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Lease then buy out immediately (question)

Discussion in 'How to Buy a Kia Stinger' started by Gilgamesh, Feb 12, 2018.

  1. Gilgamesh

    Gilgamesh United States Member

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    For those that have taken advantage of the lease cash and bought the vehicle out did you have to wait several weeks or were you able to buy it out immediately after signing the lease agreement?

    The dealership I'm working with says that I would have to lease it for a minimum of 3 weeks before buying it out so that KIA financial can set up an account for me actually buy out the vehicle. I also have to pay $1,500 as a down payment as well as the first monthly payment of $565; the down payment comes out of the negotiated price, but I was told the $565 won't which I find silly since it's essentially a rental fee when I plan to buy out the vehicle as soon as possible.

    So I'm just curious about other people's experience with doing this and if they essentially had to pay the first month of the lease to rent the vehicle without it being taken out of the overall purchase price.
     
    • Like Like x 1
  2. Dave Miller

    Dave Miller United States Active Member Stinger Dealer

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    I think that's more of a worst case scenario. Kia had an account set up for my current lease within a week. Your first month's lease payment will come out of your down payment so you shouldn't need to make a payment after that.
     
  3. Gilgamesh

    Gilgamesh United States Member

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    Did you have to pay the first month's payment to just rent it that first week?
     
  4. Dave Miller

    Dave Miller United States Active Member Stinger Dealer

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    Unless there's a process I'm not aware of that can skip this, you need to pay your whole first month's payment before you can buy out your lease. But it comes out of your down payment so it is already paid when you drive off the lot.
     
  5. MarkyMark

    MarkyMark United States Active Member

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    @Gilgamesh, Once you sign your lease, wait 4 business days. Call KMF (Kia Motors Finance: Kia Motors Finance), and let them know you want to do a buyout of your lease. 3 or 4 days worth of amortized interest will have accrued ($12 - $20 or so). You will then pay the Principal of the remaining 35 months.

    There is NO 3 weeks nonsense. This gets set up ASAP. 4 business days will do it.

    There will be a $300 lease-to-purchase fee, but no $400 return fee (as you are not returning the lease - sorry I forget that fee term at the moment, but you won't need to pay that).

    Since you are considering lease-to-buy, I would pay ALL Taxes and License fees up-front. Dealer Doc fee, I wouldn't give the dealer more than $150 for that personally. It's commission basically. Those finance people doing the paperwork are there they day on salary, making what they make whether they are filling out your paperwork or not. It's just money that goes to the dealer (maybe the sales guy/gals commission, I don't know) but I'd made sure you don't get taken on that. I mean hey, why don't you charge them a document fee, you are doing the work too?...

    If they pack ANYTHING into the first month's payments, what on earth would that be? I wouldn't have them pack anything into the first months fee. Month One, Month 22, it's a monthly fee and should all be the same. $444, $621, whatever it is, they should all be the same. If not, they are adding commission into that first fee, or moving money around.

    Personally, I'd get it all done via emails and online and make sure everything is out on the table and agreed too. Then go in and jus finalize it. Simple, easy, no haggling stuff. That's the way I bought my last car in 2014, and couldn't have been better.
     
    • Informative Informative x 1
  6. CO-bound

    CO-bound United States Member

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    I leased mine 12/13 and began the purchase process 8 days later. I checked the site daily and as soon as my account went active, I obtained the lease buyout price and got the ball rolling. The holidays slowed things down a bit but by mid-January the funds and title had switched hands and everything was set up with the new lender.

    Super easy process.
     
    • Like Like x 2
  7. Mach_Tuck

    Mach_Tuck United States Stinger Enthusiast

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    @MarkyMark -- what do you mean pay ALL taxes and license fees upfront? Before the buyout? Or during? My plan is to get the buyout amount, which should include taxes on the actual sale price and then hand them a check from my credit union...or put a maximum amount through bonus credit cards and split the check from the credit union.
     
  8. MarkyMark

    MarkyMark United States Active Member

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    @Mach_Tuck, great information and congrats!

    QUESTIONS:
    – There was a buyout of fee of $300 correct?
    – And there was about 8 days of interest rolled up also, yes? How much did that look like? $25 or so or?...
    – Any other fees involved?
    – Did you need to get a used car loan for the Residual? I'm assuming yes.
    – LASTLY, did you need to put down a first month payment at the dealer? I don't believe that is necessary, but they try to force people into it, and tack on fees into that first payment? What was your experience?

    Thanks Mach-Tuck!
     
  9. MarkyMark

    MarkyMark United States Active Member

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    Since I will use the lease to purchase, I plan on paying my license and title fee, .5% new car sales tax, and $900 destination charge, up-front, so the only thing in the lease is the car itself. KISS (Keep It Simple - because I'm - Stupid).

    If you mean "hand them a check" at the dealership, that's not likely to work. The lease must be setup with Kia Motors Financial first, which takes about 4 work days, 8 days for Mach_Tuck (see above). Then you can pay it all off/buyout.
     
  10. jwhollan

    jwhollan United States Active Member

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    Did you have to go find your own financing first? Or did you just call Kia Motors Finance and they provided financing for the buyout?
     
  11. Gilgamesh

    Gilgamesh United States Member

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    Do you pay all the fees upfront to prevent them from being added to the buyout amount and increasing the sales tax on that?
     
  12. MarkyMark

    MarkyMark United States Active Member

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    I am going to pay all the title, license, and delivery fees up front, because yes, I don't want them added to anything that will contain interest. Not that it will be big interest but it's still there. I want the lease and then subsequent buyout to be just the car, nothing more, very clean. It also helps me expose if the dealer tries to pack something else in dollar-wise. If it's just the car and nothing else, then we will have the exact same numbers, right? Right! )
     
  13. CO-bound

    CO-bound United States Member

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    I used my credit union actually, since they have lots of perks and super low rates. It never occurred to me to ask Kia if they could flip the lease to a purchase, I just automatically assumed that would be a No.
     
  14. CDv6

    CDv6 United States Active Member

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    Kia Motors Finance Frequently Asked Questions
    • Can I refinance my account with Kia Motors Finance?
    Kia Motors Finance does not offer refinancing at this time.​
     
    • Informative Informative x 1
  15. Mach_Tuck

    Mach_Tuck United States Stinger Enthusiast

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    Have not done this yet. Still waiting on car to arrive.

    I get your strategy now. Unfortunately, sales tax is 8.1% here so not something I want to pay upfront. 0.5% like you...absolutely.

    My credit union does not discriminate new/used if less than three MY or less. Same rates.

    I understand account has to be set up. "Hand them a check" was merely an expression.

    My understanding is that you MUST pay the first month payment to "earn" the lease cash...in other words, the first payment is essentially lease inception. I will not pay any fees over this amount.
     
  16. MarkyMark

    MarkyMark United States Active Member

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    8.5%?! That's legalized theft! Sheesh!? How can people afford anything, let alone a new car?! Sheesh.
     
  17. Rufus

    Rufus United States 1000 Posts Club!

    Lol try the Greater Seattle area...we got hit with 10.4% for ours!
     
    • Agree Agree x 1
  18. iclicku

    iclicku United States Stinger Enthusiast

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    I got 10.3 in bellingham.
     
  19. Rufus

    Rufus United States 1000 Posts Club!

    Ouch. Yup, glad we don't have a state income tax here in WA!!!!
     
    • Agree Agree x 1
  20. MarkyMark

    MarkyMark United States Active Member

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    Just in Seattle today actually! Good old drive from Everett back to Beaverton, OR. From one massive tax grab group of politicians to another... But hey, that's okay, because doesn't everyone make $240k a year up there and work for Amazon or Microsoft? You can "afford" it. Ha!
     
    • Funny Funny x 2
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