Lease then Buyout - Complete Experience/Explanation

[Thang]

my lease buyout, first person at Kia financial sent the wrong information, had to get the credit union and several phone calls to get the right information. check was sent to Kia and they applied it as a payment. Had to call several times to get it corrected. Is it people that don't know what they are doing or is something else going on. Bad experience all around.

I'm not where you sent it to but based on the Odometer / Mileage Disclosure form, the form along with payoff check should have been sent to:

HCA Exchange, Inc.
Dept. CH 14301
Palatine, IL 60055-4301

If you are sending the check / odometer statement overnight, it should go to:

HCA Exchange, Inc.
Dept. CH 14301
5505 N Cumberland Ave
Suite 307
Chicago, IL 60656

I sent my payoff check and odometer statement overnight since it was near my 1st payment date.

I also wrote in the memo section of my check to say "Lease Payoff / Purchase" and added my KMF Account number. Also wrote a note on the odometer statement saying I spoke to (KMF Rep) and they said the payoff amount was (X Amount) which was good through (Date).

 

[Big]

I'm not where you sent it to but based on the Odometer / Mileage Disclosure form, the form along with payoff check should have been sent to:

HCA Exchange, Inc.
Dept. CH 14301
Palatine, IL 60055-4301

If you are sending the check / odometer statement overnight, it should go to:

HCA Exchange, Inc.
Dept. CH 14301
5505 N Cumberland Ave
Suite 307
Chicago, IL 60656

I sent my payoff check and odometer statement overnight since it was near my 1st payment date.

I also wrote in the memo section of my check to say "Lease Payoff / Purchase" and added my KMF Account number. Also wrote a note on the odometer statement saying I spoke to (KMF Rep) and they said the payoff amount was (X Amount) which was good through (Date).

Hi Thang - So you used the 'Suite 307, Chicago address'. Did KMF process it correctly?

 

[Big]

Lev Kia in Framingham. I worked with Tony Doheny

I am working with Pride KIA in Lynn, MA. I'm getting a GT1 AWD - color still to be determined (my wife makes the decision). Will update this thread when I finish the deal to let everyone know how my experience went. So far so good.

 

[Thang]

Hi Thang - So you used the 'Suite 307, Chicago address'. Did KMF process it correctly?

I was going to payoff a couple of weeks ago but decided not to as I was shopping around banks and credit unions for the lowest rate. Didn't see anything I liked so I am actually just paying it off. Sent the check there yesterday, overnight. Will keep you all posted on what happens.

 

[capnsharpe]

And my credit union just called. Apparently Hyundai does this every time.

Be careful about where you send the paperwork to. Mine had to go directly to California because I live in Massachusetts.

 

[Mach_Tuck]

my lease buyout, first person at Kia financial sent the wrong information, had to get the credit union and several phone calls to get the right information. check was sent to Kia and they applied it as a payment. Had to call several times to get it corrected. Is it people that don't know what they are doing or is something else going on. Bad experience all around.

Yep, my $48K check was applied as a payment as well and after one call that was fixed.

I suppose i am glad to hear that i am not the only one in this boat.

I dont imagine my Credit Union is going to let this drag on too long as they technically have right to the title once the funds "clear"

 

[Mach_Tuck]

I'm not where you sent it to but based on the Odometer / Mileage Disclosure form, the form along with payoff check should have been sent to:

HCA Exchange, Inc.
Dept. CH 14301
Palatine, IL 60055-4301

If you are sending the check / odometer statement overnight, it should go to:

HCA Exchange, Inc.
Dept. CH 14301
5505 N Cumberland Ave
Suite 307
Chicago, IL 60656

I sent my payoff check and odometer statement overnight since it was near my 1st payment date.

I also wrote in the memo section of my check to say "Lease Payoff / Purchase" and added my KMF Account number. Also wrote a note on the odometer statement saying I spoke to (KMF Rep) and they said the payoff amount was (X Amount) which was good through (Date).

Addresses are provided for "payoff" amounts. One is standard and one specifically states "overnight"

The odometer disclosure has a fax number as well and i was advised to fax it in...which i have done 3 times now and still they cannot confirm if it was received or not.

My CU also stated that KMF tends to "hold" funds longer than standard so am keeping a close eye on this.

As i have not paid the balance of my CU loan yet, i am not too worried since my CU is now the "owner." Had it been personal funds, Id be in a different mood for certain.

 

[MoobyTheGoldenCalf]

I just finished my buyout as well, just waiting on title.

Because I live in Texas, paying tax twice is the reality and would have tanked my deal as it was more than I wanted to pay. My dealer here is awesome and found a way around the double tax. The dealer gave me the 36 month lease cash on a balloon financing term. As it was considered purchase vs. lease, the title was in my name along with Kia. When I refinanced through my Credit Union, I was not charged tax again. An option to consider for those in states like TX...

Did you have to make 3 monthly payments before you paid off the loan? I did the same balloon deal, but my dealer told me I had to make 3 payments before I could pay it off. According to the KMF website, I got a payoff quote and can pay it off now.

 

[Thang]

Did you have to make 3 monthly payments before you paid off the loan? I did the same balloon deal, but my dealer told me I had to make 3 payments before I could pay it off. According to the KMF website, I got a payoff quote and can pay it off now.

They tell you that because if you payoff before a few months, they will get a charge back. You can pay it off whenever.

 

[Dmchristie1]

I have done this both ways. Purchased a red gt2 at .09 then my wife’s yellow gt2 as a lease then purchase.
After all the pain, and there was pain, the lease option resulted in paying essentially the sticker price including all bs fees, and 7% sales taxes etc.
If I had to do it again I would go for the lease option although it was painful as they added fees all over the place starting with a 10k yellow stinger market uplift as well as a hidden stinger 899 market uplift 899 maintenance package etc. I found them all and they removed them. I am sure I missed some. Also In florida you must deal with the Kia dealership for payoff. You cannot go through Kia finance to pay it off. They tried to add the 699 doc fee again which they removed. I am finished buying for a while unless my daughter wants one....

 

[Iceman25c]

Did you have to make 3 monthly payments before you paid off the loan? I did the same balloon deal, but my dealer told me I had to make 3 payments before I could pay it off. According to the KMF website, I got a payoff quote and can pay it off now.

They initially told me that I had to make three payments. That was a deal breaker for me so they relented and said I could buy out anytime but the dealership would take a "knock". I paid it off before the first payment was due.

 

[MoobyTheGoldenCalf]

Yeah, I think I'm paying mine off now too. Money is money and I'd save about $500 or so by not making those 3 payments.

 

[Dmchristie1]

Did you have to make 3 monthly payments before you paid off the loan? I did the same balloon deal, but my dealer told me I had to make 3 payments before I could pay it off. According to the KMF website, I got a payoff quote and can pay it off now.

I Made the first payment only. Waited until it was in the system (2-3 weeks)and went down to dealership to pay it off. Completed right before 2d payment was due.

 

[Mach_Tuck]

The lease contract states you can pay it off prior to maturity so long as the account is not in default. There is no minimum time you need to wait. Waiting only makes you pay more "rent" than is needed.

Id assume this is the same for Florida even though having to deal with the dealer directly and not KMF. i would have spoken up over the second doc fee as well...just criminal

Also...still waiting on my title...

 

[Thang]

The lease contract states you can pay it off prior to maturity so long as the account is not in default. There is no minimum time you need to wait. Waiting only makes you pay more "rent" than is needed.

Id assume this is the same for Florida even though having to deal with the dealer directly and not KMF. i would have spoken up over the second doc fee as well...just criminal

Also...still waiting on my title...

How long after they received the check that they processed payment? They received my check yesterday. Still showing a balance as of today. Will have to call them after work

 

[Mach_Tuck]

It took 3 business days i think. Not even sure why they have an overnight address if they dont process them daily. They firstly applied the entire amount as a payment against the next lease payment and not as a buyoff. I had to call them to have this switched. Noticed this because my buyout amount, after they cashed the original buyout amount was something like $300. Basically they took my 48K, applied a portion to the lease payment was due and then put the rest "on account." What a joke.

Currently, my "next payment due" and "buyout amount" both show $0. KMF says that funds are still pending from Credit Union and Credit Union confirmed that KMF is terrible and processing funds in a timely manner.

So, its a waiting game right now.

 

[Thang]

It took 3 business days i think. Not even sure why they have an overnight address if they dont process them daily. They firstly applied the entire amount as a payment against the next lease payment and not as a buyoff. I had to call them to have this switched. Noticed this because my buyout amount, after they cashed the original buyout amount was something like $300. Basically they took my 48K, applied a portion to the lease payment was due and then put the rest "on account." What a joke.

Currently, my "next payment due" and "buyout amount" both show $0. KMF says that funds are still pending from Credit Union and Credit Union confirmed that KMF is terrible and processing funds in a timely manner.

So, its a waiting game right now.

Thanks for the info. I actually just stepped out and called them. KMF states that it does indeed take 2-3 business days to process. My payment is due on the 19th so I asked them what I should do as I don't want to miss a payment and hurt my credit. They told me they actually have a 10 day grace period on payments. Lets hope that she's right. My funds are not from a bank / credit union as I have opted to just pay out of my pocket so I'll see if I also run into any issues with pending funds.

 

[Mach_Tuck]

Yes. Was told the same thing about 10 days grace. I sent my package UPS overnight so could see exactly who/when it was signed for. They received it one day prior to my due date and as far as I was concerned they had funds prior.

Again, they did not process as a buyout initially so watch for that. Balances in KMF should go to zero.

Source of funds don't matter. If your money, I'd be all over them on title release however. Especially after they cash the check. Otherwise you have no legal right to the car.

I intend to call twice weekly until such time the title is released.

 

[Thang]

Yes. Was told the same thing about 10 days grace. I sent my package UPS overnight so could see exactly who/when it was signed for. They received it one day prior to my due date and as far as I was concerned they had funds prior.

Again, they did not process as a buyout initially so watch for that. Balances in KMF should go to zero.

Source of funds don't matter. If your money, I'd be all over them on title release however. Especially after they cash the check. Otherwise you have no legal right to the car.

I intend to call twice weekly until such time the title is released.

They processed my payment at some point yesterday. Similar to what you stated, they applied part of my check to the monthly payment which was due today. I called in to make sure that they understand that it was a lease buyout / vehicle purchase and he said yes. He said it will show that way for now but it will take a couple of days for them to finish up the lease buyout paperwork. I will check tomorrow / Monday to verify that he is correct.

Since my state is a dealership only state, I couldn't get a buyout amount through the dealership as they refused since they wanted me to wait 3-6 months. I called KMF weeks ago to get the real story. They said I could buy out at anytime and that's when they provided me without the buyout amount. Under Buyout Details, Current Amount Due now shows $0.00.

 

[Mach_Tuck]

Yep, no need to wait per the lease agreement. I bought mine out before second payment was due...first payment paid at lease signing.

Keep us posted on the title release since you used personal funds. Ill update as soon as mine is release also