Lease then Buyout - Contract Explanation

[MerlintheMad]

Does anyone know how long on average it takes for KMF to process everything? I can't seem to create an account on their website, keeps giving me "invalid VIN" error (at the same time my account on Kia.com works just fine).

Thanks in advance for replies.

It's the Internet. Something is messing with you. A tech is needed. Call Kia and explain that you are being stopped by the stupid Net from making your KMF account. Once that is taken care of, the whole process ending with the title in your hand should not take more than six weeks, and likely less. Once I sent the cheque on the 13th of June, I saw the title in my mailbox by the 10th of July (it might have arrived sooner than that: I arrived home from our road trip on the 10th).

 

[Akriant]

It's the Internet. Something is messing with you. A tech is needed. Call Kia and explain that you are being stopped by the stupid Net from making your KMF account. Once that is taken care of, the whole process ending with the title in your hand should not take more than six weeks, and likely less. Once I sent the cheque on the 13th of June, I saw the title in my mailbox by the 10th of July (it might have arrived sooner than that: I arrived home from our road trip on the 10th).

I'll do just that then. Thanks.

 

[shaggystinger]

Does anyone know how long on average it takes for KMF to process everything? I can't seem to create an account on their website, keeps giving me "invalid VIN" error (at the same time my account on Kia.com works just fine).

Thanks in advance for replies.

Took about 10 business days but it's all based on how fast the dealership processes the paperwork.

 

[MerlintheMad]

Took about 10 business days but it's all based on how fast the dealership processes the paperwork.

My dealership wasn't involved at all. I would be surprised if they know I've bought out the lease. Unless behind the scenes stuff goes on that I have never heard of, once the dealership's financial guy submitted the paperwork to KMF his part in my transaction and payments was done.

 

[shaggystinger]

My dealership wasn't involved at all. I would be surprised if they know I've bought out the lease. Unless behind the scenes stuff goes on that I have never heard of, once the dealership's financial guy submitted the paperwork to KMF his part in my transaction and payments was done.

To clarify, the dealership I worked with writes up the contract and gets everything signed. Whether it is all submitted to KMF that day is unknown to me. 10 business days later my account went live

 

[Mach_Tuck]

Let me say this: Even the finance guy at my Kia dealership was mystified and tried to incorrectly explain the payoff amount. Hadn't heard of anyone ever doing this. Lots of people have even pointed out the double taxation issue with the tax being included in the lease and having to be paid again for the buyout. I think there are a few uncertainties that people still need confirmed by spelling out every detail in a sample sale and what the exact refi conditions are.

Generally speaking the finance dudes at dealerships only know how to get you to sign and pay for added non-sense. Know the numbers better then them and know what you are signing BEFORE you sign it. There is no excuse for lack of information given what is on this forum.

Does anyone know how long on average it takes for KMF to process everything? I can't seem to create an account on their website, keeps giving me "invalid VIN" error (at the same time my account on Kia.com works just fine).

Thanks in advance for replies.

As others have stated, mine took about 10 business days...

I don't hold a law license in WA, so this is not a legal advice. Generally speaking the terms of the contract dictates the rules, so long as the contract is not unconscionable and does not violate some state laws. I would be hiiighly surprised if WA had some weird law that prevented a purchase/buy-out option of a vehicle lease. The Office of Attorney General's website for your state actually talks about purchase options, so this for me is an indicator that it's not generally prohibited in your state.

Agreed, each individual tax situation is unique and you MUST understand how it is applied in your particular state. On the KMF buyout page, it does state which states tax is collected for.

For AZ, the monthly payments are taxed (no upfront payment of ALL tax) and then you owe tax on whatever purchase price happens, if it happens.

 

[GronkSoyFiesta]

The contract reads the same as those posted here. I got my Micro Blue on Gray GT2AWD today. I couldn't be happier.

Thanks everyone for the help and encouragement. zoooooooooooom!

 

[netmag]

I've not even started with any real negotiation yet as I'm going to wait until the 2019s appear, but I notice that dealers seem to ask whether you'll be buying or leasing almost as soon as you walk in the doorway.

If the first step is indeed to always negotiate hard on the price, is there any difference in what the response to that question should be?
I.e. is it better to just tell them up front that you want to lease and then still try to negotiate the price even though they will try to distract you with the monthly payments? Or is it better to say you're not really sure or "depends on the price" and then start negotiating?

You got a shady dealer...bottom line.

There is no difference in price when comes to lease vs buy. Any A-Hole that says different is just plain ignorant. Find another dealer.

Negotiate Purchase Price is same whether lease or buy. Incentives or rebates may vary but not purchase price

 

[Akriant]

I've not even started with any real negotiation yet as I'm going to wait until the 2019s appear, but I notice that dealers seem to ask whether you'll be buying or leasing almost as soon as you walk in the doorway.

If the first step is indeed to always negotiate hard on the price, is there any difference in what the response to that question should be?
I.e. is it better to just tell them up front that you want to lease and then still try to negotiate the price even though they will try to distract you with the monthly payments? Or is it better to say you're not really sure or "depends on the price" and then start negotiating?

I'd say start negotiating from the get go. I don't think it matters for the dealer if you lease or if you buy/finance. I usually low-ball the price from the get go as an opener, to try to get to the price that I actually want. If they start talking about incentives and wonderful financing options - tell them that all kia dealership have those - the one 30 minutes driving from you have them, and it also has the same vehicle (if that is true). Indicate that you have options, and that it's not like incentives-only price drop will cut it.
I had to negotiate with the dealer that I've leased from for close to a week and a half of going back and forth. Still didn't get the discount I hoped for, but I did get the car 2.7k lower than MSRP, and they did value my trade-in higher by 1k compared to two other Kia dealerships and compared to KBB offer I got.

Don't get bogged down with monthly payments - you have a calculator on your phone, so you can always do an estimate on your own.

 

[MerlintheMad]

Still didn't get the discount I hoped for, but I did get the car 2.7k lower than MSRP

Heh, some dealers! "My" dealer said almost as I walked through the door, "almost $3K off MSRP", then we went from there. I didn't think that dickering for even more off was reasonable. Then I heard of some dealers marking UP. The financial guy who drew up the paperwork on our lease said he'd heard of some people in Cali buying for up to $20K over MSRP. I was unbelieving, but he assured me it was true. Okay, so maybe ONE maroon paid that much markup and the word got out? Some people are that uncaring or that stupid. But markup is happening and people are paying. Then there are the smart dealers who start with an impressive cut in MSRP. They add in extra fees and costs and get most of that back anyway. If you have a price you are not willing to exceed then you are going to go to battle. If you are not that concerned over making a killer deal you are going to go in and buy the car and drive away the same day. My story.

 

[Mach_Tuck]

Know what you are willing to pay. Dont let them play the monthly payment game with you. Lease/Buy does not matter when negotiating a price. If they tell you otherwise, say thanks and find another dealer.

Also beware of the add-ons...some are very egregious and just plain insulting...
For example:
Tint - $800
Paint Sealant - $800
Spare Tire = $350
GPS Tracking - $800
Door Guards - $700

These are just the ones i remember when looking...play hard ball and know what you want and what you can afford. Do NOT let them tell you what you can afford.

If dont want to put the work in, pay what they ask and drive away happy! I say a few of those transactions occur as well while i was negotiating!

Cheers and best of luck

 

[Akriant]

Heh, some dealers! "My" dealer said almost as I walked through the door, "almost $3K off MSRP", then we went from there. I didn't think that dickering for even more off was reasonable. Then I heard of some dealers marking UP. The financial guy who drew up the paperwork on our lease said he'd heard of some people in Cali buying for up to $20K over MSRP. I was unbelieving, but he assured me it was true. Okay, so maybe ONE maroon paid that much markup and the word got out? Some people are that uncaring or that stupid. But markup is happening and people are paying. Then there are the smart dealers who start with an impressive cut in MSRP. They add in extra fees and costs and get most of that back anyway. If you have a price you are not willing to exceed then you are going to go to battle. If you are not that concerned over making a killer deal you are going to go in and buy the car and drive away the same day. My story.

That's what you get when you have a grand total of three dealerships with Stinger GT2 AWD within a 200 mile radius. (Kansas T_T).

 

[Selena]

Hello everyone, I am looking into buying a Stinger (this weekend to be exact). I have done tons of research on this thread and really want to take advantage of the lease cash offer then buyout using my credit union. I am looking at a GT1 RWD (Southern CA) and they have price quoted me $39,876 (original 44,150). This is without lease incentives of course.

Is this a good number or should I try to negotiate further?

Also, have anyone done the lease then buyout in Cali and have some numbers they can give me as an example? Thanks so much in advance!

 

[Waynerm002]

Hi Selena, that price looks good, it’s about a 10% discount. Not sure yet what the lease cash yet is for September as it hasn’t been updated on the sites yet. Do you have any info on what it is for September in your area?

 

[Selena]

Hi Selena, that price looks good, it’s about a 10% discount. Not sure yet what the lease cash yet is for September as it hasn’t been updated on the sites yet. Do you have any info on what it is for September in your area?

Thanks for the reply!
Yes! For the GT1 it is currently $6600 and for the GT it is $5500, according to the Kia payment calculator. I’m in San Diego CA btw.

 

[Waynerm002]

Ok, good to know that the deals are still around. Maybe they will update our side of the country (VA) with the lease cash intact. All I see now is a Loyalty or Conquest rebate for $3K and $1k cash, not bad but not as good as what August had.

 

[MerlintheMad]

That MSRP is c. $1K too high (to make the deal look even better I guess). But then you are in California. That lease cash is almost $1K more than I got. And anything below $40K for the price is a good deal. Just make sure that isn't where the dealer starts and then adds on all manner of extra charges. Keep it under $40K for everything. With your lease cash you are going to get that GT1 for under $34K. That looks really good to me!

 

[Selena]

That MSRP is c. $1K too high (to make the deal look even better I guess). But then you are in California. That lease cash is almost $1K more than I got. And anything below $40K for the price is a good deal. Just make sure that isn't where the dealer starts and then adds on all manner of extra charges. Keep it under $40K for everything. With your lease cash you are going to get that GT1 for under $34K. That looks really good to me!

Yeah I’m thinking I’m going to push for a tad bit lower quote & watch out for those extra charges. Under 34k is definitely the goal!

 

[Waynerm002]

That MSRP for a GT1 RWD without the drive wise package or accessories is correct, don’t know why you think it’s $1k off.That is the actual price. The September lease number on my side of the country shows $6000 for the GT1 plus, if you qualify for it, there is the $3k for either the conquest or loyalty program. Sweetens the pot even more!

 

[MerlintheMad]

That MSRP for a GT1 RWD without the drive wise package or accessories is correct, don’t know why you think it’s $1k off.That is the actual price. The September lease number on my side of the country shows $6000 for the GT1 plus, if you qualify for it, there is the $3k for either the conquest or loyalty program. Sweetens the pot even more!

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