What is the moneyfactor / interest rate for a single pay lease plan?

[MarkyMark]

I've looked at doing that, [MENTION=477]MarkyMark[/MENTION]. Unfortunately my car isn't due until the first week of March, so who knows what the options will be after Feb. 28. The more I think about it, IF the 0.9% interest rate remains in effect, I think I can come out ahead by leaving the $40,000 invested, earning well over 0.9% (assuming no total market crash) plus I won't pay taxes on a lump sum withdrawal and incur the capital gains tax. I think I can earn more than I would gain from the rebate and one-pay lease buyout.

That is certainly another way to look/play it for sure. .9% is basically "free money" from KMF, so if that makes sense, go for it and invest away.

 

[MurlinatoR]

Everyone,

I wanted to put this baby to rest for good. I have attached information from my OWN lease with Kia.

Simply put, you'll see that the "expected" buy out price of residual PLUS my remaining agreed contract payments does NOT equal the actual price to purchase the car from Kia.
[MENTION=238]mjsteelega[/MENTION], [MENTION=477]MarkyMark[/MENTION], [MENTION=456]mldavis2[/MENTION], [MENTION=105]ralzod[/MENTION], [MENTION=254]BriTay[/MENTION], @ghediocy, [MENTION=321]robz32[/MENTION], [MENTION=320]Bubbabiker[/MENTION]

Anyone that has any questions, please let me know.

I'm gonna lease that my Stinger and then buy it right out and refinance it. That way I can pay it off early and save the interest that way! *Big Cheesy Grin*

 

[BriTay]

Thank you [MENTION=291]MurlinatoR[/MENTION] for taking the time to post this info.

 

[mldavis2]

Yes, thank you [MENTION=291]MurlinatoR[/MENTION]. That seems straight forward. I hope they continue that program just one more week into March.

 

[MarkyMark]

Everyone,

I wanted to put this baby to rest for good. I have attached information from my OWN lease with Kia.

Simply put, you'll see that the "expected" buy out price of residual PLUS my remaining agreed contract payments does NOT equal the actual price to purchase the car from Kia.

[MENTION=238]mjsteelega[/MENTION], [MENTION=477]MarkyMark[/MENTION], [MENTION=456]mldavis2[/MENTION], [MENTION=105]ralzod[/MENTION], [MENTION=254]BriTay[/MENTION], @ghediocy, [MENTION=321]robz32[/MENTION], [MENTION=320]Bubbabiker[/MENTION]

Anyone that has any questions, please let me know.

I'm gonna lease that my Stinger and then buy it right out and refinance it. That way I can pay it off early and save the interest that way! *Big Cheesy Grin*

Thanks MurlinatoR!

And yes, it does bring up some questions because the online KMF site doesn't show much in details, just says "here's what you owe us."

That said, a few questions arise:

1. The $1856.44, what is all that money?... Hmmm... It's a decent amount. Taxes, doc fee, $300 buyout? What is all in that charge?
2. That "Last Payment Amount" is that your monthly for 36 months or?...
3. $13,877.75... Is that the 36 months of principal? It states only "$471.89 in interest savings" which is, uh, nothing... I'm understanding the interest is compound, monthly, and thus no interest for the months can be assessed to the buyout save for a few days between signing paperwork and it being online and available to buyout. Is that wrong?! If so, I don't quite see how FMF can charge (or any financial institution) can charge me interest by paying off the principal amount, and only charge me on the interest of the day's of that monthly I haven't paid. This is the way a mortgage works, not sure how this can be different? Then again, this is the car world, so I think I need some clarity here. If this is the best that it saves, instead of thousands over a purchase, it's not worth it IMHO...

So yah, I'm not liking what I'm seeing, but you can clearly explain the figures and how they arrive at them. Looking forward to it. Thanks Jason!

 

[MurlinatoR]

Thanks MurlinatoR!

And yes, it does bring up some questions because the online KMF site doesn't show much in details, just says "here's what you owe us."

That said, a few questions arise:

1. The $1856.44, what is all that money?... Hmmm... It's a decent amount. Taxes, doc fee, $300 buyout? What is all in that charge?
2. That "Last Payment Amount" is that your monthly for 36 months or?...
3. $13,877.75... Is that the 36 months of principal? It states only "$471.89 in interest savings" which is, uh, nothing... I'm understanding the interest is compound, monthly, and thus no interest for the months can be assessed to the buyout save for a few days between signing paperwork and it being online and available to buyout. Is that wrong?! If so, I don't quite see how FMF can charge (or any financial institution) can charge me interest by paying off the principal amount, and only charge me on the interest of the day's of that monthly I haven't paid. This is the way a mortgage works, not sure how this can be different? Then again, this is the car world, so I think I need some clarity here. If this is the best that it saves, instead of thousands over a purchase, it's not worth it IMHO...

So yah, I'm not liking what I'm seeing, but you can clearly explain the figures and how they arrive at them. Looking forward to it. Thanks Jason!

[MENTION=477]MarkyMark[/MENTION]

So, don't pay attention to these numbers. This is for my 17 Forte, not a Stinger. LOL

#1 - The $1,856.44 is the total of my remaining 8 payments of $230.89. Remember that the lease contract was for me paying them nothing more than the 36 payments that I agreed to.
#2 - That last payment amount is exactly that; the last payment that I made on my lease.
#3 - The $13,877.75 is the RESIDUAL of $12,493.2 + the last payments (8 X $230.89) - the interest on each of my last 8 payments (8 X $58.98).

The reason that I'm showing a savings of $471 is because of TWO things; 1) I've already made 28 payments to my lease (including the interest on those payments) and 2) it's only a $18k Forte and NOT a $48K Stinger. LOL

The interest savings on a Stinger stands to be more than $4k in interest.

 

[MarkyMark]

Wow, okay this is REALLY clear now. Thanks Jason!

So the $471 is actually a huge interest savings for the last 8 payments, especially considering it is amortized and not a flat "$XXX" monthly interest. Wow.

So, the question now is: When are you getting a Stinger?!

 

[MurlinatoR]

Wow, okay this is REALLY clear now. Thanks Jason!

So the $471 is actually a huge interest savings for the last 8 payments, especially considering it is amortized and not a flat "$XXX" monthly interest. Wow.

So, the question now is: When are you getting a Stinger?!

Hahahahaha

The rent charge is not amortized but is a flat fee per payment.

And this fall. LOL My bride wants an in ground pool in the back yard. Priorities, priorities... LMBO

 

[MarkyMark]

Ah, well I've received some mis-information about amortization per month then. Thanks for clarifying. Makes it every easy to take my Rent Charge of around $110 and divide by 28/29 days or so. That's a few bucks over 4-7 days or so before I can buyout. No biggie. Thanks!

As for the pool vs Stinger, I had made an "awesome" image for you that solved both issues. Alas, I cannot upload an image on this blog it appears. Ack!... So I found a great image of a really bad kitty pool kinda built into a backyard (it was bad, really bad), with a Ceramic Stinger parked in the lawn in the background. Presto, problem solved!