Lease then Buyout - Complete Experience/Explanation

[capnsharpe]

I would also recommend that you check the laws in your state. I took down names, dates and statements in my notes. One of the reps I spoke to made a statement that implied that KMF was violating state law. KMF aka Hyundai Motor Finance has the largest number of complaints in Massachusetts (once you clean the data). Massachusetts can stop issuing titles to KMF/Hyundai Motor Finance.

With all that in mind, I wrote an e-mail to an executive at Hyundai Motor Finance, quoted what the rep said, gave the name of the person who had receive the paperwork (I had sent it all USPS with signature required), when it was received, and a "request" to receive the title on a particular date or that I would take additional, but unspecified, action. Not only did the executive respond, but someone from corporate followed-up with a phone call and the title was FedEx-ed to me within 2 business days, as I had requested.

I'd probably be willing to purchase another Kia in the future, but not through KMF/Hyundai Motor Finance.

 

[NYLAWBIZ]

Gee, got my title 10 days after their receipt of payment.

 

[SEA Stinger]

Ahem.

Just because I haven't experienced something myself doesn't give me grounds to discount what others are experiencing.

Any one person's experience, while meaningful, is a single data point. Good or bad, it doesn't allow broad conclusions to be drawn about KMF.
​

One of the benefits of a board like this is that it enables us to gather a pool of data on the lease buyout process, based on multiple members' individual experiences. In turn, that provides a more accurate and meaningful assessment of how well or poorly KMF is handling the lease buyout process.

If KMF is botching the lease buyout process for a significant percentage of consumers, the other customers who received better treatment from KMF don't have a basis to claim that its business practices are "just fine". Neither do they have reason to express skepticism about individuals who share information about poor service they experienced from KMF.

 

[SEA Stinger]

I will never buy another Kia. I've had alot of problems with KMF also. I bought out the lease and they applied it to the lease, not as a buy out. I still have not recieved the title yet either, have sent several odometer statements. Either they have a bunch of morons or dishonest people

Maybe both!

 

[Mple26]

Leased my GT2 on 4/7. Contacted KMF on 5/4 to initiate a buy out. I was told to either send a check with the ODO statement, or have a buyout package faxed to me. Rep stated that there's a 10 day window after the buyout due date to send in the check. I had the funds ready to send in a check, but went the buyout package route since my CU required the package.

5/7 comes and I find out the buyout department cancelled my request for the buyout package as there is no 10 day grace period for buyouts. 30 minutes on the phone with a supervisor investigating and they said they'll call me back. End of the week supervisor calls me back stating the buyout department will honor the original buyout quote due on 5/7. She suggested i make a payment to keep my account from going to collections to which I make an online payment. I overnight a personal check ($25 via usps) with the odo statement for the exact buyout amount good through 6/7 less the payment I made. This is $222 higher than the buyout quote they stated they would honor, but I didn't want to take any chances and they could send a check for over payment once I receive my title.

They received my overnighted check 5/16 and promptly applied it. I check the status today and now it shows they've reversed the check. So I guess I'll call Monday and figure out why they reversed it.

 

[NYLAWBIZ]

You can get the payoff info on your online account. Fill out the form and send it in with the check. I avoid dealing with customer "service" reps like the plague.

 

[Mach_Tuck]

Unfortunately, my experience has been horribly similar.

Lease 3/6
Send buyout amount 4/5
Kia applies $ to next payment, not buyout
Fax, mail, fax ODO statement
No one at Kia can find any of 3 ODO statements
CU faxes ODO statement
Online account updated showing no more payments due
Kia decides to "keep" title
Request for Title
Promisided to be mailed
Waiting on confirmation that Title has been received by CU

Nothing has gone smoothing with this. I am not terrible concerned with Title since i financed the car with a CU and technically they are the "owners." Had this been a cash buyout, a different approach would have ensued (similar to post above about letter to corporate with legal action).

I echo the process above with WRITE EVERYTHING DOWN. This certainly helped me with follow up calls.

Best of luck.

 

[Original Poster]

To the Washington state people, what sections of the Odometer Disclosure document did you fill out and with what information. It appears that most of it should be filled out by KIA Financial, but it seems that expecting them to do the right thing with it is recipe for disaster.

 

[Original Poster]

Disregard the last post, I was looking at the Washington State Odometer Disclosure form, not the one from KIA Finance

 

[iwantastinger]

Long time forum reader, first time poster. I've been waiting to buy my Stinger for months and am about ready to, but reading these accounts of the interaction with KMF is horrifying. Almost makes me want to just lease (and not buy as planned) or straight up buy from the dealership on the spot to avoid them. How stupid of an idea is this financially?

 

[NYLAWBIZ]

Long time forum reader, first time poster. I've been waiting to buy my Stinger for months and am about ready to, but reading these accounts of the interaction with KMF is horrifying. Almost makes me want to just lease (and not buy as planned) or straight up buy from the dealership on the spot to avoid them. How stupid of an idea is this financially?

Do the lease/buyout for the lease cash.

 

[Original Poster]

Another question for those that overnighted the payment. How did you state what was in the envelope to FedEx or UPS and did you insure for the value of the check (I wouldn't think you would have to.)

 

[Mach_Tuck]

Do the lease/buyout for the lease cash.

Agreed, the hassle is worth the extra money in my opinion...

Another question for those that overnighted the payment. How did you state what was in the envelope to FedEx or UPS and did you insure for the value of the check (I wouldn't think you would have to.)

Mine stated "Documents" and was sent directly from the credit union...

I am not sure if UPS or FedEX will "insure" a check?

 

[Original Poster]

Looks like my call in fun with KMF starts today. They applied my payment as a regular payment and prepay rather than payoff. That is despite having the following cover letter (in large red font) attached to the cashiers check:

This check is for a lease buyout on account number xxxxxxxx for the vehicle with VIN# xxxxxxxxxxxxxxx. The check value of $xx matches the buyout quote that KIA Finance provided to me. Please do not apply as regular payments.

This package also contains a legal note from the credit union that financed the buyout, the Lease Buyout Quote from KIA Finance and the KIA Finance Odometer/Mileage Disclosure Statement.

As my credit union expects transfer of title and proof of insurance within 15 days of funding the buyout please make sure this buyout payment is applied promptly and correctly.

Despite overnighting the cashiers check, it also took them more than 48 hours to apply it. Washington state's AG is very active when it comes to fraud and systematic incompetence benefitting a business, so I will also let KMF know I have no patience to be going around in circles on this and will file a complaint with the AG if not immediately rectified without me having to jump through a bunch of hoops.

 

[stingeradmr]

good luck, I did something similar and they don't seem to honor the odometer statement sent with the check. They will probly send you one in the mail from them

 

[Original Poster]

Not saying I won't have to jump through any hoops, just saying if I do I will be filing a complaint with the AG (and will let them know that.) If everybody did the same thing, KMF would likely be forced to change the way they do business.

 

[Mach_Tuck]

15 days...best of luck on that one. Dont think my title was release tot he CU for almost 45 days AFTER they received and applied the funds. I also submitted 5 Odometer Disclosures as they are unable to verify a fax receipt in real time. "Must not have received it" was always the response. As the CU was/is the title holder i didnt put much effort into bugging KIA after the CU said they would handle. My "contract" with the CU states i get the title after XX payments are made so as long as they have when that comes is all that matters to me.

All in all, it was worth the extra $7k lease cash in my opinion.

 

[SEA Stinger]

Not saying I won't have to jump through any hoops, just saying if I do I will be filing a complaint with the AG (and will let them know that.) If everybody did the same thing, KMF would likely be forced to change the way they do business.

Hey @Original Poster, I am located in the Seattle area and had a similarly disgusting experience with my lease buyout process.

If you decide to file a formal complaint about KMF with the Washington state attorney general's office, I would be more than willing to sign on to it. We could also invite others in WA who have gone through the same nonsense to join in too. Multiple complainants who document a pattern of consumer abuse increase credibility and encourage the AG to take more aggressive action. (Multiple squeaky wheels get more attention than one or two.)​

The lease incentives KIA is offering are definitely attractive. However, the money factors KMF charges are so high that they claw back a lot of the savings from the lease incentives. This creates an obvious and totally legitimate motivation for lessees to buy out their leases.

Did the marketing and accounting geniuses at KMF think that Stinger customers wouldn't be smart enough to figure this out? And when we started buying out our leases, did they consider it fair, or good business practice, to turn this into a battle designed to prevent us from exercising rights that we clearly have under our lease agreements?

If KMF didn't want customers to buy out our leases, they shouldn't have structured the lease program the way they have. Throwing up roadblocks to completing the lease buyouts is not a justifiable response to completely rational and legal consumer behavior.

KMF's shenanigans didn't deter me, they just completely turned me off. I now have no respect whatsoever for KMF, and that reflects very badly on KIA as a whole.​

The Stinger is a great car, and I have favorable impressions about how KIA Korea created it. It's really unfortunate that KIA USA and KMF are f**king things up in multiple, avoidable ways. For example, it still pisses me off that I had to spend an extra $850 to replace the substandard Bridgestone Potenza tires on my Stinger.

 

[kevinnz]

Lease cash is $7,300 right now. and it sounds like after fees you save around 4-5k. Was all the phone calls and headache worth it? I'm thinking about just financing

 

[MerlintheMad]

Lease cash is $7,300 right now. and it sounds like after fees you save around 4-5k. Was all the phone calls and headache worth it? I'm thinking about just financing

My "fees" were apparently higher. Lease incentive was $5,900. After the dealer totaled all fees and other added costs, we had to pay (including the first month's payment) $1,212; the incentive cash was applied to over $7K! There was some other minor "cash" bonus that applied as well.

Anyway, the upshot was that the incentive did not reduce the MSRP a jot; only the dealer's discount of c. $3K was any real savings on MSRP. Why I decided to do the buyout was the over $4K over the 36 months of the lease in rent charges. Since we had cash to do the buyout (didn't need a loan to do the buyout), it made no sense to continue the lease and lose that over $4K.

Looking back, with what I learned afterward, I'd just dicker for more discount off MSRP, more than what they offered when we said we would like to save by paying cash up front (they instantly said "five hundred bucks, take it or leave it"). We went with the lease because they showed the $5,900 incentive for leasing; and Kia only offered $950 for financing. Then they pulled the stunt with the added on fees to keep from losing even more off MSRP. Heh! I don't feel cheated about c. $3K dealer discount; there are better/higher discounts around, but that isn't bad.

Short version is: dicker over out the door price, not anything else. Then just buy the car, especially if you can pay cash. (Most can't, of course. Leasing is only for those who can't really afford to buy the car, to reduce monthly payments.) The high incentive rebates are what make buyout practical; but only if you can finance a loan at a low enough rate to actually save money avoiding the rent charge.

If/when I ever trade this car in and get a new one, I will only haggle over dealer discount and I will buy rather than lease again. It was too complex and convoluted and took too much of my time, attention and equanimity.