply to purchased cars as well? If so I can just purchase it straight out Iâd think.
There are very, very few vehicles that qualify for $7500 on a purchase. None of the Kias do.
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Eqs suv has 7 seats option. Not sure how spacious it is.
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Itâs a pricey SUV, so either choice is going to cost a lot.
If you lease for the $7,500 rebate, then buy out the lease, itâs still going to be $72,000 after taxes and acquisition fee. A six-year loan at 6.5% APR for that amount is $1,210/month with a total cost of $86K.
You can play around with the Lease vs. Finance feature on the Leasehackr Calculator feature to help decide.
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So back to my original questionâŚgiven the fact this is a new release vehicle and the only discount available is the $7500, is $1,100 a bad lease deal for 36/12 with zero drive off? If so, is it because of the money factor? Not sure if the MF can be negotiated on this vehicle.
how do i âbuyout the leaseâ ? what should i look in the lease doc that says lease-buyout is allowed or not? pls advise
Not trying to be pedantic, just clear. There is no discount on this car. Thatâs a manufacturer incentive for leasing, and if people in meaningful numbers would lease this thing without it, Kia wouldnât offer it. Itâs just part of their pricing strategy.
A better question (and this is subjective) is, âIs it worth $40,000+ to drive this vehicle for three years?â
I canât answer that for you, but if the incentive was $25,000 and the lease still cost $40,000, the same question would remain.
Youâre getting buyout suggestions from people who donât think the lease cost passes the smell test, value-wise.
Thatâs why theyâre suggesting the buyout, but you still have to justify the value question (to yourself, of course, not us).
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Depending on your driving characteristics, you can get three comfortable rows and oodles of cargo space while hardly buying gas with a Pacifica PHEV, which costs much less.
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Not much advantage in purchasing at 6.5% apr vs .00239 mf
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Maybe not in the micro sense, but thereâs a big difference between doing two of these leases vs owning one for 5-6 years
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Sure, but itâs a valid question as to if there is any value in doing an immediate buyout, vs doing a lease, holding it to term, and then buying out at the end.
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Given a similar MF vs APR, over a 36mo lease term you will have paid as much interest as over a 60mo loan term, but have paid it in half the time and (most likely) have no equity to show for it at the end. If we are just doing a straight MF to APR comparison, the MF needs to be superior for leasing to make sense.
For me this is more about the RV. If you are bullish on the EV9 and think it will outperform the RV, you should buy it. If you think EV depreciation will accelerate and it will underperform the RV, you should lease it. As others have mentioned, $1000/mo is what any other full-size luxury 3 row SUV will cost, so youâre not getting away much cheaper in this market segment.
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Roughish calculations:
About $12500 in total interest on the 60 month loan term. About $9k in total rent charge.
If you hold the 60 month loan for only 36 months, you pay about $10500 in total interest over the same period. Yes, your principle would be lower after 3 years than the RV by about $10k, but your net out of pocket cost over 36 months would be about $10k higher, so itâs pretty much a push in net cost.
So in net cost, thereâs really not much difference between the two between a 6.5% apr and a .00239 mf⌠so why take on the bankâs risk?
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Did you read the second paragraph?
Also a more competitive 60-month rate would be 4.99% (eg Navy Federal).
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Yes, but I donât agree with the conclusion in this case.
If your RV is $10k higher than your principal, but you paid $10k less total, youâre essentially in the same situation.
A better interest rate would change the math.
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Personally I think itâs rather arbitrary to look at ownership on just a 3yr cycle. I can own on 4- or 5-year cycles or whenever the right opportunity to trade up presents itself.
As long as I am not planning to leave the country or retire from driving, every decision should be made looking beyond just the next 3 years. Unless itâs just an obviously cheap lease like an Ariya 18m or the good olâ days prior to the pandemic.
TLDR: Outperforming a 3yr RV is not the right benchmark IMO.
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Having driven EVs for many miles now, I can vouch for many of their superior features. But road trips are not one of them. I still rent or borrow an ICEV for road trips.
Personally I wouldnât buy or lease an EV9 right now. Owned a â22 Kia, nothing against them. I just see use-cases as follows:
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Need a vehicle for 6-7 people that can do road trips too: Lexus TX or Toyota GH, Sienna, Pilot, Palluride, Odyssey, etc.
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Need an EV for daily and weekend activities that are less than 200 miles round trip: Ioniq, Ariya, etc. These are 5-passenger vehicles. Mercedes EQB has a kid-only third row.
TLDR thereâs nothing that can do both in practice, not yet anyway. And certainly not at any price point that makes sense. Just accept that reality.
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But it may be worth comparing net cost of leasing for 3 years and purchasing at the end for a 5-6 year total hold time with an initial purchase (even if weâre talking about immediate buy out).
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Thatâs starting to get much deeper in the weeds, as weâd have to analyze what used car loan APR would be available 3yrs from now.
I submit that 99.99% of humans will look at their monthly payment going up for what is now a 3yr old car at that point and theyâll just go lease a new one.
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