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2021 Kia Soul Lease Deals and Prices

kyfdxkyfdx Posts: 163,837
edited July 1 in Kia
Ask your 2021 Soul lease questions here! Get info about prices, money factor, deals, incentives, and payments.

Did you get a good deal? Be sure to come back and share!

Edmunds Moderator

Comments

  • xracerflxracerfl Posts: 36
    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.
  • kyfdxkyfdx Posts: 163,837
    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • xracerflxracerfl Posts: 36
    kyfdx said:

    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.
    Still working on this and two other Kia’s (Forte & Seltos) for us & a family member. The dealer was trying to mark up the MF & would not budge from sticker. Found another dealer and vehicle...May I please get updated numbers for the latest July program for:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    Thank you for your continued assistance.
  • kyfdxkyfdx Posts: 163,837
    xracerfl said:

    kyfdx said:

    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.
    Still working on this and two other Kia’s (Forte & Seltos) for us & a family member. The dealer was trying to mark up the MF & would not budge from sticker. Found another dealer and vehicle...May I please get updated numbers for the latest July program for:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    Thank you for your continued assistance.
    .00176 MF and 64% residual
    $1910 lease cash

    Did you get a good deal? Be sure to come back and share!

    Edmunds Moderator

  • xracerflxracerfl Posts: 36
    kyfdx said:

    xracerfl said:

    kyfdx said:

    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.
    Still working on this and two other Kia’s (Forte & Seltos) for us & a family member. The dealer was trying to mark up the MF & would not budge from sticker. Found another dealer and vehicle...May I please get updated numbers for the latest July program for:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    Thank you for your continued assistance.
    .00176 MF and 64% residual
    $1910 lease cash
    Are these numbers good through 7/31 or 8/3/2020? I have a potential deal that can be completed by 8/3 but, I won’t make 7/31. Not knowing what August numbers are going to do yet, I am trying to put this together. Dealer is checking also but, I suspect they are going to tell me 7/31 to make end of the month. Thanks in advance for any help/info you can provide.
  • MichaellMichaell ColoradoPosts: 158,188
    xracerfl said:

    kyfdx said:

    xracerfl said:

    kyfdx said:

    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.
    Still working on this and two other Kia’s (Forte & Seltos) for us & a family member. The dealer was trying to mark up the MF & would not budge from sticker. Found another dealer and vehicle...May I please get updated numbers for the latest July program for:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    Thank you for your continued assistance.
    .00176 MF and 64% residual
    $1910 lease cash
    Are these numbers good through 7/31 or 8/3/2020? I have a potential deal that can be completed by 8/3 but, I won’t make 7/31. Not knowing what August numbers are going to do yet, I am trying to put this together. Dealer is checking also but, I suspect they are going to tell me 7/31 to make end of the month. Thanks in advance for any help/info you can provide.
    Kia programs are valid through 8/3, so you can breathe easy.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • xracerflxracerfl Posts: 36
    Michaell said:

    xracerfl said:

    kyfdx said:

    xracerfl said:

    kyfdx said:

    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.
    Still working on this and two other Kia’s (Forte & Seltos) for us & a family member. The dealer was trying to mark up the MF & would not budge from sticker. Found another dealer and vehicle...May I please get updated numbers for the latest July program for:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    Thank you for your continued assistance.
    .00176 MF and 64% residual
    $1910 lease cash
    Are these numbers good through 7/31 or 8/3/2020? I have a potential deal that can be completed by 8/3 but, I won’t make 7/31. Not knowing what August numbers are going to do yet, I am trying to put this together. Dealer is checking also but, I suspect they are going to tell me 7/31 to make end of the month. Thanks in advance for any help/info you can provide.
    Kia programs are valid through 8/3, so you can breathe easy.
    Just wanted to say thank you and ask how I did?

    I ended up juggling some things & accommodating the dealer and picking the car up on Friday, 7/31. As an incentive, they paid the 1st payment of $434.29 effectively turning this into $0 DAS, sign & drive 24/12 lease with me only paying 23 of the 24 payments.

    2021 Kia Soul Turbo (Snow White Pearl) included: Pinstripe, hood deflector, sport pedals, carpeted mats.

    MF, Residual & Lease Cash as shown above: 24/12 for $434.29 a month, $0 DAS all fees, including acquisition fee, taxes rolled in & added to the lease.

    MSRP: $29,150
    Base Cap Cost: $27,175
    Costs Added to Lease: $1,269
    Cap Cost Reductions: $1,910
    Adjusted Cap Cost: $26,534
    Residual Value: $18,656
    MF: .00176
    Term: 24 Months
    Sales Tax: 6.5%

    Monthly Payment: $407.78 + $26.51 tax
  • MichaellMichaell ColoradoPosts: 158,188
    xracerfl said:

    Michaell said:

    xracerfl said:

    kyfdx said:

    xracerfl said:

    kyfdx said:

    xracerfl said:

    The dealer has a 2021 Kia Soul Turbo and as usual with change of model year they seem to have conflicting info. I know it is a new month and you may not have the latest info yet.

    Please confirm/update:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    .00207 MF and 64% residual $2210 lease cash.

    As usual, thank you very much.

    Those numbers are correct.

    The June programs have been extended through 07/06.
    Still working on this and two other Kia’s (Forte & Seltos) for us & a family member. The dealer was trying to mark up the MF & would not budge from sticker. Found another dealer and vehicle...May I please get updated numbers for the latest July program for:

    2021 Kia Soul Turbo / 24/12 / Zip: 32827

    Thank you for your continued assistance.
    .00176 MF and 64% residual
    $1910 lease cash
    Are these numbers good through 7/31 or 8/3/2020? I have a potential deal that can be completed by 8/3 but, I won’t make 7/31. Not knowing what August numbers are going to do yet, I am trying to put this together. Dealer is checking also but, I suspect they are going to tell me 7/31 to make end of the month. Thanks in advance for any help/info you can provide.
    Kia programs are valid through 8/3, so you can breathe easy.
    Just wanted to say thank you and ask how I did?

    I ended up juggling some things & accommodating the dealer and picking the car up on Friday, 7/31. As an incentive, they paid the 1st payment of $434.29 effectively turning this into $0 DAS, sign & drive 24/12 lease with me only paying 23 of the 24 payments.

    2021 Kia Soul Turbo (Snow White Pearl) included: Pinstripe, hood deflector, sport pedals, carpeted mats.

    MF, Residual & Lease Cash as shown above: 24/12 for $434.29 a month, $0 DAS all fees, including acquisition fee, taxes rolled in & added to the lease.

    MSRP: $29,150
    Base Cap Cost: $27,175
    Costs Added to Lease: $1,269
    Cap Cost Reductions: $1,910
    Adjusted Cap Cost: $26,534
    Residual Value: $18,656
    MF: .00176
    Term: 24 Months
    Sales Tax: 6.5%

    Monthly Payment: $407.78 + $26.51 tax
    Congrats!

    Thanks for the report.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • xracerflxracerfl Posts: 36
    Thanks Michaell! I don’t even want to know if the August programs are better or worse, lol...the wife is happy.

    Now on to comparing the K5 & Sonata program/numbers for other family members who want me to help them now that they saw what I did with this Soul & the 2020 Forte GT I did the week before (with Edmunds help, of course). Stay Safe!
  • jelly25jelly25 Posts: 3
    I wanted to share my lease for houston. I recently bought a 2021 kia soul EX snow white pearl with a sunroof.
    MSRP: $24,920
    RV: 61% (15,201)
    MF: 0.00166
    Cap Cost Reduction: $300
    Adjusted Cap Cost: $24051
    Sales Tax: 6.25
    36 month, 10k/year, no down payment
    Monthly payment: $311/month

    hope this helps.
  • MichaellMichaell ColoradoPosts: 158,188
    jelly25 said:

    I wanted to share my lease for houston. I recently bought a 2021 kia soul EX snow white pearl with a sunroof.
    MSRP: $24,920
    RV: 61% (15,201)
    MF: 0.00166
    Cap Cost Reduction: $300
    Adjusted Cap Cost: $24051
    Sales Tax: 6.25
    36 month, 10k/year, no down payment
    Monthly payment: $311/month

    hope this helps.

    Congrats!

    Thanks for the report.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Yoda420Yoda420 PennsylvaniaPosts: 6
    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!
  • MichaellMichaell ColoradoPosts: 158,188
    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Yoda420Yoda420 PennsylvaniaPosts: 6
    edited August 28
    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
  • MichaellMichaell ColoradoPosts: 158,188
    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Yoda420Yoda420 PennsylvaniaPosts: 6
    edited August 28
    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?

    Or what do I have to do to lease a 28k vehicle and get my monthlys to be $220/month or less?
  • MichaellMichaell ColoradoPosts: 158,188
    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Yoda420Yoda420 PennsylvaniaPosts: 6
    edited August 28
    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
    Miles per year: 10k or less
    Selling price: 27k
    Fees: assume $1,700
    Sales tax rate in PA is 6% so 3% more is 9%
  • MichaellMichaell ColoradoPosts: 158,188
    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
    Miles per year: 10k or less
    Selling price: 27k
    Fees: assume $1,700
    Sales tax rate in PA is 6% so 3% more is 9%
    24 months, 12,000 miles per year.
    .00176 and 64%
    $1910 incentives, which is applied like a down payment, in addition to the $6000

    $28,000 MSRP
    $27,000 selling price + $1700 fees = $28,700 cap cost
    $7910 up front cash

    Roughly $205/mo, tax included.

    But, if you amortize the $6000 of cash up front over the 24 months, that alone is $250/mo, so your "true" payment is over $450/mo, which is an awful lot for a $28K compact car.

    You can probably get a Civic or Elantra for roughly the same monthly payment, but with a whole lot less than $6K from your wallet.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Yoda420Yoda420 PennsylvaniaPosts: 6
    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
    Miles per year: 10k or less
    Selling price: 27k
    Fees: assume $1,700
    Sales tax rate in PA is 6% so 3% more is 9%
    24 months, 12,000 miles per year.
    .00176 and 64%
    $1910 incentives, which is applied like a down payment, in addition to the $6000

    $28,000 MSRP
    $27,000 selling price + $1700 fees = $28,700 cap cost
    $7910 up front cash

    Roughly $205/mo, tax included.

    But, if you amortize the $6000 of cash up front over the 24 months, that alone is $250/mo, so your "true" payment is over $450/mo, which is an awful lot for a $28K compact car.

    You can probably get a Civic or Elantra for roughly the same monthly payment, but with a whole lot less than $6K from your wallet.
    Thank you for number crunching for me. I am set on the Kias. I would never drive a Civic or Elantra. 😅 I want some power, safety features, exterior styling that I like & don't care much about cargo space.

    So you're suggesting I only put maybe 4k down and take a higher monthly payment instead of $7,910 down? At the end of the lease my understanding is that you get two options...1 is to buy the car for a slightly lower price than it will be worth OR let them give you a good deal on a new lease to basically keep you as a customer, right?
  • MichaellMichaell ColoradoPosts: 158,188
    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
    Miles per year: 10k or less
    Selling price: 27k
    Fees: assume $1,700
    Sales tax rate in PA is 6% so 3% more is 9%
    24 months, 12,000 miles per year.
    .00176 and 64%
    $1910 incentives, which is applied like a down payment, in addition to the $6000

    $28,000 MSRP
    $27,000 selling price + $1700 fees = $28,700 cap cost
    $7910 up front cash

    Roughly $205/mo, tax included.

    But, if you amortize the $6000 of cash up front over the 24 months, that alone is $250/mo, so your "true" payment is over $450/mo, which is an awful lot for a $28K compact car.

    You can probably get a Civic or Elantra for roughly the same monthly payment, but with a whole lot less than $6K from your wallet.
    Thank you for number crunching for me. I am set on the Kias. I would never drive a Civic or Elantra. 😅 I want some power, safety features, exterior styling that I like & don't care much about cargo space.

    So you're suggesting I only put maybe 4k down and take a higher monthly payment instead of $7,910 down? At the end of the lease my understanding is that you get two options...1 is to buy the car for a slightly lower price than it will be worth OR let them give you a good deal on a new lease to basically keep you as a customer, right?
    My recommendation? $0 out of your pocket and take the $450/mo payment.

    The residual value is the same, no matter how much money you put up front. And, that is the only price you will be able to buy it for. There are no negotiations of the residual value, any more.

    Many brands do offer loyalty incentives to keep you a customer, but what's the fun in driving the same make all the time?

    My last two leases were a Hyundai and a VW. Both were around $220-230/mo with only the first payment due at signing. Both were decently equipped (no safety nannies), and I found the VW (Jetta) to be way more fun here in CO with the turbo engine.

    At the end of the Jetta lease, I turned the car in, paid the disposition fee ($350 plus tax) and now my wife and I share our Subaru Outback.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • Yoda420Yoda420 PennsylvaniaPosts: 6
    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
    Miles per year: 10k or less
    Selling price: 27k
    Fees: assume $1,700
    Sales tax rate in PA is 6% so 3% more is 9%
    24 months, 12,000 miles per year.
    .00176 and 64%
    $1910 incentives, which is applied like a down payment, in addition to the $6000

    $28,000 MSRP
    $27,000 selling price + $1700 fees = $28,700 cap cost
    $7910 up front cash

    Roughly $205/mo, tax included.

    But, if you amortize the $6000 of cash up front over the 24 months, that alone is $250/mo, so your "true" payment is over $450/mo, which is an awful lot for a $28K compact car.

    You can probably get a Civic or Elantra for roughly the same monthly payment, but with a whole lot less than $6K from your wallet.
    Thank you for number crunching for me. I am set on the Kias. I would never drive a Civic or Elantra. 😅 I want some power, safety features, exterior styling that I like & don't care much about cargo space.

    So you're suggesting I only put maybe 4k down and take a higher monthly payment instead of $7,910 down? At the end of the lease my understanding is that you get two options...1 is to buy the car for a slightly lower price than it will be worth OR let them give you a good deal on a new lease to basically keep you as a customer, right?
    My recommendation? $0 out of your pocket and take the $450/mo payment.

    The residual value is the same, no matter how much money you put up front. And, that is the only price you will be able to buy it for. There are no negotiations of the residual value, any more.

    Many brands do offer loyalty incentives to keep you a customer, but what's the fun in driving the same make all the time?

    My last two leases were a Hyundai and a VW. Both were around $220-230/mo with only the first payment due at signing. Both were decently equipped (no safety nannies), and I found the VW (Jetta) to be way more fun here in CO with the turbo engine.

    At the end of the Jetta lease, I turned the car in, paid the disposition fee ($350 plus tax) and now my wife and I share our Subaru Outback.
    Thank you very much for your help! You really opened my eyes to the pros & cons of down payments VS no down payments. I might go with the 2021 Seltos SX Turbo now because it has AWD which is somewhat desired here in PA. If I put 0 down I can use my 6k to cover a good chunck of the lease payments. By the time the 6k is spent I will have saved more to cover the rest of the payments so it seems like a good decision. Sorry I suck at math! 😅 Thank you again and enjoy that CO green "medicine"! 😉😅✌
  • MichaellMichaell ColoradoPosts: 158,188
    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Michaell said:

    Yoda420 said:

    Hello! I am hoping someone can help me. I have never leased before but I plan on doing so by the end of the year. I don't really know what MF and cap cost means so if someone can explain in simple terms I'd appreciate it.

    Here's what I'm looking to do... Lease a 2021 Kia Soul Turbo or 2021 Kia Seltos SX Turbo. They're both right around the same price of 27 - 30k. I'm looking to lease for either 2 or 3 years and put $5,000 - $6,000 cash down payment. My goal is for my monthly lease payments to be $220/month OR LESS preferably. My zip code is 19560 in south east Pennsylvania. Do I negotiate price with the dealer? Do I look for offers from Kia? What can I expect to pay per month on my lease? What can I do to help achieve my monthly payment goal? Any help is greatly appreciated!

    Look here for some basic information on how leases work:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html

    Next, we recommend you don't put any money down on a lease - you will lose it if the car is stolen or totaled during the lease term. You aren't changing the cost of the lease, either.

    Would you pre-pay rent on an apartment? Same thing.
    How does putting no money down not change the lease payment??? That makes no sense. My wife just leased a brand new vehicle a month ago. She offered to just use her trade in value of 4k plus 1k down but her monthly would have been around $300 or $400 something/month. She put 4k more down (so 9k total down) and it made her monthly payments only $196/month. So I think you're confused?

    Even if you purchased a car and it got stolen, you would be losing money so I'm not sure what your point was there...??

    Is there anyone else who can help me? 😬
    Let's try this again.

    If the lease payment with $0 up front is $400/mo, and you use cash or trade equity of $3600, your payment will drop to $300/mo. That part is true.

    But, the total cost of the lease is still the same:

    $400 * 36 months = $14,400
    $300 * 36 months plus the $3600 you paid upfront = $14,400

    If the car is stolen or totaled, your insurance will only cover the unpaid balance of the lease.

    Using the price examples from above, and the car is totaled at 18 months.

    $400 * 18 months = $7200 out of pocket
    $300 * 18 months plus the $3600 you paid upfront = $9000 out of pocket

    You lose the other $1800 you paid up front, as the insurance company will only satisfy the remaining payments.

    I've been leasing cars for 20+ years, and have been helping folks on these boards for 7, so I'd like to think I know what I'm talking about.

    Heck, I can lease a Ferrari for $300/mo, if I put $100,000 up front (obvious hyperbole).

    Many folks focus solely on the monthly payment when they lease. They don't realize the total costs of what goes into a lease, and how to maximize the value for them.
    I really appreciate the explanation as it makes things more clear. However, I'm not great with math. It was my worst subject in school. 😅 Could you help me do the numbers? Assume MSRP of 28k on a 24 month lease with a 4.8 interest rate and $6,000 cash down. What would my monthly be?
    How many miles per year?
    What is the selling price?
    What are the fees?
    There is a 3% lease tax surcharge in PA - take your base tax rate and add 3% to it

    The more information you have from the dealer, the better equipped you are to understand the math behind a lease payment.

    Here is a good article for you to reference:
    https://www.edmunds.com/car-leasing/calculate-your-own-lease-payment.html
    Miles per year: 10k or less
    Selling price: 27k
    Fees: assume $1,700
    Sales tax rate in PA is 6% so 3% more is 9%
    24 months, 12,000 miles per year.
    .00176 and 64%
    $1910 incentives, which is applied like a down payment, in addition to the $6000

    $28,000 MSRP
    $27,000 selling price + $1700 fees = $28,700 cap cost
    $7910 up front cash

    Roughly $205/mo, tax included.

    But, if you amortize the $6000 of cash up front over the 24 months, that alone is $250/mo, so your "true" payment is over $450/mo, which is an awful lot for a $28K compact car.

    You can probably get a Civic or Elantra for roughly the same monthly payment, but with a whole lot less than $6K from your wallet.
    Thank you for number crunching for me. I am set on the Kias. I would never drive a Civic or Elantra. 😅 I want some power, safety features, exterior styling that I like & don't care much about cargo space.

    So you're suggesting I only put maybe 4k down and take a higher monthly payment instead of $7,910 down? At the end of the lease my understanding is that you get two options...1 is to buy the car for a slightly lower price than it will be worth OR let them give you a good deal on a new lease to basically keep you as a customer, right?
    My recommendation? $0 out of your pocket and take the $450/mo payment.

    The residual value is the same, no matter how much money you put up front. And, that is the only price you will be able to buy it for. There are no negotiations of the residual value, any more.

    Many brands do offer loyalty incentives to keep you a customer, but what's the fun in driving the same make all the time?

    My last two leases were a Hyundai and a VW. Both were around $220-230/mo with only the first payment due at signing. Both were decently equipped (no safety nannies), and I found the VW (Jetta) to be way more fun here in CO with the turbo engine.

    At the end of the Jetta lease, I turned the car in, paid the disposition fee ($350 plus tax) and now my wife and I share our Subaru Outback.
    Thank you very much for your help! You really opened my eyes to the pros & cons of down payments VS no down payments. I might go with the 2021 Seltos SX Turbo now because it has AWD which is somewhat desired here in PA. If I put 0 down I can use my 6k to cover a good chunck of the lease payments. By the time the 6k is spent I will have saved more to cover the rest of the payments so it seems like a good decision. Sorry I suck at math! 😅 Thank you again and enjoy that CO green "medicine"! 😉😅✌
    In the end, it's your decision - we're here to provide information and advice so folks can make the best decision for them.

    My daughter-in-law worked as a "budtender" for a while, but I've never sampled it.

    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

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