I’m interested in a 3 year, 10k mile lease for a Kia Telluride SX or a Hyundai Palisade SEL-Premium. I’m located in Texas. I want to put no or minimal cash down (eg the first month’s payment).
I got access to the Lease Calculator and the cool Rate Findr feature, and I plugged in numbers from a lot of dealer websites using the VIN finder. It gives me a monthly lease amount for a no-money down offer.
What I can’t quite understand is how to go from the numbers on the Calculator to an email to a dealer. What I would like to do is write a relatively large number of such emails, referencing specific vehicles in their inventory. I assume I should be making the first bid, using the numbers I get from the calculator as a starting point for negotiations.
I have tried to look up Leashackr 101 articles, but I don’t quite see the primer I’m looking for.
The MSRP is 45775, and the sale price is 44775 after $1000 national rebate. I entered the VIN into the calculator, and it found the vehicle and plugged in a 64% residual and 0.00227 MF (APR 5.45%). After all that, it calculated the monthly payment of $517.
Now, do I write an email that goes something like the paragraph above? Or what exactly?
Your calculated payment is over $100 off due to not adding Texas sales tax as noted above. This isn’t a great car to lease, especially if you’re only seeking a 2% discount.
Not that you would be riding in the back, but I rode in the back of a new Telluride and it was laughably uncomfortable and awful. The seat cushion was so thin it felt like cardboard and the entire inside felt cheap, front to back.
I realize that Kia and Hyundai have come a long way but you can do better.
You’re paying more in taxes and fees on a 3yr lease than on a purchase. That alone would be a dealbreaker for me.
On top of that a Telluride doesn’t even have attractive lease programs once you add everything up. Not sure how you benefit from spending the total cost of the lease to lease one for 3 years, return it and lease again.
I guess I thought the calculator would automatically populate all the tax and fee fields appropriately once I entered the VIN and the zip code. But I guess this is not the case. So how should I do this in the calculator manually?
I don’t know which price to target as an initial offer. How much of a discount should I be seeking? Isn’t it basically what the market is saying (which of course is not immediately obvious) – I have to discover the market price via negotiation?
My thought was that I would start with the discounted MSRP stated by the dealer. I would approach multiple dealers simultaneously and then play them off against each other. I had used this approach with my last car purchase.
This brings up the question of how I should be using the calculator. I thought it would be helping me to construct a “reasonable” offer. But now I am hearing that it won’t really do that since it doesn’t tell me what a reasonable MSRP is, or what the dealer fees are.
So – should I be first soliciting offers from the dealer, then checking them out in the calculator?
The calculator is just that… a calculator. It’s great at telling you that 2+2=4, but not that 2 is the number you want to add up.
Msrp is msrp. There is no discussion about what a good msrp should be. It simply is.
Discount is what you need to establish for your target. That’s going to come from researching pre-incentive discounts from shared deals, broker listings, etc. The only way to get that number is to spend time researching.
No. The lending institution gets credit for their trade-ins (lease returns). And they can choose who and when gets to take advantage of that and pay only 1.25% tax on selling price for their new lease.
Set up a calculator at 5-6% off MSRP for selling price. Fill in everything else including taxes and fees. When you add up the cost of leasing once, returning it with no equity and leasing again, it will become pretty obvious
