lease ending soon, what do to?

[Othee6lool]

I think I want to buy my 21 Telly when the lease is up in November but I am not sure how it works. I would prefer to finance the $26,000 buyout. Do I get a loan beforehand online somewhere and show up with a check on the exact last day of the lease?

I am kind of tempted to just sell it immediately and get another one once they are plentiful again. But that might be a while and I really like having it. I have a pickup also so it isn't an absolute necessity to keep it around.

I think if I sell it within a short time I can avoid sales tax but I read somewhere that Kia will hold the title for a long time to screw you over. Have any of you dealt with that?

 

[Hangfire]

Acquire financing beforehand from a credit union with a low interest rate, buy it, then immediately flip it for a healthy profit. CarMax, Carvana, Vroom, etc.

 

[Kao]

I think I want to buy my 21 Telly when the lease is up in November but I am not sure how it works. I would prefer to finance the $26,000 buyout. Do I get a loan beforehand online somewhere and show up with a check on the exact last day of the lease?

I am kind of tempted to just sell it immediately and get another one once they are plentiful again. But that might be a while and I really like having it. I have a pickup also so it isn't an absolute necessity to keep it around.

I think if I sell it within a short time I can avoid sales tax but I read somewhere that Kia will hold the title for a long time to screw you over. Have any of you dealt with that?

I financed thru Kia when I bought my 2021 KT. I put 50% down the day I bought it. Got the discounted finance rate AND got some cash back for financing thru them. Then paid the rest of the car off 2 months later. I got my tithe from Kia in about 2 weeks with no hold up or problems. I don't think they can "hold the title for a long time to screw you over" if the car is paid off.

 

[Familyman20]

You should be able to buy out the lease now. Call KMF and verify they are still allowing lease buyouts, get the payoff figure from them, secure financing and pay it off. Why wait 2 months, you've already given them enough of your money on the lease. GL

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[uthorns1976]

I think I want to buy my 21 Telly when the lease is up in November but I am not sure how it works. I would prefer to finance the $26,000 buyout. Do I get a loan beforehand online somewhere and show up with a check on the exact last day of the lease?

I am kind of tempted to just sell it immediately and get another one once they are plentiful again. But that might be a while and I really like having it. I have a pickup also so it isn't an absolute necessity to keep it around.

I think if I sell it within a short time I can avoid sales tax but I read somewhere that Kia will hold the title for a long time to screw you over. Have any of you dealt with that?

What state are you in???

 

[Othee6lool]

What state are you in???

California. I think you only have like 10 days to sell before tax kicks in so getting the title that quickly sounds hard.

 

[dbc67]

These aren't plentiful around here (in NC), so if you do sell it, it might be a while before you get another.

 

[uthorns1976]

California. I think you only have like 10 days to sell before tax kicks in so getting the title that quickly sounds hard.

Why would you have to pay tax on the sale???

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[Othee6lool]

Why would you have to pay tax on the sale???

Because you pay sales tax on pretty much any purchase in California. I'd have to buy out the lease at the residual value. If I then sell within some short period I can avoid sales tax. And then when I sell it, short term capital gains kicks in, so yes I'd have to pay tax on the sale, even more than sales tax.

It takes 30 days to get the title, according to the dealer. So that is too long to avoid the sales tax. But they are willing to match the CarMax quote and just buy me out there. So I'm probably going to do that right away.