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?
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
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”.
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.
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.
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?