Walk me through lease buyouts

[Nosnide]

I typed up a long thread asking for help and it was removed I guess. I've never leased so I don't very well understand it, but I have read a lot of the threads on here. Can someone walk me through the steps? I'd like to purchase a 2020 Kia Stinger GT2. Thanks.

 

[MerlintheMad]

You lease. Wait for your Kia finance page to show your buyout quote. Write a cheque to HCA Exchange, Inc. for the amount and also send odometer statement. Wait c. a month. Title arrives. She's yours free and clear.

Of course, some States (Florida) require you to transact the buyout at the dealer.

 

[Travis Wills]

You lease. Wait for your Kia finance page to show your buyout quote. Write a cheque to HCA Exchange, Inc. for the amount and also send odometer statement. Wait c. a month. Title arrives. She's yours free and clear.

Of course, some States (Florida) require you to transact the buyout at the dealer.

What Merlin said is great information. However, it is also important to understand that the lease buyout option is only advantageous to you if you negotiate an exceptional deal. You may negotiate the selling price to under $40K which makes the lease buyout option seem like a fantastic deal. However, they can add extra lease charges into that afterwards if you are not careful.

Ultimately the capitalized cost is what matters in a lease buyout scenario. You want that capitalized cost to be as low as possible without putting any money down or trading in a car on it. Ideally less than $40K is outstanding but even less than $42K is still good on a 2020 Stinger GT2 RWD.

Just be careful with it. Don't rush in and sign anything until they give you a capitalized cost and a lease payment per month. Ideally you would want to know the interest rate as well but that won't matter if you buy the lease out right away.

 

[Nosnide]

What Merlin said is great information. However, it is also important to understand that the lease buyout option is only advantageous to you if you negotiate an exceptional deal. You may negotiate the selling price to under $40K which makes the lease buyout option seem like a fantastic deal. However, they can add extra lease charges into that afterwards if you are not careful.

Ultimately the capitalized cost is what matters in a lease buyout scenario. You want that capitalized cost to be as low as possible without putting any money down or trading in a car on it. Ideally less than $40K is outstanding but even less than $42K is still good on a 2020 Stinger GT2 RWD.

Just be careful with it. Don't rush in and sign anything until they give you a capitalized cost and a lease payment per month. Ideally you would want to know the interest rate as well but that won't matter if you buy the lease out right away.

Okay I think I understand it a little better. Do any of you guys end up financing the buyout through KMF for the 0.0% or 0.9% APR?

 

[Travis Wills]

Okay I think I understand it a little better. Do any of you guys end up financing the buyout through KMF for the 0.0% or 0.9% APR?

I don’t believe you can refinance through KMF like that and especially not for the “new car” finance rate. You will probably have to refinance with your bank or credit union to get a decent rate. I doubt it will be less than 1% though.

 

[Buzz]

You would have to finance as a "used" car (Maybe some would consider this nearly new car "new" worth an ask) with a credit union or similar. Recommend someone you can actually talk to as Kia's process is terrible and runs through fax machines.

When you work with the dealer negotiate the price as if you were going to purchase it in cash. Once you have hit rock bottom. (Make sure to negotiate with some other dealers in other areas for the same car and bring printouts, dealers hate it so it's good for you!) once you have established the price they will sell the car THEN bring up you want to lease, know what your lease incentive is at, make sure the price doesn't jump on you, and you should have a great deal.

Dealers will tell you they "can't sell the car for that price if it's a lease, look at the 7k incentive"! but they don't pay that incentive, they just sell the car for a leasing company instead of directly to you.

Most other incentives will not stack with the lease incentive though, negotiate the base car price.

 

[quiXilver09]

I typed up a long thread asking for help and it was removed I guess. I've never leased so I don't very well understand it, but I have read a lot of the threads on here. Can someone walk me through the steps? I'd like to purchase a 2020 Kia Stinger GT2. Thanks.

Check out my in depth video of how to do one from beginning to end.

 

[Helo58]

Check out my in depth video of how to do one from beginning to end.

Wow, what an amazing video. It answered almost every question that I had and was a good buying tutorial to boot. Can any forum members comment on the situation in NC with respect to lease buyouts? Are there any special rules here (like FL mentioned in the video) that would make this less advantageous?

 

[Buzz]

Wow, what an amazing video. It answered almost every question that I had and was a good buying tutorial to boot. Can any forum members comment on the situation in NC with respect to lease buyouts? Are there any special rules here (like FL mentioned in the video) that would make this less advantageous?

Worked for me in NC no problem. Be ready to pay a big lump sum in tax that you avoided when you leased for a month, mine was $998.

Truliant Credit union was great to work with from the financing perspective.

 

[Helo58]

Worked for me in NC no problem. Be ready to pay a big lump sum in tax that you avoided when you leased for a month, mine was $998.

Truliant Credit union was great to work with from the financing perspective.

Thanks @Buzz . I appreciate the input.

 

[quiXilver09]

Wow, what an amazing video. It answered almost every question that I had and was a good buying tutorial to boot. Can any forum members comment on the situation in NC with respect to lease buyouts? Are there any special rules here (like FL mentioned in the video) that would make this less advantageous?

Thanks! Glad it was helpful. Good luck on your purchase!

 

[rbolin72]

Hi Guys, thanks for this thread! I am about to pull the trigger on a lease buyout on a 2021 GT2 next weekend. I have an unsigned "Authorization Form" with the numbers we've agreed to but I had a couple of questions. First, I know I should get a signed "Buyers Order" before I go in to finalized everything correct? Also, I'm afraid that Kia will change the wording in their lease contract on me and the lease buyout won't work. I'm just paranoid I guess. Has anyone heard if there are any changes to the 2021 lease documents? Has anyone successfully completed a lease buyout on a 2021 model? Thanks in advance for any thoughts!

 

[MerlintheMad]

Hi Guys, thanks for this thread! I am about to pull the trigger on a lease buyout on a 2021 GT2 next weekend. I have an unsigned "Authorization Form" with the numbers we've agreed to but I had a couple of questions. First, I know I should get a signed "Buyers Order" before I go in to finalized everything correct? Also, I'm afraid that Kia will change the wording in their lease contract on me and the lease buyout won't work. I'm just paranoid I guess. Has anyone heard if there are any changes to the 2021 lease documents? Has anyone successfully completed a lease buyout on a 2021 model? Thanks in advance for any thoughts!

Unless you're in a State that only does lease buyouts through the dealer, the dealer should never even know that you do the buyout. My dealer still thinks that I am paying off the lease, and keeps sending me reminders that I have x-number of payments left: and golly gee, wouldn't I love to trade my 2018 in on a spanking new 2020, and a bigger monthly payment? Hah.

 

[Gautam Beri]

Worked for me in NC no problem. Be ready to pay a big lump sum in tax that you avoided when you leased for a month, mine was $998.

Truliant Credit union was great to work with from the financing perspective.

Hey @Buzz i saw you worked out a deal in NC.
can you tell me who was your dealer? I am in NC and trying to get the deal through but I don’t like the dealerships here or it is Kia in general maybe.
Can you share what rebates and discount you got for your stinger.
How much you paid when doing a lease buyout?
just want to get an overall idea before and after leasing start so I know everything before dealerships dupe me. Lol

 

[Buzz]

It's been a few years, I have a 2018 and the dealer merged with Hendrick who I have only bad things to say about, they simply refused to stop playing games. In the end my only path to success was to compare Florida rates to NC, negotiate a florida vehicle, and get NC to match the deal. At the time I was completely willing to take a $75 frontier flight to orlando and break in a Stinger on the way back. This effort + maintaining my own spreadsheets, comps, and bringing my laptop+hotspot to the dealer worked. The only rebate was the lease cash, which was substantial enough to take the price down to 32k. The only fees were 1 months leasing a nominal early buyout fee and 1100 in state tax (which you avoided at purchase)

• When negotiating this, avoid any discussion of lease or rebates (Few/none stack with the lease cash)trades, etc, you are just looking to negotiate Cash Price after all fees and "upgrades" you are buying the car, once you have that hammered out THEN you bring up you plan on leasing + lease cash from KIA (not the dealer) Have a spreadsheet ready to receive all of that data and clear out the noise, dealers write all their sheets upside down to obfuscate the real cash price.
• If the dealer is selling a car to you, or to KMF leasing team, it's the same for the dealer, the dealer will try to make it sound like it's some magic different reality where cars only come in 1 price.
• Come prepared with a negotiated online anchor deal which you are willing to walk out the door and go pick up. This starts the negotiations in the ballpark, not at MSRP or whatever their sticker is at +/- a bunch of improperly stacked rebates you don't qualify for.
• Come prepared with the price of addons and crap, tint and door edge plastic (which you should peel off because rocks/salt get stuck in them, then when you do peel it off there is a line etched into your clearcoat) are 99% profit, while everything else has known MSRP markups.
• If they start marking up some sales sheet, take photos, my dealers made a specific big TODAY written in red + other markups and scribbles, then started playing games with a 2nd sheet with stuff we already negotiated missing + TODAY like I wouldn't notice I'm not paying hundreds for some plastic tape that ruins the clearcoat which I'm peeling off tomorrow.
• Remember every way they present numbers is to be in their favor, keep your own spreadsheet.
• Put the absolute bare minimum down on a lease possible, $0 if possible. It only harms you.
• Negotiate at a dealer who has had a car you're looking for with days on the lot going high.
• Walk away. It's your superpower.
• Register an email address stinger-search-2020@whatever again, the ability to dictate the terms of battle is your superpower.

Dealers suck, the process sucks, but with tons of information the process can work in your favor (While still being a real pain)

OLD DATA!
2018 Red, GT, RWD, Limited Slip Diff, Drivewise, Mud Guards, All Weather Mats, Tint. Sitting on lot for 220 days.
Cash Price 36675
Net Cap Cost $32079
Dealer Fee $649
My lease payments on that amount would be $436 for 36/10k
I will have a $250 early buyout and at that point I would also finance the $1100 in state tax.