Lease then Buyout - Contract Explanation

[StevenEll]

What was your Net Capital Cost on the lease contract? Also, what is sales tax in your state?

I'm in Arizona, the sales tax is 5.6%. I'll check the net capital cost when I get home.

 

[BigBallin]

Just to be sure I understood you correctly, you are saying you Net Cap Cost (or adjusted cap cost) was 43xxx... and your buy out quote is 43xxx + 300?

I may not be understanding. Here’s what I got. I do know I may have screwed my self buying out of state due to tax and how Nebraska has so many fees and a high property tax on vehicles.

 

[TStaino]

Thanks Steven.

BigBallin - do you still have your actual lease agreement? The paper that’s like 5 feet long. Look at that and you will see a line that says net capital cost.

I’m on the way home and will take a picture of mine as an example.

 

[TStaino]

So my ACC is 39,541.40... which if god still loves me... my buy out should be 39,541.40 + 6.35% CT sales tax + 300 buy out fee = 42,352.28

 

[BigBallin]

View attachment 38823 View attachment 38824

So my ACC is 39,541.40... which if god still loves me... my buy out should be 39,541.40 + 6.35% CT sales tax + 300 buy out fee = 42,352.28

Yup same as mine. My buyout is my acc

 

[TStaino]

Thank god... I almost had a heart attack when I read yours and @StevenEll post about your buy out being higher than expected... I was thinking the “system maintenance” that KMF website was going through this weekend was to fix this lease buy out loophole.

I signed on Saturday, so I’m anxiously awaiting my lease to show up in their system so I can process the buy out.

 

[StingaGT]

FYI for potential buyers, 2019 lease incentives for GT2 AWD dropped from $12,200 for January and Febraury to $12,100 for March. Looks like the incentives peaked for 2019 leftover models.

Where do you find this information?
I used to be able to find it at the end of "build your own" section.

 

[stasek]

Where do you find this information?
I used to be able to find it at the end of "build your own" section.

Autobytel ->incentives is the quickest way.

 

[BigBallin]

Thank god... I almost had a heart attack when I read yours and @StevenEll post about your buy out being higher than expected... I was thinking the “system maintenance” that KMF website was going through this weekend was to fix this lease buy out loophole.

I signed on Saturday, so I’m anxiously awaiting my lease to show up in their system so I can process the buy out.

From what I was told by dmv today , to make sure you don’t lose any money, you should license the vehicle first, and then buyout. Doing a buyout is like buying it all over again. So you’ll you have to pay tax, again.

 

[Bmt134]

Where do you find this information?
I used to be able to find it at the end of "build your own" section.

2019 Kia Stinger Incentives and Rebates | Autobytel.com

 

[TStaino]

From what I was told by dmv today , to make sure you don’t lose any money, you should license the vehicle first, and then buyout. Doing a buyout is like buying it all over again. So you’ll you have to pay tax, again.

I did not pay any tax at all on the lease. Only tax I will pay is on the buy out.

 

[BigBallin]

I did not pay any tax at all on the lease. Only tax I will pay is on the buy out.

Always tax on the lease. You pre pay it

 

[TStaino]

Nope not in my case. They said because I traded in a car, I didn’t have to pay sales/use tax.

And the tax on a lease works different depending on the state. Some states you pay tax in each monthly payment, some states you pay the tax on all of the lease payments upfront, some states you have to pay tax on the sale price of the car upfront.

Take a look at my lease agreement again... “monthly sales/use tax” is “N/A”.

 

[StevenEll]

Alright so it was definitely just the tax I was missing. For some reason I thought I already paid it but there is a big N/A in the tax column. So with my 37,285 net capital cost and 6.3% sales tax in Maricopa County, plus 300 lease fee I end up within $100 of the buyout that was quoted. Thanks for your help!

 

[TStaino]

Nice! Sounds like you got a great deal!

 

[quiXilver09]

Hey guys! Got a great deal on my 19' Stinger GT2! 7k off MSRP and the $11,920 in rebates! Mind you they had $1,795 in accessories they wouldn't take off so they just discounted the price more. Either way, when do I know "it's ready" to do the buyout? I just created my account on Kia Motors Finance site so I guess everything is in their system. Does that mean I can do the buyout?

 

[2Slo4u]

If you were able to setup the account you are good. You just need to click on the buyout tab and it’ll give you the total.

 

[quiXilver09]

Ok, I'm real scared right now. I just called Kia Finance and they said they can't give me the buyout information that I have to contact the dealer to purchase it through them since I'm in FL. Did I just completely get screwed?

 

[TehYeti]

Ok, I'm real scared right now. I just called Kia Finance and they said they can't give me the buyout information that I have to contact the dealer to purchase it through them since I'm in FL. Did I just completely get screwed?

No. Read back through this thread, I remember seeing this is how things work in FL. I also remember seeing you might be able to go to any dealer in FL for this. (If yours is giving you a hard time, or tacking on exorbitant fees)

 

[Paul32]

No. Read back through this thread, I remember seeing this is how things work in FL. I also remember seeing you might be able to go to any dealer in FL for this. (If yours is giving you a hard time, or tacking on exorbitant fees)

I bought out my lease in Florida. Get a quote from several dealers, they will charge you their dealer fee and tax and title transfer. The best deal I received was in St. Augustine, Fl.