I’m looking to buy out my lease one month after signing it. I get $7,500 if I lease, that’s why I’m looking to lease instead of purchase. I’ll be putting down $8,000 due to credit card spending and getting points.
I plugged in the numbers into the calculator, but they seem quite low. Any suggestions or advice?
I heard there’s a lease fee, buyout fee, and rent charges. But I do not know neither my dealer on what those amounts may be.
Which numbers seem low?
Lease to buy out does make sense instead of buying. You’ll save $7500 - ~$700 (tax on the $7500) - acquisition fee ($625 per your calculator) = ~$6k.
Should not be a disposition fee since you’re buying out the lease but you’d have to check what Kia finance’s terms are.
Payment is low because you are putting a massive downpayment and you didnt plug in any registration or dmv fees…
I am very familiar with Ioniq5s and all the fees on the lease to buy if you want to call 3104053507
Lease calculator is showing only 6.8 years…seems pretty low.
Would it be higher if I buy out the vehicle?
When does lease fee, buyout fee, and rent charges come into play?
I don’t see an option on the calculator to input that.
Grand Total Registration Fees
$5,244.00
Total Use/Sales Tax
$4,627.00
Total Registration Fees
$617.00
The year doesn’t mean anything with regards to this. It’s used to compared deals of the same car with similar MSRPs
You are buying out immediately. You don’t pay any unearned rent charge.
Lease buyout fee is $300. Your buyout would be total depreciation+ residual+$300 + taxes.
= $31727+$300+ taxes.
Here is a calculator with your reg fees included
Your buyout can be complicated depending on what state you are in.
If your vehicle is garaged/registered in CO, DC, FL, HI, IN, PA, SD, SC, you will need to contact a Dealership to purchase the vehicle.
It doesn’t make sense if you can take the full 7500 at tax time and avoid the acq fee by buying it outright in the first place.
Ioniq 5 is not eligible for the consumer EV tax credit.
The lease cap reduction is solely a commercial EV tax credit passthrough.
Thank you for your comment. It would be in California, how would that work out?
Also 6.5 years seems okay of a deal. Don’t know how to make this deal better?
Dang. I’ve really lost touch with what’s going on with the credits. So now there’s one for the banks that is not for the consumers? That’s … goofy.
Also even if it were eligible some folks are disqualified due to income limits.
There’s a commercial EV credit (not for banks). There’s a loophole in it for leasing companies who can pass through the savings to the customer. The financing arm of Tesla, Ford, GM, and Rivian do not pass through the tax credit and keep it themselves.
Ignore the years. You are financing the car right after leasing. The faster you buyout the better. The MF is very high on the lease. I have no idea what your tax rate in CA is so make sure that’s accurate.
Find a CU giving a good rate to fund the buyout. USSFCU still has good rates I think. You can make the deal better by getting a higher discount off MSRP.
Why does the LH score matter if you’re buying it out after a month?
My man even the EQS leases are funded by this loophole. Taxpayer money put to good use lol.
Less than double taxation on depreciation. 
Let say another ~ $1200 in Your case.
So real saving will be ~$4800
He doesn’t pay taxes upfront in CA.
Its not a loophole though… it specifically mentions that its for leasing.
Good for him. We are not that lucky in NY .
Yea it sucks for us, no MSDs sucks as well.