Kia Telluride with $5K mark-up: Lease or buy?

[AlexFL]

Originally Posted by JP10

Appreciate all of the comments. I'm looking at one at MSRP in PA. If I can find one near by I'd pay an extra $1000-$1500 over MSRP for convenience (I'll have near that cost in getting the car in PA). Still more interested in buying then leasing. Worst case it does depreciate a solid bit, but at the end of the day IMO it is one of the better bang for your buck brand new 3-row SUVs out there. And again mileage is something to consider. If i were to do a 3yr 15000miles/yr lease the price would be almost comparable to the finance cost at 1.9& APR.

Also, if we were to lease that means after 3yrs my fiance would need a new car. I'd have a better chance of hell freezing over then her downgrading from there. Hence after 3yrs I would be looking at a larger car payment if leased, where as buying I could fend her off for a little while lol!

Another update, a different dealer in charleston just restocked 10 of them today. Already 3 sold. Two available in the spec we want, and they are marking them up $5k just like the other dealer in this area. Not even entertaining that.

If you are willing to come to FL, you can get here a Telluride SX for 1k below MSRP.

For example, check this dealership:
https://www.gettelkiaofbradenton.com...odel=Telluride

[heavyD^2]

I will never understand why Americans pay admin fees. Such a strange phenomenon.

[BzsBimmer]

Originally Posted by heavyD^2

I will never understand why Americans pay admin fees. Such a strange phenomenon.

Cause, ‘Murica

I agree with the other poster on page 1. Two different discussions. Lease vs buy and how much.

Try emailing other dealers across the US. All vehicles are 50 State smog and registration/taxes on sale is based on zip and not purchase location.

Typically can get better deals working with the fleet manager/online sales and all paperwork can be done without leaving your home/PJ’s. Vehicle can be shipped to you which won’t add additional miles and will probably be cheaper than two rt tickets, hotel, gas, Covid exposure etc.

[JP10]

Originally Posted by AlexFL

If you are willing to come to FL, you can get here a Telluride SX for 1k below MSRP.

For example, check this dealership:
https://www.gettelkiaofbradenton.com...odel=Telluride

Damn that dealer does have good prices. I would buy that SX now if it had gray interior (she won't budge here, needs to be gray or tan, black or brown won't suffice - Yes, i've already argued about the cleanliness factor). I'll browse FL a little more to see what I can find. Much appreciated!!

[zx10guy]

FYI. I was looking to buy a new Suzuki Burgman 650 Executive from a dealership in PA. The price was good as they were willing to negotiate. Here's the catch. I had to be responsible for securing temp tags and paying for my state's taxes and registration/tags. The temp tags are done by some company that is near the dealership and the cost I was told was around $100.

I don't know if this also applies to cars, but I don't see why it wouldn't. So make sure you understand fully what buying from the dealer in PA entails. I was glad I asked these specific questions before making the drive up there.

And for the record, I also wouldn't pay over MSRP for anything. If you can't find the car at MSRP or below, I would seriously look into buying a different car.

[nick3753]

Wait, I thought she wanted something "relatively sporty" and her last "fun" vehicle before kids? The last thing I think about with the Telluride is fun. And unless you're having triplets, I don't see the use of such a large SUV in your near future (especially if you lease it).

[Vivek.]

Originally Posted by JP10

Damn that dealer does have good prices. I would buy that SX now if it had gray interior (she won't budge here, needs to be gray or tan, black or brown won't suffice - Yes, i've already argued about the cleanliness factor). I'll browse FL a little more to see what I can find. Much appreciated!!

Damn she exclusively wants the uglier colors? Unfortunate...


I feel for your position since it's clear you guys need the car now. You're over mileage on your current lease and traveling to get a better deal has a significant cost associated.

Is there a specific reason that you NEED to buy one brand new? Seemingly on every single car you've bought you made the decision that buying used made more sense.

Searching 'telluride' on my local craigslist brings up 21 results, 20 of which are on Carvana which I'm pretty sure offers shipping all over the country for either a small flat rate (~$500) or for free. Best deal I found was $36k for one with 5000 miles. That's 10 grand less than what you were originally quoted from the dealer, at LEAST $5k of which would be pissed away the second you drove it off the lot.

This makes me a bit concerned about your projected resale value, since 2020 models are already in the mid $30's at low mileage. I think that this new purchase will depreciate the amount you're projecting in ~12 months rather than 36.

[JP10]

Originally Posted by nick3753

Wait, I thought she wanted something "relatively sporty" and her last "fun" vehicle before kids? The last thing I think about with the Telluride is fun. And unless you're having triplets, I don't see the use of such a large SUV in your near future (especially if you lease it).

You are not incorrect, that is what she said. Upon realizing our current vehicle does not have the space we would like, we decided larger would be for the best. Correct, not the most fun car, but comfortable and more plush then her current. I honestly would not trust her with an overly fun car lol!

And believe me with our large dogs, and over packing habits, we will be able to fill that car up. And again buying for the future to an extent, kids are in the plans moving forward.

[JP10]

Originally Posted by zx10guy

FYI. I was looking to buy a new Suzuki Burgman 650 Executive from a dealership in PA. The price was good as they were willing to negotiate. Here's the catch. I had to be responsible for securing temp tags and paying for my state's taxes and registration/tags. The temp tags are done by some company that is near the dealership and the cost I was told was around $100.

I don't know if this also applies to cars, but I don't see why it wouldn't. So make sure you understand fully what buying from the dealer in PA entails. I was glad I asked these specific questions before making the drive up there.

And for the record, I also wouldn't pay over MSRP for anything. If you can't find the car at MSRP or below, I would seriously look into buying a different car.

Right, made sure to square that away when I talked with him. Trying to find one under MSRP, just a struggle haha.

Originally Posted by Vivek.

Damn she exclusively wants the uglier colors? Unfortunate...


I feel for your position since it's clear you guys need the car now. You're over mileage on your current lease and traveling to get a better deal has a significant cost associated.

Is there a specific reason that you NEED to buy one brand new? Seemingly on every single car you've bought you made the decision that buying used made more sense.

Searching 'telluride' on my local craigslist brings up 21 results, 20 of which are on Carvana which I'm pretty sure offers shipping all over the country for either a small flat rate (~$500) or for free. Best deal I found was $36k for one with 5000 miles. That's 10 grand less than what you were originally quoted from the dealer, at LEAST $5k of which would be pissed away the second you drove it off the lot.

This makes me a bit concerned about your projected resale value, since 2020 models are already in the mid $30's at low mileage. I think that this new purchase will depreciate the amount you're projecting in ~12 months rather than 36.

Haha, yes she is difficult with her colors.

I've been keeping my eye on Carvana as well. Keep in mind the trim levels when looking there. Click the vehicle, go to window sticker and compare MSRP. The LX on carvana are sitting at $35k with an MSRP of $33k.... With 15k miles.... so they appreciated... It is absurd lol. I don't think I've specified the trim we are looking for, but it is the EX with the premium package. Avg MSRP of that vehicle in FWD is $41,xxx, AWD is around $43,xxx.

[Vivek.]

Originally Posted by JP10

Haha, yes she is difficult with her colors.

I've been keeping my eye on Carvana as well. Keep in mind the trim levels when looking there. Click the vehicle, go to window sticker and compare MSRP. The LX on carvana are sitting at $35k with an MSRP of $33k.... With 15k miles.... so they appreciated... It is absurd lol. I don't think I've specified the trim we are looking for, but it is the EX with the premium package. Avg MSRP of that vehicle in FWD is $41,xxx, AWD is around $43,xxx.

Okay got it. Yeah for the EX there's a fairly low depreciation I'm seeing close to or above 40k for a used one at which point you may as well just buy it brand new. There's one in the spec you want new 2021 (claims 20 miles on it)...listed at 60.8k

I still think they'll be in the mid 30's by the end of 2021 once supply meets the demand (it's a Kia after all, basically a consumable commodity) but that's a moot point really.

[hova00]

Buying a Kia over msrp or having good resale is not going to happen. I've heard people refer to Kia's as throw away cars because resale is so bad.

[Drop the hammer]

We bought a Palisade AWD about 8 months ago, fully loaded for just under msrp. Having extensively test drove pretty much everything in this class of vehicle the Hyundai has really stepped up their game and blew away the grande Cherokee and the new explorer. However, there will be massive depreciation on this SUV to the tune of 700.00/month if you are putting miles on (like 15k/yr). There are people asking high prices at 5-15k miles but they are either in a bubble market or are asking out to lunch prices hoping some sucker will bite. These things were not being produced for awhile with covid, but are now back in full gear. So if there is high demand, Hyundai is all over this and will pump them out until everyone gets one.
They are all just cars, they all depreciate if driven. More so with kids and dogs in them. Even worse with the tan interiors, brutal for resale value. I would think at 3 years old and 40,000 miles it would be worth half of new msrp (all taxes and fee’s also lost).
That being said I really enjoy the palisade and I recommend it to everyone. And I’m a hardcore bmw fan. However paying over msrp is nuts. And expecting zero loss in a year is equally nuts. In 2 years from now the dealer lots will be full of new old stock and Hyundai will have incentives to move them off the lots. Then see resale prices take a massive hit. My 2 cents.

[psuibmw]

Never pay a markup for a Kia! At the end of the day, it's still a Kia ... A quick search on cars.com identified few vehicles with low miles in the $30k range even before negotiation. Your marked up Kia will worth $18k in 3 years ... believe me it's the reality

Also, if you're not married yet and no kids, why do you need a 3-rows suv especially you said you may replace it in 3 years.

If you insist on 3-rows, get the new MDX at sticker when it arrive in Feb, or get the previous model for extreme saving. No 3-rows, then the RDX is an excellent choice ... this is just my honest opinion

Good luck

[thestimp]

I just bought a 21 SORENTO SX PRESTIGE for 2k under MSRP. Was about 42K. Call around, the mark up dealers are just trying to swindle 10%.

[exE36M3]

So old man thoughts... paying over MSRP for a car is not a good habit to get into... even if you LOVE the car.

Why? Depreciation for one.
As much as you love the car, it's resale value drops by as much as 20% as soon as you take the wheel. It *might* be in demand, but no one is going to pay you what you paid.

People overpay for houses because they know that over time, the value of the home increases, so they are willing to pay retail or more with the idea that their investment will appreciate.

Secondly, if you get used to paying retail or over, it may start a cycle of I have to have it now, no matter the cost. And that can be pretty dangerous for a couple thinking about a family. Debt is a stupidly brutal monster.

It's great KIA is making such nice cars, but here's one last thing to consider... we are within 5-10 years of gas cars turning into electrics. Yes, some states will move faster than others, but here's the thing, do you want to be holding a loan or just finishing paying off your car when everyone is buying electric? Because at that point, you won't even be able to give away your gas car. (Extreme thought I know but it's coming).

Personally, my wife and I are waiting for the next gen of Rivians, Mustangs, etc. to hit the roads in the next year or two and then trading in our Mazda CX-9 or BMW 435i.

[AlexFL]

Originally Posted by thestimp

I just bought a 21 SORENTO SX PRESTIGE for 2k under MSRP. Was about 42K. Call around, the mark up dealers are just trying to swindle 10%.

First impressions?

[Zomboss]

It sounds like your mind is made up on the Telluride, but do you absolutely have to have it right now? I knew I wanted the F80 when it first came out in 2014, but no way I was going to pay markup when demand was high. So I waited two years later to order one when I was able to get a good deal well below MSRP. During that time, I picked up a used Acura TSX that already took a good hit on depreciation as a temporary car until I got my F80.

[RM7]

Isn't supply still pretty bad overall?

[RMachuca3d]

One more negative aspect of being ok paying for markup, it emboldens dealers to keep pulling this shit. If people just stopped paying for the "market adjustment" or whatever BS term they come up with to pad their profits, they wouldnt be pulling this stuff to begin with.

[JP10]

Appreciate all of the comments. To answer most of them, goal is not to pay over MSRP. I am pretty much sticking to my guns on this one. Waiting to hear back from the dealer in PA, that vehicle was at MSRP. Reached out to a bunch in FL, bunch of false advertising, websites show the dealers price then you call and they are all marking them up. Best deal in FL I saw was a $3k mark-up, worst was $10k.

To answer the question if we need it now, technically no. Current lease doesn't expire until April. With that said we are now paying $0.25/mile. Although this doesn't drastically concern me. Reason being is her current car payment is only $250/mo. At 1000 miles/mo the cost of overage is $250. So regardless if I get the telluride now or not I'll end up with a payment near or above $500/mo. Talked it over with the fiance, we are tired of making calls. At this point a lot of dealers know what we want, if they find it they can call me.

I'll keep updating as we receive more information, appreciate the help guys.

[Skoidat69]

I dunno if it will work for you but try is this.. When my wife wanted a CPO MB R350 and the local dealership was about $4k over what I could get one in ATL for.. I showed him the price difference and my booked (but not paid for ticket from STL to ATL).. I got $3750 off the car..

[DieselDiner]

Found this dealer on cargurus, they're in Brunswick, which isn't too far from you: https://www.cargurus.com/Cars/m-Mike...y-Kia-sp275709

Most of their Tellurides are at least MSRP or below, might be worth a try.