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what to check on a lease buyout

Discussion in 'How to Buy a Kia Stinger' started by Doel, Oct 1, 2018.

  1. Doel

    Doel United States Active Member

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    Location:
    Birmingham, Al.
    I know there's a thread on this, but there's so many comments and I couldn't find exactly what I was looking for when skimming it. I'm looking to do the lease/buyout on a stinger this week and I just wanted to check and make sure I know what to look for to make sure there aren't any markups added on.

    Gross capitalized cost: the price of the car I negotiate the car down to plus all fees
    Capitalized cost reduction: the lease rebate
    Adjusted Capitalized Cost: the negotiated price minus the rebate
    Residual value: Not important for lease buy out
    Depreciation: Not important for lease buy out
    Rent charge: Not important for lease buy out
    Anything about the monthly payment: Not important for lease buy out

    When looking at itemization of gross capitalized cost
    Negotiated price of vehicle: agreed amount
    sales tax
    license, title fees: based on local fees, set amount?
    outstanding lease balance: none
    Dealer documentation/service: How much should this be, 700ish?
    Optional vehicle contract: none
    Optional wear: none
    Acquisition fee: How much should this be? Am I correct that this is the only "Extra" fee you're going to have to pay to do the lease buyout over just a regular purchase, aside from the bit of "rent" you pay in the first monthly payment?

    Thanks!
     
  2. RockTrooper

    RockTrooper United States New Member

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    Interested in this as well.
     
  3. Audible Silence

    Audible Silence United States Active Member

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    All these terms to confuse the customer. It's like listening to a lawyer.
     
  4. twig2121

    twig2121 United States Member

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    I was surprised to find out that PA is one of the few states where you have to do payoff at a dealer to the point where Kia Finance won't even give you the payoff amount. Unfortunately dealers being what they are, some won't even talk to me about doing a payoff, at least one says they charge a $500 "processing fee" for the payoff. I'm talking to some that don't seem to charge the processing fee for payoff...we'll see in the next couple weeks when I do the deed. One won't tell me #s until I come in to the dealer for privacy reasons. What a mess. Fix your dealers Kia!

    It especially bothers me when Kia Finance says I must do payoff at a PA dealer and that ANY dealer should do it, yet some dealers so "no" or don't even return my call.
     
  5. Mnext02

    Mnext02 United States Member

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    Dealer told me today you have to make 6 payments before you can payoff??
     
    • Disagree Disagree x 2
  6. sds144

    sds144 United States Newish Member

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    Twig, let me know what you find out . I'm also in pa and I'd like to do a lease buyout but if there are too many hoops to jump through , I might reconsider
     
  7. Doel

    Doel United States Active Member

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    Location:
    Birmingham, Al.
    I decided to not do the lease buyout, for me the conquest discount and finance incentives actually gave me a lower price. The only way the lease buyout is going to be cheaper for anyone right now is if they don't need to finance any or much of the car, or if they have outside financing around 0-1%, or if they can't get the loyalty or conquest discount.

    These are my numbers on a GT1, these interest rates require an excellent credit score
    Selling price $40,340
    Dealer service charge: $599
    Tax: $1,630
    Money down: $5,000

    With the conquest rebate and finance incentive
    -$3,000 Conquest Rebate
    Financing $34,569 @ 0% APR for 66 months
    All in price of $39,569 /w a $524 monthly payment

    With the lease buyout and the best outside financing I could find
    $-6,000 Lease Rebate
    $+700 for acquisition fee and "rental charge" for first month
    Financing $32,269 @ 2.75% APR for 63 months
    All in price of $39,713 /w a $551 monthly payment

    Prices are really close but just doing the financing saves a little money, lower payment, and far less hassle. If you can put down more than $10,000 the lease buyout will start to look more attractive. If you can buy the car outright without financing, the lease buyout will save you around $2,300 on a GT1.
     
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