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Kia Optima Lease Questions

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  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi vickifa. Kia Financial Services' June buy rate lease money factor and residual value for a 36-month lease of a 2013 Optima SXL with 12,000 miles per year are .00134 and 58% for consumers who qualify for its top credit tier.

    I'm not sure if KFS offers 10,000 mile per year leases, but if it does its residual value for one would likely be 1% higher.

    There is a $1,500 cash incentive on leases of this car right now. Make sure to take it into account during your negotiations.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • vickifavickifa Posts: 3
    Thanks Car_man! The dealer told me that each trim line and configuration (EX vs SX, Premium vs Premium + Tech, etc) has a different money factor and residual. Is that true? If so, could you give the figures for EX with Premium? Also, I did find out that they only offere 10,000 as the lowest annual mileage.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi vickifa. What you were told is correct. Kia Financial Services' June buy rate lease money factor and residual value for a 36-month lease of a 2013 Optima EX Premium with 10,000 miles per year are .00153 and 60% for consumers who qualify for its top credit tier.

    Kia is providing a $1,500 cash incentive on leases of this car through KFS.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • vickifavickifa Posts: 3
    Thanks again Car_man! I made a mistake in my earlier post, the lowest annual mileage from Kia is 12,000- not 10,000 as I had stated. You had said going from 12k to 10k would boost the residual by 1%, so the residual would actually be 59%, correct?
  • haggardhaggard Posts: 63
    edited June 2013
    Here is a weird one I just ran into, may be of some help to those considering leasing and then purchasing Optima:

    We did our 2nd consecutive Optima EX lease in January. For the first couple of months, just as we could on the previous lease, we were able to get a lease buyout through our online account access with KMFC. Now, we apparently cannot do that. KMFC says some state laws (PA, NY and a few others) allow that only a dealer can give us a buyout quote. Never heard of such a thing and it sounds absurd on its face, but KMFC will not give a buyout quote.

    FWIW - I've found KMFC to be the worst part of leasing a KIA, they were absolutely horrible to deal with when our first leased car was totaled. Everyone tells you something different, lots of attitude, and poor online experience.

    Carman or kyfdx, have you ever heard of "dealer only" states where the law prevents the leasing company from providing a buyout quote?
  • trofietrofie Posts: 8
    Hello CarMan,

    Can you let me know your thoughts on this offer I received yesterday.

    2013 KIA OPTIMA Ex

    Equipped with:
    Titanium Gray Exterior.
    Light Gray leather interior with heated and ventilated front seats.
    Heated rear seats.
    Panoramic vista sunroof.
    Navigation System.
    Bluetooth technology.
    Infinity Audio System.
    Push start ignition.
    keyless entry.

    The MSRP for this vehicle is $28,800 my selling price is $26,950 before instant rebates. The lease program for this model is based on a 59% residual value with a .153 money factor for the top tiers credit.
    your total Cap cost is $28,409.06 this is after acquisition fee $595 (bank fee) and taxes 864.06 (7% Nj tax).

    On 36 month lease with 12000 miles per year:
    Sign & Drive ($0.00 down) $358.10
    $500 due at signing $342.08
    $1000 due at signing $327.79

    Prices including 1st month payment, taxes, DMV fees and Gap coverage, Must qualify for top tiers credit approval.
  • trofietrofie Posts: 8
    Hello CarMan,

    Can you let me know your thoughts on this offer I received yesterday.

    2013 KIA OPTIMA Ex

    Equipped with:
    Titanium Gray Exterior.
    Light Gray leather interior with heated and ventilated front seats.
    Heated rear seats.
    Panoramic vista sunroof.
    Navigation System.
    Bluetooth technology.
    Infinity Audio System.
    Push start ignition.
    keyless entry.

    The MSRP for this vehicle is $28,800 my selling price is $26,950 before instant rebates. The lease program for this model is based on a 59% residual value with a .153 money factor for the top tiers credit.
    your total Cap cost is $28,409.06 this is after acquisition fee $595 (bank fee) and taxes 864.06 (7% Nj tax).

    On 36 month lease with 12000 miles per year:
    Sign & Drive ($0.00 down) $358.10
    $500 due at signing $342.08
    $1000 due at signing $327.79

    Prices including 1st month payment, taxes, DMV fees and Gap coverage, Must qualify for top tiers credit approval.
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    You're welcome vickifa. That is correct.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • CarMan@EdmundsCarMan@Edmunds Posts: 38,515
    Hi trofie. The selling price, money factor and residual value that you were quoted all look good to me. If you like the car, go for it.

    Car_man
    Host
    Prices Paid: Buying & Leasing Experiences Forum
  • rlbjr2rlbjr2 Posts: 67
    Hi Car_Man,
    Can you give me the July MF and residual for both the Optima SX/Tech Pkg/Prem Touring Pkg and the Optima SX Limited. 15,000 miles/yr and 36 mo. Top tier credit. Thanks.
  • joshcsjoshcs Posts: 8
    Tier 3 credit residuals for AL? 12-15k miles for 24 months?
  • rlbjr2rlbjr2 Posts: 67
    This thread is pretty inactive. Is there any other place I can find out the residual and MF for the Optima? I'm looking to lease within the next month so time is of the essence.
  • rlbjr2rlbjr2 Posts: 67
    Hi Car_Man,
    You haven't been around in a while but I really need your help. I'm looking to lease an Optima in the next few weeks and cant find the lease residual and MF anywhere else. You are my only hope of not getting ripped off. Can you give me the July MF and residual for both the Optima SX/Tech Pkg/Prem Touring Pkg and the Optima SX Limited. 15,000 miles/yr and 36 mo. Top tier credit. Thanks.
  • I'm interested in the Kia Optima EX with premium and technology package. I went into the dealership with the USAA pricing and the first sales guy was being a jerk. The general sales manager saw what was happening and came in to assist with the deal. He offered about $270 to $280 a month with $3000 down. Does this sound reasonable?

    I'm trying to get into at least an EX model with premium package for low to mid $200s
  • rlbjr2rlbjr2 Posts: 67
    That is a rip off. Putting $3000 down adds about $83 to your monthly payment. So you would be paying like $360 a month. Ask for the residual value and money factor and figure out the monthly payment. You should be paying at least $1000 below invoice not including any incentives. This month there is $2000 incentives.
  • Thanks for the reply. How would I be able to determine the monthly payment with the money factor and residual value? Generally speaking what would be considered a good lease deal based on the ex premium package. Msrp is $28,775 and the usaa price is $26,476.
  • I'm really lost here. I'm still trying to grasp the concept of a good lease deal. I'm really trying to get my payments to no more than $260 or $270/month with taxes included.

    I really have my heart set on the Optima EX model with at least the Premium Package and 12K miles/yr. Is this possible? I'm in the Yonkers, NY area. The last offer I was give seemed crazy. Any referrals? What would be a good lease deal based $1000 or $2000 down in NY area?
  • rlbjr2rlbjr2 Posts: 67
    First of all, you should NEVER put any $ down on a lease. There is absolutely no reason to. It does not lower your monthly payment, you are just pre-paying it. Plus, if you ever total your car you will be losing any $ used as a down payment. The formula to calculate a lease can be found online or you can use this link http://www.leaseguide.com/calc.htm . The MSRP on the EX w/ premium and tech is $28,800 and the invoice is $27,040. You should easily be able to get the car for about $1,000 below invoice minus any rebates. Presently there is $1,500 in rebates on the EX(see Edmunds for the breakdown) so you should be able to get the car for about $24,500. A good lease deal would be based on that as a selling price. I can't calculate the lease because I don't know the residual value and the money factor. Those two #'s are needed to calculate the lease price. Unfortunately Car_man has not been to this forum in a while so we don't have up to date #'s. You can call the dealer that gave you that quote and ask for the residual value and money factor. Then you would be able to calculate a fair deal. I am in NJ so the $1,000 below invoice minus incentives is what you can expect.
  • karhill1karhill1 Posts: 102
    Ask the dealer. Any reputable dealer will provide that information. It is part of the proposed deal. Use a lease calculator to verify. A lease calculation is really simple.
  • Thank you everyone for the information. I completely understand how leases are calculated and how to get the best lease deals. I just need to find the residual and money factor based on the model and trim I'm looking to lease. The sad thing is that the general sales made it seem he was giving us a great deal to offset the horrible service and after plugging it in some estimated numbers based on previous posts here, the deal he offered was absolutely horrible. I will be going back armed with this information.
  • Now I see why some dealerships aggressively push leasing over financing. They use the marketing power of LOW lease rates on the base vehicles to bring people in knowing that a majority people will opt for better equiped vehicles. If you don't understand how to calculate lease rates, you will get SUPER ripped off. The general sales manager whipped out the calculator to try to convince me that I would be an idiot to finance because leasing is always the best option. I'm sure they pull that stunt with everyone.

    It's pretty funny and sad how the dealership tried to play me. It seems like they did the good cop/bad cop routine. The dealership i'm referring to is in the Yonkers, NY area.
  • rlbjr2rlbjr2 Posts: 67
    Get the residual value and money factor from the dealer and post them.
  • rlbjr2rlbjr2 Posts: 67
    Hi Car_Man,
    Can you give me the August MF and residual for both the Optima SX w/ Tech Pkg/Prem Touring Pkg and the Optima SX Limited. 15,000 miles/yr and 36 mo. Top tier credit. Thanks.
  • rlbjr2rlbjr2 Posts: 67
    Does anyone know the August MF and residual for both the Optima SX w/ Tech Pkg/Prem Touring Pkg and the Optima SX Limited. 15,000 miles/yr and 36 mo. I really need to get lease the car by the end of the month. Thanks.
  • therastheras Posts: 44
    Hi rlbjr2,

    I don't have this data but did lease an Optima in January. Great car! Your dealer should be able to provide you with these numbers and then you can work a lease from there. If you are in the Philadelphia area, I'd highly recommend my dealer.

    TheRas900
  • macdadmacdad Posts: 65
    Just leased a white 2013 Optima SXL. MSRP $35,500 (the dealer had additional add-ons of $1249). I negotiated the car to invoice, I did not pay the $1249 add-ons and received $2,900 in rebates ($400 recent college graduate and $1000 competive lease are a part of that - wife received her masters last year and she has a new lincoln). The 36mo/12K miles lease was residual 57% and MF of around .001 I cant remember exact MF) I paid aquisition fee, dealer fee and first month up front and have a monthly of $380. Great driving car but turbo/front wheel drive takes a bit to get used to. Last three cars were 5 series BMW and I must say I am pleased with this car.

    macdad
  • OK. I know they don't teach math much these days. But let's look at the math. First, forget the residual value stuff. Who knows what the market will be in three years for a used Kia. Besides, it doesn't matter.

    I used the sign & drive zero down number.

    Here's the math calculation: $358 x 35 payments = $12,530.

    Here's the question you must ask yourself: Would you pay $12, 530 to drive a Kia 36,000 miles (max)? Then have to give it back, in nearly spotless condition? And if you go over by just 1,000 miles, you have to cough up another $200?

    Any scrapes, scuffs, stains, cigarette burns, whatever, will cost you extra when you bring it back (or you have to pay to fix it before you bring it in). If you are down on your luck three years from now, and don't have the $16,000 in cash to buy it out, your car is gone. And even worse, if you turn it back in an are over on the miles or there is some sort of UN-repaired damage and you are broke, the collectors will be all over you. And if you are down on your luck, nobody will finance you, either. Insurance on any new car is expensive those first three years, so don't forget to add that on.

    Put another way, that will be the most expensive 36,000 miles you ever drove. And if life is sort of rocky three years from now, you will have no car to drive on top of all that. If you are money challenged (why else would you be considering this "deal"?), buy yourself a boring, low-mileage Buick LeSabre for $6,000, and drive it until it drops. You can finance it for three years at your local bank and have payments about half of what the Kia lease is. The cars are boring, but they run forever, are easy to maintain, and are cheap to insure. If life is good in three years, you can sell the LeSabre for $3,000 and buy something else that you like better and can afford; if life is not so good, you can keep driving your PAID FOR LeSabre.

    I haven't had a car payment of any type in over 15 years. I buy good used cars/trucks that are five to ten years old, and drive them tell their socks fall off. (I bet you didn't know that cars had socks? They are under the CV boots.) As a rule of thumb, a five year old car with 60,000 miles at full retail price is about half what it cost new. Sometimes you can find a better deal.
  • rlbjr2rlbjr2 Posts: 67
    Your post has to do with leasing in general not just a Kia lease. A lease almost always NOT the cheapest way to have a car. One exception is for someone using their car for business purposes. The tax deductions are much more favorable on a lease than when financing. As you said, buying a used car and driving it into the ground is absolutely the least expensive way to own a car. The problem is that most people want to drive a new car every 3-5 yrs. The only problem with your method is that repair bills can add up very quickly.
  • kyfdxkyfdx Posts: 28,450
    Well.. the other problem is you get to drive a $6000 LeSabre...

    MODERATOR
    Prices Paid, Lease Questions, SUVs

  • Fair enough, an old LeSabre isn't too very exciting.

    Yet, for a person who is short on cash, it is a FAR better option in the long term. Say what you will, but the LeSabre is roomy and reliable, and even turns in great gas mileage for a full-size V-6 car. If you find one driven by the proverbial little old lady, with low miles that go with little old lady cars, you can get yourself a great value. I saw an ad for a 2004 Lesabre, leather interior, factory chrome wheels, and only 35,000 miles -- $9,000 (and it could be had for $7,500). That $26,000 KIA will lose $7,500 in the first year.

    I work in the financial business (insurance) and I see people all the time who are financially jammed up because of car payment situations. These folks stretched themselves to the limit, then the first hiccup that happens they are in a mess. Sometimes they buy the new car, and get a shock when they find out what the insurance will cost when they call the next day to add it onto their policy. It isn't unusual for a young (under 25) driver to have well over a $200/month car insurance premium -- a combination effect of age, having full coverage, and surcharges for a brand new car.
This discussion has been closed.