Help - I want to buy my leased car. What is the best way to proceed?

Ask the Hackrs Buy/Finance
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Location: California
Zip Code: 91702
Car: 2019 G70 AWD 2.0T (Genesis)
Lease ends: Nov 2022
12k/yr
Currently I’m at about 31,800 with about 13 months left.

Reason for wanting to buy my lease

  • I don’t want to pay double of what I’m paying now when leasing given the ongoing shortage situation
  • I will be super over mileage at the end of the lease about 15k more.

I’ve read that the dealership will send you a buy out inquiry 90 days before the lease return. Is this true for all auto leases? Should I wait to tell the dealership I want to buy this vehicle?

Is the buyout price on the Lease Contract a fixed rate? Or are those negotiable? Isn’t the residual value? Do I need to get financed again?

Is there anything else I need to know when thinking about purchasing my auto lease?

Any tips or pointing in the right direction would be greatly appreciated

Thank you

Edit: Sorry guys. I am also reading this article from this website. Should I Buy Out My Lease? (And How?) — LEASEHACKR
-It says here to shop around for the best deal but also says the residual value is the buy out price? I don’t understand what this means.

Any additional tips would be appreciated :slight_smile:

2

At the end of your lease, the buyout will be the residual value plus any applicable fees and taxes. Your contract will specify those. The amount is not negotiable.

If you want to finance it, you’ll need to get financing, just like purchasing any other used car.

If you want to buy it now, you can go onto the hyundai/genesis financial portal and it should give you the current buy out amount. That’s what it will cost to purchase it today. If you buy it out, the lease terminates.

There’s no need to involve a dealership for doing this buy out in CA.

3 Likes
3

Thank you very much for your reply! I’ll check my financial portal.

4

Residual Value - $17,527.08

Buyout Quote:
Unpaid Lease Payments due through: 11/04/2021
Unpaid Late Fees: $0.0
Other Amounts Due: $0.0
Adjusted Unpaid Lease Balance: $21814.98
Sales Tax: $2273.1
Less: Security Deposit $0.0
Total Purchase Price: $24780.6
***** I’m confused because 21814.98+2273.1 = 24088.08 which is a discrepancy of (692.52) from the total amount of $24780.60. Why is the $692.52 missing on the itemized quote?

Total Buyout is $24780.60 <<<< Does this price include the 13 months payment leftover on my lease?

If I plan to buy it out should I buy it out later towards the lease end or earlier the better or it doesn’t matter?

5

At the end of the lease.

6

They may have some fees which not showing up and the discrepancy.
Yes it includes 13 month lease payment.
If you know for sure you going to Buy at the end then drive 13 more months and then buyout at the RV plus Tax. Mileage won’t matter if you buying and no disposition fee either.

7

What is the interest rate on any financing you would use? What is the equivalent interest rate to the mf on the lease?

8

If OP buy now doesn’t he has to pay Tax again on the 13 month lease amount.

9

Sorry stupid question here:

I’m not sure which financing I would use. I was thinking about going to my bank “Wellsfargo” and asking for a quote then look around based on that quote. What is considered a good interest rate?

I need to go to my car at lunch to check the mf on my car.

1 Like
10

You can compare what rate WF is offering against a credit union that anyone can qualify for, such as DCU, Penfed, etc.

11

California taxes based on monthly payment, so for the amount in between the buy out and the rv, it’ll either get taxed now on a buy out or taxed each month on the lease. It’s a wash.

1 Like
12

I have a friend who is buying out his '19 Kia Optima S lease with only 5000 miles on it. Lease is up 10/28/21. A Kia dealer told him that although the car comes new with a 10yr/100k warranty, it is reduced to 5yr/60k warranty once the car is resold. The name, registration, plates and insurance are all staying the same. Is this legit and if so, how can he fight it? It seems ridiculous since he has had the car for 36 months and is the original driver.

13

The salesman at the dealer is either misinformed or deliberately lying.

Page 6:
An Original Owner is defined as the first retail
purchaser or lessee of the Kia Vehicle who takes
delivery of the Kia Vehicle on its Date of First
Service. If the Kia Vehicle was first placed in service
as a lease vehicle, and the lessee purchases the
vehicle at the end of the lease, the 120
month/100,000 mile Power Train Limited Warranty
remains in effect.

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14

The full extent of the new car warranty is and always has been 5/60. The 10/100 beyond that is and always has been powertrain.

While you’re within the 5/60, you can extend it to 10/100.

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15

How can he extend it? Whom does he call? He’s getting his car loan from B of A. The dealer he leased from is being very difficult. They are trying to sell him an extended warranty for $2000 and gap insurance for $500 on a car that’s no longer a lease! Even though he went to the dealer last week, they aren’t returning his calls or emails.

16

It’s a retail product sold via dealers just like anything else auto-related, gotta find the lowest price yourself. Start with the Kia forums, there’s usually intel on which dealers sell with the lowest markup above cost.

1 Like
17

Great, thanks!