Lease then Buyout - Contract Explanation

[wmz]

I just got my buyout quote online, but it doesn't seem to include my 1st month payment (which I paid at the dealership upon signing) yet. I see the payment in "Payment History". Is the buyout amount supposed to update after a few days, or will I get the updated amount when I call them?

Adjusted cap cost = $39,952
Adjusted cap cost + tax = $39,952 * 1.095 = $43,747
Buyout cost after 1st month payment should be: $43,747 - $644 = $43,103?

Also, a stupid question - how do I actually complete the buyout? I assume I should call KMF instead of just randomly emailing a check to this "HCA Exchange" address, right?

 

[Lonz]

Also, a stupid question - how do I actually complete the buyout? I assume I should call KMF instead of just randomly emailing a check to this "HCA Exchange" address, right?

For the 2 times that I completed the buyout, I simply mailed them a check to the following address:

HCA Exchange Inc.
Dept. CH 14301
Palatine, IL 60055-4301

Be sure to include the signed odometer statement located here. You need to send this with your check. They will not send you the title and lien release until the odometer statement is received. I would also include a print out of the buy out quote, so that they can clearly see the quoted amount, good until date, and your account number.

It's a very easy, straightforward process. Simply mail them the check and the signed odometer statement. Easy peasy.

Also, yes, your Adjusted Capital Cost should be reduced by the first month's payment amount, however, they might be including one month's "rent charge," which is "lease speak" for interest. So, the sooner you get your payment in, the less interest you should be charged.

Hope this helps!

 

[fc528e]

For the 2 times that I completed the buyout, I simply mailed them a check to the following address:

HCA Exchange Inc.
Dept. CH 14301
Palatine, IL 60055-4301

Be sure to include the signed odometer statement located here. You need to send this with your check. They will not send you the title and lien release until the odometer statement is received. I would also include a print out of the buy out quote, so that they can clearly see the quoted amount, good until date, and your account number.

It's a very easy, straightforward process. Simply mail them the check and the signed odometer statement. Easy peasy.

Also, yes, your Adjusted Capital Cost should be reduced by the first month's payment amount, however, they might be including one month's "rent charge," which is "lease speak" for interest. So, the sooner you get your payment in, the less interest you should be charged.

Hope this helps!

Can't thank you enough for the distillation of it all. Just got access to my account and will be completing the buyout in a few days, avoiding use of a dealer since I can in WI and thereby saving a few hundred. Cheers!

 

[wmz]

This is awesome, thanks! I just checked again today, and my buyout amount has been reduced by my first month's depreciation (not rent, which makes sense). Since I don't have any physical checks, I guess I'll use my bank's bill pay feature to cut a check, then fax the odometer statement using some online eFax software.

 

[Jertom08]

KMF rep told me I shouldn't send the odometer statement with the check, but send it in electronically (which they provided me the link to do it that way) after the account was made whole.

 

[Jertom08]

I just got the car Friday, 7/31. Got the official buyout package from KMF and qualified by the credit union for 1.99%, but the credit union is saying DMV isn't showing the vehicle as registered to me yet. How long does the usually take? Will have to pause until that information is available.

 

[2Slo4u]

I just got the car Friday, 7/31. Got the official buyout package from KMF and qualified by the credit union for 1.99%, but the credit union is saying DMV isn't showing the vehicle as registered to me yet. How long does the usually take? Will have to pause until that information is available.

Depends on the dealer but it can take up to 45 days to process the registration. I was a little upset. Registered the car at the time of purchase and then 6 weeks later had to pay registration fees again

 

[BKersey]

Does anyone know if you have to pay taxes twice in Georgia? See below (from the GA tax guide).... but I'm not sure if what I'm reading answers my question! HELP

Is a buy-out amount or purchase option at the end of a lease subject to sales and use tax?
No. However, because the title will be transferred to the lessee (who is now the purchaser), the lessee will be liable for the TAVT at the time they apply for a certificate of title. A buy-out or purchase option of a lease, when exercised, is a purchase so long as title passes to the customer for consideration; thus, this transaction is exempt from sales and use tax because it will be subject to TAVT.

Also, I have a trade-in. How does that play in to this lease buyout? Any negative or draw back to using the trade in to get my Adjusted Cap Cost down?

 

[BKersey]

Does anyone know if you have to pay taxes twice in Georgia? See below (from the GA tax guide).... but I'm not sure if what I'm reading answers my question! HELP

Is a buy-out amount or purchase option at the end of a lease subject to sales and use tax?
No. However, because the title will be transferred to the lessee (who is now the purchaser), the lessee will be liable for the TAVT at the time they apply for a certificate of title. A buy-out or purchase option of a lease, when exercised, is a purchase so long as title passes to the customer for consideration; thus, this transaction is exempt from sales and use tax because it will be subject to TAVT.

Also, I have a trade-in. How does that play in to this lease buyout? Any negative or draw back to using the trade in to get my Adjusted Cap Cost down?

Update for anyone in the future....I talked to my tax commissioners office today and you do pay taxes twice in GA. Bummer

 

[Phaedrus441]

EDIT: fixed the MSRP
Can someone give me feedback on this deal:

2020 GT2 RWD Red - 24 mo/12k lease
MF 0.00176
MSRP $51,940
Discount: $3,941
Lease rebate: $10,000
My trade: $7500 (though I don't think I'll actually trade…)
⇒ Cap cost: $32,499
Advanced payment: $321.47
Upfront charges: $1228
⇒ Adjusted cap cost: $32,048.47

Dealer admin charge: $699

Residual $27,528.20 (53%)

Monthly payment: $321.47

This seems like a great deal (no other dealers around me could come close when I showed them this agreement), but am I missing something? What are the "upfront charges"?

Thanks all!

 

[OhioStateStinger]

I would be all over 32k for a lease buyout. I would force them to identify the "Upfront" and "dealer" charges though. I feel like you may be able to bleed up to around $1,500 more out of them, but otherwise that seems like a pretty good deal to hit 38/39k OTD on a GT2 (not factoring in your trade).

 

[fc528e]

I would be all over 32k for a lease buyout. I would force them to identify the "Upfront" and "dealer" charges though. I feel like you may be able to bleed up to around $1,500 more out of them, but otherwise that seems like a pretty good deal to hit 38/39k OTD on a GT2 (not factoring in your trade).

Mine was 39,500 or so pretax and I'm ecstatic. Probably could have gotten a competing dealer down a few hundred, but the shorter drive and the small extras thrown in made it an easy trigger pull for me!

 

[Jertom08]

Can someone give me feedback on this deal:

2020 GT2 RWD Red - 24 mo/12k lease
MF 0.00176
MSRP $41,940
Discount: $3,941
Lease rebate: $10,000
My trade: $7500 (though I don't think I'll actually trade…)
⇒ Cap cost: $32,499
Advanced payment: $321.47
Upfront charges: $1228
⇒ Adjusted cap cost: $32,048.47

Dealer admin charge: $699

Residual $27,528.20 (53%)

Monthly payment: $321.47

This seems like a great deal (no other dealers around me could come close when I showed them this agreement), but am I missing something? What are the "upfront charges"?

Thanks all!

How is the msrp only 41,940?

 

[Phaedrus441]

How is the msrp only 41,940?

Good catch! It's $51,940. Thanks!

 

[ihateu3]

Hello, new member here, so glad I saw this before buying a Stinger.

So just so I have this right, this works not just for the GT2, but for any version of the Stinger? And are they still doing the $10,200 lease incentive, I am unable to find anything by Googling that.

Anyways, there is a Stinger GT near me listed for $43,380. So $43,380, assuming I am able to negotiate 10% off, would bring it down to$39,042, and then the $10,200 lease would bring it down to 28,842, is that right? If so, that is pretty amazing, especially since that is around the price of a used 2018 GT.

Sorry for the newb question, and the autofilled picture avatar of me from 10 years ago.

 

[OhioStateStinger]

Hello, new member here, so glad I saw this before buying a Stinger.

So just so I have this right, this works not just for the GT2, but for any version of the Stinger? And are they still doing the $10,200 lease incentive, I am unable to find anything by Googling that.

Anyways, there is a Stinger GT near me listed for $43,380. So $43,380, assuming I am able to negotiate 10% off, would bring it down to$39,042, and then the $10,200 lease would bring it down to 28,842, is that right? If so, that is pretty amazing, especially since that is around the price of a used 2018 GT.

Sorry for the newb question, and the autofilled picture avatar of me from 10 years ago.

I forget.. is the GT sticker 43,380? If so you can ballpark trying to get about 10% off of sticker.

Then the lease rebate on the GT will i think be in the high 6k range. The 10k is GT2 only and the GT1 has in the 7k range. Slight variance for RWD vs AWD.

Somewhere in the 32-35k range before OTD is where you would likely be.

 

[RedGutsInnaWhiteGT]

That depends how quickly you plan to buy it out. If you do it immediately then it won’t matter at all, but every lease payment you make before buying it out will include some interest which you could reduce by putting a down payment

I am working my a dealer now and looking to go the Lease route described above instead of just paying Cash all at once. My question is, would it help to pay more money down or does it not matter at all?

Hey! did you end up going that route? i just leased a Kia Stinger GT 5 days ago and had no idea people were buying them out after for a better deal....lol

 

[ihateu3]

I forget.. is the GT sticker 43,380? If so you can ballpark trying to get about 10% off of sticker.

Then the lease rebate on the GT will i think be in the high 6k range. The 10k is GT2 only and the GT1 has in the 7k range. Slight variance for RWD vs AWD.

Somewhere in the 32-35k range before OTD is where you would likely be.

Thanks for that info. I also am in Ohio like you, is there any tax info I should be aware of for our state with this lease and buyout deal?

 

[OhioStateStinger]

Thanks for that info. I also am in Ohio like you, is there any tax info I should be aware of for our state with this lease and buyout deal?

The tax will be added in to your buyout of the lease. Definitely something to take in to account when looking at what you will eventually be financing.

 

[leono980]

Hi! I’m looking to buy a GT2 and was interested in this lease and buy out option. I’m new to leasing a car and had questions if this price sheet is good. I’m looking to negotiate the cap price down a little lower, but wanted feedback from anyone. Thanks in advance.