Lease then Buyout - Contract Explanation

[SwampDonk33]

Thanks everyone for the data on this thread, it's been very helpful in my process of buying out my 2018 GT2. I recently sent the buyout check along with my ODO statement, and KMF has processed my check and my buyout quote online now reads as $0.00.

With that being said, I'm trying to educate myself on what the next step should be on confirming whether they've also properly "processed" my ODO statement. Is there a way to identify if they've done that through my online account, or is this done only via phone? Based on some of the horror stories I've read on this thread, this part of the process is often times not very clean so I want to make sure I'm taking the proper next steps to stay on top of the situation.

 

[eflyguy]

The ODO is only needed because the DMV requires it any time the title for a vehicle changes hands. If you get a title, everything was handled.

 

[turboAWD]

Just got one boys! 2019 Stinger GT in Cali.. Leased. Never thought I would lease but am going to buy it out! Thanks for all the info on here.

Congrats! Nor/SoCal?

 

[Puckhead]

Thanks everyone for the data on this thread, it's been very helpful in my process of buying out my 2018 GT2. I recently sent the buyout check along with my ODO statement, and KMF has processed my check and my buyout quote online now reads as $0.00.

With that being said, I'm trying to educate myself on what the next step should be on confirming whether they've also properly "processed" my ODO statement. Is there a way to identify if they've done that through my online account, or is this done only via phone? Based on some of the horror stories I've read on this thread, this part of the process is often times not very clean so I want to make sure I'm taking the proper next steps to stay on top of the situation.

Just so you have peace of mind, I would call AND email them to confirm that they have everything they need to process the buyout and ask when you should expect to receive the title. I got an email confirmation from them so I was confident that I had done my part.

 

[Job314]

Glad to hear about the no double tax for Texas residents, will be taking upon this task in a few months.

Unfortunately , I need to correct my prior post. There is no double taxation to get your title from kmf, but when you take that title in to get kmf off of it and register the owner as you, the County will claim you need to pay tax again . Texas administrative code, to me, indicates no dbl tax is needed at a lease buyout, but the Texas comptroller has a different interpretation and my County tax collector follows the Comptroller direction. Boo Comptroller...

 

[supershanesta]

Congrats! Nor/SoCal?

Socal!

Something I noticed and found interesting on my Kia Online Account....
After I made my first payment my buyout price went down by the full payment of 336.06.
When I did the math before, I calculated that only around 200 of my payment would really affect equity and the rest would be the rent charge? I did do a down payment, but it looked like it went straight to the Buyout and it should because the rental fee is assuming you don't cancel or buyout early. The rental fee should be taken each month with or without a down payment.

Why did my buyout amount go down my full payment amount? This makes it look like I could just keep the thing for the whole lease because all my money is going towards the Buyout price. Thanks in advance!

 

[Bjjpurple]

I called my local dealer today for a lease buyout quote (South Carolina, can't go through KMF) and they told me I have to bring the car in for an appraisal so they can determine my buyout. Wtf? Why would they care? I have aftermarket wheels / tires and some upgrades on the interior (alcantara heated steering wheel, all weather floormats, etc) that I'm wondering they're going to factor into the buyout price. It should be a simple calculation - remaining payments plus end of lease buyout price minus lease rent charges / interest. Am I missing something?

Pm me and I’ll shoot you my cell, we are in the same boat, same state. I got my buyout and sent it to Kia, they sent me a check back 3 weeks later saying they had misinformed me and I have to go through the dealer. What happens is KMF sells the car to the dealer who then sells it to you. I went to my closest dealer and the price they wanted was almost 2 grand more that they buyout info had originally given me. 500 was the second tax(sc state caps auto sales tax at $500), 399 doc fee, $75 title fee, then the rest was their markup because they said they have have to make something off of the transaction. At worst I should have to pay my buyout amount plus $500 tax, plus around 400-500 in tack on fees. Dealers see this as a money grab and are attempting to screw customers. Kia Town in Florence verbally agreed to only charge me the buyout plus 500 tax, when I got there they lied about the buyout amount by $1400.00 not knowing I had already obtained that number.

 

[brancky3]

Pm me and I’ll shoot you my cell, we are in the same boat, same state. I got my buyout and sent it to Kia, they sent me a check back 3 weeks later saying they had misinformed me and I have to go through the dealer. What happens is KMF sells the car to the dealer who then sells it to you. I went to my closest dealer and the price they wanted was almost 2 grand more that they buyout info had originally given me. 500 was the second tax(sc state caps auto sales tax at $500), 399 doc fee, $75 title fee, then the rest was their markup because they said they have have to make something off of the transaction. At worst I should have to pay my buyout amount plus $500 tax, plus around 400-500 in tack on fees. Dealers see this as a money grab and are attempting to screw customers. Kia Town in Florence verbally agreed to only charge me the buyout plus 500 tax, when I got there they lied about the buyout amount by $1400.00 not knowing I had already obtained that number.

Honestly sounds to me like I'm not buying this car out. Dealers lying about buyout amounts? No thank you.
In my mind it should be remaining payments ($xxx * 29 months left) minus lease charges ($xxx * 29 months left) plus residual value. That's it. Plus tax, plus title fee. Doc fees and markup is absolutely ridiculous.

 

[turboAWD]

Seriously - dealers are that shitty and/or desparate? Wow..

 

[supershanesta]

Can some one please help me understand this? I called KIA because my 333 payment brought my Buyout price online down the same amount. I thought only some of my monthly payment is used to bring the buyout price down and other parts are used as rent? I assumed the faster I buyout the vehicle, the more money I save on rent? This makes it seem like I should just stay in the lease until the term ends?

I think I am misinformed. The woman on the phone said that it all goes to the buyout. Very confused.

 

[Jay B.]

@supershanesta The only way your monthly lease payment brings your buyout price down by the same amount is if your lease has a zero money factor. Go back and let us know what your money factor was on the original lease paperwork.

 

[Ruturaj]

Can some one please help me understand this? I called KIA because my 333 payment brought my Buyout price online down the same amount. I thought only some of my monthly payment is used to bring the buyout price down and other parts are used as rent? I assumed the faster I buyout the vehicle, the more money I save on rent? This makes it seem like I should just stay in the lease until the term ends?

I think I am misinformed. The woman on the phone said that it all goes to the buyout. Very confused.

Check the payment date, my monthly payment is due on 8th, I would pay early and it will show my buyout price dropped by my payemtn amount, and good till coming 8th. After 8th it will go up by around 200 dollars and that will be good till next 8th. Again it will drop down by my payment amount once I make next payment before 8th.

 

[supershanesta]

Check the payment date, my monthly payment is due on 8th, I would pay early and it will show my buyout price dropped by my payemtn amount, and good till coming 8th. After 8th it will go up by around 200 dollars and that will be good till next 8th. Again it will drop down by my payment amount once I make next payment before 8th.

Ruturaj!

Thank you! That makes a lot of sense! I payed early so they did not charge me a rent fee yet! It probably has to do with payment date versus actual due date! I appreciate it!

@supershanesta The only way your monthly lease payment brings your buyout price down by the same amount is if your lease has a zero money factor. Go back and let us know what your money factor was on the original lease paperwork.

I know I have a money factor, that is why it seemed so weird. Based on what Ruturaj said I imagine my buyout will go up by $100 after the real due date is met.

 

[kdmpolo]

So I've been reading on how to buy this car as cheap as possible. Before settling on a used 2018 yellow GT for 24k and 9k miles, i figured id try this. I want the GT base with RWD and LSD. I priced one a few days ago at my local KIA dealership for 32k and change out the door price but that for buying the car and they wanted way too much a month after talking the car down as much as i could. MSRP was 39k and internet price online was 33k.

Would i be able to get the car down to 32k again and LEASE instead of buying it for a better chance at owning this car?

I have an Optima i would be willing to trade in. I still owe like 4200 on it though and its worth like 5-7k.
I also have 1k I would be willing to put down. what are my options gentlemen?

Your guidance is appreciated! y

 

[BN61705]

Hi, I've been following this thread over the last few weeks. I am very tempted by the lease-then-buyout option for a 2019 GT2. I remember seeing at least one person in Illinois posting in this thread who considered lease-then-buyout, but eventually that person posted that they chose traditional loan financing.

I have read that Illinois changed its lease laws a few years ago and that some areas near Chicago charge a lease "use tax" in addition to sales tax that basically amounts to double tax. Unfortunately the article wasn't clear what cities/counties run this particular scam.

Has anyone used the lease-then-buyout in Illinois? Does the lease "use tax" only apply to Cook county, or to other NW suburbs?

Thanks (and apologies if I missed it earlier in the thread)

 

[sofla1966]

I believe the use tax is Cook county only.

I am trying to find out if we pay tax on the purchase price before or after the rebate.

 

[bhargv]

Dealer discount of 6.2k along with 9.5k lease cash on 2018 GT2 in Minnesota what do you guys think.

 

[BT_STINGER]

Guys i need your help. Pretty sure i understand this correctly...i got my net cap cost down to 37k for an 18my gt2. I believe this means my buyput should be around 37k by doing a lease buyout at the first month. Am i reading that correctly?

 

[supershanesta]

Guys i need your help. Pretty sure i understand this correctly...i got my net cap cost down to 37k for an 18my gt2. I believe this means my buyput should be around 37k by doing a lease buyout at the first month. Am i reading that correctly?

Someone correct me if I am wrong, but Yes cap cost is your buyout. Note that you will have to still pay tax on that amount, but that would be like a purchase price of the vehicle.

I am leasing and plan to buyout in the next couple months.

 

[Rob M]

Guys i need your help. Pretty sure i understand this correctly...i got my net cap cost down to 37k for an 18my gt2. I believe this means my buyput should be around 37k by doing a lease buyout at the first month. Am i reading that correctly?

Roughly, yes. After your first month's payment, it would drop a little under $37K based on your net cap cost, but then you will need to pay the $300 purchase option fee, PLUS, depending on where you live, any additional sales taxes/fees and registration/title/tag fees where required. If you are in one of the several states that require you to go through the dealer to complete the buyout, they will likely impose an additional fee to handle the transaction. Otherwise, you can just mail a check to KMF for the balance of the online buyout quote.