After observing the deals posted here, I decided to go the lease route to get my first car. I understand that WA state doesn’t get the best deals for leasing as CA or Tri-state area and my expectations are realistic. However, I see the differences are huge to not ignore.
First round of emailing some Kia dealerships, this is one quote I got where they provided the MF on asking:
I see that there is room to ask for dealer discount as it is non-existent in this quote - but what should be my target?
Standard manufacturer rebate for this month is $2400. Could someone shed light on if any more manufacturer rebates are available in Kia for this month? Would it improve if I’m ready to sign a 36m lease?
Since this would be my first car, I don’t qualify for any Trade-in / Conquest / Loyalty rebates, nor do I qualify for any first-responder promos. Are there any known rebates through Costco or corporates?
Seeking the collective knowledge of the forum to help find a good leasing deal in WA State.
This is in line with the quote posted above as well. Does that mean that this dealer already provides the maximum possible rebates and a good MF and there is no negotiation possible in those aspects?
Could you suggest how much should I realistically target as dealer discounts off MSRP without getting laughed-off?
This dealer in CA seems to offer some good deals which I’d love to sign if I were there. I hear in WA state I cannot expect such a lease quote - but what would you consider as a ‘Good deal for WA’ versus a straight rip-off?
This is for a K5 GT-Line (Cosmetically similar to a GT), not THE GT. (Edit: This clarification is just a note to help other newbies reading the thread, not you pros! )
I haven’t enquired about K5 GT - I didn’t even see them in dealerships’ website inventory.
Correct. Short of any specific incentives (new grad, loyalty, etc), what you see there is what you get. Anything more would need to be dealer discount.
Well, I am looking at the TrueCar screen and it look like 3% is the max in Dallas-Fort Worth area. That’s a bit strange. I thought K5 was their flagship vehicle.
Manufacturer Rebate: $2400 (8.4%) ( - ) [$1900 LC + $500 Bonus. This is same as posted in Edmunds]
MF Used: 0.00117 (APR: 2.81%. This is also same as posted in Edmunds)
Residual value: $19,132 (67% of MSRP, same as posted in Edmunds)
Comes out to be $0 DAS + $370 per month for 24m/12k
My target price is $0 DAS + $280 to $300 per month for 24m/12k - someone who has seen WA leases tell me if this is a realistic estimate considering its a Kia-Sedan at the end of the year.
From the above calculator,
7.2% off MSRP -> $0 DAS + $370 pm (Current offer) 12% off MSRP -> $0 DAS + $302 pm
13% off MSRP -> $0 DAS + $288 pm
I’m considering the following,
End of the year - the dealer might be motivated to turn up better volumes
MFR rebate being the highest ($2400) for this variant (GT-Line FWD) + term (24m/12k) combination, compared to others.
Also, I was trying to document in calculator the 2021 Kia K5 LXS lease deal offered by @Ty_the_Car_Guy - I see those Kia deals as the Gold standard for K5 leasing and I even reached out to him to sign-up for one, but unfortunately he could not do out-of-state leases.
Plugging-in the MF, Residual, MSRP and adjusting the Down payment to make DAS $2000, revealed a ~15% discount off MSRP.
I’ve then applied a comparatively slightly lower 12% discount to my WA dealer’s offer to arrive at target of $0 DAS + $300 pm lease. (At 13.5% discount, I’d hit $280, but mostly I’m just using this as a lead-up to hopefully settle at 12% and hence $300).
So there you go - I’ve explained my thought behind how I arrived at my target.
From your response, I sense you feel this is unrealistic and I agree that this could be. This is why I seek the input from Trusted Hackrs like you - what do you think is a realistic number? Or what do you think I should do to arrive at one?
I would move onto a different car (if what you are looking for is an LH type of deal). If you arent emotionally tied to wanting this specific car, you can probably do much better from a “what you get for the $” cost perspective, IMO anyway. I wont bore you with the usual “just get a BMW 3 series for the same $” statement That said, I would get a BMW 3 series for the same $, LOL.
I appreciate that you actually have substantiated how you got to your numbers. It’s far too often that people look at an offer and then just decided without good reason that the price should be $100 less. Someone having logic behind their target is sadly few and far between.
I’d be cautious about basing your numbers off of a back calculated estimate from a special price on a different trim. Often times there is extra trunk money on these less desirable trims that makes things a tough comparison.
Agree - I’m not very specific about the K5. Recently, I’ve also been pursuing a Sonata which is based on the same platform. I’m willing to change my expectation and monthly cost to land on the incentive-loaded trim - in this case a 2020 Hybrid. Yet, I’m having a tough time trying to replicate a deal another WA-based hackr signed a few weeks ago. I do wonder if I miss this end-of-year window, then with rebates expected to dry up next month, and dealers not willing to discount as much, I’d have an even worse chance of getting a better deal.
Like I’d be unwilling to sign if I got one at this price in WA!
)
That said, I would get a BMW 3 series for the same $, LOL.