Lease then Buyout - Contract Explanation

[orangeoranges]

Thanks. Just so im clear, if I do lease buyout right away, the price Im looking at is the balance of 40,846.46 plus taxes and early buyout fees correct?

 

[Lynix]

Thanks. Just so im clear, if I do lease buyout right away, the price Im looking at is the balance of 40,846.46 plus taxes and early buyout fees correct?

i believe so

 

[ZaZ]

What does people think about this deal for gt2?

Market value Selling Price: 54,305
Discount: 4,532
rebate: 10,200
adjusted price: 39,573
doc fee: 399
title fee: 135
acq fee: 650
tax: 89.46

Balance: 40,846.46

Any help would be greatly appreciated! Thanks

I am looking at a similar deal. What were your 2 year payments? I believe residual is 52% for 12k/yr.
Or does anyone know how do you figure out the lease payments using money factor .00196
Because leasehackr and dealer numbers are way off. Guessing they are adding fluff
Thanks in advance

 

[orangeoranges]

My monthly payment is quoted around 664. But I plan to do the buyout method. Google calculate-your-own-lease-payment and click the edmund link


bottom of the page has table and the formulas you need to find your answer.

 

[ZaZ]

Okay, thanks. I'm debating buying out as well. It looks like in some states, you have to go back to the dealer to buy it out. UGH! (more headaches)
Does anyone know if VA or MD can deal direct with Kia? Also, do you have pay additional taxes if registered in VA.

 

[KyleSC]

There is a great lease calculator on leasehackr. com. It's a great site with plenty of useful lease information. New member and can't post links yet.

 

[1macuzer]

Okay, thanks. I'm debating buying out as well. It looks like in some states, you have to go back to the dealer to buy it out. UGH! (more headaches)
Does anyone know if VA or MD can deal direct with Kia? Also, do you have pay additional taxes if registered in VA.

I'm in VA. Reading the DMV website, it looks like we pay all the tax upfront, but the tax can be waived when doing the buyout since it was paid on the full price of the car at the time of leasing. I haven't gone through this process, but that's what the DMV site states for VA.

 

[orangeoranges]

Can anyone tell me if calling KIA rep is necessary or if everything is done online (requesting buyout, get quoted, etc)?

I was just told from the dealer (who knows that a lot of people are leasing then buying out immediately) that your local credit union/bank does all the paperwork for you (title changes, any forms, sends check) and all we do is request the buyout online. He made is sound simple.

Just want to hear from people's experiences if it was actually that easy?

 

[MerlintheMad]

Can anyone tell me if calling KIA rep is necessary or if everything is done online (requesting buyout, get quoted, etc)?

I was just told from the dealer (who knows that a lot of people are leasing then buying out immediately) that your local credit union/bank does all the paperwork for you (title changes, any forms, sends check) and all we do is request the buyout online. He made is sound simple.

Just want to hear from people's experiences if it was actually that easy?

It was for me. I called Kia to make sure I wasn't misunderstanding the process. One phone call, a cheque sent off to HCA, and I had my title in less than a month.

 

[DiabloStinger]

Found a nice wrinkle in Colorado. Only dealers can process the request for the buyout. Even KIA themselves cannot quote a buyout number outside of a simple "pay the rest of your lease" number, which does nothing.
Since i've taken a job that requires 13-15K a year in miles, I need to make a choice. Buying out allows me to keep the car i want and drive the piss out of it. The alternative is a hybrid type of vehicle that is vanilla as you can get and no fun to drive.

 

[Jay B.]

@DiabloStinger Just call around to all the dealerships and see who will process the buyout the cheapest.

I even heard someone did the buyout through a ford dealership, as they had an account with kia finance. I would hope a dealership would not charge more than $300 to process the one page document.

 

[Paul32]

@DiabloStinger Just call around to all the dealerships and see who will process the buyout the cheapest.

I even heard someone did the buyout through a ford dealership, as they had an account with kia finance. I would hope a dealership would not charge more than $300 to process the one page document.

I just went through this in Florida, another state where you have to use a dealer. Plan on paying a dealer fee, title transfer and sales tax. Also, make sure the dealer does not add to the Kia buyout number. I contacted three dealers for quotes. One dealer added $1,000 to the Kia buyout, they have lost my business for life.

 

[Lynix]

I just went through this in Florida, another state where you have to use a dealer. Plan on paying a dealer fee, title transfer and sales tax. Also, make sure the dealer does not add to the Kia buyout number. I contacted three dealers for quotes. One dealer added $1,000 to the Kia buyout, they have lost my business for life.

Hi Paul, I live in Florida and am planning to purchase a stinger in the next month or 2 via lease buyout, can you please tell me who you purchased from and who you did the buyout through?

 

[Paul32]

Hi Paul, I live in Florida and am planning to purchase a stinger in the next month or 2 via lease buyout, can you please tell me who you purchased from and who you did the buyout through?

I leased in Ocala and bought the lease 14 months later in St. Augustine. I do trust St. Augustine, they had the lowest dealer fee and title transfer fees.

 

[DiabloStinger]

Well shiz... hopefully i can at least get some numbers. Otherwise i'll probably just go get a new one. HAHA!

 

[Pnasty]

I just went through this in Florida, another state where you have to use a dealer. Plan on paying a dealer fee, title transfer and sales tax. Also, make sure the dealer does not add to the Kia buyout number. I contacted three dealers for quotes. One dealer added $1,000 to the Kia buyout, they have lost my business for life.

Can the sales tax be rolled into the new loan like usual? Trying to plan this out and make sure the lease buyout makes sense for me vs just financing at 0%... I'm also in florida

 

[Paul32]

Can the sales tax be rolled into the new loan like usual? Trying to plan this out and make sure the lease buyout makes sense for me vs just financing at 0%... I'm also in florida

Yes, I financed the sales tax. Did not add any cash to the lease buyout. Payment turned out to be $40 less than the lease.

 

[Lonz]

I spoke to another Kia dealer yesterday in my area (third one so far), and explained that I want the lease that provides the highest rebate ($10,100 for 24-month lease), so that I can drive down my Adjusted Capital Cost (ACC) as low as possible.

Once again, the conversation went right into questions such as, "What is your monthly budget? How much of a monthly payment can you afford?" I explained to him that I do not have a monthly budget, and that my monthly payments do not matter, and that the only thing I care about is the lowest possible ACC. The salesman was thoroughly confused...

I finally relented and told him that I will be paying off the ACC right away, and thus buying out the lease right away. He said he's never heard of anyone doing that, and also said that everyone would do that if Kia allowed it. WTF? I'm starting to lose faith in these Kia dealers and Kia salesman. How could they not understand this process, and how are they not educated around the fact that Kia absolutely allows this? I do not get it!

I had another dealer tell me that we were $6k off from my offer. My offer was 10% off of MSRP ($53,910), which equates to $5391 off of MSRP, plus $199 doc fee, plus $650 acquisition fee (so $49,368 before rebate), minus the $10,100 rebate for a grand total Adjusted Capital Cost of $39,268. At this ACC price, the dealer said we're $6k off, and said that they cannot sell a $54k vehicle for $39k. Again, WTF? Simple math tells me that by saying we're $6k off, this would mean that they're asking $609 above MSRP ($6000 - $5391 = $609).

Lastly, I had one customer service rep tell me over the phone that we were only $1000 away from making a deal, and that the only way we could close the deal is that if I came into the dealership. So, I reluctantly scheduled the "VIP" appointment, and then did a little more digging on my side, and finally spoke to a real salesperson on the lot, and the salesperson explained that we were actually $3k off, and that they would not be able to do the deal I'm looking for. Again, WTF? I cancelled the appointment.

This is my first time buying a vehicle from Kia, and I must admit, I am not impressed one bit :-(

 

[Rob M]

This is my first time buying a vehicle from Kia, and I must admit, I am not impressed one bit :-(

Kia dealers were historically largely focused in getting people who are otherwise ill-qualified financially into one of their cars. On average, these were people who can't afford, under ever the most creative financing schemes, a Toyota or Honda. Yes, Kia vehicles score well for initial satisfaction and reliability, but they are below industry standards when it comes to customer service. Most of their dealerships are substandard, their financing company still relies on a fax machine, and even the owner's manuals are not translated to English properly, lol. The dealer very likely hasn't heard of your lease buyout tactic because the more popular kias don't come with big lease incentives since they aren't competing with the likes of BMW, Audi, etc. The Stinger is, and Kia is offering big lease incentives to cover high depreciation which would otherwise result in astronomical monthly lease prices (most luxury cars are leased, not purchased). KMF could structure lease contracts to prevent early buyout with just a $300 fee, but they don't. The salesman doesn't understand this strategy because the average Kia buyer (and average car buyer, in general) is not that sophisticated, the generous lease incentive only applies to Kia's highest priced vehicles, and very few Kia customers have cash in hand to do the buyout. If you are going to have to finance the buyout anyway, you are possibly giving up a 0% financing incentive, which erodes some of the savings from the lease. Most sales people aren't going to understand the strategy, but the finance and/or lease manager at any dealership should. Next time, maybe get the salesperson in the same room as the lease manager. Dealer should have no issues negotiating a selling price with you (no guarantee you will get 10% off, but should be able to come close), then subtracting out the $10,100.

 

[patrickatwork]

I'm in the market as well but not seeing 10% off MSRP in any color. Might be due to limited supply in Colorado. Only 11 GT2's are available at 9 Kia dealers. I'm interested in red or blue and there are only 1 of each, almost 2 hours away from me.