2020 Sportage EX w/ Tech pkg Lease

dosu1

First off, I didnt know much about leasing when i went to lease a new 2020 Kia Sportage EX with Tech package. I knew about the money factor and residual value, but once in the dealership all that went out the window and I was confused. I don't think I got a good deal at all. let me know how badly I did.
I found it difficult to find a real "price others are paying" as Edmunds TMV was $34,060. MSRP being $34,420 this doesn't sound right.
After the dealer gave me a price of 33,000 before a 1500 incentive(31,500), I went home and found another dealer showing a "sale price" after incentives of around 29,900( so , about another 1500+) I figured that was a good deal. They matched it immediately, so we hesitantly agreed. I could just feel that I was being taken advantage of, but wasn't quite sure what to do. I got distracted with trade-in (5800-2008 Acura RDX) and downpayment which came out of the trade(2500).They refused to throw in a $90 accessory, and we agreed to the deal without even understanding the numbers.
This is what I figured out after signing.
MSRP 34,420; Selling price 31,979; 36 months; 10K/yr;Downpayment 2,500; Rebate 2,020; total monthly payment 327; Residual 22,373 61%?; MF- not sure.. he told us approx.5% APR, I don't remember exactly. I tried figure it out and I think it's 5.27% ( I should have argued this amount as we have excellent credit) ; Acquisition fee 650; Documentation fee 598 ; Rent charge 4477
How badly did we do? let me know if you need other numbers
Thanks

Michaell

dosu1 said:

First off, I didnt know much about leasing when i went to lease a new 2020 Kia Sportage EX with Tech package. I knew about the money factor and residual value, but once in the dealership all that went out the window and I was confused. I don't think I got a good deal at all. let me know how badly I did.
I found it difficult to find a real "price others are paying" as Edmunds TMV was $34,060. MSRP being $34,420 this doesn't sound right.
After the dealer gave me a price of 33,000 before a 1500 incentive(31,500), I went home and found another dealer showing a "sale price" after incentives of around 29,900( so , about another 1500+) I figured that was a good deal. They matched it immediately, so we hesitantly agreed. I could just feel that I was being taken advantage of, but wasn't quite sure what to do. I got distracted with trade-in (5800-2008 Acura RDX) and downpayment which came out of the trade(2500).They refused to throw in a $90 accessory, and we agreed to the deal without even understanding the numbers.
This is what I figured out after signing.
MSRP 34,420; Selling price 31,979; 36 months; 10K/yr;Downpayment 2,500; Rebate 2,020; total monthly payment 327; Residual 22,373 61%?; MF- not sure.. he told us approx.5% APR, I don't remember exactly. I tried figure it out and I think it's 5.27% ( I should have argued this amount as we have excellent credit) ; Acquisition fee 650; Documentation fee 598 ; Rent charge 4477
How badly did we do? let me know if you need other numbers
Thanks

With $2500 out of pocket, $327/mo (with tax?) is not that bad of a deal for $34K SUV.

Next time, don't feel pressured to make a deal. You control the conversation, and you can walk out if you don't like the numbers, or need time to understand what you've been told.

Dealers like yours are good at confusing the customer. Don't beat yourself up over it - and enjoy the new car!

dosu1

thanks for your response. Yes, with tax. So it is a bad deal, just not TOO bad..lol

I got the sense that the numbers other than the price of the car are non negotiable, how would I negotiate then? What are the guidelines.i know I need low MF and high residual, right? What else?
I see others on this forum asking for MF, Residual and % Where are those numbers coming from?

The 5% interest rate cannot be what the finance company is charging.. do the dealers bump that up for themselves?

Sorry for so many questions... I think I need to hire someone to do this next time!

Michaell

dosu1 said:

thanks for your response. Yes, with tax. So it is a bad deal, just not TOO bad..lol

I got the sense that the numbers other than the price of the car are non negotiable, how would I negotiate then? What are the guidelines.i know I need low MF and high residual, right? What else?
I see others on this forum asking for MF, Residual and % Where are those numbers coming from?

The 5% interest rate cannot be what the finance company is charging.. do the dealers bump that up for themselves?

Sorry for so many questions... I think I need to hire someone to do this next time!

No need to hire someone - you've found the right place.

Our numbers come from the bank itself.

The MF can be marked up by the dealer for extra profit.

The MF on most Kia models is in that range, however. They make up for it with bigger than average incentives.