I wanted to share my recent experience trying to buy out my leased Kia in Florida, hoping it helps someone.
In Florida, Kia requires you to go through a dealership to purchase your leased vehicle at the end of the lease. You can’t simply pay the residual value online and have the title mailed to you, as you can in some other states.
My lease stated that to buy the vehicle, I would need to pay the residual value, “official fees,” and taxes. However, when I went to the dealership, they tried to charge me over $2,000 in additional fees, including an inspection fee, electronic filing fee, and private tag agency fee—none of which were permitted in my lease.
When I refused to pay these fees, the dealer told me I didn’t have to buy the vehicle and could go to another dealership instead. I left, but I quickly discovered that other dealerships were also going to charge fees that I believed were not permitted under the lease terms.
I contacted Kia and Kia Finance, but neither was helpful. Kia Finance’s escalation representative claimed that dealers could charge whatever they wanted.
As an attorney, I felt that what Kia and the dealerships were doing violated the lease agreement and the Federal Consumer Leasing Act, which requires full disclosure of fees associated with a lease. I began preparing to take the matter to court or arbitration. During my research, I came across a federal court case filed (and settled) earlier this year involving nearly the same issue.
I decided to reach out to the lawyer who represented Kia Finance in that case and asked them to help me get in touch with their client. Thankfully, that approach worked. Within a day or two, I received a call from a finance executive at the auto group that owns the dealership I was working with.
This person agreed that I should only be charged the amounts outlined in the lease—nothing more. They arranged for me to return to the dealership and complete the purchase, paying only the residual value, official fees, and taxes as specified in the lease.
I can only imagine how common this issue must be in Florida where buyers are forced to deal with dealerships for lease buyouts. If you’re in a similar situation, you may want to carefully review your lease agreement, stand firm on your rights, and don’t hesitate to escalate the issue to the appropriate parties or seek third party help.