Lease then Buyout - Contract Explanation

[TStaino]

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

Nice! I am not to far away. I am in a Granby.. we should meet up once the world gets back to some form of normalcy.

And yes a stinger is a lot bigger than an s3, but still very quick and fun to drive. And just wait til you get a tune into the Stinger.. it will blow that s3 out of the water.

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

Yea I thought that too, but I put 0 down at signing... so I’m guessing KMF somehow messed up and thought a payment was made. I’ll take it!

 

[Larson]

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.

ProsperDad, I'm in your area. Which dealer did you go to and how was your experience?

 

[SimpsonTide985]

Are any of you guys putting anything down upfront on your lease/buyout?

I was thinking of maybe putting down $1500-$2000 just to cover any fees. What's the consensus on this?

 

[TStaino]

Not going to hurt or help to put anything down if you’re doing the lease buyout immediately. Makes no difference at all.

 

[jd284]

Fees have to be paid either way. I lost out on the 19 GT2 i was looking at, apparently someone put a deposit on it. Ort the dealer was just sick of my questions haha

 

[SimpsonTide985]

Not going to hurt or help to put anything down if you’re doing the lease buyout immediately. Makes no difference at all.

Good point there I suppose.

 

[stasek]

Are any of you guys putting anything down upfront on your lease/buyout?

I was thinking of maybe putting down $1500-$2000 just to cover any fees. What's the consensus on this?

The only reason to put down as little as possible is in case you total the car right away, you’re out of that $1500-$2000.

 

[skygtr]

I didn't put any down on my lease buyout, I did have a trade though.

 

[2Slo4u]

I didn’t put anything down on the lease. I did pay a significant amount when I did the buyout and took out a loan at the credit union. Not sure it really matters.

 

[TacoTuesday]

Hey guys, I’m in Indiana (46205) and working out a deal on a 2020 GT2 ceramic silver with MSRP at $54,465.

24 months .00193 55%, $9,500 lease cash + $1,500 loyalty (dealer says they stack, I own 2011 Kia Sorento)

36 months .00186 50%, 7,900 + $1,500

Only dealer fees total to $230 and Kia has $650 acquisition fee. 7% sales tax.

I mean 11k to get me to that adjusted cap cost is flames but the dealer has only discounted the price ~5% to $51,465. I’m going to push for 15% and hopefully they meet me between 10-15%.

Am I doing this right for early lease buyout? Are these good numbers? Should I be asking any other questions?

Test drove yesterday and oh boy, that 0-60 had me go from six to midnight, nahmsayin!?

Thanks for the help!
s/o @quiXilver09 for the YouTube video

 

[MontanaStinger]

Hey guys, I’m in Indiana (46205) and working out a deal on a 2020 GT2 ceramic silver with MSRP at $54,465.

24 months .00193 55%, $9,500 lease cash + $1,500 loyalty (dealer says they stack, I own 2011 Kia Sorento)

36 months .00186 50%, 7,900 + $1,500

Only dealer fees total to $230 and Kia has $650 acquisition fee. 7% sales tax.

I mean 11k to get me to that adjusted cap cost is flames but the dealer has only discounted the price ~5% to $51,465. I’m going to push for 15% and hopefully they meet me between 10-15%.

Am I doing this right for early lease buyout? Are these good numbers? Should I be asking any other questions?

Test drove yesterday and oh boy, that 0-60 had me go from six to midnight, nahmsayin!?

Thanks for the help!
s/o @quiXilver09 for the YouTube video

Let us know about the discount you get. I'm scouring the internet trying to find that information out. The best I've seen was 12%, before incentives, on a 2019 model that had apparently been sitting on the lot for awhile.

 

[TStaino]

Let us know about the discount you get. I'm scouring the internet trying to find that information out. The best I've seen was 12%, before incentives, on a 2019 model that had apparently been sitting on the lot for awhile.

Yea the 15% is sort of an outrageous ask to be honest... I get the whole aim high and meet in the middle concept, but they will probably laugh you out of the room on that’s ask.

The 10-12% is a great deal on 2019 leftover models, so I doubt you’re going to even get that on a 2020 GT2 in the most sought after color the make.

I really can’t say what 2020 models are selling for in terms of % off MSRP, but I know there are threads on here dedicated to “what price did you pay”.

Another thing to keep in mind is the “stacking” of lease incentives and the loyalty program isn’t something that Kia does. Those incentive programs come from the manufacturer, not from the dealer. So maybe the dealer is willing to drop the price another $1500 and call it a loyalty program, but KMF is not paying that.

If you factor in the $1500 on top of the 5% dealer discount, you are at about a 7.75% discount. Again, I really can’t say for sure that is a solid deal because I haven’t done the research on the 2020 selling prices, but it seems pretty reasonable to me.

Good luck, and either way, you’re going to love the car.

 

[TacoTuesday]

Yea the 15% is sort of an outrageous ask to be honest... I get the whole aim high and meet in the middle concept, but they will probably laugh you out of the room on that’s ask.

The 10-12% is a great deal on 2019 leftover models, so I doubt you’re going to even get that on a 2020 GT2 in the most sought after color the make.

I really can’t say what 2020 models are selling for in terms of % off MSRP, but I know there are threads on here dedicated to “what price did you pay”.

Another thing to keep in mind is the “stacking” of lease incentives and the loyalty program isn’t something that Kia does. Those incentive programs come from the manufacturer, not from the dealer. So maybe the dealer is willing to drop the price another $1500 and call it a loyalty program, but KMF is not paying that.

If you factor in the $1500 on top of the 5% dealer discount, you are at about a 7.75% discount. Again, I really can’t say for sure that is a solid deal because I haven’t done the research on the 2020 selling prices, but it seems pretty reasonable to me.

Good luck, and either way, you’re going to love the car.

Yea 15% is pretty outrageous. I coupled that with an Edmunds link showing a suggested price at 15% off but that included $3k in incentives. Fair market says close to 10% off MSRP. He held firm at 5% off, for now.

Still waiting to hear from a couple other places on what we can negotiate on price before I make any decisions. I’d be okay with a GT1 trim level but figure if I’m doing this I may as well go big or go home, and that auto tailgate is bananas.

I didn’t realize where the loyalty discount was coming from, thanks for clarifying that for me!

 

[2Slo4u]

Yea 15% is pretty outrageous. I coupled that with an Edmunds link showing a suggested price at 15% off but that included $3k in incentives. Fair market says close to 10% off MSRP. He held firm at 5% off, for now.

Still waiting to hear from a couple other places on what we can negotiate on price before I make any decisions. I’d be okay with a GT1 trim level but figure if I’m doing this I may as well go big or go home, and that auto tailgate is bananas.

I didn’t realize where the loyalty discount was coming from, thanks for clarifying that for me!

If you are trying to do hard negotiations and plan on doing the lease buyout, you might consider switching tactics and focus on the Adjusted Cap Cost instead of the discount off MSRP. I know when I was doing my deal, the dealer was focusing on the purchase price of the car and wouldn't budge on further discounts. However, when I started talking about the Adjusted Cap Cost being lowered by another xxxx amount, they went for it. The sales manager knew exactly what I was planning on doing as he smiled and asked me flatout if I was planning on doing the lease buyout. This may not work for you but it worked for me and my situation.

 

[TacoTuesday]

If you are trying to do hard negotiations and plan on doing the lease buyout, you might consider switching tactics and focus on the Adjusted Cap Cost instead of the discount off MSRP. I know when I was doing my deal, the dealer was focusing on the purchase price of the car and wouldn't budge on further discounts. However, when I started talking about the Adjusted Cap Cost being lowered by another xxxx amount, they went for it. The sales manager knew exactly what I was planning on doing as he smiled and asked me flatout if I was planning on doing the lease buyout. This may not work for you but it worked for me and my situation.

I made it clear from the beginning that the adjusted cap cost was my concern. I’m not sure if he knows I’m planning on buying out the lease, but he just got back to me.

He will sell at invoice $51,104. He also made it clear that with that discount, lease cash @24 months, and loyalty cash would have me right around 26% off of MSRP.

If he throws in a face mask and some hand sanitizer I’m in.

QUESTION: Before I sign up for the lease, should I reach out to my bank for financing and let them know my plan and what’s going on? This seems like a good idea but just curious how others handled this.

 

[2Slo4u]

I made it clear from the beginning that the adjusted cap cost was my concern. I’m not sure if he knows I’m planning on buying out the lease, but he just got back to me.

He will sell at invoice $51,104. He also made it clear that with that discount, lease cash @24 months, and loyalty cash would have me right around 26% off of MSRP.

If he throws in a face mask and some hand sanitizer I’m in.

QUESTION: Before I sign up for the lease, should I reach out to my bank for financing and let them know my plan and what’s going on? This seems like a good idea but just curious how others handled this.

26% off MSRP sounds reasonable. Although, I'm sure you'll hear from others that you could have done better....haha

I did talk to my CU prior to the lease. They were not phased at all. They just needed the paperwork from Kia.

Here is how the rest of process worked for me:
1. You'll need to wait 5-10 business days for KMF to post the lease to your account.
2. You'll then need to call KMF to get the buyout paperwork
3. You should receive that paperwork by email within 24 hours
4. My CU made me register the car in my state prior to processing the loan
5. Take paperwork along with car registration to your lending source
6. Send in payoff amount
7. Payoff was recorded on the KMF website in 48 hours (2 business days of getting check)
8. Wait 3-4 weeks for title

 

[TacoTuesday]

Yea it’s April 2020 I’m not expecting them to give the vehicle away haha 26% is good with me.

Thanks for the break down @2Slo4u Ill have to reach out to my lender before I move past negotiations.

Has anyone had a problem registering their vehicle due to gov shutdowns? Can I register online? Indiana starts opening back up May 1 so that might not be an issue. I wouldn’t want to get stuck making a couple months of lease payments

 

[2Slo4u]

Yea it’s April 2020 I’m not expecting them to give the vehicle away haha 26% is good with me.

Thanks for the break down @2Slo4u Ill have to reach out to my lender before I move past negotiations.

Has anyone had a problem registering their vehicle due to gov shutdowns? Can I register online? Indiana starts opening back up May 1 so that might not be an issue. I wouldn’t want to get stuck making a couple months of lease payments

I bought my Stinger out of state which required me to go to the gov to register. Your dealership should probably take care of the registration if you are purchasing your vehicle within the state you live.

 

[JaredHasselhoff]

I might just be a little slow or really tired cause ive read a lot of this thread and still dont understand the difference between just finishing the lease or buying it out after a month... if someone could explain it with less confusing language for dummys like me lol. Im a year in my lease so just wondering what my possible options are....