Lease then Buyout - Contract Explanation

[OhioStateStinger]

Hi! I’m looking to buy a GT2 and was interested in this lease and buy out option. I’m new to leasing a car and had questions if this price sheet is good. I’m looking to negotiate the cap price down a little lower, but wanted feedback from anyone. Thanks in advance.

I would have them separate the rebates / dealer discount. I think you may have some more room there. Edit* I see the 7200 at the bottom, which means you are getting a $2,700 dealer discount. I would try to at least get them to 4k.

Also the buyout is not the residual. It will be your final cap cost minus any down payment you make. However if this is Findlay Ohio you will also have tax added in to that buyout amount.

The other item when looking to do the buyout is that your our best cap reduction would be a 24 month lease. It will have the largest amount of lease cash available to you. Somewhere near 10k (not sure of the latest).

High level deal:
52k
-10k rebate
-4k dealer discount
+ tax
Ballpark of a 42/43k buyout amount.

 

[AYip31]

Hello Stinger Family!!

Finally an official member
I’m in Florida. I did the lease buyout.
Final buyout price. $31,583.62
2020 Stinger GT RWD Panthera Metal

I’ve completely read every single post on another forum. “Lease than buyout, contract explanation”

Also watched the YouTube video on “how to perform lease than buyout on Kia stinger” I’ve watched it like 5-6 times

Shout outs to Mach_Tuck and other forum members and Quixilver09 from the YouTube video

Dealership Friendly Kia in New Port Richey, Florida.
Sales person Hameed Saeedi
Sales Manger Carl Joyner
MSRP $40,685
Dealer MSRP $42,580. (Addendum, Bump, Mark Up, Rip Off sticker) whatever you want to call it
Invoice $37,052
I was shooting for 10% off for dealer discount off MSRP
($40,685 * 90% = $36,616.5) ($435.5 under invoice!!)
Then $7,100 off for lease rebate
So my price is $29,516.50. before trade-in, tax, tag, and fees, is what I’ve wanted.
Dealer was not taking off the $1,895 rip off sticker
I told them not paying the additional $1,895 rip off
dealer yada yada every dealer has one.
Told them the price they need to be at before trade-in, T,T,F. In order to move forward ($29,516.50)

So dealer came back with:
MSRP $42,580
Dealer discount $4,972
Rebate $8,100
For a price of $29,508!! Great!!

Trade-in my car $2750, initially they only wanted to give $2,000 for trade-in
= $26,758
+ $2,496.44 in Tax, Tag, doc fee, acq fee
= $29,254.44 total balance = Adj Cap Cost

4 days later, got email from KMF.
Login verified VIN. Click buy out, of course in FL must contact dealership to buyout

My buyout amount from KMF was actually a little less then Adj Cap Cost.
At this point, I’ve have not put a penny down nor made any lease payment
$28,968.37 KMF buyout

Dealership to buyout
Regal Kia in LakeLand
By for the lowest Final buyout price, no dealer doc fee for the buyout!!!
After Tax, tag, final buyout price $31,583.62

Definitely shop around when getting your final buyout price.

Most dealerships were quoting me around $32,200, as high as $34,000!!

Dealership could not even come close to my credit union interest rate
Put down $5,000 on credit card (max allowed until dealership start charging a card fee)
Got $75 back in credit card cash back. LOL!!

Protip!
Do TureCar
And keep the texts that TureCar gives you for the dealerships.
As dealerships add to their inventory.
Your text link will still work, update with their inventory and dealer discount
My example: Friendly Kia did not have any V6 stingers, one day just checking their website, one popped up and show their dealer discount.
Their own Friendly Kia website, dealer discount was not as low, compared to TrueCar dealer discount for the same dealer.
They were only a few hundred dollars off, from my price. Shoot them a call to wheel and deal.

During my hunt, most dealer were only giving 8% off

Doing a lease buyout is definitely better deal if not in a state, were your required to go through a dealership or go for the GT2 with the bigger lease rebate.

But I didn’t want to spend that much. Nor do I need the extra tech in the GT1 or GT2

Only thing would have been nice, would be the cooled seats

Hope this help you all out
Happy hunting!!

 

[fc528e]

Hello Stinger Family!!

Finally an official member
I’m in Florida. I did the lease buyout.
Final buyout price. $31,583.62
2020 Stinger GT RWD Panthera Metal

I’ve completely read every single post on another forum. “Lease than buyout, contract explanation”

Also watched the YouTube video on “how to perform lease than buyout on Kia stinger” I’ve watched it like 5-6 times

Shout outs to Mach_Tuck and other forum members and Quixilver09 from the YouTube video

Dealership Friendly Kia in New Port Richey, Florida.
Sales person Hameed Saeedi
Sales Manger Carl Joyner
MSRP $40,685
Dealer MSRP $42,580. (Addendum, Bump, Mark Up, Rip Off sticker) whatever you want to call it
Invoice $37,052
I was shooting for 10% off for dealer discount off MSRP
($40,685 * 90% = $36,616.5) ($435.5 under invoice!!)
Then $7,100 off for lease rebate
So my price is $29,516.50. before trade-in, tax, tag, and fees, is what I’ve wanted.
Dealer was not taking off the $1,895 rip off sticker
I told them not paying the additional $1,895 rip off
dealer yada yada every dealer has one.
Told them the price they need to be at before trade-in, T,T,F. In order to move forward ($29,516.50)

So dealer came back with:
MSRP $42,580
Dealer discount $4,972
Rebate $8,100
For a price of $29,508!! Great!!

Trade-in my car $2750, initially they only wanted to give $2,000 for trade-in
= $26,758
+ $2,496.44 in Tax, Tag, doc fee, acq fee
= $29,254.44 total balance = Adj Cap Cost

4 days later, got email from KMF.
Login verified VIN. Click buy out, of course in FL must contact dealership to buyout

My buyout amount from KMF was actually a little less then Adj Cap Cost.
At this point, I’ve have not put a penny down nor made any lease payment
$28,968.37 KMF buyout

Dealership to buyout
Regal Kia in LakeLand
By for the lowest Final buyout price, no dealer doc fee for the buyout!!!
After Tax, tag, final buyout price $31,583.62

Definitely shop around when getting your final buyout price.

Most dealerships were quoting me around $32,200, as high as $34,000!!

Dealership could not even come close to my credit union interest rate
Put down $5,000 on credit card (max allowed until dealership start charging a card fee)
Got $75 back in credit card cash back. LOL!!

Protip!
Do TureCar
And keep the texts that TureCar gives you for the dealerships.
As dealerships add to their inventory.
Your text link will still work, update with their inventory and dealer discount
My example: Friendly Kia did not have any V6 stingers, one day just checking their website, one popped up and show their dealer discount.
Their own Friendly Kia website, dealer discount was not as low, compared to TrueCar dealer discount for the same dealer.
They were only a few hundred dollars off, from my price. Shoot them a call to wheel and deal.

During my hunt, most dealer were only giving 8% off

Doing a lease buyout is definitely better deal if not in a state, were your required to go through a dealership or go for the GT2 with the bigger lease rebate.

But I didn’t want to spend that much. Nor do I need the extra tech in the GT1 or GT2

Only thing would have been nice, would be the cooled seats

Hope this help you all out
Happy hunting!!

Thanks for the astoundingly well done write up! Love the deal you fought for, and sounds like you really got one.

HUGE shout out for the CC cash back pull; didn't even think of doing this but certainly should have. I salivate at being able to throw a multiple thousand dollar purchase on a CC for the cash back to pay it off as soon as it posts.

 

[nitlion77]

I have a question for you all. I'm doing the lease/buyout option and while I was able to signup on kmfusa.com and see my information and payment info. The buyout number says $0 and to contact my dealer. I contacted KMF and the dealership and both said they couldn't find my account in their system. Is this normal? Its been about 2 weeks and while I've had access for over a week, the buyout page hasn't changed yet. Just looking for some clarification since I haven't noticed anyone having this problem.

Thanks!

 

[MerlintheMad]

Its been about 2 weeks

It takes longer, but not much. Patience (Grasshopper).

 

[AYip31]

I have a question for you all. I'm doing the lease/buyout option and while I was able to signup on kmfusa.com and see my information and payment info. The buyout number says $0 and to contact my dealer. I contacted KMF and the dealership and both said they couldn't find my account in their system. Is this normal? Its been about 2 weeks and while I've had access for over a week, the buyout page hasn't changed yet. Just looking for some clarification since I haven't noticed anyone having this problem.

Thanks!

From all the post I’ve read. It could take a little bit to show up.
I got lucky, in 4 days after leasing, I was able to contact the dealership for my buyout amount
Good luck hopes it come quick for you

 

[leono980]

I would have them separate the rebates / dealer discount. I think you may have some more room there. Edit* I see the 7200 at the bottom, which means you are getting a $2,700 dealer discount. I would try to at least get them to 4k.

Also the buyout is not the residual. It will be your final cap cost minus any down payment you make. However if this is Findlay Ohio you will also have tax added in to that buyout amount.

The other item when looking to do the buyout is that your our best cap reduction would be a 24 month lease. It will have the largest amount of lease cash available to you. Somewhere near 10k (not sure of the latest).

High level deal:
52k
-10k rebate
-4k dealer discount
+ tax
Ballpark of a 42/43k buyout amount.

Thanks for the tips!! I went back to the dealership today and got an adjusted cap cost with the 24 month lease option. How does this look?

 

[OhioStateStinger]

Thanks for the tips!! I went back to the dealership today and got an adjusted cap cost with the 24 month lease option. How does this look?

I think you are in the ballpark now.
The 4.3k dealer discount before rebate is way more in line.
The $788 Worry Free fee is something you may want to review.

If I am reading that correctly, you are sitting on 40k+tax+fees as your buyout. So just shy of 44k.

How have you other GT2 owners fared on buyouts after taxes. Does this math seem to be matching up?

 

[AYip31]

Thanks for the tips!! I went back to the dealership today and got an adjusted cap cost with the 24 month lease option. How does this look?

you might be able to do better, looks like your only getting 8% off MSRP, $13,250 in dealer discount + lease rebate (least rebate is $9,000), $13,250 - $9,000= $4,250 is dealer discount
$4,250/$52,515= 8%
try for $5,251.50 off MSRP, or least as close to it
so total discount should be around $14,251.5 before trade-in, Tax, Tag, Fee, and Acq Fee
and yes, try to get the $788 worry free fee off!!
dont put any additional money down, only your trade-in

got back to my post #1122 for the deal I got

 

[Lonz]

and yes, try to get the $788 worry free fee off!!

Agreed! I'd tell them you don't mind worrying, and to go ahead and remove it.

 

[JAYRROD]

Hi Everyone,

Quick question: When you are doing a lease then buyout and you are trading in your current car, does the trade-in car value get taken off the adjusted cap cost? Just trying to understand how to get that adjusted cap cost as low as possible and understand how a trade-in fits into the picture. Thanks!

 

[AYip31]

Hi Everyone,

Quick question: When you are doing a lease then buyout and you are trading in your current car, does the trade-in car value get taken off the adjusted cap cost? Just trying to understand how to get that adjusted cap cost as low as possible and understand how a trade-in fits into the picture. Thanks!

your trade-in is part of the deal
Adj Cap Cost is your final cost of the deal
Please read my post #1122

 

[donalric]

Just got my stinger gt2 as well but decided to sell my current car privately. Does anyone know the best option to put the cash from the sale towards the buyout? Does KMF allow two forms of payment (cash + finance check). I called my credit union and they said I would need to pay the down payment to the principal of my current loan. I explained it was a lease not a loan but they still wouldn’t be able to take the down payment.

 

[OhioStateStinger]

Just got my stinger gt2 as well but decided to sell my current car privately. Does anyone know the best option to put the cash from the sale towards the buyout? Does KMF allow two forms of payment (cash + finance check). I called my credit union and they said I would need to pay the down payment to the principal of my current loan. I explained it was a lease not a loan but they still wouldn’t be able to take the down payment.

You can still "pay ahead" on the lease in the amount of your down payment. Your buyout will decrease accordingly and you can still buy it out.

 

[AYip31]

Just got my stinger gt2 as well but decided to sell my current car privately. Does anyone know the best option to put the cash from the sale towards the buyout? Does KMF allow two forms of payment (cash + finance check). I called my credit union and they said I would need to pay the down payment to the principal of my current loan. I explained it was a lease not a loan but they still wouldn’t be able to take the down payment.

not sure
I’m in Florida, one of the states that has to go through a dealership to buyout the lease

For you, I would imagine:
1. Like you said 2 forms of payment. Or
2. Finance the whole amount through the credit union, then when the 1st payment is due, just send the “down payment” towards principal

 

[Dina Autry2q]

We are looking at a lease buyout deal for GT2 AWD. The deal that the dealer sent me used the 9400.00 rebate as doen payment. That increases my adj cap cost. But will I get my down pmt deducted from my cost at buy out? Or should I just insist that the rebate comes off the purchase price and not used as down payment?
TIA,
Dina and The Hubs

 

[donalric]

We are looking at a lease buyout deal for GT2 AWD. The deal that the dealer sent me used the 9400.00 rebate as doen payment. That increases my adj cap cost. But will I get my down pmt deducted from my cost at buy out? Or should I just insist that the rebate comes off the purchase price and not used as down payment?
TIA,
Dina and The Hubs

I think the money down depends on your credit situation. I didn’t need to put money down to lease so a majority of the rebate went towards the cap cost. They did use some to put the dealer fees though. Since this is something I’d have to pay regardless I didn’t mind (either pay up front in cash or pay later with the higher cap cost since they use some of the rebate). Here are the numbers for my deal if this helps. I also got the 2020 gt2 awd only extras were ceramic silver pain and car mats.

 

[AYip31]

I’m not sure.
But I know what matters in a lease buyout, as long as your agreed to final balance. Is also your Adjusted Cap cost.
I would not put any money down when leasing, only a trade-in.
Put the money down when going to buyout or when making your 1st payment after the buyout

 

[Dina Autry2q]

I think the money down depends on your credit situation. I didn’t need to put money down to lease so a majority of the rebate went towards the cap cost. They did use some to put the dealer fees though. Since this is something I’d have to pay regardless I didn’t mind (either pay up front in cash or pay later with the higher cap cost since they use some of the rebate). Here are the numbers for my deal if this helps. I also got the 2020 gt2 awd only extras were ceramic silver pain and car mats.

Seeing your numbers helps! Thank you!
We do have top tier credit. The numbers he gave me were prior to any credit checks.

 

[Dina Autry2q]

I’m not sure.
But I know what matters in a lease buyout, as long as your agreed to final balance. Is also your Adjusted Cap cost.
I would not put any money down when leasing, only a trade-in.
Put the money down when going to buyout or when making your 1st payment after the buyout

Yes Agreed! He just shuffled the lease rebate into a downpayment. Presumably to make a more attractive payment (which he doesnt understand, is not important to us).
I'm just wondering if I get the down payment subtracted from the final payoff amount at the time that I buy out the lease. If so, it doesnt matter where he puts the rebate. But if it is NOT and I lose part or all of that rebate money, then I have to insist that he take the rebate off the adjusted cap cost. Is that clear as mud? I hope I have made some sense at least lol