Lease then Buyout - Contract Explanation

[quiXilver09]

Last question. The finance manager said that I will technically be the 2nd owner and the warranty drops to 3yr 36k miles and 5yr/60k powertrain. Is this true? Seems kinda bs since you were the original owner then you just bought out your own lease. Anyone ever heard of this?

 

[Wishful Stingz]

Still don’t quite understand the ballon finance part, being in Ohio would that help me?

Edit: so in Ohio we are taxed the full amount of the lease the day of the lease agreement and also taxed on the buyout price. Anyone local know anyway I can reduce it some? The car is already at the top of my price range. 39k for a GT1 AWD with taxes and fees

 

[Paul32]

Last question. The finance manager said that I will technically be the 2nd owner and the warranty drops to 3yr 36k miles and 5yr/60k powertrain. Is this true? Seems kinda bs since you were the original owner then you just bought out your own lease. Anyone ever heard of this?

Did not happen with me, still have the 100k warranty.

 

[quiXilver09]

Did not happen with me, still have the 100k warranty.

How did you verify it? I think it kinda sounds stupid that they would do that.

 

[Paul32]

How did you verify it? I think it kinda sounds stupid that they would do that.

I believe I was told by the dealer. That's a good question, think I will check it out.

 

[quiXilver09]

I believe I was told by the dealer. That's a good question, think I will check it out.

Ok thanks. Let me know if you do.

 

[Paul32]

Ok thanks. Let me know if you do.

Found this online defining KiA's Warranty:

Original Owner: An Original Owner is defined as the first retail purchaser or lessee of the Kia Vehicle who takes delivery of the Kia Vehicle on its Date of First Service. If the Kia Vehicle was first placed in service as a lease vehicle, and the lessee purchases the vehicle at the end of the lease, the 120 month/100,000 mile Power Train Limited Warranty remains in effect. The Power Train Limited Warranty is not transferable to subsequent owners.

 

[quiXilver09]

Found this online defining KiA's Warranty:

Original Owner: An Original Owner is defined as the first retail purchaser or lessee of the Kia Vehicle who takes delivery of the Kia Vehicle on its Date of First Service. If the Kia Vehicle was first placed in service as a lease vehicle, and the lessee purchases the vehicle at the end of the lease, the 120 month/100,000 mile Power Train Limited Warranty remains in effect. The Power Train Limited Warranty is not transferable to subsequent owners.

Ok, I mean it only makes sense. Thanks!

 

[Tytus]

Im looking to get a micro blue GT 2020 what route do you guys recommend to do? the GT on 24 lease is 7100 and some dealers are offering 4k off sticker. any tips and tricks to get the best deal?

 

[stasek]

Im looking to get a micro blue GT 2020 what route do you guys recommend to do? the GT on 24 lease is 7100 and some dealers are offering 4k off sticker. any tips and tricks to get the best deal?

The GT is a tough one, since it appears (historically) that it gets "weakest" rebate support. It's still probably cheaper to go the lease-buyout route, but the difference is not substantial. Currently you have the $7100 lease cash (plus maybe $1500 loyalty/conquest, if they stack) vs $3K standalone cash (plus the other rebate(s)). Assuming acquisition and buyout fees @ little over $1K), the difference is "only" ~$3K. Plot thickens if you live in one of the states where you get taxed twice (i.e. Texas).

 

[Tytus]

The GT is a tough one, since it appears (historically) that it gets "weakest" rebate support. It's still probably cheaper to go the lease-buyout route, but the difference is not substantial. Currently you have the $7100 lease cash (plus maybe $1500 loyalty/conquest, if they stack) vs $3K standalone cash (plus the other rebate(s)). Assuming acquisition and buyout fees @ little over $1K), the difference is "only" ~$3K. Plot thickens if you live in one of the states where you get taxed twice (i.e. Texas).

I live in Florida. Maybe I should just wait for a gt2 used to get with in my price range.

 

[svargas]

Long time lurker here debating actually jumping into the GT2.
There are a couple 19's left in Cali, AZ, Nevada and New Mex even had one. From what I am seeing the most aggressive they are getting is $35,500 at cap cost before TTL for a lease 24m/10k. Currently there is the 120 deferred (I assume taxes accrue) and 0% for 72 months with 4k rebate, or $5k more money at about 3.9% but still deferred for 4 months. Those others end up at about 47k OTD/ $43k OTD. CU near me finance at 2.79-3.49 for "new" cars, but not sure it is making sense to pull the trigger now or wait a bit longer for shit to hit the fan more with COVID (sorry if that sounds shitty, but the opportunity is striking). Does it seem that that could be discounting deeper than $17k on the lease with incentives? Or are they applying deferment to leases to? Sorry if that was a cluster of confusion.

 

[HDTurbo]

kmfusa.com seems to be down today.

 

[MontanaStinger]

Found this online defining KiA's Warranty:

Original Owner: An Original Owner is defined as the first retail purchaser or lessee of the Kia Vehicle who takes delivery of the Kia Vehicle on its Date of First Service. If the Kia Vehicle was first placed in service as a lease vehicle, and the lessee purchases the vehicle at the end of the lease, the 120 month/100,000 mile Power Train Limited Warranty remains in effect. The Power Train Limited Warranty is not transferable to subsequent owners.

The language "purchases the vehicle at the end of the lease" gives me pause. Can anyone verify that they did indeed get the warranty?

 

[G-395160]

I just bought out me Telluride lease about 8 months into my 24 month lease. Still seems like a good deal especially given how low rates are right now.

 

[ProsperDad]

The language "purchases the vehicle at the end of the lease" gives me pause. Can anyone verify that they did indeed get the warranty?

I did mine as a balloon loan through KMF, not a lease (In Texas we pay full taxes on a lease, so would have had to pay taxwes twice). Still qualified for all of the lease incentives. This way, I was the original owner from day 1.

My dealer was VERY familiar with this to help me avoid the tax man.

Refinanced with my credit union 30 days later.

 

[jd284]

Hey guys, if I plan to buyout immediately, what should i expect to finance? Is it just the adj cost cap? or is it more complicated.

2019 GT2 in CT

Lease 24M

$53,660=msrp

-$4,700 =discount

$48,960=cap

-$12,320=k502 rebate

$36,640 =adj cap

$27,366=51% residual

.00186=factor

$36,640 + $2,326 CT sales tax = $38,966 to be financed

 

[TStaino]

Hey guys, if I plan to buyout immediately, what should i expect to finance? Is it just the adj cost cap? or is it more complicated.

2019 GT2 in CT

Lease 24M

$53,660=msrp

-$4,700 =discount

$48,960=cap

-$12,320=k502 rebate

$36,640 =adj cap

$27,366=51% residual

.00186=factor

$36,640 + $2,326 CT sales tax = $38,966 to be financed

I just completed the lease buyout in CT, and you are correct.. actually, I ended up with a buyout quote that was a few hundred dollars less than adjusted cap + tax + lease buyout fee.

Not sure how that happens, but I’ll take it!

Where about in CT are you from?

 

[jd284]

I just completed the lease buyout in CT, and you are correct.. actually, I ended up with a buyout quote that was a few hundred dollars less than adjusted cap + tax + lease buyout fee.

Not sure how that happens, but I’ll take it!

Where about in CT are you from?

Thanks man! I'm up in Enfield, but go down to Farmington regularly during non covid times. how about you?
I have a 15 S3 now with jb1. Its fun and quick, but a little small. I tried a Gt1 and was impressed with the overall quality and it feels like a bigger s3. They feel comparable in power. I really like the warranty with Kia though. I bought the extended for the s3 and already had to get the tstat and water pump replaced. Apparently those are common issues, but an electronics issue could be pretty costly

 

[stasek]

I just completed the lease buyout in CT, and you are correct.. actually, I ended up with a buyout quote that was a few hundred dollars less than adjusted cap + tax + lease buyout fee.

Not sure how that happens, but I’ll take it!

Where about in CT are you from?

It’s because you probably made at least one payment which brought down the payout by monthly payment - monthly rent charge (interest).