Do these lease numbers make sense?

whiterose

Hi all,

I am looking to lease a 2023 Sportage Hybrid in zipcode 07750.
I visited one dealer with my leased vehicle as a trade in as well and here are the numbers that I am getting and I am not sure if these numbers make any sense.


Kia Sportage Hybrid EX w/ Premium Package. MSRP $34,285.

They are offering me $21,700 for my trade-in. The total pay-off for my current lease is $17,300.
That gives me approx $4,400 in positive equity to put towards the Sportage Hybrid.

Now here is where it gets tricky.
The residual value is 67% but I do not remember them telling me the MF, so I'll guess here.

Here are the numbers.

Out of pocket (additional payment) $4,000. PLUS the $4,400 in equity from my current lease = Approx $8400.
10k/36M I am looking at paying $480-485 a month.


Here are the numbers organized on a spreadsheet. Am I missing something here?

THank you all

kyfdx

whiterose said:

Hi all,

I am looking to lease a 2023 Sportage Hybrid in zipcode 07750.
I visited one dealer with my leased vehicle as a trade in as well and here are the numbers that I am getting and I am not sure if these numbers make any sense.


Kia Sportage Hybrid EX w/ Premium Package. MSRP $34,285.

They are offering me $21,700 for my trade-in. The total pay-off for my current lease is $17,300.
That gives me approx $4,400 in positive equity to put towards the Sportage Hybrid.

Now here is where it gets tricky.
The residual value is 67% but I do not remember them telling me the MF, so I'll guess here.

Here are the numbers.

Out of pocket (additional payment) $4,000. PLUS the $4,400 in equity from my current lease = Approx $8400.
10k/36M I am looking at paying $480-485 a month.


Here are the numbers organized on a spreadsheet. Am I missing something here?

THank you all

You have the MSRP, but do you have the selling price? Or, the adjusted CAP cost?
The car price might be higher than you think. Your effective monthly payment is over $700/mo, with that much upfront. I’d buy the car, before leasing at that amount.

whiterose

@kyfdx said:
You have the MSRP, but do you have the selling price? Or, the adjusted CAP cost?
The car price might be higher than you think. Your effective monthly payment is over $700/mo, with that much upfront. I’d buy the car, before leasing at that amount.

Thank you for the reply. I don’t have the adjusted cap cost. This was just a quick quote from the dealer after appraisal of my current lease.

The numbers just don’t make sense to me. I’m paying over $20k over 3 years with the down payment. Not including the equity from the current lease.

Michaell

whiterose said:

@kyfdx said:

You have the MSRP, but do you have the selling price? Or, the adjusted CAP cost?

The car price might be higher than you think. Your effective monthly payment is over $700/mo, with that much upfront. I’d buy the car, before leasing at that amount.

Thank you for the reply. I don’t have the adjusted cap cost. This was just a quick quote from the dealer after appraisal of my current lease.

The numbers just don’t make sense to me. I’m paying over $20k over 3 years with the down payment. Not including the equity from the current lease.

You need to get the adjusted cap cost to plug in, to see if your calculations match up with the dealer.

whiterose

Without the cap reduction - does the numbers make sense anyway? It seems like I’m already putting up too much money and if the residual is 67%, the cost should be somewhere $12k before taxes and fees.

From a first glance, does this make sense or am I leasing a car with an MSRP of $34k for $44k?

kyfdx

whiterose said:

Without the cap reduction - does the numbers make sense anyway? It seems like I’m already putting up too much money and if the residual is 67%, the cost should be somewhere $12k before taxes and fees.

From a first glance, does this make sense or am I leasing a car with an MSRP of $34k for $44k?

No, it makes no sense at all. At the base MF of .00251, the adjusted CAP would have to be around $35K for a payment of $480/mo. They can only markup the MF to .00291. Even at that MF, adjusted CAP cost would be around $34,300 for $480/mo.

It's likely the selling price is $5000 OVER MSRP. You have to ask (or, just don't bother)