Early Termination of 2014 Kia Sorento Leased through Kia Finance

whoanellywhoanelly Member Posts: 1
edited August 2015 in Kia
We purchased a new car (not a Kia) and knew we would be "on the hook" for the remaining lease payments of the term of our lease to Kia, as well as early termination fees totalling $800. When we called the Kia dealer to arrange the turn-in, my wife was told that we'd be much better off keeping the vehice until lease-end, rather than turning it in now because the dealer would have to sell the car at auction and we would be responsible for the difference between what they get and the residual value. The contract clearly states the 2- $400 charges for early term and I knew about the remainig payments, but what the dealer is telling my wife seems like hogwash to me. This is our first time experiencing an issue like this, mainly because all of the cars we have previously leased did not depreciate to this degree. Is the dealer full of it, or is there some validity there? Any thoughts would be appreciated. Thanks!
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  • kyfdxkyfdx Moderator Posts: 257,293
    whoanelly said:

    We purchased a new car (not a Kia) and knew we would be "on the hook" for the remaining lease payments of the term of our lease to Kia, as well as early termination fees totalling $800. When we called the Kia dealer to arrange the turn-in, my wife was told that we'd be much better off keeping the vehice until lease-end, rather than turning it in now because the dealer would have to sell the car at auction and we would be responsible for the difference between what they get and the residual value. The contract clearly states the 2- $400 charges for early term and I knew about the remainig payments, but what the dealer is telling my wife seems like hogwash to me. This is our first time experiencing an issue like this, mainly because all of the cars we have previously leased did not depreciate to this degree. Is the dealer full of it, or is there some validity there? Any thoughts would be appreciated. Thanks!

    I'm not a lawyer, and I don't have your contract in front of me... .but, what the dealer says is more or less the way it works, when you turn your leased car in early..

    But. the dealer doesn't sell the car at auction, Kia Finance does. However, the difference between auction value and current payoff comes out of your pocket, and that can be substantial (and, unknown, until later).

    Your dealer is probably correct.. In the long run, it will be much cheaper to keep your Kia and turn it in at lease end.

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