Just signed lease in SO-Cal for a 2024 KIA Sportage Hybrid SX Prestige MSRP $39,635.00, deal was singed around 7 PM on Monday May 27, 2024
However after I signed and took the vehicle home, I reviewed the contract
Agreed upon value is $42,590.00!? (How is that possible?)
MSRP is $39,635 and no where does is say any other price!? How could they just put $42,950?
Gross Cap Cost is $43,935.00 (they added GPS system)
I asked for money factor and was told by finance manager was told it is 0.00285.
However Rent Charge is $6278.47
I believe the actual money factor is closer to 0.0039!? and I have Tier 1 credit!?
I take all the blame for being an idiot. But this is just wrong!?
Any suggestions?
You drive the car for the next three years as a lesson-learned. Though, I will say over 700 a month effective payment for a Sportage is… a lot…
Come to this site in three years before moving onto your next lease.
To explain, if the MSRP is lower than the agreed upon price of the car, then it sounds like there’s a markup or dealer adjustment wrapped up into it. How did you arrive at believing the money factor is .0039? Did you work the numbers backwards on the calculator? Can you post a calculator link for us to look at it?
The RV (based on the MSRP you posted) appears to by 65%, which is good, but a high MF can stifle a decent deal. Either way, this is not a great deal. Take a look at the marketplace to see what the competition is doing.
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Nothing much can be done at this point except for a post-mortem on what to avoid, and what to do next time.
Make the best of your new ride for the next couple of years and see how it goes.
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You paid well over MSRP, the obvious red flag should have been the deal structure of $3659 due at signing and $667 a month on this vehicle
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The mf used on this lease is .00259
Did you try to negotiate the deal at all, or did you just go in, they said $670/mo with $3700das and you agreed?
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With numbers like that, what does it even matter what the agreed/upon value is? The AUV could show a nice discount and it would still be a hard pass at that effective payment.
What’s going on here, beyond the minutiae? Buyer’s remorse or spousal roast?
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The money factor is .00259. Also, two different sales tax rates were used…
9.50% was levied on the 2362.56 CCR and 8.75% was levied on the monthly base payment. How does that happen? The 3659 DAS looks arbitrary to me. How was that determined? Did you tell the dealer that you have $X available to cover upfront fees?
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I walked in to the dealership having secured a deal through TrueCar for a 2024 Sportage SX Prestige (not hybrid)
MSRP $37,500
36/10
2500 DAS
469/mo.
Once I arrived at the dealership I saw the Hybrid model with the new flat gray color and red interior…I asked them what the numbers were? They had me then… they told me 3K DAS and 659/mo.
After that I really did not look at MSRP of the Hybrid, I assumed it was around $45K. Once we agreed and shook on it, about 15 min. later then they turn around and tell me the first payment was not included in the $3K and then tagged another $659 for DAS of $3659 (should have walked right then)
I thought MF could be calculated back from the rent charge using the following formula: MF = Rent Charge / (capitalized cost x RV) x Lease Term and I thought that came to what would be about 0.0039 (but I have made every wrong decision so that might be wrong calcuation too)
Thank you everyone for the great information, I have been on the site for a few years, always just read and never post. I have leased 15+ cars in the past 23 years, I have done much better leases because of this site and hackrs community. Since being on leasehackr I have been doing much better at closer to 1%, never had one this bad at 1.5% either but that was on me. Leasehackr community has helped me secure much better leases than before (I have leased 52K Mercedes for 450/mo zero down and 58K Alfa Stelvio for 515/mo zero down, not the best leases but decent for a guy who does it on his own and wants one particular car for just two years)
Yesterday was an aberration, I always negotiate online and have the car delivered and have not leased one since pandemic due to all the markups and high interest rates.
I knew payment being 1.5% of MSRP was a bad deal, not to mention the 3659 DAS Already saw one dealer marking up 5K above MSRP on Hybrid and Plug-in EV.
I was just not good on the spot making decisions. I should have never gone in there and changed my mind.
I made every mistake Leasehackr community had taught me to avoid.
It is all on me, I knew better.
The real reason I failed is my mama!
Car is for her, I lease her a new car every 3 years, she always wants a white car which I do not like.
She had seen a Gray Metallic Kia Sportage and told me that is the one she likes with black interior.
When I went to dealership and saw the flat gray and red interior, I sent her a picture and she loved it. Flat gray only comes in Hybrid and Plug-in EV which they all sell above MSRP apparently.
Once she said she loved it, I just had to get it…all logic went out the door.
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I have no idea why they charged different tax rates.
They first told me 3K DAS and 659/mo, when I went to sign they said DAS did not include the first month so they tagged another 659 to 3K DAS.
They should know better. Never ever allow a dealer to control the deal.
Window Sticker has MSRP $39,635.00
No where on the sticker or anywhere else on the website does it say there is a market adjustment of $X above MSRP.
AUV of the car is listed as $42,590.00. Is that legal?
They can just add whatever they want to MSRP based on what they feel like they can get away with and they do not have to publish it up front?
They do not have to list it anywhere on the sticker that they are selling above MSRP? Isn’t that false advertising?
Damn… even this deal wasn’t good, honestly…
You could have gotten a EV9 for less.
As others mentioned, 3 years of lessons learned.
I did similar mistakes when I got my CR-V (financed, not leased).
Actually… that’s kinda the point of LH. Being on your own should not be an excuse for mediocrity.
Agreed value is the key term and you signed it. Is there another sheet on this contract showing how cap is built?
However, it sounds like you made your mom happy! Unfortunately you also made the sales guy VERY happy. I hope mom isn’t paying for this lease…
Edit: It looks like they put acq fee and whatever you paid for the LoJack in here too. Did you agree to any other insurance type add-ons? If you go and complain maybe they will give extended warranty or tire/wheel insurance instead of what you paid over MSRP.
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Nothing they did is illegal or false advertising.
You asked how much they wanted you to pay for the car, they told you $659/mo with $3000 DAS, and you agreed and went to sign. They even said sorry DAS is actually $3659 and you still proceeded. The $659/$3659 already has any markup or add-on’s baked in.
Dealers add markups or add-on’s all the time. If you don’t have a target deal or at least ask for a deal sheet or breakdown then you might never know. It’s up to you to either accept the deal or move on to another dealer.
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Obviously you overpaid, but nothing you can do about it now. It’s a tough pill to swallow, but I wouldn’t dwell on it. You powered through the deal out of love for your mom, and I would argue that that’s more important than money. Our mothers won’t be around forever, and I think it’s great that you want the best for her.
That being said, it doesn’t sound like you have a good understanding of the leasing equation. You might know just enough to be dangerous, but not enough to overcome your rust and emotional state. For example, Rule #1 for me is to negotiate on vehicle selling price alone. You started things off on monthly payments and that’s a recipe for disaster.
The leasehackr calculator is nice for quick-and-dirty numbers, but I would encourage you to develop your own lease calculator in Excel. That way, you will truly understand the ins-and-outs of how leasing works.
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This is the biggest 
for me.
You were happy with the deal as is assuming it was $45k MSRP.
This is the biggest flaw in your understanding of how leases work or just about retail in general.
Thank you everyone for taking the time to read and reply.
It has been very helpful and thoughtful.
Many great points, really appreciate it.
Time to move on from this and step into another…
Now for part 2 of getting my behind kicked…
I am looking for a 2024 AMG C43 Manufaktur Graphite Grey Magno…fully loaded…
36/12
I know its not a good car, awful leases on them…ill go through the community, I am ready to do a deal if it is good enough for community standards…Thank you
I don’t want an EV no matter how great the deal, I need ICE
Then why not finance?
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Don’t EVER trust TrueCar. I learned the hadway. Dealers use that site to lure customers in and then usually never honor what’s on the site. IF they do, ti’s usually a poop car.