2018 EX Premium Lease Price

Jnovakii said:

Just wanted to get some feedback on lease prices. I'm in Michigan and looking at the EX Premium.

I'm doing a 36/15,000 $0 down. The dealership gave me numbers at $482/month, to which I almost audibly laughed out loud. I told him absolutely not that is insane. He immediately walked it back to his manager and moments later said they could get it down to $433 a month. I told him thanks for the time and he has my contact information if things change. Is this what these cars are leasing for?! I absolutely am in love with this car but I'm not paying anywhere near $400+ for it. I'm currently at the end of my VW Golf lease. I'm also debating just buying instead of leasing, but if the lease price is right then that's what I'll do.

I'm exploring other options (RAV4 and the like) but I keep coming back to that sweet Niro.

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If you haven't already, check with the Edmunds forum on Niro leases:

https://forums.edmunds.com/discussion/49215/kia/niro/2018-kia-niro-lease-deals-and-prices/p4

You can ask the moderator for the current money factors, and residuals, and then plug your numbers into a lease calculator to get monthly payments. Don't know if your figures above include sales tax or not.

I'm seeing currently residual is somewhere around 53% of MSRP for a 3yr/12K lease. A 15K will be a little lower. It looks like the money factor is around 0.0022 (5.28%). There is $3000 Kia lease cash, I believe. Your monthly lease will depend on your capitalized cost, which is essentially all your upfront costs (vehicle price, additional dealer costs, lease acquisition fee, etc, factoring in the $3000 lease cash).

The current Niro money factor is pretty high, and the residual is pretty low, so you're going to have a tough time going below $400/month. The interest charges alone are more than $80/month. Taxes at 7% are about $20/month.

I leased my 2017 LX with adv tech package for $330/month, sign and drive, including all taxes, no money down. The EX premium is $6K more than this, so you would be leasing 47% of this or so, around $2800 more than mine. This will add about $80/month just for the principle, plus the extra interest and tax.

If your capitalized cost is $30,000 (with no sales taxes), for example, my lease calculator says $486/month including monthly sales tax. For a 12K mile lease.

If your cost is $29,000(with no sales taxes), it goes to $454/month, including monthly sales tax.

$433 doesn't look too bad, especially if it includes sales tax.

Caveats apply. I don't have access to the exact lease terms. Check the Edmunds forum above. Sometimes these are different for each state.

Nouseformonkeys said:

I’m probably too much of a control freak, but I would negotiate the price of the car first and then I could figure out, using the great info that yyysguy provided, if the dealer is trying to gouge me on the actual price or the lease terms. If you let the dealer come up with the numbers, of course, they’re always going to try to get as much as they can.

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This seemed to work for me:

1. Negotiate the residual value/percent. Do this first and NOT AFTER negotiating the price. Here's why (example). Vehicle stickers at $35,000. Residual is 60% so $21000. You're effectively paying $14,000 plus interest. However I've found they'll stick with the same residual percent rather than the same residual value. So let's say instead you had negotiated the sticker down to $30000 then residual would be $18000 and you pay $12000 plus interest. This sounds ludicrous I realize but that's what happened to me having several scenarios calculated for me by the dealer.

2. With residual in hand now negotiate retail...but don't mention the last calculation. This is time to pull out the various rebates. Now granted I've had lots of dealers play funny math on me but this time they were all 'ok and here's the $400 military and the $500 Kia rebate this month...' and let's say you get to $32000 price. OK then bring back the residual of $21000 and you are only paying $11000 not the $12000 you'd have paid with the bigger discount.

3. Get more miles on the front end rather than paying excess at the end. They charge you less per mile.

4. Steps 2 and 3 are sorta ridiculous if you wanted to buy the vehicle anyway and are just using the lease as a way to delay financing the whole thing.

5. In the case of "I intend to buy it anyway" then negotiate the lowest retail followed by the shortest term and lowest number of miles. 24 month lease.

6. Once all the terms are negotiated and they calculate a payment then tell them you want to do a single payment lease. That will change the money factor substantially. Kia/Hyundai historically cater to subprime borrowers so their interest rates (money factor) are not always very low. Money factor is simply the interest rate in disguise. But most people think you are only financing the difference between retail and residual. Not true. It also includes interest on the remaining value. This is because the lease company which in this case is just Kia finance is purchasing the whole car. They are charging you also a cost of funds on the residual value. If you pay a lease lump sum up front you are avoiding ALL interest on the retail-residual. You still will pay a little interest however on the residual value of the vehicle however the rate will drop substantially due to the lowered risk of the transaction.

Following step 6, my dealer quoted me a ridiculously low one time lease payment on a PHEV because they calculated residual off the full price (without the govt $4500) then applied the 'lease cash' which is just the govt rebate after the residual. I can't find it right now but it was something like $6000 for a 30 month lease all in. But I just said the heck with it and purchased it.