I recently leased a 2024 GTL. I know it’s hard for car companies to predict the residual value at lease signing, especially with how the US EV market keeps changing.
I’m curious if any early EV6 leases had residual values that were way off. Has anyone had Kia Finance offer them a lower buyout at the end of their lease? I’ve heard that some companies are willing to make a lower offer, rather than getting a car back that might lose them thousands. Anyone have experience with this?
Most of the time, finance companies stick to the residual value for lease buyouts and don’t go lower. They’re mainly there to help sell new cars, not to keep customers in their leased cars.
They handle tons of leases every year, and the process is pretty automated. If they started making special offers on individual cars, it would complicate things for them. And even though they don’t like losing money on leases, it’s not a huge deal for them. The finance company is there to help the car manufacturer sell cars, so any loss on a lease is offset by profit on the sale overall.
That said, things might change when it’s time to turn in the car. Sometimes, if the dealer is able to resell it locally, you might get a lower buyout option after the car has been returned, but not directly through the finance company.
@jeff
I’m a bit confused on where the difference between the residual and used car prices goes. For example, I’m leasing a 2024 Wind with a $41k residual, but I see 2-year-old EV6 Wind models listed for around $30k in my area (Maryland). Does Kia just eat the $10k difference?
@izael
Good question! I’m also curious. I’m leasing a 2024 GTL AWD, 10k miles/year, 24 months, and my residual is $33,350. Wondering why your Wind has a higher residual than my GTL.
Randy said:
@izael
Good question! I’m also curious. I’m leasing a 2024 GTL AWD, 10k miles/year, 24 months, and my residual is $33,350. Wondering why your Wind has a higher residual than my GTL.
Mine’s a 2-year lease—maybe yours is 3?
@izael
Nope, mine’s 24 months too. When did your lease start?
Randy said:
@izael
Nope, mine’s 24 months too. When did your lease start?
Oh, missed that! Mine started in May 2024.
Randy said:
@izael
Nope, mine’s 24 months too. When did your lease start?
Oh, missed that! Mine started in May 2024.
Mine started in September. Maybe they recalculated residuals during that time. My residual seems more in line with the used 2022 Wind prices you’re seeing.
@izael
That’s likely the minimum loss. If it goes to the dealer and they can sell it, they get a cut of that $30k sale. If it goes to auction, the loss could be higher.
Losses on EV leases are part of why we see news like Ford losing $132,000 on every EV sold earlier this year.
@izael
Based on deals I’ve seen, the residuals seem to be in the mid-50% range. For an $80k new car, $41k might actually be the capitalized cost, not the residual.
@jeff
I get your point and mostly agree, but I’ve seen posts on EV forums where people got buyout offers below the residual, though not specifically for the EV6. EV residuals can be unpredictable, unlike gas cars, so there’s less reason for them to stick with high residuals and eat a $10k difference. That’s rare with gas cars.
I feel like the EV lease buybacks will be a bit unpredictable over the next few years. I was just wondering if anyone here has turned in an EV6 lease yet and what numbers they were offered.
@Peggy
That’s why I said ‘for the most part.’ During COVID, BMW made below-residual buyout offers on some models, mainly because of production issues and shortages, not losses.
Manufacturers have been through situations like this before. After 2008, when gas prices spiked, big trucks and SUVs dropped in value overnight, and manufacturers took major losses on lease returns. They’re used to these cycles.
Sure, Kia might lose $10k on an EV6 lease return, but they’re only selling about 20,000 EV6s in the U.S. this year, compared to around 3 million cars globally. Half of those are leased, so if each has a $10k loss, that’s around $100 million, which could be offset by stronger-than-expected returns on models like the Telluride. For a huge company, $100 million isn’t a major hit.
Long-term, I do think used EV values will keep dropping, and it’s possible that a 3-year-old EV with a $60k MSRP and 36k miles could be worth less than $20k. Automakers might eventually adjust lease buyouts, but I wouldn’t count on it.
@jeff
Nissan cut my buyout by about $5k back in 2016 on a LEAF. Quite a few people reported the same thing on forums around that time.
Good question—I’ve been wondering about this too. With some of the lease deals out there, I’m curious if these high residual values will hold up when these 2-year leases end.
It’s hard to say, but if there’s a big supply of high-residual EVs returning, they could end up competing with new models.
@Michael
We’ll see. If the federal tax credit ends, that could make new EVs less appealing, which could boost used prices. But without that, I don’t think many leases will be bought out at the end.
I’d love to see someone’s total cost if they leased and then bought out their EV6. Personally, I plan to keep my car for the life of the warranty, so leasing doesn’t make sense to me unless it’s like leasing a 2024 for two years, turning it in, and then buying a different 2-year-old EV6. Ideally with a good lease and no upfront payment. Seems like the best way, even if it takes more effort.