If your lease period is quickly coming to an end and you just can’t say goodbye to that Kia Soul or Kia Telluride, you can actually purchase your vehicle with a Kia lease buyout. That said, finding a good deal for your buyout may be trickier if your Kia has suffered significant damages or repairs during your lease term.

For the perks of driving a quality vehicle without the headaches of higher monthly costs and long-term commitment, leasing a car is a fantastic option. However, driving that

Optima

to all your daily affairs for a year or so may get you understandably attached—in which case, buying out your lease could be your next step.

But how exactly does a Kia lease buyout work? Here to give you the insight is

Jerry

, the

trustworthy super app

and guide for car-owners and

car insurance

. We’ll go through everything you should know to get that Kia into your garage for good—from who you’ll need to contact to how you can finance your purchase.

Stay till the end, beause your Kia will need car insurance! We will let you know where to find cheapest

Kia car insurance costs

with the best coverage.

What is a lease buyout?

The term “lease buyout” refers to when a driver purchases their vehicle at the end of a lease term rather than turning it in to lease another vehicle. The price that the driver will pay on this vehicle is determined by something called “residual value,” which is calculated based on the car’s anticipated depreciation and recorded at the start of the lease.

There are generally two types of lease buyouts:

Lease-end buyout: in most situations, negotiations to buy out a lease occur as the lease period is ending (before the driver would normally turn in the vehicle and start a new lease).

Early lease buyout: in some situations, drivers may choose to pursue a lease buyout before their lease term is ending—doing so may come with extra challenges, however.

How a Kia lease buyout works

If the clock is running out on your Kia lease and you’ve decided that your

Forte

is a keeper, here’s what you’ll need to do:

Contact Kia for a buyout quote. You can either call your Kia dealer, get in touch with a Lease-End advisor (855-537-8542), or log into your

KFA account

to get a buyout quote for your vehicle.

Check your lease contract. Before you hand over payment, you’ll want to check your lease contract for your Kia’s residual value. This number will be helpful as you weigh your options.

Settle on a lender. You can receive financing directly from Kia, but it’s always best to compare offers from at least three different lenders.

Negotiate the lease buyout with your Kia dealer. If you’re able to secure a pre-approved loan prior to this, you’ll be in a stronger position for payment term negotiations.

Register and insure your new Kia. Signing off on that Kia is not the end of the process! Now that you officially own your vehicle, you’ll need to

title and register

it at the DMV, and since

leasing a car doesn't include car insurance

coverage, you will need to purchase that as well.

MORE:

Car Loan for Kia 2022

RECOMMENDED

Compare auto insurance policies

No spam or unwanted phone calls · No long forms

ZIP Code

Find insurance savings

Will Kia finance a lease buyout?

Kia offers the option to either purchase your vehicle outright or finance the residual value with Kia Financial Services. Before you sign any paperwork, however, you’ll want to get offers from at least two other lenders to ensure you’re getting the best deal.

Though financing through Kia may be convenient, dealerships may not always have your best interests in mind when writing terms for a lease agreement. A credit union or a bank, on the other hand, will usually give you lower rates and more agreeable terms.

Is a Kia lease buyout worth it?

Buying out your Kia lease may be an excellent choice if you love your vehicle and have kept it in great shape. You may want to do a little number punching first to ensure you’re actually getting a good deal.

How to calculate Kia lease buyout fees

While you can access your Kia lease buyout quote online or by contacting your Kia dealer or Lease-end advisor, you can also calculate this number on your own.

All you need to do is locate the residual value that was originally estimated on your lease contract and compare it to your vehicle’s actual value—this can be determined with online resources.

If your Kia’s actual value is higher than the residual value, then your Kia is worth more than was originally estimated. Therefore, purchasing your Kia by buying out its lease is a great financial choice.

If your Kia’s actual value is significantly lower than its residual value, however, buying out your Kia’s lease will actually lose you money. Usually, this is the case if you have put a lot of mileage on your Kia or if it has been through several accidents and repairs.

MORE: How to calculate a car lease payment

Find out if you can reduce your monthly car payments in minutes

* checking your rate won’t affect your credit score

Check your rate

* checking your rate won’t affect your credit score

When it’s better not to buy out a Kia lease

It’s not always a good financial decision to buy out your Kia’s lease. Here are a few circumstances in which you may want to reconsider a lease buyout:

Your leased Kia has been in multiple accidents or required multiple repairs, leading to significant depreciation

You’re much more interested in another Kia model or a newer model year

Your credit score is low so you’re having trouble securing a low-interest loan

Deciding whether to

lease or buy a car

is a tough one, and in these situations, it may be best to turn in your Kia and either start a new lease or consider buying another vehicle. Waiting to buy out a lease can also give you more time to build a good credit score to improve your financing options in the future.

MORE: What is a good interest rate on a car?

How to save on Kia insurance

Finding the right lender for your Kia lease buyout is often a tedious and time-consuming process. Fortunately, finding quality

car insurance

doesn’t have to be. Just download

Jerry

The app is free to use and instantly narrows down the best quotes for your coverage needs from over 55 top insurers. When you see a plan you like, just select it through the app, and Jerry’s

expert brokers

can help handle all the transition calls and long forms.

The best part? The average Jerry user ends up saving more than $800 a year on car insurance. So it’s definitely worth that quick look to keep more cash on hand for your Kia’s upkeep in the years ahead!

“This app is all about savings!
Jerry
just saved me $193/month on my car insurance. They literally found me the cheapest policies out there and with better coverage! Seriously, just sit back and watch Jerry work its magic.” —Rachel B.

RECOMMENDED