Lease then Buyout - Contract Explanation

[StingEm]

So I just pull the trigger and leased the GT2 AWD. Can someone check the numbers for me....

Here is my breakdown:
Price of the vehicle: 48096
Rebate applied: 8900
Total Purchase Price:39196
Processing Fee: 799
Business License Tax: 66.09
License Fee: 42.75
Title Fee: 15
Filing Fee: 17
Tax: 1659.79
Total OTD is 41790.63

My breakdown for Amount Due At Lease signing (section 6 of the contract):
Section A: Amount Due at Lease
1. Capitalized Cost Reduction: 25400 (this includes my 16500 Trade-in + 8900 rebates)
3. First Month Payment: 113.46
All else is marked N/A
11. Total 25513.46

Section B: How the Amount Due at Lease will be paid:
1. Trade : 16500
2. Rebates: 8900
3. Cash: 113.46
4. is NA
5. Total 25513.46

Section 11. Itemization of Gross Capitalize Cost:
A. Agreed Upon Sales Value of Vehicle: 48096
B. Sales Use Tax: 1725.88
C. License, Title and Registration Fee: 69.75
E. Dealer Documentation Fee: 799
K. Acquisition Fee: 650
L. Total Gross Capitalized Cost 51340.63
All else is N/A

Section 7. Monthly Payment breakdown:
A. Gross Capitalize Cost: 513450.63
B. Capitalize Cost Reduction: 25400
C. Adjusted Capitalized Cost: 25940.63
D. Residual Value: 26150
E. Depreciation: -209.37
F. Rent Charge: 4293.93
G. Total Base Monthly Payment: 4084.56
I. Base Monthly Payment: 113.46
L. Total Monthly Payment: 113.46
All else in N/A

Ok so the finance manage said that if I buyout the car it will be the residual value + the total of my monthly payment which is 4084.56. However, I don't think he is quite right because that 4084.56 is based on the 113.46 * 35 months. So I think it should just be the residual of 26150 + the 300 buyout right?

So if that is right, with my 16500 down + 300 buyout + Residual of 26150 my total comes out to $42950 Does this seem right? With the 41790.63 OTD I'm slightly confuse how the toal jumped to 42950, there is a difference of 1159.37. 300 of it I know is from buy out so where are the rest?

If you buyout you will have to pay the remaining balance + buyout fee + accrued unpaid rent charges (for the month you do the buyout). The remaining balance if you buy it out immediately is the adjusted capitalized cost. The residual has nothing to do with the buyout cost (it is only tangentially related since if you wait to buy out at the end of the lease the remaining balance then was designed to be the residual cost).

 

[zaldwaik]

Dulles motorcars in Leesburg.

Well the Net cap after the lease cash and rebate is 42479, is that what you mean by the itemized quote? Fees taxes and 1st payment is 3477.03.

I'm also waiting for the costco auto program dealer to give me a quote.

I'm a car buying noob so i'm taking it slow and learning. The Stinger GT isnt my end all be all car (although it is quite awesome)

I tried negotiating with them and they tried some games too. I did not buy as their "deal" was not one and they kept insisting I come in and "I will get what I want".....

 

[sk1p]

I tried negotiating with them and they tried some games too. I did not buy as their "deal" was not one and they kept insisting I come in and "I will get what I want".....

Same here, to hell with em. Looked up the salesman i had there too and found out he got arrested last year for embezzlement No thx

 

[sk1p]

Fairfax had a good deal for GT2.

 

[SilverNitr8]

I did not get a good vibe when I went to dulles. Definitely fairfax was better. Manassas kia also jerked me around so I told them I dont want their car. Fairfax is also the only dealer here that gives you lifetime oil changes so there is additional savings there. Ask for Carlos and tell the Marko sent you, they will take good care of you. Just read my dealer feedback post.

 

[Mach_Tuck]

You do NOT owe the remainder "rent" when doing a buyout. Paying the remainder monthly payments assumes this and is wrong. You would owe the adjusted lease balance which is the cap cost minus any principle payments made to date plus a buyout fee if there is one. You may also owe added tax based on your state.

Please read the back of the lease agreement before you sign anything and do NOT trust what the salesman or finance manager says as this forum has clearly shown that 99% of them dont know a damn thing about how the process works.

 

[SilverNitr8]

You do NOT owe the remainder "rent" when doing a buyout. Paying the remainder monthly payments assumes this and is wrong. You would owe the adjusted lease balance which is the cap cost minus any principle payments made to date plus a buyout fee if there is one. You may also owe added tax based on your state.

Please read the back of the lease agreement before you sign anything and do NOT trust what the salesman or finance manager says as this forum has clearly shown that 99% of them dont know a damn thing about how the process works.

Yeah you are absolutely right. The finance managers explanation is for someone who completes the lease term then buys the residual value. I re-read the back of the contract and you are right. With early buyout it's the adjusted capitalized cost minus all rent paid thus far plus the 300 buyout fee. In my case it would be 25940.63 - 113.46 + 300 = 26127.17. With my 16500 trade in as a down payment. The Total cost of the car I paid is 42627.17. I think it's pretty good deal for a 52300 GT2 car. Just a couple hundred dollars shy of the 10k off of MSRP.

 

[Mach_Tuck]

Yeah you are absolutely right. The finance managers explanation is for someone who completes the lease term then buys the residual value. I re-read the back of the contract and you are right. With early buyout it's the adjusted capitalized cost minus all rent paid thus far plus the 300 buyout fee. In my case it would be 25940.63 - 113.46 + 300 = 26127.17. With my 16500 trade in as a down payment. The Total cost of the car I paid is 42627.17. I think it's pretty good deal for a 52300 GT2 car. Just a couple hundred dollars shy of the 10k off of MSRP.

This sounds correct to me. Adjusted Lease Balance is the term...which is adjusted cap cost minus any payments you have made not including the rent portion of said payments. If do the buyout early, rent is essentially negated and hence your massive savings when throwing the lease cash rebate in.

 

[SilverNitr8]

Just curious, my lease was under Hyundai Leasing Trust. Is everyone's lease also under Hyundai? I understand they are the parent company so I was just curious. Also, do you guys have the link where I can check if my account is in their system already?

 

[Waynerm002]

You should get a letter from them with the website info once your account is setup or you can just go to their website and put your account number in and if it recognizes it, then setup your online account so you can get the info.

 

[MerlintheMad]

Just curious, my lease was under Hyundai Leasing Trust. Is everyone's lease also under Hyundai? I understand they are the parent company so I was just curious. Also, do you guys have the link where I can check if my account is in their system already?

Kia Motors Finance My lease was through KMF, not Hyundai. You need the Hyundai version of KMF's account page. On it you will see your monthly payment amount, due date, and residual value. Also a buyout amount that changes each time you make a monthly payment. The buyout includes all taxes and fees; but not any amount that you owe that Kia isn't aware of, i.e. your financing "shenanigans" (if any) to afford your lease.

 

[sk1p]

Does shipping cost factor into the OTD cost that will be used to calculate financing when buying out the lease?

 

[SilverNitr8]

Does shipping cost factor into the OTD cost that will be used to calculate financing when buying out the lease?

Do you mean the freight? Its factored in the total MSRP. For the gt2, the base MSRP is 51400 with 900 freight the total msrp is 52300. It should show on the window sticker of the car so if they are trying to charge you delivery fee on top of that, they are screwing with you. Woodbridge did that to me and I called them out for it.

 

[sk1p]

Do you mean the freight? Its factored in the total MSRP. For the gt2, the base MSRP is 51400 with 900 freight the total msrp is 52300. It should show on the window sticker of the car so if they are trying to charge you delivery fee on top of that, they are screwing with you. Woodbridge did that to me and I called them out for it.

If I was shipping it in from another state, would that be part of the freight cost?

 

[robz32]

No, the dealer will have you pay for the cost of transferring the vehicle, unless you work out a deal with them.

 

[sk1p]

No, the dealer will have you pay for the cost of transferring the vehicle, unless you work out a deal with them.

Right, i'm wondering if that cost factors into the MSRP.

 

[robz32]

It will not be added to the MSRP, as that is a cost incurred after the vehicle was delivered to its original location.

 

[MerlintheMad]

Right, i'm wondering if that cost factors into the MSRP.

It does not. Because the MSRP is already established, and you are requesting an additional transportation expense to get the car delivered from some other dealer. In my case, it was a simple car swap, with my salesman taking their car down to Doug Smith, and getting their Silky Silver Stinger to bring up to me; took less than an hour and a half and they didn't charge me anything, at least, I never thought they did. How would I know? I wasn't scrutinizing every single item on the sales contract. But then I am a bunny when it comes to money.

 

[SilverNitr8]

It does not. Because the MSRP is already established, and you are requesting an additional transportation expense to get the car delivered from some other dealer. In my case, it was a simple car swap, with my salesman taking their car down to Doug Smith, and getting their Silky Silver Stinger to bring up to me; took less than an hour and a half and they didn't charge me anything, at least, I never thought they did. How would I know? I wasn't scrutinizing every single item on the sales contract. But then I am a bunny when it comes to money.

Rob and Merlin is right. The 900 freight is for the vehicle to be delivered to the dealership from the plant. If you need it transferred to another dealership or shipped to your home, it's would be a separate delivery charge unless you work out a deal.

 

[Waynerm002]

As folks said, that is true, if it's a few miles they might not but some may charge you. Some places don't want to do swaps on rare colors when inventory of those are low.