Lease then Buyout - Contract Explanation

[jd284]

I like to have them as a deterrent. Not sure how well they would actually hold up lol.Nothing about the alarm. I see the red light blinking in my GT1 so I assume it has it. I would be very surprised if it is even an option to not have it

 

[gbears]

I did it!

As discussed in previous pages, the Lease Buyout in IL is not as good as other states but according to my math will save me almost 5K as opposed to financing. Which for me, was enough to pull the trigger on the GT2. Glad to be part of this forum permanently. Thank you all for your help in figuring this out.

 

[gbears]

Kia Finance already has my lease and the buyout looks correct. Do I need to call first or do I just send my big check to that address?

 

[jd284]

Kia Finance already has my lease and the buyout looks correct. Do I need to call first or do I just send my big check to that address?

Congrats! There is a buyout packet that you need to get from KMF or dealer that is part of the process. Waiting on mine now

 

[gbears]

Congrats! There is a buyout packet that you need to get from KMF or dealer that is part of the process. Waiting on mine now

Thanks man, I'll call tomorrow

 

[gbears]

Congrats! There is a buyout packet that you need to get from KMF or dealer that is part of the process. Waiting on mine now

hey @jd284,

I talked to KMF today and they said all I need to do is send the money and when the account is paid off, then send in the odometer statement so they can send the title. They sent me a odometer statement over email that I just need to e-sign when ready. The buyout packet may be as simple as the attached (Lease End Packet). Following all the steps on the website, this pdf came up for download. Hope this helps you. Could also be different per state.

 

[jd284]

hey @jd284,

I talked to KMF today and they said all I need to do is send the money and when the account is paid off, then send in the odometer statement so they can send the title. They sent me a odometer statement over email that I just need to e-sign when ready. The buyout packet may be as simple as the attached (Lease End Packet). Following all the steps on the website, this pdf came up for download. Hope this helps you. Could also be different per state.

thanks man, I just found out today as well. They basically sent me the Odometer form. My bank will not let me do a down payment, they will only finance the buyout amount. So I may end up paying down via KMF portal first which is risky. There is also the issue with dmvs being closed to deal with

 

[alexg123123]

Trying to get a favorable lease agreement from various dealers but they have been stubborn in helping me, lots of hard to read documents.

This is a lease offer for a GT1 in ceramic silver, can anyone help me determine if this is a good deal following through with an immediate buyout?

Thanks!

 

[2Slo4u]

Trying to get a favorable lease agreement from various dealers but they have been stubborn in helping me, lots of hard to read documents.

This is a lease offer for a GT1 in ceramic silver, can anyone help me determine if this is a good deal following through with an immediate buyout?

Thanks!

Do you have paperwork that shows what the Adjusted Cap Cost is? If you’re doing the lease buyout, that is the amount you’ll be purchasing the car for

 

[alexg123123]

I don't but I can get it, I also noticed that my lessor is 'hyundai lease titling trust' instead of KMF, would that affect my buyout option?

 

[MontanaStinger]

I don't but I can get it, I also noticed that my lessor is 'hyundai lease titling trust' instead of KMF, would that affect my buyout option?

I believe all of them have "Hyundai Lease Titling Trust" as the lessor. It's just the parent company. The sample leases in this thread all show Hyundai Lease Titling Trust on the document at some point, while all still contain the "Purchase Option Before Maturity" clause under Section 23 - Purchase Options and Vehicle Return.

 

[Windy]

I'm running into an issue with my buyout. I've provided my credit union with the buyout quote and odometer disclosure as well, but my credit union is giving me a hard time and saying that they don't want to send a check until they can confirm they will be the lien holder. Is there a document I'm missing for them to provide their information to ensure they are?

 

[MontanaStinger]

I'm running into an issue with my buyout. I've provided my credit union with the buyout quote and odometer disclosure as well, but my credit union is giving me a hard time and saying that they don't want to send a check until they can confirm they will be the lien holder. Is there a document I'm missing for them to provide their information to ensure they are?

I imagine it gets treated like a refinance of an auto loan, where the prior lien holder relinquishes it upon payment. I'm not sure how your CU could demand to be named the lien holder before the first lien holder could be paid off.

 

[Irregularburger]

CA taxes lease incentives. It's like you hit the jack pot of $12,120 and the state wants its share. I bet you've been enjoying your car already but if you want to do some mental gymnastics, here is how it breaks down

Taxed Incentives Total=Effective Incentives + Tax

It's not that you pay out of pocket for the money you receive ($12,120), it's deducting tax from that cash. Think about those restaurants which offer flat prices, e.g. $5 for a burger including taxes. Assuming 8.75% tax rate, the burger is actually $4.5977 pre-tax, the restaurant pays $4.5977*8.75%=0.4023 on tax, NOT $5*8.75% which is $0.4375

So let's take a look on your contract again,
$925.9/8.75%=10851.71 which is exactly (1) in A, Capitalized Cost Reduction

You may wonder, these two doesn't add up to $12,120 tho.
The reason the dealer does this is it tries to minimize tax being paid. In other words, the dealer tried to put all those fees and first month payment out of the $12,120 and $600 cash you paid. In other words $12,120 is treated as cash, but some of them are taxable incentives used for cost reduction, rest are used straight up as cash to cover those fees and first month payment. So the effective taxable incentive amount turns out to be $10851.71.

Hey guys, I posted its own thread for this, but was thinking this might be the better place to ask for help:

I'm extremely close to leasing now and was about to sign all the paperwork today when the final Adj Cap Cost seemed a little off to me. I was wondering if those with experience can take a look at these numbers for me and tell me if everything adds up.

To keep it short, I've gotten a 2019 GT2 RWD reduced from ~$52k MSRP to $47k flat through a dealer discount. There is a lease incentive here in CA for 24 months of $12,120.

This brings my total down to $34,880 before fees. An amazing price. From reading through the threads I have read that the vast majority of taxes and fees are around $1.5k. Maybe $2k tops. So I was expecting a Net Cap Cost of ~$36,300.

The total Adj Cap Cost on the paperwork is $37,153.29. Bringing me up almost $2,300.
The numbers seem correct on DMV fees, Doc fees, acquisition, etc. I think the number increasing me so much is "Tax on Cap Cost Reduction." A value of $925.90.

However I haven't really seen this value very often in all of your lease breakdowns. I'm pretty sure we are responsible for this, or is it different in every state? I know in CA we aren't double taxed here, is there anyone with some insight on this? Btw keeping it simple with this one, I'm doing no trade-ins and no money down. They're only asking me to pay $600 for my first payment.

 

[David789]

Decided to lease a 2020 GT1 RWD for 36 months in order to get the maximum customer cash back. In addition to other discounts I wound up with a pretty good price. Now KFM website shows me a buyout price. Do I need to get something from the dealership to purchase the car or just go to my bank and get prequalified? Is there a penalty to buy it out now after only making 1 lease payment? If I have to go back to the dealer or are they going to negotiate with me on the price or is this fixed?

 

[2Slo4u]

Decided to lease a 2020 GT1 RWD for 36 months in order to get the maximum customer cash back. In addition to other discounts I wound up with a pretty good price. Now KFM website shows me a buyout price. Do I need to get something from the dealership to purchase the car or just go to my bank and get prequalified? Is there a penalty to buy it out now after only making 1 lease payment? If I have to go back to the dealer or are they going to negotiate with me on the price or is this fixed?

Call Kfm and have them email you the buyout package. Take that to the bank and they will take it from there. If you live in a state where you have to do it thru a dealership, Kmf will let you know. Florida seems to make you do that.

 

[Thomas Cerra]

Do you have paperwork that shows what the Adjusted Cap Cost is? If you’re doing the lease buyout, that is the amount you’ll be purchasing the car for

 

[Thomas Cerra]

I too have been shopping around for a GT2 AWD lease w buyout. I am in Illinois - 7.5% .I've had some offers written with tax included in Adjusted Cap Cost(though only $2k- which seems light) and some with no tax , stating that the tax is in each monthly payment.
Any insights? Have you all had to add tax on top of Adjusted Cap Cost?

 

[jd284]

I too have been shopping around for a GT2 AWD lease w buyout. I am in Illinois - 7.5% .I've had some offers written with tax included in Adjusted Cap Cost(though only $2k- which seems light) and some with no tax , stating that the tax is in each monthly payment.
Any insights? Have you all had to add tax on top of Adjusted Cap Cost?

yes, in CT it is up front sales tax, monthly tax and sales tax when it is bought out

 

[Thomas Cerra]

So a $40,000 car would have roughly $3k in sales tax figured into the LEASE price. Then when you want to buy out the lease , you pay ANOTHER $3k in tax? So $6k in tax on a $40,000 car?