Lease then Buyout - Contract Explanation

[MerlintheMad]

A few questions for those who've gone through the process, as I'll be sending payment soon:

1) Can you send a personal check for the buyout amount? I plan to mail to the overnight address via USPS.
2) Is this the correct odometer statement form that I should mail with the check?
3) Should I go ahead and fax the statement as well on the day the check is due to arrive since so many others have had problems? Or, wait to call customer service to see if they've received it a couple days after?

Iirc, I sent the odometer statement with the personal cheque. I might have even included a pic of the odometer in an email just to make sure they got plenty of (redundant) documentation. I took a pic of the cheque for the buyout; and it's still one of my most looked at, favorite pics.

I don't know how you could go wrong with an official KIA odometer statement. I don't remember what form I used, but that linked one inspires confidence. You can always get on the phone and ask.

I didn't fax anything; used snail mail; was a patient bunny; and was rewarded with my title in under a month.

 

[Swap_File]

Still no title here, but I'm not expecting it until early next week. I did receive a second copy of the notarized forms, this time from a notary in Texas. I got one form for my 2019 Stinger and a second for someone else's 2017 Sorento (!?). The Sorento paperwork has my address on it, but someone else's account number, and a VIN I've never seen before.

I tried warning KMF about their mix up, but they don't seem to know what to do about it...

They really don't inspire confidence.

 

[General Klinger]

Still no title here, but I'm not expecting it until early next week. I did receive a second copy of the notarized forms, this time from a notary in Texas. I got one form for my 2019 Stinger and a second for someone else's 2017 Sorento (!?). The Sorento paperwork has my address on it, but someone else's account number, and a VIN I've never seen before.

I tried warning KMF about their mix up, but they don't seem to know what to do about it...

They really don't inspire confidence.

I'm also waiting for my title. I think I complicated matters when I leased in one state and switched registration to another. Kia hasn't gotten the title yet from the original state (WA) and my DMV (VT) gave me 60 day temp plates. Hopefully it can get resolved.

 

[Swap_File]

I finally got my title from KMF on Saturday and filed the paperwork with the DMV on Monday. The DMV was somewhat confused since Kia sent me multiple notarized release forms from Texas and Georgia, but after some convincing they accepted it and just made a photocopy of everything to file with the title. Currently at 7 weeks since buyout. MN DMV Tax & fees totaled ~$2,7000 (on a ~$41K buyout), bringing my total out of pocket for my 2019 GT2 AWD to ~$43.7k. New title will take 4-6 weeks to arrive.

 

[CVD]

Just curious, did you have anything from KMF stating the buyout amount? The MN DMV turned me away saying they needed that to proceed. I’ve never had them question a stated purchase price. Also, any attempt yet to recoup your lease taxes from the state?

 

[Swap_File]

The key is to tell the DMV you bought out the lease "early with cash". It may help to bring a photocopy of your check.

I'll be asking my tax guy about the lease tax refund once the title is ironed out. The state's website says the following, but lease cancellation is not lease buying out, so I'm not sure if the refund applies.

Within 90 Days or Lemon Law

Sales tax may be refunded if a lease is cancelled within 90 days or the vehicle is returned to the manufacturer under Minnesota’s Lemon Law. The customer may request a refund of the total sales tax paid minus any tax due for the period the vehicle was used.

The lessor must issue the refund if the amount of tax paid up-front is $500 or less. If the tax is more than $500, the customer may request a refund from the department using Form ST11, Sales and Use Tax Refund Request and Multiple Period Amended Return.

https://www.revenue.state.mn.us/sites/default/files/2011-11/st11.pdf

 

[General Klinger]

I finally got my title from KMF on Saturday and filed the paperwork with the DMV on Monday. The DMV was somewhat confused since Kia sent me multiple notarized release forms from Texas and Georgia, but after some convincing they accepted it and just made a photocopy of everything to file with the title. Currently at 7 weeks since buyout. MN DMV Tax & fees totaled ~$2,7000 (on a ~$41K buyout), bringing my total out of pocket for my 2019 GT2 AWD to ~$43.7k. New title will take 4-6 weeks to arrive.

Yeah my current issue is that the dealer delayed sending my title to WA, so it was just sent to Kia early last week. When I called Kia two days ago, they hadn't gotten it yet. I have already bought it out and got a letter today from USAA asking for the title. I reregistered in VT and they only gave me 60 day tags and are also waiting for the title. Hopefully Kia gets it out to me ASAP.

 

[Stinger Enthusiast]

Has anyone tried the lease buyout in TEXAS ? I have heard that we will have to pay the taxes on the whole lease termup front, is lease buyout still a good option if so ?

attached is the offer I have on a GT1, please let me know If the deal is good enough to pull the switch.

 

[Sabs]

Has anyone tried the lease buyout in TEXAS ? I have heard that we will have to pay the taxes on the whole lease termup front, is lease buyout still a good option if so ?

attached is the offer I have on a GT1, please let me know If the deal is good enough to pull the switch.

I’m not in Texas, but I’ve heard the same about taxes there.

Ask the dealer if they can do a balloon loan. That would allow only the full purchase price to be taxed while keeping the lease cash.

Looks like a good price.

 

[Stinger Enthusiast]

Thank you.

Will contact the dealer about the balloon lease tomorrow.

 

[Swap_File]

MN Tax Information: "Thank you for your email. I checked with my contact at Driver and Vehicles Services and he confirmed that the motor vehicle sales would be due on the buyout price. When submitting a refund request, please provide a copy of the lease agreement showing the monthly installments and the sales tax payments made on the installments along with a copy of the document showing the buyout price. Driver and Vehicle Services did confirm that you can submit a refund request directly to them using the attached Claim for Motor Vehicle Refund form.

Or, you may follow the instructions on the motor vehicle industry guide and request a refund directly from the Department of Revenue using the attached ST11 form. To request refund through the ST11 form, you must have a valid MN Tax ID number. If you do not have a valid MN Tax ID number then you may register for a Minnesota Tax ID number using this link: Starting a Business | Minnesota Department of Revenue."

https://dps.mn.gov/divisions/dvs/forms-documents/documents/mv_claimforrefund.pdf

https://www.revenue.state.mn.us/sites/default/files/2011-11/st11.pdf

CVD: Was your tax listed in box 6A or 11? Mine was listed in box 11 since it was rolled in, so I might be out of luck on getting the taxes refund.

 

[namja]

@CVD ^

 

[CVD]

That’s funny, I got that exact email today as well. I won’t get a chance to look at my paperwork until the weekend so I’m not sure which box it’s in. I was planning on contacting the dealership to request a detailed report of the exact taxes and fees they collected.

 

[General Klinger]

Finally got my title about 40 days after paying it off. The state of WA delayed it in sending to Kia so it wasn't their fault.

 

[NIU_Huskies]

So I tried creating an account on Kia Motors finance online but it doesn’t recognize my information.i called their customer service and they had the same problem and said it would take 2-3 weeks before they receive my account information. I did purchase my vehicle on Tuesday, December 24.

Will the buyout information be on the website once I can create an account or will I need to still call Kia finance?

 

[Sabs]

Will the buyout information be on the website once I can create an account or will I need to still call Kia finance?

There is a link on the website to get a buyout quote as soon as you're able to log in.

 

[Keanu]

So I tried creating an account on Kia Motors finance online but it doesn’t recognize my information.i called their customer service and they had the same problem and said it would take 2-3 weeks before they receive my account information. I did purchase my vehicle on Tuesday, December 24.

Will the buyout information be on the website once I can create an account or will I need to still call Kia finance?

Took Kia 2.5 weeks for my account to become active on kmfusa. I tried creating an account every other day until it finally let me in. Yes, once your account is active go to Payments > Get A Buyout Quote.

 

[NIU_Huskies]

There is a link on the website to get a buyout quote as soon as you're able to log in.

Took Kia 2.5 weeks for my account to become active on kmfusa. I tried creating an account every other day until it finally let me in. Yes, once your account is active go to Payments > Get A Buyout Quote.

Thank you both, hopefully it doesn't take mine so long. I'd like to buy it out before I have to make a 2nd payment.

I suppose in the meantime I should get with my credit union and get approved for an auto loan or figure out how I get a check to pay the buyout amount.

 

[Keanu]

Thank you both, hopefully it doesn't take mine so long. I'd like to buy it out before I have to make a 2nd payment.

I suppose in the meantime I should get with my credit union and get approved for an auto loan or figure out how I get a check to pay the buyout amount.

What I did was before I leased the Stinger GT I was pre-approved with my credit agency. We did not put any money down and sold my old car via Carvana, walked out of the dealer only paying the first lease payment. Once the account was active on kmfusa we payed Kia what I would have put down as the down payment and 24 hours that reflected on the lease buyout. I gave USAA my kmfusa account # and the buyout amount and they took care of the rest.

Hope that helps!

 

[Adim_x]

I have likely made a proper mess of my lease buyout.

I have lived in Missouri for 6 months, but just decided to get my new Missouri license yesterday 1/3.
Therefore, when I leased a GT2 in my old state of Indiana on 12/27 during Christmas trip home and they setup all the paperwork for my old Indiana address.
I just got access to my KMF account and updated address/garage to Missouri.
In order to get my lease buyout it says to contact my Indiana dealer, but if I have moved recently, contact local dealer.
Is this something I have to work with dealers on? Or can I work directly with Kia Finance. I should of researched this a bit more, but I got swayed by incentives and the car...

Currently my payment is higher than what I really planned, as I was gonna lease, get all available incentives, then refinance/buy and put 5k down.

Is it a matter of simply going into my local Kia dealer and working through? I really don't want to give them any opportunities to put any additional fees or greasy car dealer transactions on..

Please help advise what I should do.

UPDATE: I called dealer and they said Kia hasn't paid them for car yet, and once that's complete my buyout info should all be online in a few business days, then I should be able to work buyout..