TAMPA BAY, Fla. — A warning to drivers who lease their rides but are looking to buy once their contract ends: auto dealers can only charge fees related to the buyout that are contained in the original agreement.
The contract states exactly what a customer should pay if they opt for a buyout at the end of the lease. Yet the I-Team found dealers from Sarasota to Tampa tacking on thousands of dollars in extra fees.
Chris Reilly visited two Tampa area Kia dealerships to purchase his leased 2020 Optima. He said both wanted upwards of $2,000 in fees that were not stated in the original contract.
“I mean, some of them were crazy," he said. "One charge was $1,450.”
Reilly said he was told that the fee had something to do with transferring the warranty that is already on the car.
Pinellas resident Dr. Tom Huffman said he got the same treatment after going to buy out his 2020 Kia Sportage. The Tampa Bay Dealer was charging a $500 "safety inspection" that wasn't listed in the contract Huffman signed when he leased the SUV in 2020.
Consumer attorney Josh Feygin said the add-ons violate the Federal Consumer Leasing Act, which states: “A dated disclosure must be given to the consumer before signing the lease and must contain all of the information" and "lessors are required by federal law to provide the consumer with leasing cost information and other disclosures."
Feygin told ABC Action News that unless the fee is defined in the lease agreement, the dealership is not able to charge it.
Last year, the Florida Attorney General subpoenaed documents and records from several Florida dealerships after customer complaints of add-on fees such as "dealer service fees," "certification fees" and other fees associated with lease-end buyouts that weren't on the original leasing contract.
ABC Action News contacted Kia Finance on Huffman’s behalf and they arranged to buy out his vehicle for the amount listed in his paperwork. And Reilly was also able to conduct his buyout from Kia Finance.
The I-Team asked Kia Finance whether it would notify dealers of the proper way to process a lease buyout. A spokesperson responded with this statement.
Kia Finance America has previously made it clear to our dealer partners of the need to process lease buyouts in accordance with customers’ contracts.
For anyone looking to buy out their lease, shop around and find a dealer that is willing to perform the service for the price listed in your contract. If you can't find one, try contacting the manufacturer's corporate office.
If that doesn't work, file a complaint with Florida’s Attorney General and the Better Business Bureau.
