Lease then Buyout - Complete Experience/Explanation

[AdamJ]

tell kia you're going to file a criminal theft report with the police for stolen $31000. during the discovery process the sole individual responsible for the theft will be identified, and they will enjoy felony charges.

Not a bad idea if this doesn't get resolved soon.

 

[AdamJ]

Iirc, my KMF buyout information did not show until just before I got the title in the mail. I'm thinking that all at once is how the online information gets updated; not step by step. And I doubt that anyone on the KMF side can look online and get more information than what has been updated on your account. I mean, where would they go to find out? A higher up might, but why would our case get "escalated" to talk to someone higher than a phone flunky? That's what phone flunkies are for: a screen between the upper management and the ravening horde of clamorous customers.

My buyout payment was finally credited to my KMF account this week, took almost a month. I'm very relieved though.

 

[usagi]

looks like lease cash deals are gone now?

 

[orangeoranges]

Bringing this thread back from the dead. Not sure if this was answered...

By using the details provided, assuming you got the loan approved for ~45000 dollars... Just curious, what if you wanted to do a 10k down payment? Do you write a separate check to KIA or write that check to your Credit Union/Loan provider?

 

[Ruturaj]

Bringing this thread back from the dead. Not sure if this was answered...

By using the details provided, assuming you got the loan approved for ~45000 dollars... Just curious, what if you wanted to do a 10k down payment? Do you write a separate check to KIA or write that check to your Credit Union/Loan provider?

Write it down to your credit union.

 

[Mike P]

Hi All,

Just finished, well finishing my buyout today with KMF.

Here is a summary of the process from dealer to done.

I leased my GT2 RWD Limited on 3/6 using the lease cash benefit of $6700.

The lease cash was used to "front" the first month payment (723), tax on lease cash (348), title and registration (840) and criminal dealer doc fee (489). This brings the capital cost reduction to 4300 )(lease cash - upfront fees). I chose this so that i didnt have to put any money upfront for the car...would rather keep funds liquid and invested.

MSRP - 50175
Purchase Price - 48074 (47574 invoice + 500 tint)
Lease Fee + Serv Contract - 1086 (650 + 436)
Gross Cap Cost - 49160 (48074 + 1086)
Cap Cost Reduction 4300 (see above for breakdown)
Adjusted Cap Cost - 44860 (49160 - 4300)
Residual - 26091 (really doesnt matter since i was purchasing)
Depreciation/Amortization - 18769 ( 44860 - 26091)
Rent - 5338 (Adj Cap Cost + Residual * Money Factor)
Base Monthly Payment - 669 (Dep/Amortization + Rent)/Lease Term
Monthly Sales Tax - 57 (AZ taxes leases only on use and NOT full amount) (Base * Tax Rate)
Total Monly Payment - 726 (this is slightly higher than normal since i elected to use the lease cash for the upfront fees not associated with the actual purchase price of the car.)

My account became active on KMF approx 10 business days later. Navigate to the "buyout quote" screen and see the following:
BUYOUT AMOUNT - 48,460 (Adjusted Cap Cost * Tax Rate)(NOTE: this tax rate is slightly lower than above as AZ use tax is based on garaged address and actual purchase sales tax is based on dealer address) In AZ, for the buyout, you pay the sales tax on the buyout amount. This may NOT be the case in all states. Its up to you to understand tax liability in your situation.

Since i had not made any other payments, the Adj Cap Cost was equal to the Adj Lease Balance per Section 22D of the lease agreement. Also worth noting is that there was no "purchase option fee" listed in Section 9 so the buyout amount was straight forward.

Went through local Credit Union to secure financing (60 month at 2.49%) and sent the check in to the Kia Overnight Buyout address. I had to wait until the official registration showed up so the buyout check arrived 1 day prior to my next lease payment on 4/6. I also had to fax, yes fax, the odometer disclosure statement in as they dont/wont accept a scanned email...really? Kia does not offer any proration of the buyout amount based on when the check gets there. This sucks as you then have to pay the entire month of "rent" even if pay it off one day after the lease payment is due. My suggestion would be to time the arrival as close to lease payment due date as possible since Kia is covering the GAP until that point.

I wish it ended here...come to find out, Kia decided to NOT apply the 48460 as a buyout but instead just applied it against future payments. A few phone calls later and it appears to be sorting itself out.

Total cost to own, after financing + credit union GAP of $399, comes to approx 52000. I will pay down the loan faster than scheduled to reduce the finance charge so as to reduce the overall cost closer to 51000 when all said and done.

As a comparison, purchasing the vehicle outright, using KMF to finance @ 0.9 (remember in Mar it is/was 0.9 or 750 Bonus cash, not both) would have cost...
49839...48074(purchase price) + 1765 (doc, title, reg, serv contract)
plus tax = 53875 + finance at 0.9 = 55100.

So, if i dont pay down my CU loan, i will have saved $3100. If i pay down the CU loan faster, i will have saved closer to 4000-4500. Either amount is certainly worth the extra few steps IMO. That variance will easily cover my Clear Bra, and Borla Exhaust for sure with some leftovers for other goodies as well.

I will add that multiple people at dealer and KMF could not cogently explain this process so please dont rely on what they say. In another post, I explained exactly how this works based on the actual sections of the lease agreement and have completed the process verbatim to that explanation.

Cheers

Bit of a specific question here. How did you all handle your license stuff? Just signed lease paperwork last week and I’m wondering if I should wait to go to my branch until after lease buyout or is that something I will not have to “do again” if I go now? I want to make sure I avoid paying anything twice if I don’t have to (temp plate is good for 45 days). I am in IN if that makes a diff.
Thanks!

 

[MerlintheMad]

Dealer handled the licensing. They transferred my personalized plate. The paperwork and stickers arrived in the mail c. a month later. Meanwhile, I got tired of waiting and put my rear plate on: so I was driving around with both the temp paper tag in the rear window and my unstickered plate at the same time. The cop who pulled me over in TX on I-40 (and issued a warning for 15 above) asked about why I was driving on a plate that isn't registered to the car: and I told him it is in the process of being registered to the car: he seemed okay with that.

 

[orangeoranges]

update for those interested:

Its been a month since I bought the GT2 and have done the lease buyout through AAA where they were able to get me working with a Credit Union. Kia received the check that the CU sent to them and I called to confirm that they did (~1.5 weeks ago). They also mentioned that I should be receiving a bill of sale soon (MA requires before title release).

Heres the thing, I just called today asking where it is and they said they never sent the bill of sale out! They said they will "expedite the shipping to 2-3 days". So now its a game of cat and mouse, blowing in their ear hole, and breathing on their neck.

I questioned the Rep as to why there are discrepancies between what his peer said versus him. He was quick to respond as if this happens often. I just dont understand how multiple mess ups can still lead to doing nothing about it.

 

[Rob M]

Did you send them the odometer statement?

update for those interested:

Its been a month since I bought the GT2 and have done the lease buyout through AAA where they were able to get me working with a Credit Union. Kia received the check that the CU sent to them and I called to confirm that they did (~1.5 weeks ago). They also mentioned that I should be receiving a bill of sale soon (MA requires before title release).

Heres the thing, I just called today asking where it is and they said they never sent the bill of sale out! They said they will "expedite the shipping to 2-3 days". So now its a game of cat and mouse, blowing in their ear hole, and breathing on their neck.

I questioned the Rep as to why there are discrepancies between what his peer said versus him. He was quick to respond as if this happens often. I just dont understand how multiple mess ups can still lead to doing nothing about it.

I think you are probably to blame for the delay. Specifically, you are not using KMF's preferred means of communication:

https://i.ytimg.com/vi/2cTdfvczaZk/maxresdefault.jpg

If you don't have one of those, this may work:

http://4.bp.blogspot.com/_GIchwvJ-a...E18TK8/s800/Original+ET+communicator+prop.jpg

 

[orangeoranges]

Sent them everything! And youre right, i dont think their Windows 95 systems are compatible with today's tech.

 

[roadtripguy]

Chiming in from California with a more positive experience.

Did not go through the dealer at all and instead just sent KMF a personal check, odometer disclosure, and buyout quote around the end of August through USPS. Saw all the shenanigans in my online account with regards to the buyout posting as a massive monthly payment on the website for a couple days before my balance finally came down to zero and, it registered online as a buyout. Received the title and the bill of sale about 3 weeks later without any further action required from my side. I even just received a check in the mail for an extra month of payment that was made before the buyout was completed.

Did the title transfer at AAA. They initially tried to get me to pay the sales tax even though it was marked on the Bill of Sale that tax was included in the final purchase price. A quick discussion and phone call to a supervisor appeared to settle that.

 

[l3arbarossa]

Can anyone comment on whether it is better to go through your purchasing dealer vs getting a credit union loan? My dealer told me that if I came back through them, I wouldn't have to pay taxes on the vehicle again since I already did it through them. Anyone know if there's truth to this? I'm in Virginia if that matters.

 

[Rob M]

Can anyone comment on whether it is better to go through your purchasing dealer vs getting a credit union loan? My dealer told me that if I came back through them, I wouldn't have to pay taxes on the vehicle again since I already did it through them. Anyone know if there's truth to this? I'm in Virginia if that matters.

Does this help?

https://www.dmv.virginia.gov/vehicles/leased.html

"Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee's name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again. The lessee must present proof that the payment was made. Additionally, the vehicle must be either acquired directly from the lessor or from the selling dealer who leased the vehicle to the lessee initially. Purchases made through another dealer will disqualify the lessee from receiving the exemption from Motor Vehicle Sales and Use Tax (MVSUT). The title must include an individual named on the lease. The lease must be to a person or persons, and it shall not include any commercial entity as a lessee."

 

[l3arbarossa]

Does this help?

https://www.dmv.virginia.gov/vehicles/leased.html

"Motor Vehicle Sales and Use Tax (MVSUT) is normally collected when titling the vehicle in the lessee's name; however, if the lessee is the original person who paid Sales and Use Tax (SUT) on behalf of the lessor he may be exempt from paying it again. The lessee must present proof that the payment was made. Additionally, the vehicle must be either acquired directly from the lessor or from the selling dealer who leased the vehicle to the lessee initially. Purchases made through another dealer will disqualify the lessee from receiving the exemption from Motor Vehicle Sales and Use Tax (MVSUT). The title must include an individual named on the lease. The lease must be to a person or persons, and it shall not include any commercial entity as a lessee."

Thanks, that actually helps alot. Not sure why I didn't see that page during my searches, so thanks for linking it for me.

 

[Valkyriemedic]

Question for those in the know. I just purchased via lease to get the incentive cash. Dealer stated the taxes weren’t paid on the total purchase price due to it being a lease. So when I ask for a buyout, will the quoted amount from KMF include any taxes that will need to be paid or will my CU have to determine that amount into the total financed amount (buyout check to Kia and another check for taxes)? This is my first time doing this. Stinger bought in Va, tagged in NC. Thanks for any advise!

 

[MerlintheMad]

Question for those in the know. I just purchased via lease to get the incentive cash. Dealer stated the taxes weren’t paid on the total purchase price due to it being a lease. So when I ask for a buyout, will the quoted amount from KMF include any taxes that will need to be paid or will my CU have to determine that amount into the total financed amount (buyout check to Kia and another check for taxes)? This is my first time doing this. Stinger bought in Va, tagged in NC. Thanks for any advise!

This was my only time doing this. And the Kia buyout total included remaining taxes. It said as much on the buyout page.

 

[G-968700]

This was my only time doing this. And the Kia buyout total included remaining taxes. It said as much on the buyout page.

Great, thanks!

 

[sandiana]

Please disregard - edited to remove question; will repost on a more active post.

 

[mark Peterson]

Terrible Lease buyout experience. I paid off residual value in Oct 2020 for a lease period that ended Jan 2021 . I have been waiting for title and made dozens of calls to Kia leasing department waiting for title. I finally spoke with supervisor who told me they never received lease from dealership in Virginia. I am a Maryland resident. So after multiple calls to MD DMV and even MD states attorney for help, I called dealership. I was informed and my bad that they don't hold MD titles . I did find the title made out to Hyundia Lease C/O me in my safe. So know I have to transfer title to me but want to avoid dealing with leasing company. Never will lease a car again.

 

[Tim Johnson]

Sorry to revive an old thread. Been dealing with KMF now for three months trying to get a title from them. Anybody have any escalation contacts or a process to get them to send a title. At this point they have essentially been holding $30,000 of my cash interest free for three months. There has to be a legal remedy for this as I have paid for the car but no have legal rights of ownership....