Second time leasing. My first lease is a Chevy Volt where I didn’t bother to shop or negotiate anything. Hopefully, I’ll get a decent deal this time.
Please give me your thoughts on this lease:
Northern California
2018 Kia Optima EX hybrid plug-in
No technology package
MSRP 37,230
36 months, 12K miles
.00227 money factor, whatever this is
Residual 14,854
Cash due at signing $2,000 + 1,950 fees, tax, etc = $3,950
Monthly payment $343 + tax
What was the sale price?
Sales person mentioned dealer incentives of $10,719
Manufacturer incentives can be found at autobytel.com. The manufacturer incentive is $10,719. The dealer should be providing a decent discount out of their pocket, too.
Below are the results of a 2018 Optima Hybrid Plug-in EX. The money factor is the cost of borrowing the money for the lease. Normally there is a forum for the specific vehicle at edmunds.com. There isn’t one for the Hybrid Plugin, and the Hybrid one only has 2017 info and hasn’t been used for a while. Post here (https://forums.edmunds.com/discussion/46674/kia/optima/2018-kia-optima-lease-deals-and-prices/p13) and ask for the MF, Residual, and incentives for the vehicle with the months/miles you’re interested in with your zip code. Dealers are allowed to increase the MF and pocket the amount, so there may be savings by pushing them to reduce the MF if they have it marked up. FYI, .00227 is the equivalent of 5.45% APR, which is very high, but Kia and Hyundai usually have high MF’s.
This seems rather awful. I hope you didn’t sign it yet
The sell price would have to be around 34.5K to back into that payment, or close to it. (just a guesstimate)
The 5.48% interest and 40% residual is just brutal for a lease.
Edit: Yep, plugged your numbers into the calculator, looks like sell price of 36,200.
Terrible deal.
I will pass. Don’t lease this car since its RV and MF is too bad that even 10K rebates can’t fix it.
@chugs - why not get in touch with @ChevyPhil and see what he can do for you?
Just for your information, I leased a 2017 Optima PHEV two months ago for for $235 a month including NY taxes with no money down.
Major difference between my deal and your deal would be that the 2017s have $2k more in incentives and NY gives $1100 to the dealer. My negotiated price was around $32500 and you should be able to negotiate a similar discount before incentives.
If you are still interested in this car, you should shoot for a number below $330 a month including tax with no money down.
Trying to better understand the manufacture discounts. I qualify for the competitive lessee and 36 mo. How do I find out if I qualify for the (Chevrolet Select Market Incremental CCR Program) and what is it?
2018 Chevrolet Bolt EV Incentives
Standard Incentives and Rebates
Trim Rebate 24 Mo 36 Mo 48 Mo 60 Mo 72 Mo Expires Category
LT - - $1,500 $1,500 - - 9/4/2018 Bonus Cash
(Chevrolet Select Market Incremental CCR Program)
LT $500 - - - - - 9/4/2018 Bonus Cash
(General Motors Competitive Lessee Program)
LT $500 - - - - - 9/4/2018 Bonus Cash
(GM Lease Loyalty Program)
LT $1,500 - - - - - 9/4/2018 Bonus Cash
(Lease Loyalty Purchase Program)
This is moving off topic of the Kia Optima Hybrid plug-in.
My understanding is that the select market dollars are just that, rebates earmarked for certain regions of the country where they might need to sweeten the deal a little more to move cars. If you put in your zip code and the Select Market Incremental CCR came up, it is likely in you’re in the region that has been targeted.
@chevysalesgirl or @ChevyPhil - can either of you provide @Westway additional info on Bolt incentives?
yea that’s basically how it works. in my market (nor cal) we get $1,500 for everyone and a additional $500 if you have a lease. so $2k total. they are built into each dealerships lease special already.
Thank you all for your input.
I haven’t signed any lease yet. Just called a couple dealers for some info. Will need to look into this more.
Here are the info I got from the Edmunds forums:
MF .00227
Residual 43%
Incentives $10,719 lease cash
So what does this mean? What monthly payments should I be targeting? Doesn’t have to be the best deal, just a competitive deal.
Thanks
See @Masterblaster lacocca quote which I could not link to about paying anything for economy.
The tax alone on those incentives cost $30/ month. The residual is shocking. The non hybrid version is like 100/ month less before taxes so does this make financial sense? I don’t know but someone will probably do the math for you. With that residual I’d be looking for a used version.
Since you asked…
“People want economy and they will pay any price to get it.” - Lee Iacocca
You should target a sale price before incentives of $33000 which should bring your monthly to about $330 after tax. Keep In mind many states also give incentives for leasing PHEV/EV.
Looking on Cargurus, SoCal has a dealer advertising 2018 for under $33k, how far are you willing to go?
My deal on a 2017 in June was as follows:
3 year lease/ 36k miles
Sale price: ~$32500
Incentives: $12749
NYS Rebate: $1100
My monthly payment: $235.46 including taxes and fees
or check this page out for updated deals on EVs:
Thank you all for your assistance.
I don’t know all the details. Didn’t have enough time to figure it all out.
But I finally leased
2018 Kia Optima Plug in Hybrid
No technology package
3 year, 45K miles
wear and tear coverage
$3000 down and $1700 fees = $4700 due at signing
monthly 288.79 + 26.71 taxes = 315.50
Some other numbers from lease documents:
Agreed upon value of vehicle $33,950
Acquisition fee 650
Excess wear and tear 899
Total gross capitalized cost $35,499
Rebates 10,719
Residual 14,854
