2019 kia optima lease

Nycinter

The sales manager said that there was a 5k rebate on a 2019 optima lease 36/12k. But the residual was 50% based on the sticker price not with rebate
Does that make sense he's giving me a rebate but then he is taking it back total waste of time.

Michaell

Nycinter said:

The sales manager said that there was a 5k rebate on a 2019 optima lease 36/12k. But the residual was 50% based on the sticker price not with rebate
Does that make sense he's giving me a rebate but then he is taking it back total waste of time.

The residual is based on the MSRP - which works in your favor with the incentive, as the depreciation is the difference between the selling price and the residual value.

Nycinter

Thanks for ur answer but how does it work in ur favor? Let's say the msrp is 25k, the residual is 50%so u will be paying 12,500 in 36 months payments. Now if the msrp is 25k with a 5000k incentive discount so the final price is 20k at, 50%residual ul be paying 10k in 36 months. Unless the residual is based on msrp then minus the incentives but he didn't say either so...

Michaell

Nycinter said:

Thanks for ur answer but how does it work in ur favor? Let's say the msrp is 25k, the residual is 50%so u will be paying 12,500 in 36 months payments. Now if the msrp is 25k with a 5000k incentive discount so the final price is 20k at, 50%residual ul be paying 10k in 36 months. Unless the residual is based on msrp then minus the incentives but he didn't say either so...

The residual is based off MSRP (50% of $25K, or $12.5K)

The depreciation is the difference between the cap cost and the residual value. If there is no discount from sticker, then the cap cost is $20K ($25K MSRP less $5K incentive), and the residual value is $12.5K. So, $7500 of depreciation.

Nycinter

That's what I was saying to the sales manager at the kia dealer. But he quoted me a 344 Mont for 36 months which is about 50%of 25k so where is the rebate? The guy was a total jerk I just left. Thanks for ur answers.

Michaell

Nycinter said:

That's what I was saying to the sales manager at the kia dealer. But he quoted me a 344 Mont for 36 months which is about 50%of 25k so where is the rebate? The guy was a total jerk I just left. Thanks for ur answers.

On top of the depreciation, you have to pay interest ("rent charge") on the money you borrow, and if you don't pay the taxes and fees and such up front, they are added to the selling price and made part of the payment.

Review this article to see how a lease payment is figured:
https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html