Lease then Buyout - Contract Explanation

[namja]

I have likely made a proper mess of my lease buyout.

I have lived in Missouri for 6 months, but just decided to get my new Missouri license yesterday 1/3.
Therefore, when I leased a GT2 in my old state of Indiana on 12/27 during Christmas trip home and they setup all the paperwork for my old Indiana address.
I just got access to my KMF account and updated address/garage to Missouri.
In order to get my lease buyout it says to contact my Indiana dealer, but if I have moved recently, contact local dealer.
Is this something I have to work with dealers on? Or can I work directly with Kia Finance. I should of researched this a bit more, but I got swayed by incentives and the car...

Currently my payment is higher than what I really planned, as I was gonna lease, get all available incentives, then refinance/buy and put 5k down.

Is it a matter of simply going into my local Kia dealer and working through? I really don't want to give them any opportunities to put any additional fees or greasy car dealer transactions on..

Please help advise what I should do.

UPDATE: I called dealer and they said Kia hasn't paid them for car yet, and once that's complete my buyout info should all be online in a few business days, then I should be able to work buyout..

I'm in a similar debacle.

I lived in California, but moved to Washington ~7 months ago. I already have my Washington license, but traveled down to California and leased a vehicle. Drove it up to Washington.

I went back and forth between the Washington DMV (here it's called DOL - Department of Licensing), and KMF. KMF rep gave me a link to Hyundai Capital Secure Messaging that stated I needed to talk to the DOL and provide account information, VIN, address, etc, along with a list of documents needed by the DOL. So I got all that information from DOL and sent a message back, to which the Titling Department at Hyundai Capital gave an automated reply. Long story short (not really long), I need to wait approx 5 business days before Titling Department sees the information I provided, and I should be good to go register at the DOL.

For you, no need to go to your local dealer. In my situation, the dealer I leased from just needed to send KMF the car information which takes a few business days (maybe more, considering holidays) and then I was able to finally create a KMF account. Unlike you, however, I was immediately able to access my buyout quote.

edit: Although, what I just said was because I was having issues registering my vehicle. Your issue is buyout quote. Have you had any problems with registering your vehicle?

 

[Kurt2112]

Lots of good info here, but can anyone who purchased a car in California tell us the ease of the process and how much they paid vs normal purchase/finance?

I intend to pay off the lease as soon as their websites, paperwork, etc, will allow.

I don’t want to get screwed in double taxes or anything else the dealer doesn’t adequately explain to me that might happen with California DMV etc though.

Dealer offered me $10700 in lease cash off MSRP of $54140 for a GT2 AWD. I think there might be a few more bucks to squeeze out of them though, but I don’t understand all the lease terminology after much brain effort.

 

[stingerbeagle]

I intend to pay off the lease as soon as their websites, paperwork, etc, will allow.

I would actually wait a few weeks to do the buyout based on my experience. I submitted my buyout a few days after, as soon as I had online access, and ended up in a bit of a process deadzone because Kia Finance didn't have the title yet when they processed the buyout. So I had to call in and now they're going to mail it out to me. Not a big deal at all, but the person I spoke to on the phone said that it would have been simpler if I had just waited a few weeks so that Kia Finance already has the title ready to mail to you.

I don’t want to get screwed in double taxes or anything else the dealer doesn’t adequately explain to me that might happen with California DMV etc though.

In California (where I am too) I don't think you can really get screwed with double taxation since we don't pay taxes on the entire car up front on leases. It's a pretty straightforward process.

 

[CVD]

I don't know if I would wait, especially not a few weeks. You want them to process the buyout before your second payment is due. Many people get frustrated with the delay for title and call them, leading to more frustration with the KMF runaround. I was patient and everything came through eventually without a single call to KMF.

 

[stasek]

Tired of reading all the "balloon" threads and responses .

For anyone that did the balloon loan - WHICH lease rebate did you get? It's obvious that the best rebates are on the 24 month lease, so if you want the 24 month lease cash, do you then do the 24 month balloon? I'm trying to get some answers around Chicago, but the salespeople and finance managers are not even familiar with the program and time is of essence, since the supply of remaining '19s is dwindling.

 

[Kossman]

So I did a 24 month lease and have made one payment. I call the dealership to get my lease buyout figure and they told me if I buyout prior to 90 days I would forfeit the lease cash. I said this is the first I have heard of that and they said my sales person should have told me that. Has anyone else heard of this?

 

[stasek]

So I did a 24 month lease and have made one payment. I call the dealership to get my lease buyout figure and they told me if I buyout prior to 90 days I would forfeit the lease cash. I said this is the first I have heard of that and they said my sales person should have told me that. Has anyone else heard of this?

That’s a lie. You should be calling KMF instead of the dealer. Dealers want you to hold off paying off the balance for 3 months because they get a kickback from the captive after 90 days.

 

[Kossman]

That’s a lie. You should be calling KMF instead of the dealer. Dealers want you to hold off paying off the balance for 3 months because they get a kickback from the captive after 90 days.

thanks. I will call kmfusa next.

 

[Adim_x]

thanks. I will call kmfusa next.

I just went through buying my car out. It took about 2w for Kia finance site to have a buyout quote for me. Up until that point, website showed to call my dealer.

 

[Kossman]

I just went through buying my car out. It took about 2w for Kia finance site to have a buyout quote for me. Up until that point, website showed to call my dealer.

I am currently on week 3 and the site shows to call the dealer still. Ugh

 

[DFWStinger]

Hi all
Long time lurker and first time buyer of a Stinger here! Please can you evaluate the deal below and let me know where we may be able to trim this down? I'm not originally from the UK and the wealth of numbers is confusing!

Location is Dallas, Tx if that helps. Looking at the 24 month lease/buyout if possible.

2020 Stinger RWD V6
MSRP $41,355
YOUR PRICE $39,878 MINUS $6,900 = $32,978 +TTL
Monthly payments with $0.00 down is $668
Only thing required is 1st payment due at signing
This is at a 24 month lease.

 

[Sabs]

Hi all
Long time lurker and first time buyer of a Stinger here! Please can you evaluate the deal below and let me know where we may be able to trim this down? I'm not originally from the UK and the wealth of numbers is confusing!

Location is Dallas, Tx if that helps. Looking at the 24 month lease/buyout if possible.

2020 Stinger RWD V6
MSRP $41,355
YOUR PRICE $39,878 MINUS $6,900 = $32,978 +TTL
Monthly payments with $0.00 down is $668
Only thing required is 1st payment due at signing
This is at a 24 month lease.

Here's a guide to reading lease sheets.

I'm not sure how far down you can negotiate on a 2020 since they're so new. On outgoing 2019's, 10% off MSRP was fairly common. Your offer is at about 4% - it's likely at least 7% is doable. That would put it at $38,460 or less, minus the $6,900 lease cash.

On a lease, negotiate on the net/adjusted cap cost. That way it includes all fees aside from tax + lease finance charges (if you're making payments the full term) or lease buyout fee ($300 if you're buying out early).

 

[StingsLikeABee]

Hi all
Long time lurker and first time buyer of a Stinger here! Please can you evaluate the deal below and let me know where we may be able to trim this down? I'm not originally from the UK and the wealth of numbers is confusing!

Location is Dallas, Tx if that helps. Looking at the 24 month lease/buyout if possible.

2020 Stinger RWD V6
MSRP $41,355
YOUR PRICE $39,878 MINUS $6,900 = $32,978 +TTL
Monthly payments with $0.00 down is $668
Only thing required is 1st payment due at signing
This is at a 24 month lease.

Keep in mind that if you want to do a lease buyout you will have to pay double tax due to buying in Texas. See if the dealer offers balloon financing. In terms of the numbers, I think you can do better but not sure by how much as you are going for the newest model year.

 

[puzzling1]

Hello, I am looking for advice/information. I have been in contact with a dealership who has given me the lease numbers and has put the fees (doc prep, first monthly payment, etc) into the DAS. Since I wasn't going to pay any cash down, I thought the entire rebate amount would be the cap cost reduction. And the fees would be rolled into the gross cap cost. The dealership has said that he cannot adjust the lease agreement unless I cover the fees upfront (which I am willing to do). Is he correct that he cannot move the fees into the gross cap cost? And if this matters, I live in CA. Thanks.

 

[namja]

Hello, I am looking for advice/information. I have been in contact with a dealership who has given me the lease numbers and has put the fees (doc prep, first monthly payment, etc) into the DAS. Since I wasn't going to pay any cash down, I thought the entire rebate amount would be the cap cost reduction. And the fees would be rolled into the gross cap cost. The dealership has said that he cannot adjust the lease agreement unless I cover the fees upfront (which I am willing to do). Is he correct that he cannot move the fees into the gross cap cost? And if this matters, I live in CA. Thanks.

What dealership is this? You definitely can. I did $0 DAS: bank fees, first month, etc baked into the total lease agreement (increased my monthly payment). What they did in the calculation on my agreement was pay the bank fees, first month into the cap cost reduction. So if my lease cash was $12K, it was reduced to like $10K.

 

[puzzling1]

What dealership is this? You definitely can. I did $0 DAS: bank fees, first month, etc baked into the total lease agreement (increased my monthly payment). What they did in the calculation on my agreement was pay the bank fees, first month into the cap cost reduction. So if my lease cash was $12K, it was reduced to like $10K.

The dealership is in San Jose. I was surprised by their refusal because when I had been negotiating with a different dealership (in So Cal), they included all the fees in the gross cap and then showed the full lease rebate in the adj cap. But they did this only in email, not in a lease agreement. And the lease contract pdf shown in leasehackr had mentioned that you can roll the fees into the gross cap.

If I did the math correctly, it doesn't look there's much of a cash difference between the two methods. I was just posting to see if I am missing something. I'm afraid that the back and forth with many dealerships for the past few months has made me paranoid.

 

[2Slo4u]

Quick question - has anyone tried to negotiate the Purchase Option Fee from $300 to $0?

 

[Sabs]

Quick question - has anyone tried to negotiate the Purchase Option Fee from $300 to $0?

The fee is charged by Kia Motors Finance, so that would not be negotiable at the dealership.

 

[Revvdmedia]

I have a general question to those familiar with leases. Looking at some paperwork, it seems the freight and PDI is not factored into the "MSRP" which calculates your residual. Looks like the residual is based on MSRP + Options, then the percentage of that. Freight and PDI end up in sale price which works to your disadvantage on payments since it doesn't increase your residual by that proportional amount. Is that correct?? At least for Canada....

 

[fast88fox]

Getting ready to purchase a new 2019 GT1 AWD from a dealer in NC next week and wanted to do the lease buyout trick to get the best price but i wanted to run this by you folks to make sure i understand how this will work.

I got the price on the car down to $40,181 and that does not include taxes or finance fee or anything and the dealer does not realize yet i want to lease it. So i tell the dealer i want to lease this vehicle and then determine what i get for my trade. Say i get 5k for it. I don’t want my payments to high when i get a loan so i need to put say 10k down now when i lease it. They will throw in approximately 7k in lease discount cash. So the balance would be approx 18k.....not including any taxes or stuff like that. I sign the paperwork and leave with my car. I then get a loan for a new car from the bank of my choice and call kia financing in a few weeks and get a payout which should be about 18k. I mail or pay online the balance with the money from my new loan and that is it. Does that make sense? Am i going to be doing this correctly?

Thanks in advance for the help and advice.

Jason