Doing the math, I get a MF of about 0.00225. I have never leased a car before so don’t know if that’s a good deal?
The other car is a 2024 Lyriq with 5k miles, luxury 2 AWD. It’s selling for $50,600. It seems like a good deal but can someone confirm or provide input?
Arguably, I’m curious which if any is a reasonable (good deal) and is one arguably better than the other?
Thank you for the response. For the EV9, that is the effective monthly. Nothing is due at signing. The taxes, fees etc are capitalized over the course of the deal.
For the Lyriq, I would purchase.
Regarding better, I’m asking which is arguably better from a financial perspective. Thank you!
Why would you purchase the Lyriq? It’s always a losing proposition to buy an EV. You will be significantly underwater immediately. With a lease, that’s not your problem
No math to check (except calculated RF = 64%)… too much info missing. Payment? Money Factor? Sales Tax Rate? Acquisition Fee (i believe Kia’s acq fee is 650). I assume this is a 2025 EV9. A few more comments…
The dealer discount is horrible IMO. I’d shoot for around 7000. But check selling prices in your local market. A good place to start is LH Marketplace as well as LH signed deals and tips. Also, be advised that effective May 1, 2023 per HB 66, the doc fee is no longer subject to sales tax. I see a lot of Ohio dealers still taxing doc fees. Also, the 387-doc fee was the result of adjusting the former 250 doc fee for inflation (CPI-W) since July 2006 thru Sept 2024…
250.00 x 309.046/199.2 = 387.00 (rounded down to the next whole dollar)
Ohio doc fees cannot exceed 387,00. It is the benchmark or ceiling thru December 2025 after which, it will adjust again.
Ohio computes sales tax on the sum of the base payments.
This is just a range… it doesn’t tell a thing. For whatever it is worth…
Don’t waste time trying to decipher a dealer’s worksheet or chasing after them. Otherwise, you’re allowing them to control the deal. They often omit a lot of relevant detail such as money factor, monthly base payment, monthly contractual payment, fees not itemized and even make mistakes. You need to rely on credible outside sources (e.g., LH marketplace and signed deals, Edmunds, etc.). Do your own research and establish a reasonable selling price in your market. Be sure to get a copy of the factory window sticker. Check for non-factory add-ons or dealer-installed options. And, if possible, eliminate those you don’t need or want. Get a list of all customer and dealer rebates/incentives including VIN#-specific discounts/incentives, if any. And, yes, the dealer has such a list.
Craft a lease proposal (example below which can be structured in many different ways) and email it to the sales manager (SM), not a floor salesperson as they’re often Mickey D order takers and lack knowledge.
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.
You shouldn’t presume and you shouldn’t have to ask them. Look up the sales tax rate for your jurisdiction. Collect and organize all relevant data in tabular format like those below with the goal of creating a lease proposal that reflects your target deal. The idea is to create your own target deal (proposal), not replicate the dealer’s deal.
