Newb starting out - Kia Sorento/Telluride 2020?

Ask the Hackrs
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Hi all. I’ve been really enjoying reading the forums and trying to find out everything I can about leasing over the last couple of weeks. Any advice in advance is really appreciated.

Basic Info: Family of 3 (small child). Living in NYC - we haven’t owned a car in over 10 years and loved being car free. I’ll rent a vehicle when I need it and use Zipcar, Uber and the Subway otherwise. I work in film/tv, so whenever I rent I get the midsize/fullsize SUV so I can load it with equipment if I need it.

When we’ve taken vacations we’ve had In-laws come with us, so a 7 seater has been comfortable (we’re all very tall in our family!)

I am not a “car person” and I’m not really brand conscious. What matters to me is safety, utility, quality of life features (360 cameras, easy connection to my Iphone, easy seat configuration etc) and value for money.

We’ve got a month vacation coming up (we’ve been quarantining since early March, so we need to get out. The cost of a monthly car rental is way higher than starting a lease (around 2k) - so we figure it’s time to get a car. Our general usage will be local short trips & occasional weekend trips.

Looking at the forums, reading reviews I think the Kia Sorento or Kia Telluride looks like a good combination of everything we’re looking for.

But…

For the last couple of weeks, we’ve been scouring our neighborhoods to see what everyone else is driving. I have not seen a single Kia on the road (at all!) - why is that? Is there something about Kia that I’m missing? The car we see most often is the Jeep Grand Cherokee.

I’m looking to lease for <$500 inc taxes.

We have excellent credit and stable incomes.

This is an example deal I’ve been looking at via Kia. I’m sure I could get the Cap cost down, but I wanted to see from you what my expectations should be for the vehicle I’m looking for.

KIA Website
Est. Capitalized Cost $36,305
Incentives -$5,390
Net Price $30,915
Total Down Payment $0
Additional Fees $650
Adj. Capitalized Cost $31,565
Monthly: $411

From the Calculator
Residual: 60% (Is this realistic?)
Money Factor: .00160 (is this realistic?)
Pre-tax Monthly Payment: $326
Monthly Payment with Tax: $326
Drive-Off: $2,511

  • First Month Payment: $326
  • Down Payment: $0
  • Upfront Fees: $485
  • Upfront Taxes: $1,701
    Disposition Fee: $400
    Total Lease Cost: $13,905
    Leasehackr Score: 8.6 years

I know my numbers are wildly speculative at this point, and I will be narrowing this down so I can reach out to dealers before the end of the month, but I wanted to start the conversation and see where I should be heading.

Main questions:

  1. Is the Kia right for us? Any red flags we should be looking for? Alternatively looking at Mazda CX?
  2. For a 2020 Sorento or Telluride is <$500 a good target? How much lower can I go?
  3. Can I make this process easier by going via a broker (or Rodo)?
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The telluride leases like utter crap. You can do better with a palisade, but they’re still expensive. If you want a telluride, buy it.

What I’d suggest you do more than anything is step back from looking at specific vehicles and instead spend a little time exploring how a lease works, what goes in to optimizing it, etc. The more deeply you understand that process, the better deal you will get on any vehicle you choose. We have a great leasing 101 section to read through on here. Just skip past the part that talks about the 1% rule and the leasehackr score as a way of determining if something is a good deal.

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These are the presets from the calculator. Get the actuals from Edmunds. Google model name MF Edmunds to find the appropriate forum.

Telluride leases terribly. Look in the marketplace to see what leases well. Models with a lot of topics generally do

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Thanks! Good advice. I’m still figuring out the parameters of a lease and how each element works, but I think I’ve got the basics of it down (MSRP - Residual over time plus taxes/fees? - I know that’s simplified, but that feels like the basic principles.

I’ll definitely do some more deep diving on lease optimization. This forum has been really helpful so far.

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Please don’t subject yourself to a CX-9. I was so happy when we got rid of ours.

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Volvo’s XC90 seems to lease much better than a telluride/palisade. The safety and utility features are there. There are many brokers on here that do Volvo, and June is the month to begin your lease if you have a Costco membership, as there is a $1,250 incentive. There is an additional $1,250 incentive for first responder/healthcare if you qualify.

I bought a Kia Sportage two years ago and have been happy with it. I know two people who really like their Sorentos. There is a running joke about how Kia dealerships have poor service (one of the reasons why I had to visit 4 dealers in one day to get the sportage) but if you’re set on the Kia I’m sure you can find a dealership that will be a little more pleasant to work with.

I personally would not consider any fiat/Jeep/ram/Chrysler/Mercedes/Alfa Romeo after having a Jeep and experiencing countless expensive issues with it, and seeing and helping friends through their issues with them. That’s just my opinion!

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That’s awesome (no car)… though don’t be surprised if there are speed bumps along the way with financing companies as you’re trying to close things out. Credit score is one piece of the puzzle. Credit history (and having auto lease/finance accounts) play a role too. In any case, it shouldn’t be a big deal but just a heads-up.

Also, second the Volvo… but if that that doesn’t work out, go for the minivan! Good luck with your search!

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XC90 is definitely worth exploring

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Thank you for the advice.

Can I ask why the Volvo might be a better option than the lower priced Kia? I know people are suggesting that the Kia doesn’t lease well, but what does that mean exactly, and why would the Volvo be a better option?

I’m considering the overall MSRP and the target monthly payments I’m trying to get below (<$500)

That said, the Volvo has a hybrid option which seems appealing to me.

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Thank you for the advice.

Can I ask why the Volvo might be a better option than the lower priced Kia? I know people are suggesting that the Kia doesn’t lease well, but what does that mean exactly, and why would the Volvo be a better option?

I’m considering the overall MSRP and the target monthly payments I’m trying to get below (<$500)

That said, the Volvo has a hybrid option which seems appealing to me.

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Because the kia isn’t lower priced. The Volvos are a tremendous lease value, so you’ll save a couple hundred a month leasing a $60k XC90 vs a $45k telluride. The telluride has better 3rd row space and if you get one with drive guidance, you get a slightly better semiautonomous driving capability, but other than that, the Volvo offers a better package.

I’m leasing a palisade currently, and it is fantastic, but if my shoulders hadn’t interfered the b pillars, I’d be in an xc90 instead.

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Is this because the residual value is higher on the Volvo?

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It’s mainly because Kia dealers are insane with their pricing and the telluride lease programs suck. Poor discounts, high MF, and low incentives make for a poor lease price.

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If you’re looking for a 7-seater that can comfortably seat tall adults the Sorento is not it.

But what’s your parking situation, do you have to pay extra for a large SUV like a Telluride?

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A lease has 4 components: Dealer Discount, Incentives, Residual and MF. It doesn’t matter if one is worse if the other 3 are better. You gotta look at the package.
It just happens that on Kia, all 4 combined makes a shit sandwich while on Volvo the value is great.

A + B + C + D = Lease Value. Look at this way, figure out what is the right A, B, C, D values and you have a winner.

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E.g1. BMW’s lease well as discount is good, incentives are average, and residual is artificially good. E.g2.Lexus becomes a good value as discounts are good, incentives are good and MF is good.

Kias in general have terrible residuals and MFs.

Above examples are generalizations, so don’t use them as a rule.

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Really? What didn’t you like about it. I’m currently strongly considering a CX-9. Car & Driver and most of the major auto review sites have it in the top 3, with usually only the Telluride and Palisade rated higher.

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First and foremost, it isn’t a 3 row suv. It’s a 2 row suv with two useless obstructions in the rear mislabeled as “seats”. Its a cx5 with a little more storage space. The space it does have is pretty useless because of the floor height and shape of the rear.

The infotainment system is absolutely miserable. Multi-minute start up times aren’t uncommon. You think it has a backup camera, but if you are the type that likes to do something silly like sit in the car, turn it on, and immediately back up, you’ll find you only have a backup camera some of the time.

Interior materials look good on the showroom floor. Whomever thought piano black center console trim was a good idea should be taken out back and shot. Gets scratched to all hell in no time.

We had a wonderful this noise from the rear suspension unsettling anytime you quickly lifted off the throttle. Never was able to get that one diagnosed.

Rumor has it the paint is actually stuck to the surface but with how easily the paint chipped, you’d never know.

Oh, and the bumper liked to crack at stress concentrations.

I was so incredibly happy when it was finally worth about the same as the buy out. Ditched it to carvana and never looked back. It got replaced with a Honda Passport and now I have a palisade. The CX-9 doesn’t hold up compared to either.

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Many thanks for the rundown. I was getting swayed by the captains chairs and leather. But for the same price range I guess I should stick with lower model Subaru Ascent or VW Atlas.

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MSRP means a lot less to you in a lease situation than it does in a purchase. Remember, you are only paying the difference in the residual value and the the selling price (not MSRP) plus interest. I found an example volvo deal on an XC90 momentum demo from a broker here for $401 a month (assuming both incentives I mentioned apply.) I don’t think you’re going to find that on a telluride.