Bought The Stinger GT2- Lease/buyout Doubt

[Gautam Beri]

Hi Everyone,

I am right now confused about my recent lease deal for the stinger GT2 AWD. So I did an out of state lease from Atlanta and getting my car registered in NC. So I paid the Sales tax and all the non-tax fees in full price of the car. The thing is when I buyout the car do I have to register the car again? and have to pay the whole sales tax and non tax again?
I am confused and feels like being coned or something because I talked with the finance guy, he looked dumb and told me that's what the calculator showed me blah blah and says if NC charges them less then they would return back the money etc.
Please help!

 

[2Slo4u]

You need to check to see what NC state laws are. In Utah, I didn't have to pay sales tax twice but I did have to re-register the car and pay registration fees again.

 

[MerlintheMad]

You need to check to see what NC state laws are. In Utah, I didn't have to pay sales tax twice but I did have to re-register the car and pay registration fees again.

I only registered once, through the dealer. The buyout didn't trigger anything with the State. Maybe the buyout amount included registration and I just didn't notice?

 

[Sine Qua Non]

Hi Everyone,

I am right now confused about my recent lease deal for the stinger GT2 AWD. So I did an out of state lease from Atlanta and getting my car registered in NC. So I paid the Sales tax and all the non-tax fees in full price of the car. The thing is when I buyout the car do I have to register the car again? and have to pay the whole sales tax and non tax again?
I am confused and feels like being coned or something because I talked with the finance guy, he looked dumb and told me that's what the calculator showed me blah blah and says if NC charges them less then they would return back the money etc.
Please help!

I am in the same boat as you. It’s very frustrating.

 

[namja]

Want to lease then Buyout in NC

I am currently living in NY and moving to NC next month. As per some reading, NY charges tax upfront on lease payments and if I opt out I have to pay that as KMF as paid that already for me plus I would need to pay tax on the buyout amount. How's the situation with NC?

stingerforum.org

 

[Nocostinger]

On a lease, tax is charged on each payment instead of on the total of the vehicle because in a lease you aren't purchasing the whole vehicle, only a portion of it for a period of time.
That said, If you bought a $20,000 car, had a lease on it for 50% of that, and decided to buy it out at the end of lease, you'd purchase it for the residual value ($10,000) plus the remaining tax on the vehicle.

Now, can you cheat the system?
Technically, if you have the cash to pay it off, You can go ahead and file a payoff with Kia Motor Finance and be free of it.
However, if you don't have the cash, personal loans are typically too small or have to high an interest rate and too short a term to make it worthwhile...

...which means you'd need to take out an auto loan for the remaining balance. While you retain ownership of the car, on paper you're buying it a second time. If taking a loan on it you're going to be charged tax on top of the lease-end-value.

Basically:

Lease end value (if buyout is done at the end of lease) or Current payoff ( ask dealer for a 10 day payoff)
If paying cash, write a check to Kia Motor Finance. Payment will process and title should arrive in 45 days. (business days it seems with them)

or

Apply for an Auto Loan. Be cautious with doing it through a dealership, they're going to try and make a profit off of you in more than just finance. I've worked for some dealers where they charge you a "processing fee" or a "Payoff fee" using "re-inventory of the car" as an excuse to justify a $1,000 fee for buyout.

If anyone is looking at a lease buyout, let me know.
I'm an Auto Broker here in Northern Colorado but can do this for anyone in the US.
You can reach me on my cell at 970-889-9835 or my email at amoriyasu@centleasing.com

 

[usagi]

I applied for an auto loan from penfed and used it to pay off the lease. I have great credit so I got a super low rate. I used the lease cash to get my kia gt2 awd for $38k otd. then the dealership sent me a check a few months later for $1k of additional incentives they said i qualified for. and then another $100 later because I referred a friend who bought a kia from them.

 

[OhioStateStinger]

Acting fast is the right answer here...

I fully planned to take advantage of the lease buyout with a loan from my credit union. I was all set to pull the trigger except I would only have saved $2/mo on the loan on my already awesome 2yr lease rate, so I hesitated a bit.

Now because I have waited, I am in the position of extending my terms with a buyout and save $20-30 per month but have the car longer, or just finish out the lease and decide what my next move will be vehicle wise.

The best part is that if I hold the lease or buy it out at some point, I am still at a point where I can walk away from the vehicle for pretty much nothing or possibly come out ahead. Decisions decisions....

 

[csong825]

On a lease, tax is charged on each payment instead of on the total of the vehicle because in a lease you aren't purchasing the whole vehicle, only a portion of it for a period of time.
That said, If you bought a $20,000 car, had a lease on it for 50% of that, and decided to buy it out at the end of lease, you'd purchase it for the residual value ($10,000) plus the remaining tax on the vehicle.

Now, can you cheat the system?
Technically, if you have the cash to pay it off, You can go ahead and file a payoff with Kia Motor Finance and be free of it.
However, if you don't have the cash, personal loans are typically too small or have to high an interest rate and too short a term to make it worthwhile...

...which means you'd need to take out an auto loan for the remaining balance. While you retain ownership of the car, on paper you're buying it a second time. If taking a loan on it you're going to be charged tax on top of the lease-end-value.

Basically:

Lease end value (if buyout is done at the end of lease) or Current payoff ( ask dealer for a 10 day payoff)
If paying cash, write a check to Kia Motor Finance. Payment will process and title should arrive in 45 days. (business days it seems with them)

or

Apply for an Auto Loan. Be cautious with doing it through a dealership, they're going to try and make a profit off of you in more than just finance. I've worked for some dealers where they charge you a "processing fee" or a "Payoff fee" using "re-inventory of the car" as an excuse to justify a $1,000 fee for buyout.

If anyone is looking at a lease buyout, let me know.
I'm an Auto Broker here in Northern Colorado but can do this for anyone in the US.
You can reach me on my cell at 970-889-9835 or my email at amoriyasu@centleasing.com

A little confused by this. How can one technically cheat the system by having cash to do a lease buyout? If I do a buyout of a 24 month lease with cash before making any lease payments, do I avoid paying sales tax that would have been rolled into the 24 lease payments and just pay sales tax on the residual value of the vehicle? I thought I would pay sales tax on the entire buyout amount which should be close to the adjusted cap cost, in which case, I’m not sure where any savings on sales tax would come from by doing a buyout with cash vs loan. Thanks again for your help btw.

 

[OhioStateStinger]

A little confused by this. How can one technically cheat the system by having cash to do a lease buyout? If I do a buyout of a 24 month lease with cash before making any lease payments, do I avoid paying sales tax that would have been rolled into the 24 lease payments and just pay sales tax on the residual value of the vehicle? I thought I would pay sales tax on the entire buyout amount which should be close to the adjusted cap cost, in which case, I’m not sure where any savings on sales tax would come from by doing a buyout with cash vs loan. Thanks again for your help btw.

Think of it this way.

If you finance or pay cash on a 50k Stinger, you might get 3500 in rebates. Buying the car in this case before tax is 46500.

If you do the lease buyout on that 50k Stinger, you get 9500 (GT2) in rebates before taxes. Getting the lease and then buying out that lease gets you that 50k Stinger for 40500. This works for both paying cash and buying outright, or securing a loan through your credit union. I would take the extra 6k anyday.

Obviously roll in fees and whatnot, but that also does not include negotiation off of MSRP. That comes out to a pretty significant difference.