Just got into my first-ever lease and EV which will be a perfect fit for my work commute. I’m fairly satisfied with the deal, though I feel I could’ve probably negotiated a bit harder on the price.
An added value was that they mistakenly placed 12k as the mileage allowance on the contract, instead of the 24/10k we initially agreed upon – definitely can’t complain about that!
MSRP: $42,900
Selling Price: $40,599
Rebates: $4,050($3,750 Kia Customer Cash+ $300 Military)
Cap Cost: $36,818.00
RV: $35,997(83.92% with $7,500 lease credit baked into the RV)
MF: 0.00281
DAS: $2,000(included first months payment)
Facilitated through US Bank
Why is the rebate so low? Shouldn’t it be $5,300 according to Kia website? When you go to the payment calculator for this car there is $5,000 lease cash and then $300 Military cash to apply. Seems you missed out on about $1,300 in rebates unless I am missing it somewhere.
This was the initial quotes they gave me so number aren’t exact but you can see in the bottom right they include a $7500 tax credit into the high residual value. The US Bank offers were just a lot better than what I was getting from Kia directly.
69% Base RV
83.9+% Total RV with the $7500 lease credit included
$3750 lease rebate
$300 military
$11550 total
sorry if it’s obvious quest, first time leasing.
“$7500 tax credit into the high residual value” does that mean if you want to buyout you will get a $7500 discount in the total price? $35,997 minus $7500 and whatever you paid on the lease
I’m trying to make a lease and buyout and I’m confused. for example here kervr is paying $8000 total in lease monthly fee + DAS, and if he wants to buy it out he’ll have to pay the RV of $36000 too. so he’ll be paying $44000 for a car with MSRP of $43000.
so where did the $7500 discount go?
Think of it this way - the $7500 is not a discount. It is just cash that US Bank is holding. They are using this $7500 to make the lease end residual higher than it should be (by $7500). For the lessee this is great if you do not want to buy the car at the end of the lease – because you are paying very little depreciation. Most of your monthly is going to the rent.
So when US Bank sells it at the end of the lease, they will sell it for $7500 less than the residual that was stated on the lease (at wholesale), and claim this as a loss (this is my guess).
Also remember that not all lenders (leasing companies) are giving the whole $7500 to the lessee. Some are keeping it all, others are keeping some of the $7500. The purpose of the $7500 federal credit was for fleet operators, and leasing companies essentially own fleets of vehicles. It was never meant to be used for consumer cash incentives.
Bottom line - if you are using a lease as a way to finance a purchase, go with a leasing company that will pass the full $7500 to you and buy it out right away using a loan with a more favorable interest rate. It is no surprise that a lot of the companies advertising ‘$7500 lease support’ are cranking up the money factor to levels that you are basically giving some of it back.
The sales manager here in Florida laughed me out of the dealership. “You can’t just add $7500 to the residual, and if I could lease a Niro for $300, the world would be sold out”. Not sure why Florida won’t play ball.
He said there website hasn’t caught up with this month’s incentives. He looked and saw no option for a 24month lease let alone a $7500 lease bonus. “you apply on your own to get the tax credit, but KIA doesn’t qualify because their battery is made in Korea”. This guy needs to go work at Wendys.
to replicate this deal, just need to US bank site, find a car, fill the form then wait for their response? sorry if this sounds a dumb question. I never leased a car with third party before.
This is a great deal. Trying to replicate or get close in the Seattle area but it seems like US Bank is no longer offering the same 24month promo with the low 80s% residual and a reasonable rate. Anyone else have any similar feedback
Got it - thanks for the insight Jeff. Would you know any other bank that is passing through the full 7500 credit to the residual value on EV leases - ideally on 24month?
