@Brandonfontes Your monthly payment does not factor into the buyout. You will owe the cap cost and lease buyout fee only, then title is yours. Taxes will differ from state to state.
You're saying I can buy out the car for 31,871 + taxes/fees ? Just want to make sure I understand the logic, I can tweak numbers later based on real data.
Thank you. Exactly what I'm looking for. In fact it says 8,900 on a GT2. So aside from the MA tax question I still need to figure out, something else that confused me from the sticky thread - lets say you buy out the lease after one month, do you still owe the monthly payments for the remaining 23 months? So for example lets say the monthly payment is 600/month and you buyout after one month, would I owe cap cost + 13,800 (23*600) ?
Yes, your math is correct. Plenty of people purchasing GT1 and GT2s for $40k plus TTL utilizing the lease buyout. Any trade in would only lower that price.
You're saying I can buy out the car for 31,871 + taxes/fees ? Just want to make sure I understand the logic, I can tweak numbers later based on real data.
in your example, it would be
$31,871 plus tax, tag, fees = your final balance, also = your adj cap cost, when you go to sign lease paperwork.
Just make sure when reviewing lease agreement, make sure adj cap cost is the same or lower vs your agreed apond final balance
Yes, your math is correct. Plenty of people purchasing GT1 and GT2s for $40k plus TTL utilizing the lease buyout. Any trade in would only lower that price.
Wow that almost sounds too good to be true. I do have a trade in (should be about $8k) so sounds like that helps in my favor to reduce the balance on the buyout - that all makes perfect sense. Now I'll need to figure out how sales tax plays into the formula. I live in taxachusetts so I'm wondering if it makes all of this not even worth it in the end. Thanks for helping me understand the logic though!
in your example, it would be
$31,871 plus tax, tag, fees = your final balance, also = your adj cap cost, when you go to sign lease paperwork.
Just make sure when reviewing lease agreement, make sure adj cap cost is the same or lower vs your agreed apond final balance
Thanks! I'm assuming I'm paying the full state sales tax on the 31,871 (from my original example) which comes out to 1,991 (31,871*6.25%). still seems too good to be true. that would mean in theory I could get a 2020 GT2 AWD for under 40K.
Wow that almost sounds too good to be true. I do have a trade in (should be about $8k) so sounds like that helps in my favor to reduce the balance on the buyout - that all makes perfect sense. Now I'll need to figure out how sales tax plays into the formula. I live in taxachusetts so I'm wondering if it makes all of this not even worth it in the end. Thanks for helping me understand the logic though!
Thanks! I'm assuming I'm paying the full state sales tax on the 31,871 (from my original example) which comes out to 1,991 (31,871*6.25%). still seems too good to be true. that would mean in theory I could get a 2020 GT2 AWD for under 40K.
Thanks I'm not there anymore. But hoping to do these negotiations over email tonight/tomorrow, will keep you posted. One last question for the day - if you were in my shoes would you have any concerns with KFA not letting me buyout of the lease after one month in? Do they ever restrict any states from being able to do that?
Thanks I'm not there anymore. But hoping to do these negotiations over email tonight/tomorrow, will keep you posted. One last question for the day - if you were in my shoes would you have any concerns with KFA not letting me buyout of the lease after one month in? Do they ever restrict any states from being able to do that?
should not have any issues buying out the lease, but I would NOT wait to buyout, every lease payment you make, decrease your rebate.
when reviewing the lease agreement.
read sections 9, 22D, 23B
Compared the wording vs the sticky thread in the 1 post
update for the folks who have helped me research my options so far. yesterday I purchased a new 2020 GT1. after a LOT of math, comparison shopping and negotiating, I found a GT1 in the color combination of my preference (ceramic silver w/ red napa) and simply couldn't pass by the offer I was able to negotiate. Certainly could have spent a couple grand less for a more common color (best offer I had on the table was a black GT1 which was 17% off MSRP) which would have let me do the lease buyout option, however dealing with Kia dealers for a couple weeks and I was sick of the back and forth, ended up spending about 2k more to get my top choice in AWD and ended up dealing with a more realistic dealership (I can strongly say I'll probably never purchase direct from a Kia dealer again unless they give outstanding customer service). I'm excited the negotiating is over and most excited to pickup my GT1 this Friday. Pictures to come soon! Thanks everyone for helping me to understand my options and for giving recommendations based on personal experience. It helped a lot!
update for the folks who have helped me research my options so far. yesterday I purchased a new 2020 GT1. after a LOT of math, comparison shopping and negotiating, I found a GT1 in the color combination of my preference (ceramic silver w/ red napa) and simply couldn't pass by the offer I was able to negotiate. Certainly could have spent a couple grand less for a more common color (best offer I had on the table was a black GT1 which was 17% off MSRP) which would have let me do the lease buyout option, however dealing with Kia dealers for a couple weeks and I was sick of the back and forth, ended up spending about 2k more to get my top choice in AWD and ended up dealing with a more realistic dealership (I can strongly say I'll probably never purchase direct from a Kia dealer again unless they give outstanding customer service). I'm excited the negotiating is over and most excited to pickup my GT1 this Friday. Pictures to come soon! Thanks everyone for helping me to understand my options and for giving recommendations based on personal experience. It helped a lot!
1.does a lease buyout depends on your credit score. I was reading through it and read somewhere that good to great credit, I never did a hard pull but have a short history of credit of 3 years only and my credit scores on creditKarma looks like 732. If someone does a hard pull, obviously its going to be less than this but then if it comes out less I can't do a lease buyout?
2. If I pay my first month lease payment, would that be adjusted in when I am doing the buyout. @AYip31
update for the folks who have helped me research my options so far. yesterday I purchased a new 2020 GT1. after a LOT of math, comparison shopping and negotiating, I found a GT1 in the color combination of my preference (ceramic silver w/ red napa) and simply couldn't pass by the offer I was able to negotiate. Certainly could have spent a couple grand less for a more common color (best offer I had on the table was a black GT1 which was 17% off MSRP) which would have let me do the lease buyout option, however dealing with Kia dealers for a couple weeks and I was sick of the back and forth, ended up spending about 2k more to get my top choice in AWD and ended up dealing with a more realistic dealership (I can strongly say I'll probably never purchase direct from a Kia dealer again unless they give outstanding customer service). I'm excited the negotiating is over and most excited to pickup my GT1 this Friday. Pictures to come soon! Thanks everyone for helping me to understand my options and for giving recommendations based on personal experience. It helped a lot!
I am going through this phase. I have never seen such BS sales guys/managers and I wish I didn't like the car this much that I deal with them, already have an argument with 2 dealers with only 4 dealers having that car around my area in the radius of 100 miles. They are just trying to sell me rebate as an overall discount and keep me hanging there saying they already giving me 8.9k discount. Sick of it to try to explain and one of the dealers tried to sell me a rebate of 5k when rebate for my area is 8.9k when I said I know what rebates are after I pretended I didn't know, he said this is what he got when he put in his systems(such bull shit). I hope I get this car.
1.does a lease buyout depends on your credit score. I was reading through it and read somewhere that good to great credit, I never did a hard pull but have a short history of credit of 3 years only and my credit scores on creditKarma looks like 732. If someone does a hard pull, obviously its going to be less than this but then if it comes out less I can't do a lease buyout?
2. If I pay my first month lease payment, would that be adjusted in when I am doing the buyout. @AYip31
hey, yes, need good to great credit for a lease buyout, due to getting the best leases term = best lease rebate, 24 month 12K mileage.
You can still do a lease buyout with ok credit score, but rebate will not be as good.
I would spend $10-15 on one of the 3 major credit companies to get your score.
from what I’ve heard, each lease payment, reduced your lease rebate
So I checked on transUnion = 747
And Equifax is 737.
will they be good enough to do a lease buyout for 24 Months 12k miles. Which is 8.9k in my area.
Or should I expect to be less.
I am going through this phase. I have never seen such BS sales guys/managers and I wish I didn't like the car this much that I deal with them, already have an argument with 2 dealers with only 4 dealers having that car around my area in the radius of 100 miles. They are just trying to sell me rebate as an overall discount and keep me hanging there saying they already giving me 8.9k discount. Sick of it to try to explain and one of the dealers tried to sell me a rebate of 5k when rebate for my area is 8.9k when I said I know what rebates are after I pretended I didn't know, he said this is what he got when he put in his systems(such bull shit). I hope I get this car.
yep, it’s a fight. Try to expand your search.
keep telling them you know what your credit score is, what rebate you should get.
Tell them what is the dealer discount
You don’t need to tell them your doing a lease buyout, most 90% of salesperson will not know what a lease buyout is
I am going through this phase. I have never seen such BS sales guys/managers and I wish I didn't like the car this much that I deal with them, already have an argument with 2 dealers with only 4 dealers having that car around my area in the radius of 100 miles. They are just trying to sell me rebate as an overall discount and keep me hanging there saying they already giving me 8.9k discount. Sick of it to try to explain and one of the dealers tried to sell me a rebate of 5k when rebate for my area is 8.9k when I said I know what rebates are after I pretended I didn't know, he said this is what he got when he put in his systems(such bull shit). I hope I get this car.
Completely agree! I've bought a lot of cars over the past 20 years, and by far, the absolute worst car buying experience for me has been with Kia salespeople. For example, one Kia salesperson tried to tell me that I could not do the "lease buyout trick," and that I was trying to "game the system." I was like, "Um, ok, is there some sort of rule that states I cannot buy out my lease immediately?" He said, "That doesn't seem right to me, and I'm pretty sure that's against the rules, otherwise everyone would do that!" I was like, "Um, ok dude, sure." I went to the finance guy, and he said, "Of course you can buy out the lease. Most people do not know about this loophole, or they cannot afford to buy out the lease." Hysterical!
So I checked on transUnion = 747
And Equifax is 737.
will they be good enough to do a lease buyout for 24 Months 12k miles. Which is 8.9k in my area.
Or should I expect to be less.
