D+H charges and 90day requirement on a lease.

[Nightreign]

So I'm trying to sort out all this lease cash advantage business from the posts here. So far it's been a great help and I think I understand most of it. I contacted my local dealer in Colorado Springs about potential balloon financing options to avoid the extra fees, but they said they don't offer that, unfortunately. So I'd get hit with ~$600 in dealer/handling fees on lease and then again at lease buyout, does this sound normal? He said there is no way around that, even if I pay off early, still come out ahead with the lease cash I suppose. Also noted, the taxes are split 50/50 between start and buyout.

The other thing he told me is that I can't buy out the lease until 90 days has passed in order to keep the $6500 lease cash. Is that true too?

Thanks for all the help, I'm new to all these shenanigans so thanks for bearing with me. It seems so much easier to just do normal financing but $6500 is tough to pass up!

Thanks again,
~T

 

[MurlinatoR]

So I'm trying to sort out all this lease cash advantage business from the posts here. So far it's been a great help and I think I understand most of it. I contacted my local dealer in Colorado Springs about potential balloon financing options to avoid the extra fees, but they said they don't offer that, unfortunately. So I'd get hit with ~$600 in dealer/handling fees on lease and then again at lease buyout, does this sound normal? He said there is no way around that, even if I pay off early, still come out ahead with the lease cash I suppose. Also noted, the taxes are split 50/50 between start and buyout.

The other thing he told me is that I can't buy out the lease until 90 days has passed in order to keep the $6500 lease cash. Is that true too?

Thanks for all the help, I'm new to all these shenanigans so thanks for bearing with me. It seems so much easier to just do normal financing but $6500 is tough to pass up!

Thanks again,
~T

You're pretty much spot on. The acquisition fee is $650 and the buyout fee is $300. in the end, you're still thousands better to lease and then buyout.

As for the waiting period, that's not true. They only tell you that because the dealership looses a $150 payment that they receive from Kia if you don't wait 90 days.

I will be leasing mine and then buying it out 3 weeks later, once I get my paperwork, and refinancing it with my credit union.

 

[Nightreign]

Thanks MurlinatoR! You're a rockstar around here it seems.

The only other thing I'm fuzzy on is determining how much I'll need to request on a loan from my credit union. I know there will be a buyout amount after it gets into the system, but I want to get pre-approved so I know I'm not getting in over my head. Should I just get a pre-approval for negotiated purchase price + D/H + taxes? I'm not exactly sure how taxes are calculated on a lease buyout. I guess I'll call my credit union next and see what they recommend.

I've been negotiation through email thus far and think I'm getting close to making a trip. Got a AWD GT2 quoted at $47609 right now in Denver, going to see if the Colorado Springs dealer wants to compete with lower. Then I'll talk trade-in and lease cash. Think I should hold out for lower? I also keep seeing talk of the 2019 models coming, is it better to wait and see if deals will be better when that info comes out or jump on the lease cash before it goes poof? Can you tell I'm great at big decisions? LOL

 

[MurlinatoR]

Thanks MurlinatoR! You're a rockstar around here it seems.

The only other thing I'm fuzzy on is determining how much I'll need to request on a loan from my credit union. I know there will be a buyout amount after it gets into the system, but I want to get pre-approved so I know I'm not getting in over my head. Should I just get a pre-approval for negotiated purchase price + D/H + taxes? I'm not exactly sure how taxes are calculated on a lease buyout. I guess I'll call my credit union next and see what they recommend.

I've been negotiation through email thus far and think I'm getting close to making a trip. Got a AWD GT2 quoted at $47609 right now in Denver, going to see if the Colorado Springs dealer wants to compete with lower. Then I'll talk trade-in and lease cash. Think I should hold out for lower? I also keep seeing talk of the 2019 models coming, is it better to wait and see if deals will be better when that info comes out or jump on the lease cash before it goes poof? Can you tell I'm great at big decisions? LOL

Hahahahaha

Well, I'm no one special. Just a salesman that likes to make things easy.

Your approximate buyout will be the sales price after lease cash + $950 for lease fees + all state fees + aftermarket purchases like warranties or rustproofing.

As for timing, the incentives are strong right now. If you wait, you may save another $500+/- but you may also be stuck with limited supply and a color you don't want. It sounds to me like you're pretty decent on a deal.

 

[mldavis2]

One other thing to consider is that the lease rebate amount has continued to drop from month to month by a few hundred dollars.