Lease Buy Out - 2020 Kia Forte

amy83181amy83181 Member Posts: 48
edited June 15 in Kia
Hello,
My mothers lease expires in November and she wants to buy out the lease. I've never bought out a lease before and I was wondering if you can offer guidance of the easiest way to do so and if it has to be done at a dealership. If it has to be done at a dealership what red flags should I look for when financing the residual value? I've heard dealerships try to tack on fees that shouldn't be there. Please advise.
Thank you!
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  • MichaellMichaell ColoradoModerator Posts: 209,575
    amy83181 said:

    Hello,
    My mothers lease expires in November and she wants to buy out the lease. I've never bought out a lease before and I was wondering if you can offer guidance of the easiest way to do so and if it has to be done at a dealership. If it has to be done at a dealership what red flags should I look for when financing the residual value? I've heard dealerships try to tack on fees that shouldn't be there. Please advise.
    Thank you!

    Call the bank that holds the lease and ask them what options you have.

    Depending on the state, you may not have a choice but to use the dealer to facilitate the transaction.

    Remember that you'll pay sales tax on the residual amount, and it's a good idea to line up your own financing, as the leasing bank is under no obligation to provide it.

    If you have to use a dealer, you don't have to use the dealer you initially leased from; shop around, and compare fees and such.

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  • amy83181amy83181 Member Posts: 48
    Michaell said:

    amy83181 said:

    Hello,
    My mothers lease expires in November and she wants to buy out the lease. I've never bought out a lease before and I was wondering if you can offer guidance of the easiest way to do so and if it has to be done at a dealership. If it has to be done at a dealership what red flags should I look for when financing the residual value? I've heard dealerships try to tack on fees that shouldn't be there. Please advise.
    Thank you!

    Call the bank that holds the lease and ask them what options you have.

    Depending on the state, you may not have a choice but to use the dealer to facilitate the transaction.

    Remember that you'll pay sales tax on the residual amount, and it's a good idea to line up your own financing, as the leasing bank is under no obligation to provide it.

    If you have to use a dealer, you don't have to use the dealer you initially leased from; shop around, and compare fees and such.
    Thank you for the quick response. The leasing company is Kia Motors Finance and the lease buyout option in my mothers account says that she has to go to the dealership to get the information. I read a pamphlet on Kia lease buyout online and it looks like per the request of I guess the dealer that they can transfer the residual value to a finance.

    We are in Florida.

    What banks offer auto financing. I tried capital one and they said they wont provide financing because its coming off a lease.

    What fees would dealers charge for a lease buyout? Which fees are acceptable and which fees would they charge to rip you off?

    Thanks again!
  • MichaellMichaell ColoradoModerator Posts: 209,575
    amy83181 said:

    Michaell said:

    amy83181 said:

    Hello,
    My mothers lease expires in November and she wants to buy out the lease. I've never bought out a lease before and I was wondering if you can offer guidance of the easiest way to do so and if it has to be done at a dealership. If it has to be done at a dealership what red flags should I look for when financing the residual value? I've heard dealerships try to tack on fees that shouldn't be there. Please advise.
    Thank you!

    Call the bank that holds the lease and ask them what options you have.

    Depending on the state, you may not have a choice but to use the dealer to facilitate the transaction.

    Remember that you'll pay sales tax on the residual amount, and it's a good idea to line up your own financing, as the leasing bank is under no obligation to provide it.

    If you have to use a dealer, you don't have to use the dealer you initially leased from; shop around, and compare fees and such.
    Thank you for the quick response. The leasing company is Kia Motors Finance and the lease buyout option in my mothers account says that she has to go to the dealership to get the information. I read a pamphlet on Kia lease buyout online and it looks like per the request of I guess the dealer that they can transfer the residual value to a finance.

    We are in Florida.

    What banks offer auto financing. I tried capital one and they said they wont provide financing because its coming off a lease.

    What fees would dealers charge for a lease buyout? Which fees are acceptable and which fees would they charge to rip you off?

    Thanks again!
    Do a search for "lease buyout financing" and see what results you come up with.

    I'm not sure that any lease buyout fees are acceptable. I know I didn't pay any when I bought out our VW lease years ago here in Colorado.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • amy83181amy83181 Member Posts: 48
    Michaell said:

    amy83181 said:

    Michaell said:

    amy83181 said:

    Hello,
    My mothers lease expires in November and she wants to buy out the lease. I've never bought out a lease before and I was wondering if you can offer guidance of the easiest way to do so and if it has to be done at a dealership. If it has to be done at a dealership what red flags should I look for when financing the residual value? I've heard dealerships try to tack on fees that shouldn't be there. Please advise.
    Thank you!

    Call the bank that holds the lease and ask them what options you have.

    Depending on the state, you may not have a choice but to use the dealer to facilitate the transaction.

    Remember that you'll pay sales tax on the residual amount, and it's a good idea to line up your own financing, as the leasing bank is under no obligation to provide it.

    If you have to use a dealer, you don't have to use the dealer you initially leased from; shop around, and compare fees and such.
    Thank you for the quick response. The leasing company is Kia Motors Finance and the lease buyout option in my mothers account says that she has to go to the dealership to get the information. I read a pamphlet on Kia lease buyout online and it looks like per the request of I guess the dealer that they can transfer the residual value to a finance.

    We are in Florida.

    What banks offer auto financing. I tried capital one and they said they wont provide financing because its coming off a lease.

    What fees would dealers charge for a lease buyout? Which fees are acceptable and which fees would they charge to rip you off?

    Thanks again!
    Do a search for "lease buyout financing" and see what results you come up with.

    I'm not sure that any lease buyout fees are acceptable. I know I didn't pay any when I bought out our VW lease years ago here in Colorado.
    Thank you very much! When you bought out your lease did you just pay the residual value, tax and any balance left of your lease if you bought it prior to lease expiration?
  • MichaellMichaell ColoradoModerator Posts: 209,575
    amy83181 said:

    Michaell said:

    amy83181 said:

    Michaell said:

    amy83181 said:

    Hello,
    My mothers lease expires in November and she wants to buy out the lease. I've never bought out a lease before and I was wondering if you can offer guidance of the easiest way to do so and if it has to be done at a dealership. If it has to be done at a dealership what red flags should I look for when financing the residual value? I've heard dealerships try to tack on fees that shouldn't be there. Please advise.
    Thank you!

    Call the bank that holds the lease and ask them what options you have.

    Depending on the state, you may not have a choice but to use the dealer to facilitate the transaction.

    Remember that you'll pay sales tax on the residual amount, and it's a good idea to line up your own financing, as the leasing bank is under no obligation to provide it.

    If you have to use a dealer, you don't have to use the dealer you initially leased from; shop around, and compare fees and such.
    Thank you for the quick response. The leasing company is Kia Motors Finance and the lease buyout option in my mothers account says that she has to go to the dealership to get the information. I read a pamphlet on Kia lease buyout online and it looks like per the request of I guess the dealer that they can transfer the residual value to a finance.

    We are in Florida.

    What banks offer auto financing. I tried capital one and they said they wont provide financing because its coming off a lease.

    What fees would dealers charge for a lease buyout? Which fees are acceptable and which fees would they charge to rip you off?

    Thanks again!
    Do a search for "lease buyout financing" and see what results you come up with.

    I'm not sure that any lease buyout fees are acceptable. I know I didn't pay any when I bought out our VW lease years ago here in Colorado.
    Thank you very much! When you bought out your lease did you just pay the residual value, tax and any balance left of your lease if you bought it prior to lease expiration?
    That is correct. I bought it after I made the last payment.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • amy83181amy83181 Member Posts: 48
    Good Morning, I have another question. So the dealer wants to charge a dealer fee of $1441 which is $992 plus document fees of $446, is that to be expected or do I need to go to another dealer? Also, is it possible for another person to assume the buyout and finance the residual value plus tax? Thank you in advance!
  • MichaellMichaell ColoradoModerator Posts: 209,575
    amy83181 said:

    Good Morning, I have another question. So the dealer wants to charge a dealer fee of $1441 which is $992 plus document fees of $446, is that to be expected or do I need to go to another dealer? Also, is it possible for another person to assume the buyout and finance the residual value plus tax? Thank you in advance!

    Can't hurt to check with other dealers.

    I think you'll have to buy the car first, then sell it to the other party. Each of you will then owe sales tax.

    Edmunds Price Checker
    Edmunds Lease Calculator
    Did you get a good deal? Be sure to come back and let us know! Post a pic of your new purchase or lease!


    MODERATOR

    2015 Subaru Outback 3.6R / 2014 MINI Countryman S ALL4

  • dcan87dcan87 NCMember Posts: 26
    edited July 13
    Hey I can help! I just recently bought my lease out and then sold it to a Chevrolet dealer for cash equity.

    You DO NOT need to go to the dealer to buy your lease out if the lease is held directly with KIA Finance (or Hyundai whichever).

    I went through my bank USAA they sent a check to KIA. Through the account page with your KIA lease you can do lease end and document requests. You will need to print off and send them the odometer statement then fill out the Bill of Sale form as well.

    Make sure when they send the title you tell them to send it to the new lease holder. They send it me directly without listing USAA as a lien holder. The KIA lease end department is very bad with helping you through the process and pushing paperwork along. You will have to do it yourself and check in on it all.

    I did not have to pay a dealer or my bank any extra fees, just sales tax when I transferred the title to my name.
    2020 KIA Forte GT | 2019 Hyundai Kona AWD Ultimate | 2014 Chevy Sonic LT
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