I'm hoping you could help me to understand a lease offer that I got on a 2023 Kona EV.
The MSRP on this vehicle is $39,425, they have it reduced on the window to $36,925. The Residual on a 36/12 lease is $20,895.
Taking advantage of the $7500 tax credit, $500 military, and $6000 trade in, brings my adjusted Cap Cost down to $22,925. My thoughts were that I could pay the difference ($2030) plus any taxes and fees and I would owe nothing else for the life of the lease. I'm told this is called a Single Pay or One Pay Lease.
Instead they are saying that I would owe $319 per month.
All of the articles that I read says that your monthly payment is made up by the difference between the difference between the Cap Cost and the Residual, multiplied by the money factor, divided by the length of the lease. So... ZERO X .003 = Zero, divided by 36 = ZERO
So theoretically, if my Cap Cost was paid upfront to where the difference was zero (not taking into account taxes and registrations and other fees), the amount of the loan would be zero and therefore my monthly payment would be zero.
I just can't understand how they are getting from what should be a total amount paid to the 'loan' from $zero to $11,484.
I'm sure this rarely comes up as most people financing don't even come close to covering the 'spread' so to speak, so the Money Factor rolls all of this up into one number. But if you get the difference down to zero, where are they coming up with these extra charges, and why aren't they forced to show them if they really aren't just part of the 'financed' part of the lease?
I'm hoping you could help me to understand a lease offer that I got on a 2023 Kona EV.
The MSRP on this vehicle is $39,425, they have it reduced on the window to $36,925. The Residual on a 36/12 lease is $20,895.
Taking advantage of the $7500 tax credit, $500 military, and $6000 trade in, brings my adjusted Cap Cost down to $22,925. My thoughts were that I could pay the difference ($2030) plus any taxes and fees and I would owe nothing else for the life of the lease. I'm told this is called a Single Pay or One Pay Lease.
Instead they are saying that I would owe $319 per month.
All of the articles that I read says that your monthly payment is made up by the difference between the difference between the Cap Cost and the Residual, multiplied by the money factor, divided by the length of the lease. So... ZERO X .003 = Zero, divided by 36 = ZERO
So theoretically, if my Cap Cost was paid upfront to where the difference was zero (not taking into account taxes and registrations and other fees), the amount of the loan would be zero and therefore my monthly payment would be zero.
I just can't understand how they are getting from what should be a total amount paid to the 'loan' from $zero to $11,484.
I'm sure this rarely comes up as most people financing don't even come close to covering the 'spread' so to speak, so the Money Factor rolls all of this up into one number. But if you get the difference down to zero, where are they coming up with these extra charges, and why aren't they forced to show them if they really aren't just part of the 'financed' part of the lease?
If you pay all of the depreciation on a lease, you still have to finance the residual. After all, when the bank buys the car from the dealer, they pay them the full price you agreed to.
Monthly lease finance charge = (Adjusted CAP cost + residual) X money factor
In your example: Adjusted CAP = $20,895 Residual = $20,895 MF = .00300
To check their payment, you need the amounts of all of those other charges, and the resulting adjusted CAP cost. I don't know your location, but in most states, all of that upfront money (incentives and trade-in equity, etc) has sales tax applied upfront. That could be a substantial amount.
Even a one-pay lease has finance charges computed, as you are still "borrowing" the residual amount for the term of the lease.
Even a one-pay lease has finance charges computed, as you are still "borrowing" the residual amount for the term of the lease.
Ohhhh! Now I get it. So the explaination on most of the websites seem to leave out the part about paying the finance charges ON the residual as well. They just say you pay financing on the difference between cap and residual, but yes I can see why they would charge on the full price.
Well that certainly makes leasing a lot less enticing than I thought it was.
Even a one-pay lease has finance charges computed, as you are still "borrowing" the residual amount for the term of the lease.
Ohhhh! Now I get it. So the explaination on most of the websites seem to leave out the part about paying the finance charges ON the residual as well. They just say you pay financing on the difference between cap and residual, but yes I can see why they would charge on the full price.
Well that certainly makes leasing a lot less enticing than I thought it was.
Thanks for the quick response!
You pay depreciation on the difference between CAP cost and residual
You pay finance charges on the average of CAP cost and residual. (CAP+residual) / 2
Hello, could you please share the MF, Residual and incentives (if any) for the 2023 Kona Limited and SEL editions 36/12, zip 33175. Thank you in advance!
Hello, could you please share the MF, Residual and incentives (if any) for the 2023 Kona Limited and SEL editions 36/12, zip 33175. Thank you in advance!
Hello, could you please share the MF, Residual and incentives (if any) for the 2023 Kona Limited and SEL editions 36/12, zip 33175. Thank you in advance!
Hello, could you please share the MF, Residual and incentives (if any) for the 2023 Kona Limited and SEL editions 36/12, zip 33175. Thank you in advance!
FWD or AWD?
FWD
LTD - .00109 MF and 59% residual SEL - .00096 MF and 54% residual; $1500 lease cash
Hello, looking for MF for 2023 Hyundai Kona EV "S" and "SEL" for 15,000 mile/yr 24 month. As well as the residual percentage. Zip Code 22304 (Alexandria VA) or 20716 (Bowie MD) What is considered the average adjusted capitalized cost for these vehicles? or if the invoice price is known that would be helpful. Thank you.
Hello, looking for MF for 2023 Hyundai Kona EV "S" and "SEL" for 15,000 mile/yr 24 month. As well as the residual percentage. Zip Code 22304 (Alexandria VA) or 20716 (Bowie MD) What is considered the average adjusted capitalized cost for these vehicles? or if the invoice price is known that would be helpful. Thank you.
SE: .00440 MF and 66% residual SEL: .00383 MF and 67% residual
Comments
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AWD, please
AWD, please
.00102 MF and 56% residual
$1000 lease cash
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Hello
Mf, res and incentives for Kona N
36/15
44001
Thank you
No lease incentives
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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The MSRP on this vehicle is $39,425, they have it reduced on the window to $36,925. The Residual on a 36/12 lease is $20,895.
Taking advantage of the $7500 tax credit, $500 military, and $6000 trade in, brings my adjusted Cap Cost down to $22,925. My thoughts were that I could pay the difference ($2030) plus any taxes and fees and I would owe nothing else for the life of the lease. I'm told this is called a Single Pay or One Pay Lease.
Instead they are saying that I would owe $319 per month.
All of the articles that I read says that your monthly payment is made up by the difference between the difference between the Cap Cost and the Residual, multiplied by the money factor, divided by the length of the lease. So... ZERO X .003 = Zero, divided by 36 = ZERO
So theoretically, if my Cap Cost was paid upfront to where the difference was zero (not taking into account taxes and registrations and other fees), the amount of the loan would be zero and therefore my monthly payment would be zero.
I just can't understand how they are getting from what should be a total amount paid to the 'loan' from $zero to $11,484.
I'm sure this rarely comes up as most people financing don't even come close to covering the 'spread' so to speak, so the Money Factor rolls all of this up into one number. But if you get the difference down to zero, where are they coming up with these extra charges, and why aren't they forced to show them if they really aren't just part of the 'financed' part of the lease?
Monthly lease finance charge = (Adjusted CAP cost + residual) X money factor
In your example:
Adjusted CAP = $20,895
Residual = $20,895
MF = .00300
$20895
+20895
= 41790 X .00300 = $125.37/mo. (monthly finance charges)
To check their payment, you need the amounts of all of those other charges, and the resulting adjusted CAP cost. I don't know your location, but in most states, all of that upfront money (incentives and trade-in equity, etc) has sales tax applied upfront. That could be a substantial amount.
Even a one-pay lease has finance charges computed, as you are still "borrowing" the residual amount for the term of the lease.
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Well that certainly makes leasing a lot less enticing than I thought it was.
Thanks for the quick response!
You pay finance charges on the average of CAP cost and residual. (CAP+residual) / 2
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LTD: .00125 MF and 60% residual
NLine: .00106 MF and 56% residual. $1000 lease cash
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
SEL - .00096 MF and 54% residual; $1500 lease cash
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
No lease incentives
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
SEL: .00401 MF and 54% residual
$7500 lease cash
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Hello,
RV, MF, and incentives for
2023 Kona SEL , N Line, and Limited
on the FWD and AWD
24mo/12k
36mo/12k
Zip 07029
THANK YOU!!!! Much appreciated!
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Kona N Line AWD
.00106 MF and 56% RV
$1000 incentives
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
SEL: .00401 MF and 54% residual
$7500 lease cash
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$1250 lease cash
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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.00102 MF and 56% residual. $1000
.00106 MF and 57% residual. $1000
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Can I please get the MF, RV and lease incentives for 2023 FWD Kona SEL and N Line in 55423 36/10. Thank you!
NLine - .00054 MF and 55% RV; $750 lease cash
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Can I get the 36/10 and 36/12 on a Limited FWD in 02053?
.00091 and 58%
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Hi, Can I get the RV & MF as well and any incentives, 2023 Kona limited 36/12 zip 80525
Thank you
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
looking for MF for 2023 Hyundai Kona EV "S" and "SEL" for 15,000 mile/yr 24 month.
As well as the residual percentage.
Zip Code 22304 (Alexandria VA) or 20716 (Bowie MD)
What is considered the average adjusted capitalized cost for these vehicles? or if the invoice price is known that would be helpful.
Thank you.
SEL: .00383 MF and 67% residual
$7500 lease cash
I don't see an S trim
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$7500 lease cash
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
36/10 - .00340 and 56%
$7500 lease cash
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Can you please provide the MF/Residual/Incentives for 2023 Kona N (not N line) for 36/10 in zip 98003
Thanks!
No lease incentives
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2015 Subaru Outback 3.6R / 2024 Kia Sportage Hybrid SX Prestige
Can you please provide the MF/RV/lease incentives for a 2023 Hyundai Kona SEL? 36 months/10k miles in 02038. Thank you!