Rango
1000 Posts Club!
Heard if you lease, grab the $7,200 cash back (for the GT2) from KMFUSA, the lease contract voids all MF warranties since you are not the primary purchaser. Is this true?
Lease deal voids manufacturer warranty?
- Thread starter Rango
- Start date
MarkyMark
Active Member
According to Autotrader.com, Kia and Hyundai warranties, are only for the original owner. However, once sold, the warranty converts to 5yr/60k, from 10yr/100k. So the warranty changes and does not entirely go away. However, by the time you are selling the car that 5/60k warranty will likely be all used up.
It does put into question the buyout of a lease... That needs to be discovered.
DaJackson
1000 Posts Club!
No....just no. Who makes this $hit up?
A lease is no different from financing or buying the car outright when it comes to warranty.
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A very interesting point for the lease buyout. If you lease the vehicle, even for a day, that makes you the first owner contractually. Buying out the lease and financing that amount contractually makes you the second owner as well. It could be a tactic used by KMF to prevent lease buyouts and the loss of recouping $$$ over the term of the lease. It would be interesting to learn where Kia comes down on this officially.
Weareblondi
Stinger Enthusiast
guess that is why when you call the leasing company, kia, and ask for the buyout price, their price, including a hefty depreciation, is where the 2md owner thing comes into play.
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MarkyMark
Active Member
Okay, I just called KMF (had to figure out how to get around all the automation nonsense - basically punched in 1234 for my last 4 social security number and a fake date-of-birth, and got through), and got a live human!
He had to put me on hold to answer the question, as he's typically dealing with buyout figures and late payments, etc... When he came back he informed me that if I buyout the lease, 2 weeks in, or 35 months into the 36 month term, the car still stays in my name, and thus the Kia 10yr/100k warranty still applies.
I trust KMF much more than a dealer in these matters due to that fact this is their policy, not a resellers, but always check and read over the entire paperwork when signing. Buyer beware. For me, I'm about 90% confident the 10y/100k warranty will still hold true when buying out the lease due to KMF's answer to me.
He had to put me on hold to answer the question, as he's typically dealing with buyout figures and late payments, etc... When he came back he informed me that if I buyout the lease, 2 weeks in, or 35 months into the 36 month term, the car still stays in my name, and thus the Kia 10yr/100k warranty still applies.
I trust KMF much more than a dealer in these matters due to that fact this is their policy, not a resellers, but always check and read over the entire paperwork when signing. Buyer beware. For me, I'm about 90% confident the 10y/100k warranty will still hold true when buying out the lease due to KMF's answer to me.
Mach_Tuck
1000 Posts Club!
Agreed. I just leased one this week and the car is being registered and titled in my name by the dealer. When i buyout the lease (still waiting on account to activate at KMF), using my credit union, the only thing that changes is the lien holder...not the owner. The full warranty will still apply.
capnsharpe
Member
I pulled out the warranty and a lease buyout doesn't impact the warranty coverage whatsoever. It's on page 6 under "Original owner".
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JVsGT
Active Member
I'm pretty sure if you "lease" the vehicle, the titled owner is lessor not the lessee. I just looked at my lease and I'm definitely not shown as the owner. Can you confirm?
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Rango
1000 Posts Club!
I believe you are right JVsGT. Looked at the lease agreement and found this. Read 26.E. Ownership. First sentence ... "We own the Vehicle soley, including all original and after-market accessories installed on the vehicle." Seems a leased car is titled to the lessor until the term is matured or bought out. Then the title is transfered as a second owner, which down grades the warranty to 5 yr/60k. The warranty manual on page 6 under "original owner" defines the original as, "the first RETAIL purchaser or lessee of the Kia Vehicle who takes delivery of the Kia Vehicle on it's DATE OF FIRST SERVICE. Is the Kia dealership a retail purchaser???
What's the date of first service??? Confusing. Calling KMFUSA tomorrow.
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SEA Stinger
Active Member
I read this to mean that if you lease the car and then buy it "at the end of the lease", the powertrain warranty remains in effect through 10 years/120,000 miles.
However, I now wonder what "at the end of the lease means". Does that include early buyout of the lease?
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MarkyMark
Active Member
That is awesome! Thanks for the pics!
My dealer is constantly telling me that the 10 Year, 100K mile warranty will stay intact even if I were do an immediate buyout of the lease.
I just called a Martin over at Kia Motors Finance at 1-866-331-5362. He put me on hold for about 5 minutes so he could research.
Martin returned and confirmed that the 10-Year, 100K mile warranty is still valid even if the lease were to be immediately bought out / converted into a loan as the name of the owner (me) does not change.
I actually ended up picking one up yesterday. The finance guy at the dealership explained that on the lease that I will be listed as a co-owner. So when it's bought out and Kia Motors Financial is removed, you are still the owner, thus the 10 year, 100k mile warranty is still in tact. Hope this helps someone.
I just called a Martin over at Kia Motors Finance at 1-866-331-5362. He put me on hold for about 5 minutes so he could research.
Martin returned and confirmed that the 10-Year, 100K mile warranty is still valid even if the lease were to be immediately bought out / converted into a loan as the name of the owner (me) does not change.
I actually ended up picking one up yesterday. The finance guy at the dealership explained that on the lease that I will be listed as a co-owner. So when it's bought out and Kia Motors Financial is removed, you are still the owner, thus the 10 year, 100k mile warranty is still in tact. Hope this helps someone.
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Can anyone confirm whether it makes a difference who does the financing for the lease buyout? I was given different
answers and want to know whether we can finance through the dealer or if we need to go through our bank? We want to be sure we dont do anything to void the warranty.
answers and want to know whether we can finance through the dealer or if we need to go through our bank? We want to be sure we dont do anything to void the warranty.
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MarkyMark
Active Member
I'm not sure that KMF will finance the buyout (never heard of that before - a dealer financing the buyout). Rather, it seems a bank or CC is the only option. Secondly, who finances will not effect the name - yours - to the transfer at all. It's either in their thread or another Stinger blog I have read about that. I believe your name is always on the title, and no, Kia does not void the warranty if you are the leasee and then buyout the Stinger.
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Mach_Tuck
1000 Posts Club!
Agreed...this does not affect warranty at all.
FWIW, i did ask if KMF would finance the buyout at 0.9% and the guy chuckled and said no. I stated "better to make 0.9% then nothing at all" to which he chuckled again and stated that the 0.9% is for "NEW" cars only and a buyout did not qualify.
MarkyMark
Active Member
Right. KMF has ZERO incentive to help people buyout leases early and take advantage of the Lease Cash - none.
It is interesting Kia's move to provide a massively high Money Factor and counter it with large Lease Cash amounts. Many manufacturers offer almost zero in Lease Cash, but their Money Factor is also much, much, lower than Kia's also. Thus, using a lease to purchase the vehicle makes zero sense for many other brands. But for Kia and the Stinger? Yah, it's a great way to utilize the program fully legally and ethically under their own rules (and laws/requirements in financing).
Thank you for your help! I struggle to have my questions answered when I call KIA and was given different answers each time I called. So we could have the kia dealer secure us a loan through a bank and then they would do the paperwork at tje dealer ? Are there any up front costs to do it that way that you know of? The one kia rep said we had to secure our own loan through a bank amd then use a third party called innovative services?
MarkyMark
Active Member
All you need to do at the dealer (IMHO) is:
A. Negotiate the lowest dollar value off the sticker price.
B. Get the lease cash added (which they will do - they must)
C. Validate the right Money Factor
D. Make sure they aren't throwing in all sorts of dealer markup stuff...
E. Sign and drive (sorry VW, stole your marketing gimmick there).
The dealer is not involved in the buyout, or how your are financing it in any way, shape or form.
Once you get home, enjoy the Stinger and then in a week or so, you're account will go live on KMF's website. At that point you'll call KMF and ask for the buyout amount, and use your loan from the Credit Union (or Bank) to pay it off.
Hope that helps! Good luck!
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