That’s not how that works. Even if you buy out the car immediately, you still have to pay all of the interest that would normally accrue throughout the lease term, and KFS has very high MF on most cars.
Are you sure about that?
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Yes. It’s a very common misconception about leases.
Is it? Multiple members on this forum have bought out their lease and not had to pay remaining rent charges.
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Not sure what you mean. Lease payoffs are residual + remaining payments + taxes and fees.
Rent charges are included in the monthly payments which are added back into the payoff.
It means that what you are stating contradicts what many others have reported. So I’m wondering if you have first hand knowledge (and Kia is different) or if you’re just spitballing.
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You just proved my point. In the second link, the payoff is $400 more than the negotiated sales price of the car including the loyalty rebate.
I’ve been in the auto industry for 5 years, I can guarantee you that you pay the rent charge no matter what in a lease. It may be difficult to see in situations with cars that have very low MF, but if you look at a lease with a high rent charge, you will see it very clearly.
I just checked my BMW FS account. Payoff is $32,860.94. Residual is $29,430.25. I have 19 payments of $179.42/mo left. If you do the math, the rent charge which is in the payment is included in the payoff.
Folks in this thread report they did not have to pay the rent charge for remaining months when buying car early in the lease.
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The rent charge on that car is 0.00225 which works out to $208 per month. Not squabbling over $400, it’s insignificant compared to what the rent charge is.
The link you posted is in regards to paying off a lease, i.e. paying the remaining payments, not buying the car out.
Show us the math…maybe BMW is different. Maybe it’s because no one in their right mind would buy out a BMW lease so they just don’t bother 
@cruiserchuck I am OP in that post. I did in-fact complete the purchase, and can confirm I saved ~$3200 vs making all of the lease payments + residual. I would assume the difference is the rent charge…
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Correct. What I think you misunderstood in my previous post about the MDX is that the payoff includes all the residual + all of the monthly payments left + $400. That number doesn’t include taxes on the residual + MV fees. The rent charge is included in the payments. He is going to pay for the rent charge whether or not he buys the lease out today or tomorrow.
In addition, in the link I posted, this is the quote I am referring to:
“The money factor is built in to the monthly price and isn’t calculated each month like interest is. If you pay early, all you’re doing is paying early - the amount of the lease won’t change.”
I already showed you the math on one of my own cars, take the residual, add my remaining payments and you get my payoff approximately. This number will vary by a few hundred dollars, but it shows that the rent charge is included in the buyout.
It doesn’t matter whether you pay the balance on the lease, or buy the car out, you pay the rent charge regardless. Maybe @chevysalesgirl @ChevyPhil @BMW_Dave or others that work in the industry can comment and confirm.
From a finance perspective, the whole reason banks like doing leases is because the interest (rent charge) is guaranteed.
i dumped off my Audi lease after 9 months (2018 A6 is trash btw. overpriced Jetta). it was a 42 month lease so about 33 remaining payments.
I think the payoff was about 52k that I traded in based on Audi 10day payoff. About 1-2 months later I got a check back for like $2600 from Audi. I assumed rent interest return.
What? Again the rent charge was over $200 per month and he had 35 payments remaining.
also you just tagged a bunch of people who aren’t in F&I or work for a captive so I wouldn’t expect any of them to know for sure…dealer has NOTHING to do with a payoff.
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Interesting. Thanks for the clarification. It could’ve also been sales tax, but can’t tell for sure without seeing the documents. Maybe certain auto finance companies do it differently, and maybe I’m wrong about my statements - But, at Mazda (which uses chase and not a real auto finance company), the lease payoff included all remaining monthly payments as well, not just the principal. It was the same case at the equipment financing I’ve used in the past to lease trucks. I’ve learned that the hard way when the payoff was basically what I bought the truck for 9 months prior, not taking into account the almost $18k of payments I’ve payed thus far or my down payment.
but i traded mine in. i didn’t do a remaining payment payoff.
in a remaining payment payoff you pay the interest. that’s why i tell people, if you have money to pay it off, don’t put it in the new deal because then you pay tax/ interest/ etc on it twice for no reason. again depends if you have the money to take on a new car payment and payoff the old.
This second discussion may need to be in its own topic as a part of how leases work
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Doing what? Sorry dude, this does not make you qualified. Managers keep sales people in the dark as much as they try to keep customers in the dark. It is for their and YOUR own good (salesmen will make more money the less they know).
YOU DO NOT PAY RENT CHARGE ON ALL PAYMENTS WHEN YOU PAYOFF YOUR LEASE. Period. It is the equivalent of interest but it is also called RENT CHARGE. Why would you continue to pay rent on something you are no longer renting. Payoffs are Residual + Remaining Depreciation Payments + Plus any miscellaneous fees. No rent charge included. There are literally people on here that were quoted to you as having confirmed but you still aren’t buying it.
No, they are not. See above. Payoffs may include taxes if you are buying it out yourself but they would not include taxes if you were trading it in or selling it to a dealer.
You said “I just checked my BMW FS account.” I am assuming you did this on the BMW FS Portal? In that portal it will show the payoff as your residual plus the remaining payments because that is what your contract says and, barring any trade-in or buyout, what you owe. It is not the payoff. Try calling them on the phone and getting the actual payoff to buyout (not terminate early) or to trade in (i.e. the dealer payoff) and report back BEFORE you go on disseminating more of your “5 years worth” of car business knowledge.
Nope.
See above.
I don’t mean to pick on you man but you cannot make blanket statements especially if you aren’t qualified. Opinions are not fact. This is why doctors hate the internet.
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It really is. I’ll split it off and put it in the FAQ.
Has anyone actually had a buyout quote or buyout done including the remaining rent charges? I know some captives have really wacky rules.
Ok, I’ve done some digging guys. So, it appears you guys are generally correct and I was mistaken. I called BMW FS and a few guys I know still in the business and found out some pretty neat stuff.
So, when dealing with real captives, you guys are correct, you aren’t charged the remaining rent charge, but just the depreciation. However, with 3rd party banks that aren’t captives such as US Bank, Chase, Ally, etc, anything goes and the terms of buying the lease out early vary from program to program. US Bank is apparently a worse offender of this than the others.
To answer your question @chrishs2000, I know that Mazda Capital Services (Chase) did charge remaining rent charges in 2016 when I last worked for a Mazda dealership. They may have changed this policy since then, as I know that they’ve (Mazda) have been trying to negotiate for better program terms since then to be more competitive with manufacturers with real captives.
In addition, when doing commercial vehicle leases (with 3rd party equipment finance companies and truck finance companies), you usually have to pay the remaining rent charge as well when buying out the vehicle.
Now, onto my BMW lease, I was only able to get information for one of my cars as the other one apparently has an open recall of some kind, despite it not showing up in their system. The payoff I quoted earlier included sales tax, which happened to almost perfectly add up to the remaining rent charge I have left. After looking at the real payoff, it does only take the remaining principal of the lease payments.
@Irongunner You are absolutely correct with most of what you wrote. I hate it when assholes spread misinformation, and defend it like their life depends on it. As it turns out (assuming you didn’t read what I wrote above) while my posts were not opinions, they were very specific anecdotes in the exceptions of this rule. I’m not scared to admit when I’m wrong, and I was wrong. Real captive banks work differently than most of the banks that I’ve dealt with in a professional manner. In terms of my experience, while I’m no longer in the auto industry, my “5 years of experience” are very real, but they weren’t all selling cars (although what you write about managers keeping sales people in the dark is completely correct). About half of that time wasn’t in a dealership either, so I haven’t been on the selling side for a minute. In general, I spent almost 2 years selling, like a bit more than half a year in f&i, about a year and a half managing a towing and transportation company, and most recently, I was at BMW corporate. However, I didn’t deal with vehicle buyouts at BMW (not my department), but rather retail audit and compliance. FYI, don’t buy out a BMW in the first 6 months of a lease, it’s a red flag and gets you labeled as potential exporter, some dealer will refuse to sell you certain cars if this happens.
Nothing personal man, it’s the internet, anything goes 
However, going back to your doctor analogy, my family has actually had bad experiences with doctors because they thought they were smarter and wouldn’t listen to us plebs try to tell them things until it was too late. What I’m trying to say is, professionals can be wrong as well, and it’s good to double check and confirm all the information.
TLDR; @chrishs2000 and @Irongunner are right (in most cases, barring a few exceptions) and I was wrong.
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Great post man. Thank you for doing research on your end and confirming. I’ll clean this up split this off and put it into FAQ when I have some time 
Hopefully someone knows how USBank, Ally etc handle this? Maybe @RVguy
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