After some back and forth here is the lowest I’ve been able to get (see photo).
I haven’t signed… is this good, bad, just ok?
24mo/10k which I would buy out immediately to take advantage of the $10,500 lease rebate.
8.5% local tax rate
$499 doc fee (pretty normal in AZ)
$880 vehicle licensing tax (AZ is high here too, almost 2% of MSRP)
$650 acquisition
$20 reg/title fees
Looks like some profit is built into the inception fees as part of the “non cap cost total” of $760, same with the $668 in add-ons, but discount seems decent.
Invoice + destination is $48,702 with some factory installed options, dealer price comes out to $46,462.
I believe $40,650 + tax would be my payoff amount.
Net cap cost reduction is just under $9k… $10.5k rebate minus $1500 inception fees. The inception fees include the first month payment plus $760 in fluff, I assume.
I explained the other fees in my first post. Acquisition fee, doc fee, and vehicle tax can’t be negotiated to my knowledge and are quite high in my state.
This sheet is a mess to read so I’ll see if I’m able to clarify.
As pointed out, registration is $880 in my state, acquisition $650, and doc fee $499. So, almost $2k that I can’t negotiate on there in the Fees section.
Looks like the dealer comes ahead $499 on the dealer doc, $750 in fluff under Inception Costs, and $668 in Add Ons for a total of about $1900.
Yeah, the monthly is terrible. I’m buying out immediately though, so as far as I know I mainly need to look at the net cap cost. I’d pay net cap cost + 1 payment + $300 lease buyout fee + tax, to my understanding.
Also would the car actually be worth $40k? My sense is Kia loose value pretty fast and there are many for sale (maybe not your trim) for less than $30k for 1 year old 2018 models. Some even 2019.
They’re down nearly as far as they’re willing to go, as far as I can tell. Not sure how far below invoice they actually sell for as people leave out a lot of details on their own deals.
A nearly 2 year old 2018 in this (top) trim level sells for $33-37k, with very few on the low end of that. The ‘19 model will be cleared soon, but ‘20 brings no changes. ‘19 has a 360 camera and a couple other changes over the ‘18.
@Fivetoowe, I responded on the KiaStinger.org forum but wanted to post here since you’re in it. LOL
The $2k is NOT fluff. The $670 is fluff. You have to decide if those add ons are what you want. The $2k is your doc fee, which is high as ours is $180, your state registration fees, and the acquisition fee which is GAP insurance for the 24 months of your lease.
The only thing to watch is the rent charge (money factor). It is clearly hiked up in their contract. IF you buy it out right away then you won’t pay the interest. If you keep the contract, that $150 over 24 months adds up to be almost $3,500 in interest.
Kia’s do NOT lose value quickly. You can verify this through KBB.com or simply comparing prices of Optima, Sorento, Stinger, or Soul vehicles in the market that are 1 year old with 10k miles on them.
Regarding the Stinger, sure you can find used ones under $30k. They are the base Stinger that originally was $35k last year. The GT2’s in the market used go for around $38k a year old.
So, for him to pick up a 2019 NEW for $40k is a very strong position.
The $1900 I was referring to was doc fee + add ons + $760 in extra fees under Inception costs. Not fluff, true, just areas they can work in profit. Add Ons were $2200, reduced now to $668 when I asked for them to remove them completely. I’ll see if they can do more but I’m sure it has window tint and other non-removeable adds.
I did notice the MF is very high (.0027 I think, should be under .002 I assume) but didn’t mention it hoping it would help the deal in my favor elsewhere. I do plan on buying out ASAP.
Given the high costs of buying/leasing in Arizona is this a better than average deal for someone in my state? I was actually planning to wait for 2021 model year for a potential refresh, but saw the $10.5k lease cash and thought I might get it low enough that I could potentially trade in later without such a huge hit.
Don’t assume. Go to edmunds and find out the actual MF.
Then tell them if they’re going to inflate the MF, that’s fine, but you want a bigger discount to account for it. Don’t mention you want to lease and then buy out the lease.
The money factor is .00187 but they have the right to mark it up to no higher than .00227. Ultimately, it won’t matter for @Fivetoowe because he’s buying it right out so he won’t be charged the interest.
Ultimately it does matter to @Fivetoowe because it’s a perfect negotiating point to work out in his favor. Marked up MF in exchange for larger discount.
