Lease then Buyout - Contract Explanation

[Ruturaj]

Was checking the Kia website for the current lease cash back. Don’t see any numbers just the payment. Where can I see the current lease incentive?

How to: How to view Stinger offers on Kia website by trim

 

[Ruturaj]

I feel your pain, Colorado is another one that requires lease buyout go through a dealership. I am going to look into a balloon loan instead to not have to deal with the dealership again.

If you have balloon loan options then it is much better than lease.

 

[Ruturaj]

Question: Are we "pulling something" by doing a lease then buyout of a Stinger? If I walk into a dealership is it a bad thing if I tell them that's what I'm looking to do?

Dealerships don't get the money if you break lease before completing three months.

 

[anselgator]

Dealerships don't get the money if you break lease before completing three months.

---then how is everyone here buying it out 'as soon as it comes online'? Or is everyone paying dealer fees 2x..which is absolute crap imo.

 

[Jay B.]

The dealership doesn't lose any money if you buyout your lease early. That is just rumors going around.

 

[MerlintheMad]

Hi guys. I'm beyond furious and hope you guys can shed some light. I bought my Stinger in Jan. I did the lease. I want to buyout. Through the dealership's finance guy....who I learned is new to Kia......he gave me a payoff and told me to mail check to KMF. I did. After two weeks of noticing they cashed my check but not zero my balance, I called KMF and they said they cannot accept my check......in Florida you have to buy through dealer. WTF. Ok......2 weeks later when I didn't have my check and Kia said 30 days to get back, I contacted my dealership and talked to a sales mgr hadn't used previously (the other guy was out) and he got me my check back within 24 hours of talking to him. That's a good thing, even though I am dealing with this aggravation. In any case.........

1. They are telling me the new payoff amount is $400 less, even though I just had to make a $600 lease payment. My argument is the dealer's guy screwed up...I shouldn't have to pay this. I did everything as they told me to do. I will fight this. The next one is the kicker.....

2. This sales mgr is telling me when I come to give them the check to buyout in they are basically selling me the car. Title, Tag...wait for it......dealer fees. Umm..what the f did you just say? I told him there is no way I'm paying another $700 (so would be $1400 in dealer fees).

Anyone have this experience? If true, I lost on the 'buy vs lease/buyout'.

I can only say that here in Utah the cheque I made out was to HCA, not KMF. And the buyout amount was on my KMF account page; the dealer had nothing to do with the buyout. Your buyout amount should be complete and nothing should be added to it except state taxes or any personal loan crap that Kia doesn't know about. If Florida taxes you again, that is crap, but at least you're avoiding the rest of the lease rent, which is considerable. Seems like your buyout would still be a really good deal; just not as good as in states where you don't get taxed again.

 

[anselgator]

I can only say that here in Utah the cheque I made out was to HCA, not KMF. And the buyout amount was on my KMF account page; the dealer had nothing to do with the buyout. Your buyout amount should be complete and nothing should be added to it except state taxes or any personal loan crap that Kia doesn't know about. If Florida taxes you again, that is crap, but at least you're avoiding the rest of the lease rent, which is considerable. Seems like your buyout would still be a really good deal; just not as good as in states where you don't get taxed again.

I think the original check was to HCA company...but in Florida that it's illegal...so they had to return the check. Apparently FL law states you must buy through a dealership (kind of the like the wine distribution industry..3 tier). Fine. But a) every month delay is costing me money (the extra interest) and then the dealer trying to say they would charge me dealer fees again.....just blows my mind. Horrible experience thus far.

 

[MerlintheMad]

I would fight anything that the dealer puts on your buyout. FL can't be that different vis-à-vis what comprises a buyout. The "agent" completing the buyout must be the dealer if the state says so: but that doesn't mean the dealer can just willfully charge "fees" or whatnot.

 

[Ruturaj]

---then how is everyone here buying it out 'as soon as it comes online'? Or is everyone paying dealer fees 2x..which is absolute crap imo.

The dealership doesn't lose any money if you buyout your lease early. That is just rumors going around.

I am talking about 3% dealer cash the dealer gets after selling a car. You can buy out your lease before completion of 3 months and dealer loses that money. (My assumption is based on the few posts and when I talked with my dealer about buying out my car).

 

[MerlintheMad]

I am talking about 3% dealer cash the dealer gets after selling a car. You can buy out your lease and dealer loses that money. (My assumption is based on the few posts and when I talked with my dealer about buying out my car).

I have no idea what you are talking about. This is news to me.

 

[Ruturaj]

I have no idea what you are talking about. This is news to me.

Let me edit that, buyout before three months from start of the lease.

 

[Rylark]

My dealer just sent me a text with my buyout amount and told me to make check payable to the dealer. Did anyone else pay the dealer and not KMF?

 

[MerlintheMad]

Let me edit that, buyout before three months from start of the lease.

I haven't heard of that either. If buyout hurt the dealer, I am sure that Kia would not allow it. Losing 3% is a big deal.

 

[celwin]

Looks like the lease cash back is now substantially lower. it's now $4300.

 

[MerlintheMad]

Looks like the lease cash back is now substantially lower. it's now $4300.

Which trim is that for? Each trim and RWD/AWD variants receive different lease incentives.

 

[celwin]

Which trim is that for? Each trim and RWD/AWD variants receive different lease incentives.

GT RWD. I did not know different trims has different incentives.

 

[OKIEBoy]

So, I used all the great information here to lease a 2018 Stinger GT2 RWD- THANK YOU!. The March lease cash on a two year was $9500 plus $400 military so $9900 in KIA rebates. The discount took a lot of talking with several dealers. Eventually, my discount was raised from the initial $6500 to $8000 and car was tint included. So $32,600 PLUS $349 doc fee PLUS the $650 Acquisition Fee (adds a solid $1,000 to the deal)= $33,599 net cost. Plus rental fees, buyout fee between now and when I pay.
Plan to pay off cash ASAP. Kia's giant lease cash is a no brainer and i wonder how many people buy out these cars.

 

[MerlintheMad]

So, OTD under $34K? The actual dealer discount was $8K? That's fantastic!

Plan to pay off cash ASAP. Kia's giant lease cash is a no brainer and i wonder how many people buy out these cars.

I bet not that many. Most people just lease blindly and pay the monthly that they (hopefully) budgeted for.

 

[PhoenixVaz]

So, I used all the great information here to lease a 2018 Stinger GT2 RWD- THANK YOU!. The March lease cash on a two year was $9500 plus $400 military so $9900 in KIA rebates. The discount took a lot of talking with several dealers. Eventually, my discount was raised from the initial $6500 to $8000 and car was tint included. So $32,600 PLUS $349 doc fee PLUS the $650 Acquisition Fee (adds a solid $1,000 to the deal)= $33,599 net cost. Plus rental fees, buyout fee between now and when I pay.
Plan to pay off cash ASAP. Kia's giant lease cash is a no brainer and i wonder how many people buy out these cars.

OKIEBoy See PM - GREAT JOB on this! Look forward to chatting.

 

[OKIEBoy]

So, OTD under $34K? The actual dealer discount was $8K? That's fantastic!

I bet not that many. Most people just lease blindly and pay the monthly that they (hopefully) budgeted for.

Of course it is well in 2019 and I guess they need to move them sometime. Makes me think car dealers actually make a lot of money on most car sales regardless of this "invoice" fiction we hear about. I did not include the 4.5% OK taxes since that means nothing to anyone out of state.