This is an interesting strategy. How would this work?
I know a lot of people actually do this. Itās generally the strategy you want to do if you can afford it.
It sounds like a great strategy. Could you walk me through the steps/mechanics of the strategy?
Like he said, ask the dealer to marked up the MF in exchange for a bigger discount, then pay off the car after a couple months.
I donāt know about asking the dealer for a marked up MFā¦ Generally, people have been negotiating as big a discount on the car as possible and then taking the lease cash.
I donāt know about now, but when I leased my GT, Kia was offering varying levels of lease cash based on trim. The GT was 4k, the GT1 was I think 5500 and the GT2 was about 7k. Thatās a lot of incentives. Not unheard of to get a total of 10 to 12k off MSRP.
Sign a lease with them, then in two months pay off the buyout for the lease. You still have to pay the acquisition fees (695) I believe and some other fees, but they are not significant. It makes way more sense to do it this way because there is not a lot of finance incentives offered.
I also heard this was a loophole that Kia was about to close.
We like to think of it as a clever hack
I hope they close it by offering better financing incentives.
I remember reading a while back people leasing GT2s for $699 a month hoping to pull this through and getting screwed. Donāt remember how this all ended, but there are 100s pages of reading materials on Stinger forums. If you never had to deal with Kia Service dept, this may worth the risk though, but at the end, you still have to pay close to 40K plus tax and interest and deal with a bunch of morons or a system set up for you to give up. In 7 years of owning Kias, I still canāt figure it out.
The main thing is to benefit from the large lease cash, which essentially serves as a huge discount off MSRP through a manufacturer incentive. Kia/Hyundai throw in this large lease cash to compensate for the high interest they charge on the lease but the customer pays this interest on a monthly basis. So if you lease the car for 36 months and keep for that long you end paying thousands of dollars in interest, which offsets the lease cash you are getting upfront and you are hacking this by ending the lease only after two months of interest payment. So assuming you can negotiate a 15% dealer discount here is how a GT2 deal would look like:
MSRP $50k
Sales price: $42.5k
Lease cash: $7.5k
So when you are driving off the lot your lease payoff is $35k plus dealer and finance fees so call it $36k and change meaning you effectively got close to %30 off. Then you work out a loan (or if you have the cash lying around somewhere even better) to pay the $36k. Drive it until you get bored and you can probably sell it and still make some money thanks to the %30 off you got upfront.
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Thank you!!! Definitely have to remember this strategy when my current lease is up.
Good luck on the 15% discount, though. GT2 AWD MSRP is $52350, IIRC. Thereās $7700 lease cash, plus $1k AWD bonus cash. So $8.7K off. But good luck getting anything lower than around $49K from the dealer on that car. So then, after maybe $1k in fees, youāll end up buying it for $42k or so. Pretty good - around 20% off overall.
Where are the rumors they are stopping the ābuy out earlyā option? Thatās the ONLY way I would buy a Stinger right nowā¦
I was referring to the article in the first post, apparently there are large dealer discounts available on the Stingersā¦
Sure, but I think youāll find for the ādesirableā ones (GT/GT1/GT2) almost all the discounts are actually cash-back incentives in disguise. So once you try to add the incentives on top, youāll find that theyāve already been used to get you the discounted price you thought was mostly/all dealer discount. Iāve tried with a number of dealers (like 5+) and theyāve all been this way.
Again, when you get payoff for a lease they just tag residual plus all the monthly payments. Not sure how this hack can work unless its a loophole from Kia Financial, which i doubt it would make sense. When i got my jeep the sale peice after rebates was 34k. Payoff one month after lease was 40k though.
Maybe it changes by the lender? When I traded my leased Lexus early, the payoff did not include the future interest payments, which to me makes more sense. In all my leases the payoff amount started at the cap cost (negotiated sales price - rebates + taxes and fees) and then go down every month by the amount that goes into principal payment aka depreciation (total monthly lease payment - interest - sales tax). This is also how car loans and mortgages work otherwise no one would refinance any loan if all the future but unused interest charges were due at the time of loan payoff, right?
I guess it does. Maybe this Fusion Finance via credit union is how they do it? Not sure how captive lenders do it.
Apparently, Kia does it differently from most - the payoff does NOT include interest for future payments. Since thatās the only lease I had ever looked at closely, I thought all leases were like that 
I mean, it does make SOME sense - if you pay your mortgage off early, you save interest. I thought this was similarā¦ It seems Kia is the exception to the ruleā¦
lol wtf youāre paying $591 for a Kia?
Iām paying $598 ~ 75k MSRP for a Hellcat 707 HPā¦are you sure you are on LEASEHACKR and not āI just got taken by KIA?ā
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I think this is pretty standard actually. In the payoff quote for my wifeās Audi the unearned interest is subtracted from the amount due. Basically the payoff is Residual + Remaining Payments + Tax - Unearned Interest/Rent + Buyout fee (if applicable).
If you have a really low money factor, you barely see the savings for unearned interest.