Lease then Buyout - Contract Explanation

[shaggystinger]

1 month. Credit union check went out next-day-delivery yesterday. KMF will receive it today @ 10am ET. Let's see how long they take to process and turn over the title to the credit union.

 

[MerlintheMad]

1 month. Credit union check went out next-day-delivery yesterday. KMF will receive it today @ 10am ET. Let's see how long they take to process and turn over the title to the credit union.

I sent the cheque off 13th of June. When I got back on 10th July from my road trip the title was in the mailbox. Not long after I sent the cheque, I called KMF to get an update and the gal I talked to said the title should be in the mailbox by no later than the 10th Proximo. So, she was a prophet!

 

[GronkSoyFiesta]

You should be able to quickly estimate how much savings you can have to see if it's worth it. Lease cash + rebate is 8900. Let's say your otd is 45k including taxes and fees after lease cash and rebate. You put down 10k + first month rent of 300 so its 10300. Your adjusted lease at that point is roughly 34700. That is what you would finance to buyout the lease. If your term is 2% for 60 months. Calculate how much interest you would have paid over the life of your finance. Add that back to the total purchase of the car when all is said and done. Now compare the same scenario if you were to finance directly and not do a lease. I think its 2000 cash for finance. Compare the savings then decide.[/QUOTE

This is exactly the situation I'm in. I'm looking at financing about 25k and my credit union rate in Seattle isn't great (4+%), so the difference between Kia's 0.9 financing vs. that over the life of the loan is $2k. Do you know where I can verify the $2k rebate for financing? In my case it may end up being a wash.

 

[CaliStinger]

3 weeks.... and here I am already checking to see if it's already on their site and it's only been 10 days including weekend.

I just got the deal done yesterday and picking up the Stinger gt1 ceramic grey after work. I guess you ca say im.part of the stinger family

 

[GronkSoyFiesta]

You should be able to quickly estimate how much savings you can have to see if it's worth it. Lease cash + rebate is 8900. Let's say your otd is 45k including taxes and fees after lease cash and rebate. You put down 10k + first month rent of 300 so its 10300. Your adjusted lease at that point is roughly 34700. That is what you would finance to buyout the lease. If your term is 2% for 60 months. Calculate how much interest you would have paid over the life of your finance. Add that back to the total purchase of the car when all is said and done. Now compare the same scenario if you were to finance directly and not do a lease. I think its 2000 cash for finance. Compare the savings then decide.[/QUOTE

This is exactly the situation I'm in. I'm looking at financing about 25k and my credit union rate in Seattle isn't great (4+%), so the difference between Kia's 0.9 financing vs. that over the life of the loan is $2k. Do you know where I can verify the $2k rebate for financing? In my case it may end up being a wash.

​

 

[Mach_Tuck]

A sales manager here in Northern Virginia just told me he won’t lease me the car because I said I was going to buy out the lease.

He said “It matters to me due to our franchise agreement with Kia. If I lease someone a vehicle to attain a rebate knowing there is no true intention of following through on a contract we get charged back the amount of the rebate and could incur other penalties.”

Is there any truth to that? I said fine I’m going to go lease one from your competitor and you just lost a sale.

Total BS on this one. Buyout of the lease is NOT a breach of the sales contract. It is simply exercising a different option. Tell that guy to pound sand and to learn to read the contract they are so eager to push onto uninformed people.

That’s what I thought but do they get charged back the rebate they gave out?

This is why I hate dealing with lower end dealerships from the customer service to bait and switch pricing. If kia wants to up their image not only are they going to need to do it with their cars but also with the dealerships.

Rebate or lease cash comes direct from KIA Corporate. If you wanted, you could get a check. There is a form you will sign as part of the signatory process that states how you (the customer) want the rebate applied, that is, use it towards the purchase price (which means the dealership gets the check) or send you the check direct (which means the rebate would NOT be considered on the lease agreement).

I wanna know how long you guys typically wait to buyout your stingers? Matter of days, weeks, months or years? Or anytime before the 3 year lease is done?

Finalized mine before first payment was. No need to pay them any more RENT then needed.

1 month. Credit union check went out next-day-delivery yesterday. KMF will receive it today @ 10am ET. Let's see how long they take to process and turn over the title to the credit union.

From date of them cashing my check to title in hand was 63 days, 5 odometer disclosures, numerous phone calls, and a partridge in a pear tree...

 

[CaliStinger]

Seems like most of you guys are using credit unions to buy out the car. Why is that?

 

[NYLAWBIZ]

Seems like most of you guys are using credit unions to buy out the car. Why is that?

Best interest rates. 2.9% per annum here.

 

[CaliStinger]

Best interest rates. 2.9% per annum here.

Rates in credit unions all differs in terms of your credit score also correct? Just like your personal credit card company like capital one bank of America etc...?

 

[shaggystinger]

Total BS on this one. Buyout of the lease is NOT a breach of the sales contract. It is simply exercising a different option. Tell that guy to pound sand and to learn to read the contract they are so eager to push onto uninformed people.

Rebate or lease cash comes direct from KIA Corporate. If you wanted, you could get a check. There is a form you will sign as part of the signatory process that states how you (the customer) want the rebate applied, that is, use it towards the purchase price (which means the dealership gets the check) or send you the check direct (which means the rebate would NOT be considered on the lease agreement).

Finalized mine before first payment was. No need to pay them any more RENT then needed.

From date of them cashing my check to title in hand was 63 days, 5 odometer disclosures, numerous phone calls, and a partridge in a pear tree...

GOOD GRIEF! 63 days???? Talked to my credit union and they said if they don't receive the title from the lienholder within 30 days they will deal with KMF directly. I hope it doesn't come to that but I've heard both good and bad stories on here with regard to KMF and the lease buyout process. We'll see.....

 

[NYLAWBIZ]

Rates in credit unions all differs in terms of your credit score also correct? Just like your personal credit card company like capital one bank of America etc...?

Every credit union is different. I suggest that you apply and found out what they will offer you.

 

[stinger541]

Can someone answer this....if you enter the lease knowing you will buy it out immediately does the money you put down (say, 3k) count towards the buyout? I know it just reduces the cap cost and lowers your monthly payment but am unsure how it factors in to the buyout. I mean, would I just be losing the 3k. So say my final negotiated price comes to 45k. I put down 3k. Then I go to buy it...has my buyout been reduced by the 3k (less whatever fees it covered)? If not, then I would think I should put down nothing above the first month's payment. But if it DOES count, then I would be fine doing that. To buy it out I would have to finance it with a loan. Could put down 10k in cash, then finance the rest if KMF accepts that. Thanks for the help. Lots of helpful people here.

 

[Waynerm002]

If you plan to buy it out, there is no need to put down any cash unless you are doing that to decrease the amount of the loan to purchase the car. Let’s say you got a GT2 AWD for $43k after with taxes and fees, the loan will be based on that number so the monthly payment amount will be higher for 60 months.. If you use that to reduce the buyout price, you are looking at a loan in the $30+k range which would be a lower payment for 60 months.

This has been discussed here already, hope this helps.

 

[Banana_Thunder]

Hi all - in the market for a red on black GT2. Just got a quote yesterday with the following:

MSRP: 52,500
Dealer Discount and Rebate: 12,901
Vehicle Price (net after rebate): 39,599
Doc fee: 600
Estimated payment with 0 down: 636-646

I'm in Illinois with a 7% tax rate.

Can anyone help me understand what my buyout amount would be?

 

[BlaydeX15]

Hi all - in the market for a red on black GT2. Just got a quote yesterday with the following:

MSRP: 52,500
Dealer Discount and Rebate: 12,901
Vehicle Price (net after rebate): 39,599
Doc fee: 600
Estimated payment with 0 down: 636-646

I'm in Illinois with a 7% tax rate.

Can anyone help me understand what my buyout amount would be?

$44,700 ish.

39599 + 600 doc fee + 650 acq fee + 300 Buyout fee + 600 Gov Fees/registration + 3,000 tax

 

[shaggystinger]

Hi all - in the market for a red on black GT2. Just got a quote yesterday with the following:

MSRP: 52,500
Dealer Discount and Rebate: 12,901
Vehicle Price (net after rebate): 39,599
Doc fee: 600
Estimated payment with 0 down: 636-646

I'm in Illinois with a 7% tax rate.

Can anyone help me understand what my buyout amount would be?

Gotta read through the post. Tons of info here BUT in the mean time, let's see:
Vehicle price after rebates: $39,599
Tax of 7%: $2772
Tax on lease cash (assuming GT2 AWD - $8900): $623
Tag, title, registration etc. - $350+ (guessing)
Lease Aquistion fee: $650
Lease Buyout Fee: $300
Total Buyout: $44,300+
This is all just a ball park figure based on the info you provided.

 

[Banana_Thunder]

Gotta read through the post. Tons of info here BUT in the mean time, let's see:
Vehicle price after rebates: $39,599
Tax of 7%: $2772
Tax on lease cash (assuming GT2 AWD - $8900): $623
Tag, title, registration etc. - $350+ (guessing)
Lease Aquistion fee: $650
Lease Buyout Fee: $300
Total Buyout: $44,300+
This is all just a ball park figure based on the info you provided.

Hi Shaggy -

Thank you very much for your reply. I'm leveraging the info right now with another dealer and asking for $45k flat purchase price with the 0.9% financing option still included. We'll see if they're hungry enough to bite. I'm really excited about the prospect of having this done in the next day or two.

 

[shaggystinger]

Hi Shaggy -

Thank you very much for your reply. I'm leveraging the info right now with another dealer and asking for $45k flat purchase price with the 0.9% financing option still included. We'll see if they're hungry enough to bite. I'm really excited about the prospect of having this done in the next day or two.

Good luck to ya!!! Let us know how it went

 

[stinger541]

If you plan to buy it out, there is no need to put down any cash unless you are doing that to decrease the amount of the loan to purchase the car. Let’s say you got a GT2 AWD for $43k after with taxes and fees, the loan will be based on that number so the monthly payment amount will be higher for 60 months.. If you use that to reduce the buyout price, you are looking at a loan in the $30+k range which would be a lower payment for 60 months.

This has been discussed here already, hope this helps.

Thank you, I actually have read most of this long thread but am still confused, even after this answer. Say my final price is 40k after lease cash and dealer discount. I put down 3k in total, to cover first payment and whatever else they use that for. Does that mean by buyout price would be reduced by the 3k? So I then need to pay 37k plus tax or would I still be paying 40k plus tax?

 

[BlaydeX15]

Thank you, I actually have read most of this long thread but am still confused, even after this answer. Say my final price is 40k after lease cash and dealer discount. I put down 3k in total, to cover first payment and whatever else they use that for. Does that mean by buyout price would be reduced by the 3k? So I then need to pay 37k plus tax or would I still be paying 40k plus tax?

Any down payment reduces the buyout, but I wouldn't bother.

You'll still get taxed on all of it though, you're taxed on the price, not the amount owed.