Lease Check: Kia EV6 Lease 36,10K/Min Down/No Trade. GA

Ask the Hackrs Buy/Finance
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Hi friends. New guy here negotiating my first lease in GA tomorrow

Its a Kia EV6 Wind RWD +Tech Pkg. Advertised pricing looks good: MSRP $51,700 -Kia Rebate $7,5000 - Dealer discount $3,201 = $40,999.

I am asking for 36 mo.,10K miles /Min Down/ No Trade/no upsells. Georgia

I have been asking for a detailed offer sheet and they finally gave me a screen shot of their “Quote Worksheet”. It looks like this:

  1. Contract Date 04/26/24
  2. Lease Institution: XXXX
  3. Stock Number: XXXX
  4. M.S.R.P.: $ 51,700.00
  5. Residual %/Amt 60.00% $ 31,020.00
  6. Mileage Penalty: $
  7. Selling Price: $ 49,498.00
  8. Acquisition Fee: $ 650.00
  9. Total We Owes: $
  10. Rebate: $ 7,500.00
  11. Total Trade Allow: $
  12. Cash Cap Reduction: $ 199.38
    Total Cap Reduction $ 7,699.38
  13. Service Contract
  14. Protectus
  15. NextMile
    Adjusted Cap Cost $45,000.20 (Can’t tell from layout whether this comes after 15 or after 31)
  16. Lease Rate 0.000122
  17. Term 36
  18. Total Ad Cap Costs $1,547.50
  19. Disposition Fee $400.00
    Base Monthly Rental $481.08
  20. Total Sales tax $1,654.08
  21. Total Payment $481.08
  22. Security Deposit
  23. Total Annual Fees:
  24. Total Initial Fees: $319.54
  25. Mileage Adjustment:
  26. CapTax1 Rt/Amt: Flat
  27. First Payment Date 05/26/24
  28. Purch Option LEV Add: $300.00
  29. Amount Due at Start: $ 1,000
  30. Customer Cash Down $ 1,000
  31. Apply Cash to $ 1,000

I cannot figure how how they got to:
Adjusted Cap Cost $45,000.20, OR
12) Cash cap Reduction $199.38 OR
18)Total Add Cap Costs $1,547.

I reverse-engineer financial proformas as part of my job and I can’t get any of this to add up in a spreadsheet.

My own worksheets tell me I should be at $430, not $481. Any advice or suggestions?
Thanks much. FP

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RCKIA Offer
RCKIA Offer1536×2048 629 KB

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And one more question: Should my depreciation be based of MSRP, MSRP less dealer discount, or MSRP less dealer Discount+ Rebate. In other words: $51,700 - $31,020, $48,499 - $31,020, or $40,999 - $31,020. Thx.

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Your adjusted cap is 49498+1547.5-7500-199.38+1654.08

I’d ask what the 1547.5 is for…looks like add ons of some sort.

1000 DAS covers the 199.38 plus 319.54 plus 481.08

The 199.38 was calculated as a down to get you to even 1000 DAS…you do know you can do any DAS you want.

3 Likes
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Your lease payment is Depreciation+Rent Charge. (In other states it would also be +Sales Tax but that’s being included in the Adj. Cap Cost in GA.)

Depreciation (Adj. Cap Cost - Residual): $45,000.20-$31,020.00 = $13,980.20
Rent Charge ((Adj. Cap Cost + Residual) * MF * months): ($45,000.20+$31,020.00) * 0.00122 * 36 = $3,338.81

Lease Payment: $13,980.20 + $3,338.81 = $17,319.01 / 36 = $481.08

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Adj Cap = 49498+1547.50+1654.08-7699.38 = 45000.20

Total Add Cap Costs = 1547.50 needs to be itemized but likely includes the 650 acq fee. Your total CCR = 7699.38 (explained below). What is your sales tax rate and how does GA levy sales? On the total payments? Your lease inception fees based on the dealer WS appear to be…

1st pay 481.08
initial fees 319.54… should be itemized.
CCR 199.38
TOTAL 1000.00

Dealer collects1000 from you which is more than sufficient to cover the inception fees. The additional 199.38 was added to the 7500 rebate to determine the total CCR. This really wasn’t necessary. Your payment is calculated as follows…

481.08 = .00122 x (45000.20 + 312020) + (45000.20 - 312020)/36

Nope. The total depreciation = Adj. Cap - Residual.

Comment: The dealer discount is very weak @4.25%. You can do much better. My understanding is that EV’s aren’t moving very well these days and understandably so.

Yeah. Create your own target deal. Research the sell price in your market and vet all dealer data. Make sure your MF = .00122 is the buy rate assuming you qualify. You’re chasing after the dealer and allowing them to control. Bad idea.

Create a lease proposal like the one below and email to dealer. Negotiate via email/phone.

image
image861×1142 36.2 KB

Questions? Let me know.

4 Likes
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Thanks all for your help. I got all armed and ready for the battle, but when we got there, my wife vetoed the car. Not “cute” enough. I might turn her around, and when I do I will be ready. I appreciate the advice.

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Thanks! No problem and good luck!

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Thank your wife from saving you from a bad deal. You can do better on other EVs. Do you even know what the additional $1500 cap cost was getting you?

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Thanks much, but to be clear, i recognized that the deal was dank. The cap cost was 1/3 acquisition fee, 1/3 legit fees (title, reg, etc…) and 1/3 B.S. fees (“Bill of Service Fee”), that were duplicated in 2 other B.S. Fees (“Initial fee” & Aq Fee). I was not going to walk into the offer i posted, thanks to the help of folks like y’all. I’m a spreadsheet nerd, and you and the other folks helped me get a handle on this and I thank you.