What do you guys think of this lease deal?
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On February 24th I leased the same car from Van Nuys Kia in Los Angeles.
MSRP: $41,375.00
48 mo. 10,000 mi.
$3500 down
$500 trade in for a 2000 Pontiac Montana Minivan
$20 a month for ding and tire wear insurance
Total Monthly payment $393.60
I decided on a lease because in 4 years the all electric choices will be far better, I can now afford to lease (inherited 3 apartment buildings with my 2 brothers when mom died at 99 last year), and at 72 years old with health issues, I don't need to keep a car for over 20 years like I did my last 2 cars.
MSRP: $41,375.00
48 mo. 10,000 mi.
$3500 down
$500 trade in for a 2000 Pontiac Montana Minivan
$20 a month for ding and tire wear insurance
Total Monthly payment $393.60
I decided on a lease because in 4 years the all electric choices will be far better, I can now afford to lease (inherited 3 apartment buildings with my 2 brothers when mom died at 99 last year), and at 72 years old with health issues, I don't need to keep a car for over 20 years like I did my last 2 cars.
I've calculated the overall cost.
I don't usually keep cars for more than 3 years.
With a purchase, the big ticket item is the sales tax, which is based on the entire price of the car.
When you sell the car, the sales tax is not recouped.
With a lease, the sales tax is only based on the value of the car during the lease, in this case 3 years.
After 3 years of driving the car, the total out of pocket cost is either very close, or in favor of the lease. After 36 payments, the money that I'll have paid is more on the finance than on the lease. I made this calculation with the same amount of down payment, $2000.
For me, the benefit is I'll just return the vehicle and get a another one, hassle free. A typical purchase is 5 years, so there'd be 2 more years to go. I fully understand that you do build equity as you make your loan payments and if you keep the cars for a long time, that is the better way to go.
Yeah, I had to pay $3,316 in sales tax on our 2018 Kia PHEV EX but I was able to lower the total cost with the federal tax credit to $31,000. My 240 month (20 years) "lease" will cost me $129/mo. With only 12,500 miles to date and almost four years in, I should easily make the 20 years. Our 1999 Hyundai Elantra will be 23 years old in August so I know it's possible. I'm anticipating at some point after 10 years I'll need to replace the traction battery. Hopefully by then the battery cost will be much cheaper, but lately I've lost faith in economic truisms.
I looked in to leasing my EV, but when they gave me the terms they wanted me to pay 70% of the value of the car after 3 years. I just didn't see 70% depreciation on the car after that short of a time frame. So I put a big down payment on the car and financed the rest at .9% for 60 months.
I figure EV's are just going to get more popular and will hold its value much better than EV's of the past. If I want out in 3-5 years I'm pretty sure I won't be selling for 70% off the new pricing.
I figure EV's are just going to get more popular and will hold its value much better than EV's of the past. If I want out in 3-5 years I'm pretty sure I won't be selling for 70% off the new pricing.
I leased a 2014 Forte and said never again. I didn't like worrying about the mileage on every trip. And More importantly worrying that if my kid scrapes a wheel on a curb they can and will charge me for 4 new ones. When I went to turn it in they had me do a pre turn in inspection. There was a small dent in the drivers side door. Told me to go to their body shop for an estimate. $1500! I had it done elsewhere for $400. If I were keeping it I wouldn't have done it at all.
On turn in I offered to buy it at the going price for like Fortes. Kia NA said no. The residual was12k but there were plenty @ 8-9k.
No leasing for me.
On turn in I offered to buy it at the going price for like Fortes. Kia NA said no. The residual was12k but there were plenty @ 8-9k.
No leasing for me.
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My mother-in-law leased a VW a couple of years ago. She is deathly afraid to drive it for fear of getting a door ding, dent, or cracked windshield. She too is also afraid of going way over on the miles allowed in the lease even though she is several thousand miles below what is allowed. No thanks.
Not sure if the OP penciled in the tax credits/incentives/rebates offered for EVs. The Niro EV is eligible for a $7500 Federaltax credit--if one is unfortunate enough to have to pay more than $7500 in TY 2022, then purchasing a new Niro EV would knock $7500 off of your tax obligation. States and local utilities may have other rebates/incentives as well.
The leasing company has no obligation to pass the Federal tax credit to the lessee. States and local utilities have varying rules regarding leased vehicles.
The leasing company has no obligation to pass the Federal tax credit to the lessee. States and local utilities have varying rules regarding leased vehicles.
The dealer did include the $7500 incentive in that deal.
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