Warning - Do NOT buy out a lease in California!

[wmz]

I hate KMF and the CA DMV with burning passion. Here's my situation:

• 8/1/2020: Signed a 2-year lease for a GT2 AWD and paid my first month's payment at the dealership
• 8/14/2020: Got a lease buyout quote on KMFusa.com and sent the check for the full amount (car value + use tax)
• 10/31/2020: After multiple attempts to contact KMF, finally got the Certificate of Title from KMF in the mail, along with a letter saying that I need to go the DMV to complete the transfer of ownership
• 11/1/2020: Applied for a transfer of ownership with the DMV online, which included uploading a scan of my Certificate of Title
• 11/2/2020: Got a bill for $4K+, which includes the use tax (that I already paid to KMF) and $390 in "late transfer fees" - apparently, I had to submit the transfer of ownership within 30 days of the "sale" (recorded 8/14/2020), which was impossible since KMF took 2.5 months to send
• 11/2/2020: Used online chat with the DMV, who said I needed to show that KMF paid the taxes to the DMV. Meanwhile, called KMF, who said they could send a "Board of Equalization" letter to the DMV saying that I already paid them the taxes, along with a scan of the cashed buyout check. DMV rep said this would be sufficient, but I need to go into the branch and provide all original documents. I have to fill out another form to ask them to waive the late transfer fees, since it wasn't my fault that Kia took 2.5 months to send the title.

Now, I'm waiting another 5-7+ business days for KMF to fax and/or mail me the Board of Equalization letter. Then, I'll need to wait more time at the DMV, probably only to get turned down for more documents. The DMV may screw me into paying the $390 late fees as well. KMF is a joke, and the DMV makes the process so much worse. If paying the bullshit dealer buyout fee allows you to avoid interacting with KMF and the DMV entirely, I would highly recommend going down that route. I guess saving an extra few grand will be worth it at the end of the day, but this whole process has been a pretty big headache.

 

[MerlintheMad]

Well, that worked out well. Hah!

Seriously, this is KALIFOЯNIA you're talking about. You'll be fortunate to not have "discovered" unpaid fees, a year later, with interest applied. If you get that "late transfer fee" waived that is a total win. As for the time required for all of this, as long as you only have to wait, don't be complaining. Unfinished business is aggravating. But it doesn't have to be added stress above and beyond not knowing.

Maybe your problem with KMF started when you did the buyout in the first month of ownership: in other words, KMF doesn't work that fast. I got on the forum a little over two months into my lease; read about the buyout; did the buyout and had my title a little over three months into ownership. One phone call, that's all. You "rushed" things, and now you have to wait out the back and forth of two bureaucracies, as it were.

 

[nagisa]

Well, that worked out well. Hah!

Seriously, this is KALIFOЯNIA you're talking about. You'll be fortunate to not have "discovered" unpaid fees, a year later, with interest applied. If you get that "late transfer fee" waived that is a total win. As for the time required for all of this, as long as you only have to wait, don't be complaining. Unfinished business is aggravating. But it doesn't have to be added stress above and beyond not knowing.

Maybe your problem with KMF started when you did the buyout in the first month of ownership: in other words, KMF doesn't work that fast. I got on the forum a little over two months into my lease; read about the buyout; did the buyout and had my title a little over three months into ownership. One phone call, that's all. You "rushed" things, and now you have to wait out the back and forth of two bureaucracies, as it were.

would you recommend calling in to do the buyout?

i'm in California too and this thread is sketching me out, just got mine and wanna get the buyout done sooner then later

iffy about sending a huge check through the mail though and rather do like a bank transfer

 

[wmz]

I don't think calling in will help - KMF will probably just give you the same instructions to send the buyout check, then wait for the title in the mail.

I wanted to do the buyout earlier to avoid paying interest on the financing (it's like $100/month I think), but maybe waiting a few more weeks wouldn't have hurt. I would recommend going to the dealership and asking if they can just take care of all this bullshit with KMF and the DMV. If they can, it's probably worth paying the $300 buyout fee.

 

[MerlintheMad]

I never told my dealer that I did the buyout. They still think I am making monthly lease payments. One phone call to KMF to ask a clarification question (which I no longer remember what it was), and I sent the check and odometer reading; title came less than a month later; I had made three lease payments.

 

[wmz]

Update: all is well - I replied to the Virtual DMV address saying that I had already paid my taxes and that they were reflected in my Bill of Sale (which I also uploaded). They sent back a revised invoice for $38 ($8 smog transfer, $15 transfer fee, and $15 late transfer penalty). They removed the $375 late fee on the taxes, so I'm not going to fight about $15. Hoping that all of this will be wrapped up soon.

 

[anhanhymous]

Update: all is well - I replied to the Virtual DMV address saying that I had already paid my taxes and that they were reflected in my Bill of Sale (which I also uploaded). They sent back a revised invoice for $38 ($8 smog transfer, $15 transfer fee, and $15 late transfer penalty). They removed the $375 late fee on the taxes, so I'm not going to fight about $15. Hoping that all of this will be wrapped up soon.

Why did Kia request you take care of the transfer of ownership with the DMV? I thought that KMF does all that?

 

[adam1991]

Seriously, this is KALIFOЯNIA you're talking about.

exactly. He should spell it correctly next time.