Lease then Buyout - Contract Explanation

[Stinger Girl]

Had a dealer offer me 5000 bonus cash on a 2019. Still didn't bring down the price enough for me. Couldn't agree on 46,900 otd for ceramic grey gt2 awd. Will wait til the bonus cash reaches 7700 again for 2019.

Any idea when we can expect to see the $7700 again? I'm also waiting it out.

 

[x4nd3r05]

Any idea when we can expect to see the $7700 again? I'm also waiting it out.

No idea. Im guessing halfway into 2019 at least.

 

[Waynerm002]

I don't think there was any bonus cash that high however, the lease cash was there.

 

[x4nd3r05]

KMF balloon loan sheet uploaded. No 2019 Stingers. List allowable states. Finding most dealers don’t want it or don’t know about it. Dealers are now mini banks who make their money financing 7 year loans.

I don't think there was any bonus cash that high however, the lease cash was there.

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Isn't the bonus cash the same as lease cash when it comes to balloon financing as shown in Jimbeaux's post? However, the dealer I spoke to in New Mexico informed me that they weren't able to apply the $6,500 lease rebate to the balloon financing offer and only offering $5,000 bonus cash through balloon financing.

 

[anselgator]

Hey Guys,

Head spinning, and apologize in advance as I'm sure there is said before (but there are 25 pages of info to comb through).......To do the lease buyout would these be the steps? (I am fine with a 2018 if I can get a better deal)

Step1: Negotiate price of car. (Indicate plan to purchase). Let's say a 52k Gt2 for 49K. Of course you need add to add in tax, dealer fees, etc.
Step2: Tell them you decided to lease, and have them apply lease cash (I think around 9k all in). Making the car 40k.
*****Arrange for financing for the buyout).....I don't have 40k laying around****
Step3: Waiting for KMF to publish buy out numbers. You may have to pay a fee ($300-$400) fee to buy.

A) Am i missing any key info?
B) Any good places to get a good loan? Unfortunately sometimes dealers have the best rates, but if you lease you can't go back and say you want to buy and get the rate.
c) If I want to get end of month deals, when should I contact dealers?
d) What is best way to contact dealers? Email? Calls? I see many 'white w black' if check Kia online inventory.

Or If i'm financing, does this negate the entire point??

Thanks!

 

[MerlintheMad]

If you finance instead of lease, none of this applies. If you get a nice lower rate, say through a credit union, then lease buyout makes sense: if the rate is the same, then all you've done to do the buyout is add an extra (unnecessary) step! Yes, that three-step looks good to me. The most important is number one: make sure the final agreed price is a good one.

 

[twig2121]

I just completed a buyout of our stinger this week. My PSA is that if you live in PA, you will need to add a step to schedule the payoff AT A DEALER. You can't call Kia Finance or mail a check. Furthermore, some slimy dealers either won't process the payoff (York Kia) or will charge a processing fee ($500 Coatesville Kia). I went to Lancaster Kia and they were happy to process without charging a fee; I would recommend them!

 

[PhoenixVaz]

I just completed a buyout of our stinger this week. My PSA is that if you live in PA, you will need to add a step to schedule the payoff AT A DEALER.

Did KMF advise you of this requirement of having to payoff from a dealer?

I wonder if KMF would take a call from a non-customer, and advise them of what the buyout could potentially look like. This could be recommended homework for those considering this purchase option (lease - then buyout), so they understand the headache post acquisition.

 

[ksti]

Has anyone done the lease buyout in New York state, is there double tax?

 

[twig2121]

Did KMF advise you of this requirement of having to payoff from a dealer?

I wonder if KMF would take a call from a non-customer, and advise them of what the buyout could potentially look like. This could be recommended homework for those considering this purchase option (lease - then buyout), so they understand the headache post acquisition.

KMF is actually a third party that services other brands as well (like Ford leases). They couldn't even give me the payoff amount b/c I live in PA. It was more confusing for them since I bought the car in MD. Apparently it's a PA state law so dealers here are used to it...my first lease though.

KMF said I could actually go into any dealership that uses them (like ford, etc.) and use my account# to ...unfortunately I couldn't even get some KIA dealers to process the payoff so I wasn't about to try a Ford dealer, but I liked their optimism.

 

[SanfordStingerGT]

I just did a lease with plan to buy out. I leased a 2019 Gt1 for $440 a month after $4k down. Out the door. It was based on a sales price of $35,900. I’m in centra FL. The dealer experience was pretty pathetic.

 

[Hamburger1971]

Sanford, do you still have the deal sheet? For $35K I'd think about flying to FL or shipping the car to MD. What dealer?

Thanks.

 

[SanfordStingerGT]

Orlando North.

 

[PhoenixVaz]

Orlando North.

Can you zoom out and give the line details? Looks like they combined lease cash with conquest? Everything we are reading says those can't be combined.

Great price!

 

[Hamburger1971]

Thanks! It's that $42k starting price before the discounts, up here they all start at MSRP. Great price!!

 

[SanfordStingerGT]

Per my deal. Side note, currently buying a house all in my name. So the wife was going to sign for the new car. I told them this minute 1. I had an Avalon so they were applying the conquest cash. The 1st deal was on a new 2018 gt1 but it had 1,200 miles for 420 a month and 4K down. So I send her in to sign and they say oh we can’t apply the conquest cash too since she wasn’t on that cars registration. I said ok bye bye I’m only buying at that price and walked out. They phone bombed me all night.

The next day they said I could have the 2019 for $20 more a month. I don’t think they applied conquest they just took 3k off the msrp. I was happy since the 19 added ventilated seats, Qi charging and had not even been dealer inventoried yet vs that played out 18 that all the staff probably flogged so I agreed.

Then we had to fight them over the cost of the tag too. It seems sales does not communicate with finance.

 

[Calsonicgtr]

Is there any truth if a dealer says you need to make three payments before the car can be bought out? I went to talk to a dealer today and the sales guy made mention of this.

Overall a very frustrating experience. What are the numbers I need to be getting to accurately calculate a buyout? This is what my understanding was:
Adjusted Cap Cost: Adjusted MSRP - Rebate - Trade Equity + Taxes and Fees
Money Factor: Dealer told me this number was 0.00246
Residual: How do I calculate this? Right now I have it as 0.5 * Total Purchase Price (before trade).
So if I'm calculating right, my buyout would be Adjusted Cap Cost + Full Tax (which would be Adjusted Cap * Tax Rate correct) + One Month Rent Charge + Lease Purchase Fee of $300. Am I missing anything?

 

[Original Poster]

Read the contract, if it doesn't say anything in there about it then it isn't a requirement. My lease contract had no number of payments that had to be made for buyout. I only made two payments, the initial one that occurs at lease signing and the buyout payment.

 

[woot11]

I have a question..

Say the listing price on Autotrader for a GT2 AWD is $41,078 (arbitrary), do most dealers factor ALL of the rebates in their listings or do I still subtract the lease cash ($6500 in my case) from the listing price?

Is it safe to assume that $41,078 - $6500 and that would be the total negotiated price?

 

[PhoenixVaz]

I have a question..

Say the listing price on Autotrader for a GT2 AWD is $41,078 (arbitrary), do most dealers factor ALL of the rebates in their listings or do I still subtract the lease cash ($6500 in my case) from the listing price?

Is it safe to assume that $41,078 - $6500 and that would be the total negotiated price?

They are all different. You have to read the sites disclaimers.