Hi y’all, I’ve been hunting for a solid deal on an EV9 Land from the angle of buying out the lease, so I’m less concerned about rock bottom monthly payment in favor of clearly understood all in price. Am I right when I say the numbers feel off compared to their advertisement? I feel like the selling price should be closer to $68 pre $14,800 Kia Cash to match what I’m seeing with other dealer discounts. The residual and MF look spot on, but monthly payment makes it feel like I’d be paying close to $4k more in 2 years than their advertised price of $54,505. I’ve got stellar credit and the ability to finance outside Kia so I’m not even opposed to buying outright, but I feel like I’m going crazy trying to understand the math.
Yup. But there may be a reason for it. The advertisement shows a dealer discount of 12800 and may apply to a purchase only. So much depends upon the arrangements the dealer has with Kia financial. Those arrangements may be different for a lease v. a buy. You’re getting a 4000 dealer discount for a lease. The advertisement says 12800 and may apply to a purchase. I would check to see what this EV is selling for in your market. You may want to check LH marketplace and LH signed deals and tips. Remember, dealer discounts are negotiable.
Next, let’s look at the posted dealer worksheet as there are some non-disclosure issues…
MSRP 74905.00
Dealer Disc 4000.00 Negotiate!
SP 70905.00
Capped Fees
??? 2131.90 (this is not disclosed and should be itemized)
Doc Fee 245.00
Gross Cap 73281.90
CCR (rebate) 14800.00 (7500 + 7300)
Adj. Cap 58481.90
MF .00094
Term 24
Sales Tax Rate ???
Res. Factor 61%
Residual 45326.05
PMT = .00094 x (58481.90 + 45326.05) + (58481.90 - 45326.05)/24
= 645.74
Lease Inception Fees
1st payment 645.74
Fees 246.25 (Itemize!)
TOTAL DUE 891.99
Bottom line: 891.99 due at signing followed by 23 monthly payments of 645.74 each.
Commentary
I suspect that the 2131.90 capped fee includes Kia’s 650 acq. fee. This should be itemized as well as the upfront charge of 246.25 which likely includes DMV fees. I don’t know how Indiana treats EV taxes.
On the dealer website, I see a 7500 rebate… not sure if you qualify for the others that total 2000. By comparison, you’re receiving 14800 in rebates.
I also recommend that you craft a lease proposal (example below) and email it to the sales manager (SM), not a floor salesperson as they’re often order takers and lack knowledge. Want ketchup with your fries?
All numbers should be accurate otherwise, you’ll lose credibility. Negotiate via phone/email. Once an agreement is reached, ask the dealer for a review copy of the lease agreement and all contract addenda BEFORE you go to the dealer and sign. Moreover, it’s helpful to know the terms and conditions of the lease contract such as early termination liability criteria and purchase option criteria as well as lease amortization methodology and excess wear/tear criteria. If all is as agreed, tell the SM that you’ll come in to sign right away. You don’t want any surprises or dealer excuses like …. Oh, we made a mistake. That’s unacceptable and shouldn’t be tolerated.
If the dealer isn’t transparent or is uncooperative or showing signs of incompetence, WALK AWAY AND MOVE ON!
Leasing is time-consuming and requires a good deal of study and attention to detail. If you don’t have the time to commit, perhaps your best alternative is a good broker. There are some outstanding brokers on this website. However, if you’re willing to commit your time and resources, always control the deal. That can only be achieved with education which breeds confidence and increases the likelihood of success.
??? Let me know.
1 Like