Lease then Buyout - Contract Explanation

[Sine Qua Non]

I would think a credit score of 780+ should get you the highest leases rebate.
I was helping someone through the lease buyout, and a score of 740 was not cutting it.
I think each time a hard pull on your credit, is about 10 point hit.

So what happened with the guy with 740 score? Was his rebate amount that much lower?

 

[AYip31]

So what happened with the guy with 740 score? Was his rebate amount that much lower?

Correct

 

[Sine Qua Non]

Correct

Less than $5k?

 

[AYip31]

Less than $5k?

Whatever the next tier of lease rebate was.
I think instead of $6,800 was only able to get $5,500
For a GT RWD

 

[ward139]

Ever since I saw my first Stinger, I wanted one.

Ever since I heard about the lease buyout opportunity on a model with rebates, I've been obsessed.

When does a dealer present the Adjusted Cap Cost documentation? I've never gotten that far in a negotiation (mainly because dealers are denying this possibility).

So if I can get a dealer's sales price on a 2020 GT RWD to $29,516 pre TTF and they present paperwork with an Adjusted Cap Cost of $29,516*Tax+Tag, Doc, Acquisition Fee, I could realistically be looking at an Adjusted Cap Cost around $32.3k + Tag, Doc, Acquisition Fee as Final Adjusted Cap/Out the Door Price (minus the fact that I have to finance to get this opportunity)?

Any rough idea on what these line items should be: tag, doc, acquisition fee? What's reasonable, I realize these will vary as will sales tax. (9.45 for New Orleans, LA)

If the intention is to lease and buyout asap, the interest rate is practically negligible, correct?

[I was about to pay $33.7 ttl for a lightly used (<10k miles) '19 GT w/ 3.5years left on the 5yr warranty and no 10yr/100k.....so spending more time looking into this thread has been invaluable. @AYip31 Thanks for your time in this thread, explaining the nuances and proclaiming the good news. The GT RWD in Panthera Metal has me smitten too. Excellent choice!

Just make sure the lease document's sections 9, 22D, 23B still allow the lease buyout is what I'm hearing. Help and hand holding appreciated. Hoping to get this done this weekend or sooner and be part of the Stinger family.

If anyone has an Adjusted Cap/Final Document available, I'd love to be familiar with it before being overwhelmed in person.

 

[AYip31]

Ever since I saw my first Stinger, I wanted one.

Ever since I heard about the lease buyout opportunity on a model with rebates, I've been obsessed.

When does a dealer present the Adjusted Cap Cost documentation? I've never gotten that far in a negotiation (mainly because dealers are denying this possibility).

So if I can get a dealer's sales price on a 2020 GT RWD to $29,516 pre TTF and they present paperwork with an Adjusted Cap Cost of $29,516*Tax+Tag, Doc, Acquisition Fee, I could realistically be looking at an Adjusted Cap Cost around $32.3k + Tag, Doc, Acquisition Fee as Final Adjusted Cap/Out the Door Price (minus the fact that I have to finance to get this opportunity)?

Any rough idea on what these line items should be: tag, doc, acquisition fee? What's reasonable, I realize these will vary as will sales tax. (9.45 for New Orleans, LA)

If the intention is to lease and buyout asap, the interest rate is practically negligible, correct?

[I was about to pay $33.7 ttl for a lightly used (<10k miles) '19 GT w/ 3.5years left on the 5yr warranty and no 10yr/100k.....so spending more time looking into this thread has been invaluable. @AYip31 Thanks for your time in this thread, explaining the nuances and proclaiming the good news. The GT RWD in Panthera Metal has me smitten too. Excellent choice!

Just make sure the lease document's sections 9, 22D, 23B still allow the lease buyout is what I'm hearing. Help and hand holding appreciated. Hoping to get this done this weekend or sooner and be part of the Stinger family.

If anyone has an Adjusted Cap/Final Document available, I'd love to be familiar with it before being overwhelmed in person.

no problem, glad to help
1st off, what’s your credit score? I think in order to get the best lease rebate, you would need at least 780+

To get to the Adj Cap Cost, it’s when you review the lease agreement, ask the finance manager to show you the Adj Cap Cost if you can’t find it on the lease agreement.
Adj Cap Cost should be equal or close as possible to the final price of the car you and the dealer agreed too.
it’s also this time to review the sections 9, 22D, 23B. As wording on the 1st post of this thread.

im not sure what Tax, tag, and fees costs should be in your state, but if you see any questionable fees, ask questions, dealer has to tell you. If they refuse or give some bs answer, get the manger, gen manager, owner, if still no help, walk!!
Only fees you have to pay is tax, tag, and doc fee
Good info here

buyout the lease ASAP once the info hits KMF.
Interest rate, MF, residual values does not matter, unless you start making lease payments.
Not sure of LA requires you to see a dealership to buyout. If you don’t, just follow KMF buyout instructions

I will review your dealer offer sheet tomorrow. It’s time for me to go to bed. Lol

 

[AYip31]

.

Hey Ward139. Reviewed your GT2 RWD offer sheet.
MSRP is 51,545.
dealer discount $2,489
Lease rebate $8,500

Your barely getting 5% off MSRP.
Try harder to get this down.
Others have say it’s getting harder to get to 10% off, But get 2 or more dealerships Competing, expand your search, 2021 are already on the lots, dealers needs to move 2020.
if dealer do not have the exact trim or Manufacture add on. Just compared the dealer discount against each other.
Try TrueCar or if your a member of Costco, use their car buying service, they both will give a posted dealer discount

I’ve did TrueCar, seen their discount, told them they were only a few hundred dollars off, for me to move forward.
Also to make them seem I’m for real getting a car today if the deal was right, I’ve brought in my 2 sets of keys and the title of the car I’m trading in. Set it right in front of the manger,

the dealer is lying to you. You do not need to pay the total term of the lease payments.
Dont need to wait to buyout or have to make X numbers of lease payments before buying out.
Only the Adj Cap Cost and tax when buying out.

never put any extra money down. Only your trade in, if you have a car to trade in

I interest rate, MF, residual vale, amount of monthly payments does not matter, unless you start making lease payments.

Use this template, it’s basically all the numbers you need.
Must have very good to great credit, I’m thinking 780+
Start at Manufacturer MSRP, do NOT pay for addendum sticker, (dealer MSRP), dealer add on
- 10% dealer discount or as close as possible or more
- lease rebate, ask or lease term, 24 months 12k miles (highest rebate)
- any trade-in
+ tax, tag, doc fees, acq fee (Beware of BS fees, don’t pay them)
= final balance = Adj Cap Cost
Review lease agreement for Adj Cap Cost is equal or close as the final balance.
review sections 9, 22D, 23D
Drive away in your new Stinger. Be careful not to total the car, during the lease period between about to buyout the car.
Buyout once your VIN hits KMF ASAP, do not wait

 

[nagisa]

I'm doing an odd method and curious of any advice.


Got a Gt-line 2021 last month. Final total in the end was about ~31k after taxes due to haggling and a 4500 rebate for doing a lease, ideally doing a lease buyout


Did 9k down so my monthly lease payment is only $60/mo
Buyout amount is currently 21.8k


My question though, if i pay the buy out amount now, am I saving anything? Does it go down by $60 every month as I pay my standard lease payments or does that buyout amount stay the same all the way until the end?


Basically trying to determine if it's worth paying it off now or waiting until after the 2 year lease so my bank account isn't empty in the meantime

 

[Buzz]

The Money Factor "MF" on the lease is quite high, it's the only way the lease cash made sense for Kia, which makes it a poor lease overall, the only way the lease buyout makes sense is if you buy it out promptly. The 2-3.x% financing you can get on the full price of the nearly new car (many credit unions will finance that car as "New" will always beat the KMF MF lease rate. Multiply your MF by 2,400 to get the APR equivalent, unless your credit is poor financing will beat it.

The MF as it is set means Kia will get back most of your $4500 in interest over the life of the lease unless you buy it out.

 

[Gautam Beri]

Hi everyone, I think I got a nice quote. So wanted to ask what the deal looks like. Am I missing anything? does this deal look okay to travel 8hrs , because I am not getting nowhere near around my area.



Can someone clarify :
1. I have seen someone charging taxes as low as 268 for lease, I guess my dealer is taking the whole tax on this vehicle at one time directly. Is this fine , I mean even if they charge tax on my lease and then I buyout, I still need to pay the remaining taxes.

2. And next thing, the money down is equivalent to taxes, doc fees , prep fees Edge fees and my first month payment fees. So if I buyout , total price on my car now will be 2594 + 40,435 ? or will the monthly payment would be adjusted in my total cap cost after I make that payment.
Can anyone confirm please.

 

[Sine Qua Non]

Hi everyone, I think I got a nice quote. So wanted to ask what the deal looks like. Am I missing anything? does this deal look okay to travel 8hrs , because I am not getting nowhere near around my area.

View attachment 51675

Can someone clarify :
1. I have seen someone charging taxes as low as 268 for lease, I guess my dealer is taking the whole tax on this vehicle at one time directly. Is this fine , I mean even if they charge tax on my lease and then I buyout, I still need to pay the remaining taxes.

2. And next thing, the money down is equivalent to taxes, doc fees , prep fees Edge fees and my first month payment fees. So if I buyout , total price on my car now will be 2594 + 40,435 ? or will the monthly payment would be adjusted in my total cap cost after I make that payment.
Can anyone confirm please.

Vin Edge? You mean vin etching? If yes, get that removed.

 

[AYip31]

Hi everyone, I think I got a nice quote. So wanted to ask what the deal looks like. Am I missing anything? does this deal look okay to travel 8hrs , because I am not getting nowhere near around my area.

View attachment 51675

Can someone clarify :
1. I have seen someone charging taxes as low as 268 for lease, I guess my dealer is taking the whole tax on this vehicle at one time directly. Is this fine , I mean even if they charge tax on my lease and then I buyout, I still need to pay the remaining taxes.

2. And next thing, the money down is equivalent to taxes, doc fees , prep fees Edge fees and my first month payment fees. So if I buyout , total price on my car now will be 2594 + 40,435 ? or will the monthly payment would be adjusted in my total cap cost after I make that payment.
Can anyone confirm please.

3,100 miles driven already!
Only 9% for dealer discount on a demo car, Push for more!
No to the prep fee and no to the VIN edge
Do not put any extra money down beside a trade-in

even if this was a brand new, non demo car deal, it’s only ok deal with the 2 fees; if no 2 fees it’s a good deal

 

[nagisa]

The Money Factor "MF" on the lease is quite high, it's the only way the lease cash made sense for Kia, which makes it a poor lease overall, the only way the lease buyout makes sense is if you buy it out promptly. The 2-3.x% financing you can get on the full price of the nearly new car (many credit unions will finance that car as "New" will always beat the KMF MF lease rate. Multiply your MF by 2,400 to get the APR equivalent, unless your credit is poor financing will beat it.

The MF as it is set means Kia will get back most of your $4500 in interest over the life of the lease unless you buy it out.

ah okay so to clarify, I should just buy it out now then and not wait until the 2 years are up

 

[AYip31]

ah okay so to clarify, I should just buy it out now then and not wait until the 2 years are up

That is correct. Every lease payment you make, reduces your lease rebate

 

[Buzz]

The taxes seems strange, at least in my state that's the amount of taxes I paid when I first bought the car, You aren't buying the lease, KIA Motor Finance is, you shouldn't be paying 2 grand in taxes until YOU buy it (At lease buyout when the the car is for the first time owned by you) but some states are crazy so no idea if that's normal for you. Typically you only pay a use tax of ~5% per lease payment Car Leasing Fees Charges and Taxes Explained - by LeaseGuide.com. YMMV but be informed here so you don't pay 2k again when you buy it out.

3k miles is practically used, in many states it is legally used, some credit unions may take you from "new car" financing on your buyout to used based on this (increasing your interest rate, but all lenders vary, mine had less than 1 year 1000 miles), and they are selling it for 50k + 1,185 in dealer markup? None of those fees are legit, they are just money makers. The idea that selling you a dirty scratched NEW car is an option you pay $287 for, not covered in the already top of market "Dealer Wants Money Fee" Average Dealer Documentation Fees by State Come on.

Don't put any money down on a lease. $0 or first monthly payment. There are many reasons for this, including if you total it right away. All of those BS fees can be rolled into the lease cap cost.

The dealer's cost on this car was $48,804, they are making at least $1736 on this deal, but again, 3.2k miles? I expect 10-300 miles, was the owner of the dealership using this for a year as his grocery getter? How many days on lot? Was it a demo car, driven rough for a year?

You should be deducting at least 20-50 cents per mile (600-1500 dollars IMO, you are closer to needing oil changes, new tires, etc) IMO they should be losing money on this deal due not making 1736, your 40 grand car should be New without any asterisks for them to make a typical profit, were they using this car as a demo to beat up to sell other Stingers?

I would not travel 8 hours for that deal. The only thing saving it is the 8900 KMF is giving to you to lease the car which is applicable nationwide.

I would get them to throw in an oil change if you do buy it (good to get any metal shavings out after the initial break-in period... 2k miles ago)

 

[Sine Qua Non]

The taxes seems strange, at least in my state that's the amount of taxes I paid when I first bought the car, You aren't buying the lease, KIA Motor Finance is, you shouldn't be paying 2 grand in taxes until YOU buy it (At lease buyout when the the car is for the first time owned by you) but some states are crazy so no idea if that's normal for you. Typically you only pay a use tax of ~5% per lease payment Car Leasing Fees Charges and Taxes Explained - by LeaseGuide.com. YMMV but be informed here so you don't pay 2k again when you buy it out.

3k miles is practically used, in many states it is legally used, some credit unions may take you from "new car" financing on your buyout to used based on this (increasing your interest rate, but all lenders vary, mine had less than 1 year 1000 miles), and they are selling it for 50k + 1,185 in dealer markup? None of those fees are legit, they are just money makers. The idea that selling you a dirty scratched NEW car is an option you pay $287 for, not covered in the already top of market "Dealer Wants Money Fee" Average Dealer Documentation Fees by State Come on.

Don't put any money down on a lease. $0 or first monthly payment. There are many reasons for this, including if you total it right away. All of those BS fees can be rolled into the lease cap cost.

The dealer's cost on this car was $48,804, they are making at least $1736 on this deal, but again, 3.2k miles? I expect 10-300 miles, was the owner of the dealership using this for a year as his grocery getter? How many days on lot? Was it a demo car, driven rough for a year?

You should be deducting at least 20-50 cents per mile (600-1500 dollars IMO, you are closer to needing oil changes, new tires, etc) IMO they should be losing money on this deal due not making 1736, your 40 grand car should be New without any asterisks for them to make a typical profit, were they using this car as a demo to beat up to sell other Stingers?

I would not travel 8 hours for that deal. The only thing saving it is the 8900 KMF is giving to you to lease the car which is applicable nationwide.

I would get them to throw in an oil change if you do buy it (good to get any metal shavings out after the initial break-in period... 2k miles ago)

Are you sure about that? The Op says it is a 2019 and Kia’s website only shows offers for 2020 or 2021?

 

[Buzz]

Are you sure about that? The Op says it is a 2019 and Kia’s website only shows offers for 2020 or 2021?

Didn't notice any reference to 2019, I was replying to Gautam Beri, If that quote was for a 2019 invoice was $49,151, but that only would make it a worse deal and no less of a demo car. Days on lot must be through the roof, coupled with the miles and 2021s hitting the market this is when a dealer takes a loss on the car and at least gets volume.

Dealers need to get this car off the lot, they are financing their entire floor plan, this 2019 would be sitting using credit they could use to buy a Telluride or a K5 they can turn over in a week. If it's 2 model years old, 3000 miles, and that's the best they will do, hard pass.

 

[ward139]

$34,079 + tax ($37,300 out the door) w/ a lease buyout sound right for a 2020 GT RWD?

How different states tax the lease hasn't been well covered. (Some states require full sales tax of the entire purchase up front, some require sales tax on the entire lease portion up front, and some require the sales tax to be paid on the leased portion as it's used throughout the lease/included in the lease payment. If you buy in a state that requires sales tax up front (on total/even just the leased portion), and register in a state that has sales tax included in the lease payments, from what I'm reading online, you'll need to pay sales tax again during lease payments.) Just a topic that needs more thorough treatment here.

Also, each state has their own version of the KIA Lease agreement (this may apply to dealer only states). The one I'm looking at has different/extra verbage in the 22C section for sure but seems to confirm what everyone has said about the early buyout (despite hearing horror stories from KIA dealers who spoke to their KIA reps about the buyout on a lease).

I like the car and the warranty. Hoping to pull the trigger in the next few days if possible.

If I buy a used '19 that might be 2years into its 5yrs w/ super low miles, as a second owner, how would I go about purchasing a KIA WRAP (bumper to bumper warranty to 100k miles)? Is that possible through a dealer/KIA directly?

 

[Gautam Beri]

After comments from the community here and thanks to everyone, I think this deal is what looks like the deal I would like. I couldn't get the protection package removed, he removed 2k addendum etc and I tried to find the vehicles with so many dealers and this is the only one who looked to be interested and listen to concerns. I believe I got the deal I wanted.
Do you think am I missing anything? @Buzz and @AYip31 you have been of great help.

 

[AYip31]

After comments from the community here and thanks to everyone, I think this deal is what looks like the deal I would like. I couldn't get the protection package removed, he removed 2k addendum etc and I tried to find the vehicles with so many dealers and this is the only one who looked to be interested and listen to concerns. I believe I got the deal I wanted.
Do you think am I missing anything? @Buzz and @AYip31 you have been of great help.

View attachment 51816

nice. Go for it. At least you tried getting the $625 off.
If you have a trade-in. Fight for fair value. It’s another part dealer can screw you.