Kia Niro Forum banner

1 - 17 of 17 Posts

·
Registered
Joined
·
8 Posts
Discussion Starter #1
Hello all,

I am in NY and I am looking to lease the 2020 Kia Niro. I am trying to figure out what a good deal might look like (I am looking at the EX trim), and, importantly, what rebates and credits I can count on.

So, far I found that there is a federal credit of $4543 (Federal Tax Credits for Electric and Plug-in Hybrid Cars) - but if I lease, that goes to the leasing company. However, I am expecting that they would pass most of that credit on to me. Now, right now, there is $5,043 lease cash being offered for Kia Niro PHEV. What I am wondering is whether this very generous amount already implicitly includes the $4543 mentioned above, or if I should ask dealers about this separately.

Second, I found that there is also an $1100 point-of-sale rebate on this vehicle from NY State. Participating dealer list is here: https://www.nyserda.ny.gov/All-Programs/Programs/Drive-Clean-Rebate/How-it-Works/Participating-Dealers

What I am wondering is, has anyone successfully navigated through this and what did you find? Were you able to negotiate your price/lease down based on these rebates/credits? Did you have to ask explicitly for these things or dealers already had it baked into their numbers when you called them? Any other pointers? Any what is a ballpark good lease price I should be shooting for, assuming I am going for a 36mo/10k a year/0 down/taxes and fees rolled into the lease quote?

Thank you!!
 

·
Super Moderator
Joined
·
886 Posts
When I leased mine, I had to make sure the tax credit was correctly applied to reduce the price of the car. I would not trust most dealers to do so without prodding. But it shouldn't be a hard negotiation. I was a couple grand underwater with my trade at the time, plus I leased the EX Premium, so what I ended up with shouldn't be used as a benchmark to reach for. I did have to go back and forth with them a number of times, but they finally met the miles/term and payment I told them I needed, which was a 3 year lease, no more than $1000 cash up front, 15,000 miles a year (after my first year, I now feel I would have been fine with 12,000 a year) and a payment no higher than $500. Again, remember that mine is the EX Premium, and I had to roll the underwater value of my trade into my payments. Considering their original offer was almost $600 per month, I'm comfortable with my $480 monthly payment. That's $260 per month less than I was paying for my Outback (which wasn't a lease), plus my monthly fuel cost going from almost $200 to about $15.
 

·
Super Moderator
Joined
·
886 Posts
I never felt comfortable doing a lease. You got to be a Rocket Scientist to figure it out and understand it :unsure::eek:
I don't disagree. This was the first time I've ever leased, and it was difficult because I really didn't (and still don't) totally understand it all. Will I lease again? I might, simply because EV technology is changing so rapidly I'm not certain I want to lock myself into something for 6+ years. On the other hand, I'm getting really close to retirement, and there's much to be said about making my next car my last for quite some time. But I need to see how this pandemic is going to work out. My daughter was well on her way to moving up into a full time job at a state university, perhaps even a teaching position. COVID-19 has completely shut down all state hiring for the next year, so while her current position is safe she might not be able to move up as quickly as hoped. And I'm not going to sell the house out from under her and leave her without a place to stay.
 

·
Registered
Joined
·
403 Posts
Yes this Covid-19 has messed up a lot of people's plans. We usually go up and down the east coast a few times a year to visit our adult kids and grand kids. That is a big reason for us having a Niro. But not this year. I'm tired of hunkering down but now things are getting worse instead of better so who knows when we can travel with our Niro again....Oh well.
 

·
Registered
Joined
·
8 Posts
Discussion Starter #6
I am not a rocket scientist, but I've been doing leases most of my life, actually, so I am comfortable enough with it I suppose. I guess I just like being in a new car every 3 years :) There are also some great resources online now to help you figure things our (like leasehackr.com, for example).

Dan, when you say you had to work with them to make sure the tax credit is correctly applied to the price, you are talking about the federal credit, correct? What throws me a bit is that, as I understand it, the federal credit goes to the lease financing company, not the dealer. Therefore, I would think in order for that credit to come down to me, I'd need to talk to someone in Kia corporate/finance, right? Did you have to do that? Or did you work everything through your dealer and they dealt with Kia finance?
 

·
Super Moderator
Joined
·
886 Posts
Dan, when you say you had to work with them to make sure the tax credit is correctly applied to the price, you are talking about the federal credit, correct? What throws me a bit is that, as I understand it, the federal credit goes to the lease financing company, not the dealer. Therefore, I would think in order for that credit to come down to me, I'd need to talk to someone in Kia corporate/finance, right? Did you have to do that? Or did you work everything through your dealer and they dealt with Kia finance?
Everything I did was directly with the dealer. Perhaps "work" isn't an accurate word. I simply reminded them that I expected the federal tax credit to be applied towards the list price of the car. Since it was Kia Finance, I expect the dealer finance people are aware of the steps to take to make sure it was there. I didn't spend time negotiating that aspect. It was the overall final numbers that I had to work hard at, along with asking for my keys so I could leave. I think once they truly understood I wasn't signing unless they met my numbers, they finally made it work. But that took over 2 hours... (n)
 

·
Registered
2020 Niro HEV Touring
Joined
·
4 Posts
Agreeing with and adding to the above -- I recently shopped for the PHEV and would have preferred one to the HEV I ended up leasing, but was unable to make it work for our tight budget in the trim we wanted. We were, however, able to get a dealer knock both the federal tax credit and the NY Drive Clean rebate off the cap cost during negotiations on a PHEV LX. As atc98092 said, it should not be a major sticking point. Definitely ask for your $5k off the cap cost in addition to the lease cash offered by Kia.
The main hurdle I encountered (in May, at least), was that inventory was so low on all Niros in the greater NYC area that I didn't have much leverage. But I also decided that waiting another month was too much, so I went to Columbia Kia in CT and they struck me a good deal on an HEV Touring. :)
Good luck! You're gonna love the car.
 

·
Registered
Joined
·
8 Posts
Discussion Starter #10
Thanks Janet! That's really valuable info - I wasn't sure if the $5k off was already baked into the lease cash or not. Sounds like you were able to make the case that it is not.
 

·
Super Moderator
Joined
·
886 Posts
When I leased mine a year ago, I was in the same situation with limited supply. At that time, WA wasn't a zero emission state like CA (which has since changed), so there's wasn't a large local inventory. The first dealer I went to simply said they couldn't come close and said have a nice day. They were pleasant about it, but obviously wasn't going to make any serious deal offers. The dealer I ended up leasing from was obviously willing to at least try.
 

·
Registered
2018 Kia Niro Hybrid EX w/ Premium Package
Joined
·
19 Posts
leasehackr forum was a great source for me to learn about leasing. I was going to lease another PHEV or EV this year but couldn't find a good enough deal and a great deal on a CPO EX Premium showed up and I just went for that instead.
 

·
Registered
Joined
·
8 Posts
Discussion Starter #13
So I am now being told by one of the dealers that I can get the $4543 federal tax rebate even on a lease. Supposedly this is coming back from Kia Finance. Can anyone who leased in 2019 confirm whether they've been able to successfully claim this credit on their federal tax return this year?
 

·
Super Moderator
Joined
·
886 Posts
So I am now being told by one of the dealers that I can get the $4543 federal tax rebate even on a lease. Supposedly this is coming back from Kia Finance. Can anyone who leased in 2019 confirm whether they've been able to successfully claim this credit on their federal tax return this year?
No, you don't claim it on a lease. The leasing company gets the credit, and should give it to you at time of purchase as a price reduction. So yes, you get it, but you get it at time of purchase via a discounted price. Because the leasing company receives the federal tax credit, you can NOT claim it yourself on your tax return. I leased last year, and that's the way it worked for me.
 

·
Registered
Joined
·
8 Posts
Discussion Starter #15
After confirming with accountant, and also with fueleconomy.gov, finally got an answer back from the dealer that yes, in fact, Kia Finance gets the credit. And basically, they are saying is that the special $5,043 lease cash offered on the PHEV model is their way of passing it to the lease customer. That makes some sense, at least (though not precisely the answer I was hoping for!)

Now I have another question :)

When I go to Kia.com and build the exact vehicle I am being offered, it gives me an estimated lease cost of $392/mo. (this is for an EX trim, everything rolled into the lease, 36mo/10k). The dealers I am talking to are offering numbers at least $50-60 higher for the same terms, however. Has anyone had any luck getting kia.com numbers honored at a dealer? If not, how close were you able to get?

Thanks!
 

·
Super Moderator
Joined
·
886 Posts
After confirming with accountant, and also with fueleconomy.gov, finally got an answer back from the dealer that yes, in fact, Kia Finance gets the credit. And basically, they are saying is that the special $5,043 lease cash offered on the PHEV model is their way of passing it to the lease customer. That makes some sense, at least (though not precisely the answer I was hoping for!)
Well, that's $500 more than the actual tax credit ($4543), so they are sweetening the pot slightly. :D
 

·
Registered
Joined
·
403 Posts
After confirming with accountant, and also with fueleconomy.gov, finally got an answer back from the dealer that yes, in fact, Kia Finance gets the credit. And basically, they are saying is that the special $5,043 lease cash offered on the PHEV model is their way of passing it to the lease customer. That makes some sense, at least (though not precisely the answer I was hoping for!)

Now I have another question :)

When I go to Kia.com and build the exact vehicle I am being offered, it gives me an estimated lease cost of $392/mo. (this is for an EX trim, everything rolled into the lease, 36mo/10k). The dealers I am talking to are offering numbers at least $50-60 higher for the same terms, however. Has anyone had any luck getting kia.com numbers honored at a dealer? If not, how close were you able to get?

Thanks!
Just tell the dealer you'll do the deal if they make that the number. Bet they do it. A dealer isn't going to give you their best number unless they're convinced your going to pull the trigger. Wave your check book around while you say it LOL.
 
1 - 17 of 17 Posts
Top