How are early lease buyouts calculated
Hello,
I am trying to understand how Kia Financial handles early buyout of leases. Is the formula:
Buyout = Remaining payments + residual
Or
Buyout = Remaining payments + residual - unearned rent charge
Does anyone have experience with this? For example if payments are 637 for 48 months + RV 32500. After 1 month would it be 47 X 637 + 32500 or would it be 47 X (something less than 637 since interest/MF hasn’t occurred yet) + 32500
Thanks in advance
Update: I called Hyundai/Kia Financial in regard to my current Ioniq 5 lease and potential future EV9 lease.
They confirmed unused Rents would not be charged in the event of an early buyout. Rough math example we went over is if a 48 month lease is 637 and I opted to do a buyout after the 1st payment it would be:
47 X (payment amount - Unused Rents) + Residual Value = Buyout