Hi All,
Looking for a deal check for a 2024 kia sportage EX. Plan on leasing from North Carolina. Messaged dealer a few months ago with my exact wants including my specific out the door price of 28,300. Was told there is no way they can do that and told me they can do out of door of $32,000 and sent me this write up. Is this good? Are there markups that I could negotiate?
MSRP - 31,190
dealer discount - $1000
Selling price - 30,190
Residual value- .66% (edmunds forum had this at 67%; markup?)
Money factor - .0029 (edmunds forum had this at .00251 a few months ago; is this a markup?)
36 months, 10,000 miles
Tax - $929.69 (NC tax is 3%; i thought it was based on lease price but according to this, it doesnt seem like so)
elec filling fee (doc fee) - $60.50
administrative fee/acquisition - $799.50 (leasehackr calculator says Kia has this at $650; markup?)
state inspection fee - 13.60
title - $66.75
registration - $46.25
plate fee - $1.00
Oh through my research, people were saying to only talk with the sales people in terms of sale price. as they can always get the “number” $/month that you want by marking up other things on the back end. what the best course of action is it by negotiating the $/month?
So are you saying they made a mistake and gave me the purchase tax for my lease? I’ll address that if so.
NC Tax = 3% x (30190 + 799.50) = 929.69. Tax is levied on the sell price plus taxable fees. You should get some clarity on the 799.50 admin fee as it may include the Kia 650 acq fee. The 1000 untaxed incentive in your LH calc may be wrong if it is the dealer discount. Dealer discounts are not classified as incentives…
I included the 550 rebate per the dealer’s WS. According to the LH Calc, DAS = 0 followed by 35 payments of about 492 each. However, you need to vet the money factor, residual factor, and rebates/incentives through Edmunds. This is why I was hesitant to perform the calculations manually which is what I always do given accurate input data. Not a big fan of online calculators. But you can trust the LH Calc output. BTW, residuals are set by the fund provider. Dealer can’t markup residuals.
One other thing, you’re allowing the dealer to control the deal. Use only the useful info in their worksheet, do your research (e.g., sell price), perform all the calcs yourself, and then, create a lease proposal like the one below. Email it to the dealer and negotiate via email/phone. Once an agreement is reached, have them email you a preview copy of the lease contract for your review to ensure there are no omissions or mistakes. Next, go to the dealer to sign and pick up car.
Your research should have included reading the replies to your last thread from April, when you were asked whether you’d chosen a good leasing candidate before starting anything else.
I believe @mllcb42 is correct. For a lease, NC taxes the monthly payment unless that’s changed but I doubt it. So, the dealer quote appears to be for a purchase.
haha i stand corrected. This car is for my wife who wants a cheap reliable suv with good fuel economy. kia sportage was one of the cheaper ones that we test drove and liked. so thats why we are going for that one.
@delta737h
I am new to this so thank you for your detailed explanation and help. Thank you as well for the calculation. I am now using your numbers with the updated MF and residual value. link here: updated calculation
So this is what i have gathered:
1)Because of my poor wording with “out the door”, i was given tax on purchase price although i made it clear to them i was leasing. I will raise that issue to them to change.
2) my new MF is lower than what they suggested, so I will just tell them i want the MF of .00250 (how do i word that without saying hey i got this from edmunds and this is what it should be).
3)ask them if this admin fee is including the kia $650- If yes, I can tell them i want to pay whats suggested by kia? and if not included? can i negotiate that off totally?
4) how do i mention this lease cash rebate (since i am not military or had kia loyalty?
@mllcb42@max_g how do you suggest i find/research the cheapest (if it isnt necessarily as easy as just finding the car with the cheapest MSRP? be easy on me lol.
But keep in mind most ICE compact SUVs don’t really lend themselves to leases these days.
If 4yr ownership cycles followed by large amounts of equity and tax breaks on the next car save you a lot vs 3yr leases with no equity and no tax breaks… then you have to look past monthly payments and do what’s best for your future financial health.
Get the MF buy rate, residual factor, rebates/incentives if you haven’t already done so You can also check other sources like TrueCar for rebates/incentives. Select those for which you may be entitled. In my post, I suggested the steps you should follow. Don’t ask the dealer anything except for clarity on the 799.50 admin fee. Include the Kia Acq fee on your lease proposal. This fee is non-negotiable. However, some fund providers will waive it if you agree to a higher money factor… do the math. Don’t allow the dealer to take charge. You must control the deal. Otherwise, you leave yourself exposed to getting a good whoopin. These Jack-o’-Lanterns aren’t your friend. Create a lease proposal once you’ve determined and vetted the following…
Target Sell Price
Admin fee itemization (doubt it includes acq fee but likely includes doc fee)
Acq fee
Rebates/incentives
Term
MF buy rate
Residual factor
You already have all the Gov fees as well as the sales tax rate. You also know that the sales tax is levied on the base monthly payment.
