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2018 Kia Niro Plug in EX lease

billauldbillauld Posts: 3
edited September 18 in Kia
I need the particulars on a Kia Niro Plug In Hybrid EX lease. MF, RV etc. 36month//12,000 Much appreciated

Comments

  • kyfdxkyfdx Posts: 97,440
    billauld said:

    I need the particulars on a Kia Niro Plug In Hybrid EX lease. MF, RV etc. 36month//12,000 Much appreciated

    What ZIP code?

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  • JonPoliJonPoli Southern CAPosts: 3
    Hi. So CA Kia dealer near 90745 offered me a new 2018 PHEV EX Premium for $34,575 but said a better deal would be to lease it & then buyout the lease after 3 months (why 3 months? I don't know). Paperwork he drew up shows a Gross Capitalized Cost of $35,225 and a Cap Cost Reduction of $3,910 yielding the adjusted capitalized Cost of $31,314. On a 36/12K lease with $5,343 lease cash and a residual of $18,499 the monthly payments would be $499 with $0 down. The adj cap cost includes the tax on cap cost reduction, Initial Licence, title & registration, doc processing fee & electronic registration fee. Dealer said I could end the lease in 3 months and purchase the car for the $31,314 adj cap cost - 3 months payments depreciation. Does this sound legitimate and a good deal?
  • kyfdxkyfdx Posts: 97,440
    JonPoli said:

    Hi. So CA Kia dealer near 90745 offered me a new 2018 PHEV EX Premium for $34,575 but said a better deal would be to lease it & then buyout the lease after 3 months (why 3 months? I don't know). Paperwork he drew up shows a Gross Capitalized Cost of $35,225 and a Cap Cost Reduction of $3,910 yielding the adjusted capitalized Cost of $31,314. On a 36/12K lease with $5,343 lease cash and a residual of $18,499 the monthly payments would be $499 with $0 down. The adj cap cost includes the tax on cap cost reduction, Initial Licence, title & registration, doc processing fee & electronic registration fee. Dealer said I could end the lease in 3 months and purchase the car for the $31,314 adj cap cost - 3 months payments depreciation. Does this sound legitimate and a good deal?

    .00200 MF and 52% residual
    $5343 lease cash

    Is $34,575 the MSRP?
    If so, what is the selling price?

    If it's the MSRP, then I get $469/mo.+tax, which seems a little higher than your quote.
    $0 Down doesn't always mean ZERO due at signing. What is the actual amount due at signing?

    The 90 days is to make sure the dealership (or you) isn't charged back for the lease incentive.

    Assuming the actual sale price is a good deal, here are the possible issues:

    1) Financing. What interest rate can you get on a used Niro in December? Kia offers 0.9% APR for up to 60 months on this model. Anything over that amount, you'll be giving back.

    2) Inertia.. you don't actually get around to buying out the car, and end up paying $500/mo.lease for a Kia compact.

    3) KMF puts some sort of early payoff penalty on the vehicle (not likely, but anything is possible with a lease contract)

    4) You'll still owe sales tax on the buyout, and the "interest" you are paying or the first three months is in the 5% range.

    If this turns out to be your plan, why not lease for 24 months? The incentive is $1000 higher. The payment will be about $40/mo. more, but that all goes to paying down depreciation.

    The key: make sure you are getting a good deal on the vehicle, before deciding how you are going to finance it.

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  • JonPoliJonPoli Southern CAPosts: 3
    Nowhere in the Kia Finance lease agreement does it state the MSRP, but it does have the agreed upon value of car as $34,575 & an acquisition fee of $650 bringing the Gross Cap Cost to $35,225. Oh, they are throwing in one last sweetener, which is a paid 3 year California single occupancy HOV sticker for the car, which is a good deal for my intended use.

    As to Q1 I don't know, but my intent was to purchase for cash with no loan involved so I don't think it matters what loan rate they are offering.

    On Q2, inertia shouldn't be involved since there is definite intent to buy and only question is whether the pure buy is a worse deal than the quoted lease with a buyout after 3 months. Dealer is offering no discount for an immediate buy of vehicle if there is no loan or lease in the deal.

    On Q3, it's not clear if there is an early payoff penalty other than a $300 "Purchase Option Fee". The lease terms state in event of "purchase option before maturity" there is wording that their is a $300 "Purchase Option Fee" and the purchase price will be the "Adjusted Lease Balance" which is then defined as "the Adjusted Cap Cost ($31,314) less all depreciation and other amortized amounts up to the termination date, calculated according to the Constant Yield Method".

    On Q4, the interest for the 3 months should amount to ~ $400, and I assume the sales tax on the buyout isn't much different than the sales tax I would have paid if I purchased it outright vs the lease.

    I didn't hear anything about a 24/12Kmi lease option, but IF the lease cash were indeed $1,000 more and the 3 monthly payments increased only by $40 and the other terms of the early buyout stayed the same, it looks as if the Adj Cap Cost should be $1,000 less and then that would be a slightly better deal.

    So in the end, I am NOT interested in financing the vehicle, but rather, what I am looking for opinions on is whether the numbers agree with what the dealer says - that leasing & then doing a buyout after 3 months lowers my cost by ~ $4,000 vs paying cash.
  • kyfdxkyfdx Posts: 97,440
    JonPoli said:

    Nowhere in the Kia Finance lease agreement does it state the MSRP, but it does have the agreed upon value of car as $34,575 & an acquisition fee of $650 bringing the Gross Cap Cost to $35,225. Oh, they are throwing in one last sweetener, which is a paid 3 year California single occupancy HOV sticker for the car, which is a good deal for my intended use.

    As to Q1 I don't know, but my intent was to purchase for cash with no loan involved so I don't think it matters what loan rate they are offering.

    On Q2, inertia shouldn't be involved since there is definite intent to buy and only question is whether the pure buy is a worse deal than the quoted lease with a buyout after 3 months. Dealer is offering no discount for an immediate buy of vehicle if there is no loan or lease in the deal.

    On Q3, it's not clear if there is an early payoff penalty other than a $300 "Purchase Option Fee". The lease terms state in event of "purchase option before maturity" there is wording that their is a $300 "Purchase Option Fee" and the purchase price will be the "Adjusted Lease Balance" which is then defined as "the Adjusted Cap Cost ($31,314) less all depreciation and other amortized amounts up to the termination date, calculated according to the Constant Yield Method".

    On Q4, the interest for the 3 months should amount to ~ $400, and I assume the sales tax on the buyout isn't much different than the sales tax I would have paid if I purchased it outright vs the lease.

    I didn't hear anything about a 24/12Kmi lease option, but IF the lease cash were indeed $1,000 more and the 3 monthly payments increased only by $40 and the other terms of the early buyout stayed the same, it looks as if the Adj Cap Cost should be $1,000 less and then that would be a slightly better deal.

    So in the end, I am NOT interested in financing the vehicle, but rather, what I am looking for opinions on is whether the numbers agree with what the dealer says - that leasing & then doing a buyout after 3 months lowers my cost by ~ $4,000 vs paying cash.

    Pretty easy to reverse engineer the MSRP. Take the residual amount, and divide by .52. Since you said they wouldn't discount the vehicle, I'll guess that $34,575 is the MSRP.

    1) Costs that you will incur, over a straight purchase: $595 acquisition fee. DMV fees? It's a separate transaction. Will you have to pay them all over again? (about $400). Finance charges on 3-4 months of leasing. Likely, that $300 purchase option fee.

    2) Will KMF sell you the car directly, or will they make you go through a local dealer, who may insert another transaction fee for their services? That doesn't seem kosher, but we see it all the time.

    3) The 24 month term will definitely save you another $1000. If your goal is to pay cash, it would be silly to go through all this and not get the full savings possible. Any extra on the payment will go towards the lease balance, so no loss from the higher payment.

    4) No way I would pay MSRP for this vehicle. If Kia is offering incentives of that size, then the dealer should be discounting, as well. Find out the MSRP, and shop around.

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  • kyfdxkyfdx Posts: 97,440
    @JonPoli If you are eligible for the $1500 California rebate on this vehicle, the lease has to be at least 30 months, so the 24 month term wouldn't work

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  • JonPoliJonPoli Southern CAPosts: 3
    Ahh, good info, thanks
  • songshansongshan Posts: 37
    May I have the MF, RV, and incentives for 24mo or 36mo, both 10K and 12K? zip code 77025.
    Thank you so much.
  • songshansongshan Posts: 37
    songshan said:

    May I have the MF, RV, and incentives for 24mo or 36mo, both 10K and 12K? zip code 77025.
    Thank you so much.

    Sorry forgot, 19 ex premium.
  • kyfdxkyfdx Posts: 97,440
    songshan said:

    songshan said:

    May I have the MF, RV, and incentives for 24mo or 36mo, both 10K and 12K? zip code 77025.
    Thank you so much.

    Sorry forgot, 19 ex premium.
    Please post in our 2019 model discussion, here:
    https://forums.edmunds.com/discussion/52840/kia/niro/2019-kia-niro-lease-deals-and-prices/p1?new=1

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