Kia EV6 Lease Early Buyout option

Ask the Hackrs
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I’m trying to lease EV6 with $7500 tax credit, then exercise early buyout after the first payment. This is my first time getting my own car, and of course first time leasing.

I have read this reddit post, and trying to understand small bits. Is there anything in the contract that I would need to pay a close attention to see if I will be responsible for any unearned rent charges when early buyout? Can Kia’s lease contract differ between dealerships, so the advices from the reddit post may not apply in terms of early buyout?

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I wrote that post, what all do you wanna know?

  • No rent charges on the buyout. It’s in the contract.

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  • The contract doesn’t vary between dealerships. Like I said in the post, some states do require a dealer for you to do a buyout.

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The biggest thing to keep an eye on is that your buyout paperwork itemizes the taxes paid

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Great to see you here! Your post was incredibly helpful understanding some of the details.

I’m planning to head off to the dealership, and sign the contract there. I actually was reading those contract sections you posted, asking chatgpt to give me simpler explanation… It was very difficult for me to understand what it exactly means.

I’m just trying to make sure that I’ll be able to exercise early buyout without paying for the remaining rent charges. So if there was any chance that this dealership would give me a different contract or updated clauses, I would want to understand them on the scene.

I am based in California, and CA wasn’t in the list you posted :slight_smile:

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This is not an issue and honestly the last thing you should be worried about.

I have seen hundreds of these contracts and Hyundai/Kia dealers are pure scum. I have seen them sneak in $6000 in warranties in the paperwork. Watch out for agreed upon value actually matching what you agreed upon and get rid of any extra addons like $300 Nitrogen and $1500 Perma plate that is “non negotiable”.

CA falls under every other state. Remember that the rebate is also taxed.

I wouldn’t go to the dealer without knowing what the numbers are. Please use the calculator here to actually see what the numbers would look like. You ideally should be getting a discount off MSRP before the rebate. I have seen as high as $5k off depending on the trim.

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I have the agreed number with the dealer, ~2k off + 7500 rebate, no add-ons. Only negotiated with the selling price, as I didn’t think DAS or monthly payment matters in my plan for early buyout.

Thanks for the help! If you are okay and available at the time by any chance, I’ll try to send the contract before signing. Would appreciate if you have a chance to look at it.

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Yea just PM me the contract. Seen a whole bunch of messy ones.

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That would only be applied when I’m actually buying out on Kia website, right?

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Correct. There have been aome people that have had issues with them not itemizing the taxes on buyouts and then the dmv charging again for tax when registering.

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Watch out of the Kia / Hyundai Double Tax , make sure you get a filled out REG 256, otherwise you are owing more money. (Paying Sales Tax Twice)

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Could you please elaborate a bit more on this? Does this happen at leasing deal time at dealership or buyout time?

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When you personally buyout. There are a few complaints here that KMF charges tax in their buyouts (non dealer) and doesn’t give a REG 256 which would prove to the DMV to collect direct from Kia. So that means you have to pay tax AGAIN when registering it.

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Thanks for clarifying. At the lease time, tax should be included in monthly payment, not up fromt, correct?

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When you lease/buyout a Kia you pay 3 different taxes.

  • Tax on all Incentives you get (like the $7500)
  • Tax on the monthly payment
  • Tax on the final buyout amount (when you buy it out) Most OEMs don’t bother with this step and make you do it at the DMV.

But on the 3rd, you need Form REG 256, demand it.

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AFAIK Kia doesn’t collect tax for CA at buyout.

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This is on my Kia Niro

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Thanks for the correction.

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Only $2k? I got $3k off from a couple dealers in SoCal without trying. You can do better

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Could you explain, “But on the 3rd, you need Form REG 256, demand it.”?

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Form REG 256 is a form that contains certain information such as

  • Business Name that Collected Sales Tax
  • How much was it sold for
  • How much sales tax was collected
  • What is the SR #(State Tax Number) it was collected under.

In CA, if you show up at the DMV after buying your Lease and you don’t have REG 256 in your documents, then they will charge you Tax. Period. No form, must pay Tax, and Hyundai / Kia is forgetting to pass this form, but charging Tax. So who’s getting the Extra Tax?