Lease then Buyout - Contract Explanation

[MerlintheMad]

I called KMF yesterday and asked about the lease buyout process. I was told I would have to just pay the buyout amount (sent to HCA Exchange) listed online and also include the odometer reading. I was told that the dealer was no longer involved in this process and there were no additional fees, taxes, etc...

Does this sound right?

Question - I was reading the lease details on the Kia site and it talks about a termination fee. How does this factor in to the early buy out (if at all)? Thanks

There is the $300 fee for buying out the lease early. That's it. I sent my cheque to HCA Exchange, Inc. All taxes were included in the buyout amount listed on my Kia Customer webpage.

A buyout is not a "termination" (default) of the lease. Those can be very expensive.

 

[Cbr09123]

There is the $300 fee for buying out the lease early. That's it. I sent my cheque to HCA Exchange, Inc. All taxes were included in the buyout amount listed on my Kia Customer webpage.

A buyout is not a "termination" (default) of the lease. Those can be very expensive.

Thanks for the info. Yes, I had a $300 fee written in my contract. I assume that fee is part of my buyout amount.

 

[MerlintheMad]

Thanks for the info. Yes, I had a $300 fee written in my contract. I assume that fee is part of my buyout amount.

You assume correctly.

 

[Stinger Girl]

There is the $300 fee for buying out the lease early. That's it. I sent my cheque to HCA Exchange, Inc. All taxes were included in the buyout amount listed on my Kia Customer webpage.

A buyout is not a "termination" (default) of the lease. Those can be very expensive.

Ok I see. Not familiar with leasing so not familiar with the terminology. $300 is doable considering the amount of money saved over all.

 

[Waynerm002]

That gets paid during the buyout. If you mean the early termination fee, you aren't terminating the lease early, you are just purchasing the car so that disposition fee ($300, if I remember correctly) is paid by the buyer.

 

[mulepic]

I did the lease buy-out routine here in AZ on a GT2. The problem I had was the dealer messing up the paper work and having to resign then they waited a month to send the paper work in. It cost me an extra month of lease payment. The KMF side of things went smoothly. My question, do people do this w/ other brands of cars? Or is this a flaw in the Kia lease contract?

 

[Mach_Tuck]

That gets paid during the buyout. If you mean the early termination fee, you aren't terminating the lease early, you are just purchasing the car so that disposition fee ($300, if I remember correctly) is paid by the buyer.

Correct. This is all stated on the lease agreement. For me, i got them to remove the "disposition fee" and ended up buying the lease out. Typically a dealer will waive this fee if you lease another vehicle from them.

I did the lease buy-out routine here in AZ on a GT2. The problem I had was the dealer messing up the paper work and having to resign then they waited a month to send the paper work in. It cost me an extra month of lease payment. The KMF side of things went smoothly. My question, do people do this w/ other brands of cars? Or is this a flaw in the Kia lease contract?

Really depends on the contract. I have seen some that include rent with an early buy, others, same as this. I have seen some that allow multiple security deposits (fully refundable) at lease end so it all depends on how the contract is written. I asked for a copy of the lease contract and took it home to review for a few days before i was happy with all its terms and was confident this was a viable alternative. IF you have to pay out the RENT then it doesnt really make sense given the insanely high MF kia uses.

 

[Doel]

I did the lease buy-out routine here in AZ on a GT2. The problem I had was the dealer messing up the paper work and having to resign then they waited a month to send the paper work in. It cost me an extra month of lease payment. The KMF side of things went smoothly. My question, do people do this w/ other brands of cars? Or is this a flaw in the Kia lease contract?

I don't think it's a "flaw" it's just the fact Kia is offering a very large lease rebate, I haven't seen other manufacturers do that so there usually isn't any reason to do a lease buyout on other brands.

With the current rebates (conquest, finance, etc.) doing the lease buyout isn't going to be cheaper for most people anymore unless you don't qualify for those other rebates.

 

[sergey]

looking to lease to buy out after first payment in California. Is anyone has the copy of "good" lease contract to verify that I'm getting the same deal? How taxes in California are calculated?

 

[Cole D. Cocker]

I recently joined the forum and just wanted to say thanks to everyone for all the great info. I was at a dealership over the weekend and of course they didn't mention any of this info, lol. I currently drive a Jaguar XJL (which I first leased and then purchased) and have been debating between a Genesis G80 and a Stinger GT2 as a replacement. If I go with the Stinger, I'll definitely do a lease and then a buyout thanks to the info I've learned on this forum.

 

[Mach_Tuck]

I recently joined the forum and just wanted to say thanks to everyone for all the great info. I was at a dealership over the weekend and of course they didn't mention any of this info, lol. I currently drive a Jaguar XJL (which I first leased and then purchased) and have been debating between a Genesis G80 and a Stinger GT2 as a replacement. If I go with the Stinger, I'll definitely do a lease and then a buyout thanks to the info I've learned on this forum.

Make sure to understand the lease incentive for whatever year and trim you are looking at. IF the lease cash is reduced, the savings may not be there. Best of luck

 

[sergey]

Could you please post the exact wording of the "good" contract to look for? Are there variations in any contracts in US, besides the cash incentive amount (that this amount listed on kia website, right, say currently GT2 AWD 36 months - $7700)?

 

[kzeina21]

Anyone else having the worst time trying to get the correct documents from KMF? My credit union needs standard documents (buyout letter, bill of sale, odometer reading, etc.) and KMF has not mailed or faxed the documents that they promised. By the time I get the documents, the documents are no longer good and I try again the next month. This has gone on for over two months and is beyond frustrating. I've called KMF 20+ times and am not getting anywhere. They say they'll fax something in 2-3 days and mail in 7-10 days. They have not provided these documents which should be very easy to provide. I'm getting messed with and seeing what others have done to combat this issue.

 

[Bugout]

Anyone else having the worst time trying to get the correct documents from KMF?

This doesn't look promising. I'm still waiting for them to activate my account. It'll be 4 weeks since I took delivery on Friday.

 

[Mach_Tuck]

Anyone else having the worst time trying to get the correct documents from KMF? My credit union needs standard documents (buyout letter, bill of sale, odometer reading, etc.) and KMF has not mailed or faxed the documents that they promised. By the time I get the documents, the documents are no longer good and I try again the next month. This has gone on for over two months and is beyond frustrating. I've called KMF 20+ times and am not getting anywhere. They say they'll fax something in 2-3 days and mail in 7-10 days. They have not provided these documents which should be very easy to provide. I'm getting messed with and seeing what others have done to combat this issue.

Should be able to get all of that online under the payments section. Odometer disclosure you can get from the "end of lease" section. Sorry, dont remember the exact the title of the tab. Check all around on your KMF site where it deals with payments and lease end docs or packages. CU shouldnt need a bill of sale id think...just the payoff amount.

 

[kzeina21]

Should be able to get all of that online under the payments section. Odometer disclosure you can get from the "end of lease" section. Sorry, dont remember the exact the title of the tab. Check all around on your KMF site where it deals with payments and lease end docs or packages. CU shouldnt need a bill of sale id think...just the payoff amount.

Yeah I saw all of that, but the CU said they need an actual bill of sale. That's been the biggest pain in the butt. Has anyone been able to have their CU not get an actual bill of sale?

 

[Waynerm002]

Did you lease the car already? If so and you are buying out the lease, all they need is the payoff amount, they write a check to KIA and then you have to deal with KIA for the title.

 

[kzeina21]

Did you lease the car already? If so and you are buying out the lease, all they need is the payoff amount, they write a check to KIA and then you have to deal with KIA for the title.

Yes I leased it and trying to buy it out. The credit union wants a bill of sale and Kia is not responding to the requests...

 

[rippingpants]

Yes I leased it and trying to buy it out. The credit union wants a bill of sale and Kia is not responding to the requests...

Create your profile @ kmfusa dot com, then you can request a buyout quote and send that to your credit union. I did it this way.

 

[Bugout]

Create your profile @ kmfusa dot com, then you can request a buyout quote and send that to your credit union. I did it this way.

I try every day. It says invalid VIN..