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Lease Buyout worth it in Illinois / indiana

Discussion in 'How to Buy a Kia Stinger' started by RJStinger, May 11, 2018.

  1. RJStinger

    RJStinger United States Member

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    I bought my Gt2 AWD in Illinois a few weeks ago.

    Was looking at KMF website for buyout options but it directs me to the dealership saying that I have to go through them.

    The dealership said that in Illinois, I'll be double charged on the taxes if I do a lease buyout so not worth it. I live in Indiana actually so dunno if the Tax liability is different.

    In any case, I've been following the posts of a few of you and seems like its been quite a headache getting the lease buyout organized.

    At this stage, I may just keep the car as it is and upgrade to something else in 3 years.
     
  2. Thang

    Thang United States Active Member

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    Colorado is a dealer only state as well. Was told by separate reps at KMF that I could pay them directly. I did and it was the worst decision ever as they cashed my check and the reversed it which meant I didn't get my money back for over two weeks. The dealership I bought mine from refused to let me pay it off within 3 months. I called another dealership and they helped me with the payoff. Went to the dealership, we did some paperwork and I wrote them the check for the full amount. As of this message, I am just waiting for KMF to update their system with my payment.

    As for the Tax issue, I confirmed with the local DMV that I wouldn't be taxed twice. If you buy from the dealership, you pay taxes on the car at the dealership as well. They have separate line items for the payoff amount, city tax, state tax, and other taxes your state might have. This may differ in Illinois but I can't see how they can double tax you when you pay for state and city taxes at the dealership and you have proof.
     
  3. RJStinger

    RJStinger United States Member

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    Thanks for the reply. Can you tell me if the dealership that did your paperwork charge you anything for doing it. And how was the buyout price determined?
     
  4. Thang

    Thang United States Active Member

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    It was pretty much paperwork acknowledging that I am agreeing to buyout the lease, that nothing is owed to me on top of the car (like any accessories), and that I acknowledge payment. Buyout amount was determined by dealership calling into KMF. State and city taxes were also added to the total. Since I bought out from a different dealership, they did indeed charge me $598 delivery and handling fee which I was okay with since I already went through hell withe the original dealership.
     
  5. In NY, you pay tax on the total of all lease payments under the leas; plus tax on the residual. So you can end up paying more sales tax than you would have paid on a straight purchase, but the lease cash makes it all worthwhile.
     
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