I currently have a 2019 KIA Optima LXS, with 6600 miles, in nice condition with a lease return date of February 2022. There are 3 payments left. Would like to get the conservative estimated equity on the car.
Looking to possibly lease a new K5 GT Line with or without a sunroof and the following features:
18-inch Alloy Wheels, Gloss Black Machine Finish
10.25-inch Touchscreen
UVO link remote connectivity
SiriusXM® Satellite Radio
I would appreciate the forum’s input on the expected monthly payment with a credit score of 727. Would be great to know the Money factor to get the residual value.
It is practically impossible for us to tell you what a “good” monthly payment is for your specific lease as lease programs are highly dependent on region, personal qualifications, tax rates, etc.
We always recommend the following method before you ever contact a dealership. If you do all of the work up front, you’ll have a stress free dealer experience and set yourself for success.
Read Leasing 101 (EDITORIAL | LEASEHACKR) to understand how to calculate a lease payment and the variables. Monthly payment is an output, not an input!! While you’re at it, be sure to watch the LH video (How to Use Leasehackr - YouTube) to brush up on how to most efficiently use the resources here.
Pick a specific vehicle that you want to target
Gather the current MF, RV and incentives from the LH Calculator - Lease Program Query or Edmunds forums for your zip code
Research the LH marketplace and other deals that have been made recently on your vehicle - what was their pre-incentive discount? How did their lease terms differ?
Plug your numbers into the LH calculator (CALCULATOR | LEASEHACKR), and use a pre-incentive discount similar to what you have seen
Create a target deal, this is what you’re trying to negotiate to. You can try different terms, selling price discount, etc. and see how your monthly payment is affected. It is also possible that different trims of your vehicle may have different MF and RV (i.e. this is very common with GM), so make sure that you look into that. Come up with a set of inputs that give you the output that you want - your desired monthly payment.
With a target price determined, you now have a deal to pursue and compare dealer offers against. More importantly, you have a solid foundation to work from.
I appreciate your quick response and input. I was last on lease hacker back in 2019 when I leased my current car. Let me rephrase for the sake of not spinning your wheels.
I’m looking for the current money factor on the 2022 KIA K5 GT Line. I’m based in NY or will travel to NJ. That’s pretty much it. Do you know this by chance? I’ll take the rest from there. Thanks!
I am a Kia Dealer. In this market most dealers are over MSRP, if they are at MSRP they are going to mark up the money factor a few BPs (the max). The MF markup is about a $10-12 payment bump
There’s about $800 between invoice and MSRP and the holdback and other money amounts to not even that. K5 is a low margin car
10k Mile Yr lease on a FWD GT Line
MF .00118 (700 fico and UP) Residual 65%
$250 lease cash
I appreciate your frankness, it’s refreshing. Could I go a step further and ask as a dealer, what you would offer regarding equity towards a new lease of a K5 GT Line in exchange for my 2019 KIA Optima LXS with 6600 miles?
What you need to do, is get 3 “buy out” quotes from your lease from 2-3 Kia dealers. Work your K5 lease first, and then tell them you want to sell the Optima to them but keep the numbers separate so you know what is really going into the lease down payment wise.
Don’t worry about the MF markup, even with max markup its $10-12 month. Focus on your trade
Just email the dealers for quote on your car. I do this over email all the time for customers.
Turning in your lease is probably a bad idea, you would lose any extra money you would get that is worth over the residual
Right now Kia has leases “locked” so only Kia dealers can buy them out. I’m not sure what I would hit your car at appraisal wise, it’s a unicorn with those low miles. You can ask all the money for it.
What you will see in this market is dealers quoting leases with “market adjustments” built in. You may want start out asking your local dealers if they charge market adjustments, and if they have large addendums. If you find one without just do the lease there.
Seems like a great example of a situation to buy and hold. You’ll have more control and can re-enter the market when it’s more favorable for you. I imagine you’ll be paying double or more for what is basically an updated version of the same car if you lease a new one now.
I get that it’s a new/latest generation of the Optima that comes with a new name. I owned an Optima and drove a K5 and it’s definitely much nicer as I would expect with any new gen version. When I got my redesigned Optima in 2011 it too was considered a good car. My point was that because the market is so tough he would be paying a huge amount more just to get the latest version.
Also by buying it out and selling himself, he is not limited to what the dealers will offer him as the dealer knows they can take advantage of the situation. Just suggesting he do his research and think about the big picture. That shiny K5 will look like an Optima in a couple of years.
I leased a Kia K5 GT-Line back in June and have been really happy with it. At the time I was also eyeing the Kia Stinger GT-Line but there were none available.
Recently I started looking again at the Stinger GT-Line and the Stinger GT1, which then led me to looking at similar cars to the Stinger. So now I am having a 2021 Camaro LT1 delivered today. Must be mid life crisis.
For your existing Kia, there is conflicting information on whether or not you can do a 3rd party buyout. For example, on another thread someone posted that driveway.com bought their Kia lease with no issues. I am working with MyCarAuctions, who claims they are the only ones that can do a Kia purchase right now which has something to do with the way they submit the buyout to Kia Financial. They are coming to inspect my Kia K5 tomorrow and offered an insane amount that is $3k over MSRP and is $5k more than my buyout for the K5 with 3000 miles on it.
If that falls through, your other option is to buy out your Kia Optima and then sell it when you get the title. There are tax implications, although here in CA there is a 10 day exemption if you buy and sell a car. I priced other services as well and VROOM came in around $2k over MSRP so if I need to I can buy out my Kia and then shop the other services again. I am hoping that MyCarAuction works, they seemed very confident they could buy my Kia.
TLDR I am very happy with the Kia K5 GT-Line but decided to go for more horsepower. You still have options to sell your Optima to 3rd party, including buying it out and selling it to whoever you want if Kia dealers play games or do not offer much. Just pay attention to tax consequences. Good luck!
Must be mid life crisis.