Lease then Buyout - Contract Explanation

[Todsulli06]

What is the current amount of lease cash being offered + rebate cash? I’m looking to do a lease buy out in VA for a GT AWD. Also does anyone know how much the finance cash offer is? Thanks for help.

 

[Waynerm002]

Interesting. I know from back in my day in sales, dealers get paid on the interest rate above the bank rate they tack on. Not sure how KMF processes those and pays the dealer and if there is a timeline before they lose any profit. Maybe that’s the reason they are saying that. Now, if that’s the reason some shops aren’t comfortable with folks buying out early, it makes some sense. That’s something you don’t need to tell the dealer you are doing, just get the deal at your best price take delivery. What you do after the fact is your call.

 

[Waynerm002]

What is the current amount of lease cash being offered + rebate cash? I’m looking to do a lease buy out in VA for a GT AWD. Also does anyone know how much the finance cash offer is? Thanks for help.

Look on page 5 of the July incentives thread, there is a document there that lays out the rebates and finance cash by trim.

 

[Akriant]

They aren’t being truthful (or are totally uninformed) about the lease buyout, but they may not be lying about the financing option if the dealer you are working with is in a state where Kia offers balloon financing. In which case they would be doing you a favor by pushing you towards the balloon financing since you would save the $600 lease origination fee and $300 lease buyout fee while still getting the full lease rebate that Kia offers. But there’s only a handful of states that offer balloon financing. There’s a thread in this sub forum that has info on that.

Edit: Just read an earlier post that you’re in Jersey. They’re definitely just lying about both. Find a different dealer or prepare to do a lot of homework to ensure you get the exact deal you should be getting when you go to sign the paperwork. That’s a good idea either way, but it helps to be working with a dealer that isn’t 100% dishonest. Shoot for 25% dishonest or better.

Not in Jersey lol. I am in Kansas. That particular dealership is in Oklahoma, and yes, said Oklahoma dealership does offer financing with balloon payment attached. You think that financing through Kia with balloon financing and then doing an immediate refinancing through the local union will be a better move?

Quick question to those, who already sat with calculators - is there REALLY a substantial difference between leasing with 0 downpayment and doing a buy-out through a credit union and making the downpayment to the credit union vs throwing all the moneys at the lease and then requesting a lower financing at the credit union? Seems to be that both will net about the same monthly payments in the end of the day.

 

[SilverNitr8]

Not in Jersey lol. I am in Kansas. That particular dealership is in Oklahoma, and yes, said Oklahoma dealership does offer financing with balloon payment attached. You think that financing through Kia with balloon financing and then doing an immediate refinancing through the local union will be a better move?

Quick question to those, who already sat with calculators - is there REALLY a substantial difference between leasing with 0 downpayment and doing a buy-out through a credit union and making the downpayment to the credit union vs throwing all the moneys at the lease and then requesting a lower financing at the credit union? Seems to be that both will net about the same monthly payments in the end of the day.

That really depends on how big your interest rate is for financing, your financing term, and how quickly you intend to pay off the loan balance. Majority of the people who do the lease buyout, pays the remaining balance in full to take full advantage of the lease cash.

 

[Akriant]

That really depends on how big your interest rate is for financing, your financing term, and how quickly you intend to pay off the loan balance. Majority of the people who do the lease buyout, pays the remaining balance in full to take full advantage of the lease cash.

Well, I am considering throwing a total of $10k (trade-in + cash) towards the car. The rest is to be financed. It's my understanding that I can lease the car, and then finance a buy-out through a credit union. I aim to take a 60 months financing through a credit union. I am going to be meeting with the CU officer sometime this week, their online tool gave me a rate of 1.99% as an estimate.

 

[SilverNitr8]

Well, I am considering throwing a total of $10k (trade-in + cash) towards the car. The rest is to be financed. It's my understanding that I can lease the car, and then finance a buy-out through a credit union. I aim to take a 60 months financing through a credit union. I am going to be meeting with the CU officer sometime this week, their online tool gave me a rate of 1.99% as an estimate.

You should be able to quickly estimate how much savings you can have to see if it's worth it. Lease cash + rebate is 8900. Let's say your otd is 45k including taxes and fees after lease cash and rebate. You put down 10k + first month rent of 300 so its 10300. Your adjusted lease at that point is roughly 34700. That is what you would finance to buyout the lease. If your term is 2% for 60 months. Calculate how much interest you would have paid over the life of your finance. Add that back to the total purchase of the car when all is said and done. Now compare the same scenario if you were to finance directly and not do a lease. I think its 2000 cash for finance. Compare the savings then decide.

 

[Todsulli06]

I just received an written offer for a GT AWD with driver assistance package for $38,750.

The lease numbers look like this:

MSRP: 44,095
Sell Price negoitated: 38,750
Accessories: 900
Gov Fees: 352
Doc Fees: 300
Capitalized Taxes: 1,375.73
Acquisition Fees: 650.00

Gross Cap Cost: 42,327.73
Lease Rebate: 6,800
Net Cap Cost: 36,026.53
Term 36 months, 10k miles, residual 52%, money factor .00229

Im not sure what the accessories are but I'm not settling for that. But what do you think of the offer?

 

[NYLAWBIZ]

I just received an written offer for a GT AWD with driver assistance package for $38,750.

The lease numbers look like this:

MSRP: 44,095
Sell Price negoitated: 38,750
Accessories: 900
Gov Fees: 352
Doc Fees: 300
Capitalized Taxes: 1,375.73
Acquisition Fees: 650.00

Gross Cap Cost: 42,327.73
Lease Rebate: 6,800
Net Cap Cost: 36,026.53
Term 36 months, 10k miles, residual 52%, money factor .00229

Im not sure what the accessories are but I'm not settling for that. But what do you think of the offer?

Seems pretty good to me. Acquisition fee is pure profit to the dealer, maybe the only profit (other than hold-backs) the dealer would be making on this deal. /I would buy-out the lease and refinance with a credit union for around 3%. If you have to keep the monthly cost down, go long on the financing.

 

[Todsulli06]

Great thanks for the feedback. I’m going to pay it off with cash once it gets to kmf. The color of the car is panthera metal. Does anyone have that color just wondering how it looks day to day. I was also looking at a micro blue.

 

[Paul32]

Some dealers ask you to wait 3 months before buying out your lease. You dont need to tell them you intend to buy it. Just lease the car and get the rebate. Once you have the car, you will deal directly with kia finance, not the dealership.

Whatever they lose from you buying your lease, I'm sure they made it back and more from the bonus they get meeting the quota.

Except in Florida. Can't deal with Kia Finance directly.

 

[Paul32]

Not in Jersey lol. I am in Kansas. That particular dealership is in Oklahoma, and yes, said Oklahoma dealership does offer financing with balloon payment attached. You think that financing through Kia with balloon financing and then doing an immediate refinancing through the local union will be a better move?

Quick question to those, who already sat with calculators - is there REALLY a substantial difference between leasing with 0 downpayment and doing a buy-out through a credit union and making the downpayment to the credit union vs throwing all the moneys at the lease and then requesting a lower financing at the credit union? Seems to be that both will net about the same monthly payments in the end of the day.

I think the financing is based on where you live not where you buy the car.

 

[StingEm]

I think the financing is based on where you live not where you buy the car.

I’ve actually seen someone here from Colorado buy a car on a balloon from a dealer in Arkansas, so my impression was that the financing offers from KMF are based on the dealer’s location.

 

[Paul32]

I’ve actually seen someone here from Colorado buy a car on a balloon from a dealer in Arkansas, so my impression was that the financing offers from KMF are based on the dealer’s location.

That would be interesting to verify. I'm a fan of balloon financing over leasing but it's not available in Florida.

 

[Todsulli06]

The car that I'm planning on leasing and then buying out was purchased and returned within a week but it has 1,000 miles on it. Before learning about the mileage and the original purchase the selling price that I had negotiated was $38,750 for a GT AWD with driver assistance. Now knowing it has 1,000 miles and was purchased but not registered and returned, how much off should I try to negotiate off the $38,750. Is $2,000 a good amount? My concern is that it has 1,000 miles and was returned. The dealership said the original purchaser returned it and bought a GT2 because of the options missing. Thanks for any advice.

 

[Paul32]

The car that I'm planning on leasing and then buying out was purchased and returned within a week but it has 1,000 miles on it. Before learning about the mileage and the original purchase the selling price that I had negotiated was $38,750 for a GT AWD with driver assistance. Now knowing it has 1,000 miles and was purchased but not registered and returned, how much off should I try to negotiate off the $38,750. Is $2,000 a good amount? My concern is that it has 1,000 miles and was returned. The dealership said the original purchaser returned it and bought a GT2 because of the options missing. Thanks for any advice.

Sounds reasonable to me.

 

[CaliStinger]

I wanna know how long you guys typically wait to buyout your stingers? Matter of days, weeks, months or years? Or anytime before the 3 year lease is done?

 

[StingEm]

I wanna know how long you guys typically wait to buyout your stingers? Matter of days, weeks, months or years? Or anytime before the 3 year lease is done?

As soon as it hit the KMF website (~3 weeks). I bought it out before the first payment was due.

 

[CaliStinger]

As soon as it hit the KMF website (~3 weeks). I bought it out before the first payment was due.

Damn that's fast you didn't even let kmf breathe hahaha

 

[SilverNitr8]

As soon as it hit the KMF website (~3 weeks). I bought it out before the first payment was due.

3 weeks.... and here I am already checking to see if it's already on their site and it's only been 10 days including weekend.