Purchase order?

[thefultonhow]

Just got off two phone calls, one with KMF and one with my local credit union. I'm trying to do a lease-to-loan conversion, and the CU said in June that in order for the loan application to be completed, they need the title. I realized this week that KMF might actually have received the title because they own the car, so I called them. They won't release the title until they receive the payoff.

Long story short, my CU said I need a "purchase order" from a dealership including all costs to switch title and registration, etc. and if I get that, they can complete the refinance. They said the dealer may be reluctant to provide this, so they might say they can't, but they actually can. My questions are as follows:

1. Has anyone else gone through this process with a purchase order, on either side (dealer employee or customer)?
2. How do I get this purchase order? Talk to Sales?
3. Can I get it from a different dealer? I bought the car from a dealer an hour away, because the one close by had some expensive accessories on the car that I didn't want (e.g. remote start).

Thanks in advance for any help anyone can provide.

 

[MurlinatoR]

Just got off two phone calls, one with KMF and one with my local credit union. I'm trying to do a lease-to-loan conversion, and the CU said in June that in order for the loan application to be completed, they need the title. I realized this week that KMF might actually have received the title because they own the car, so I called them. They won't release the title until they receive the payoff.

Long story short, my CU said I need a "purchase order" from a dealership including all costs to switch title and registration, etc. and if I get that, they can complete the refinance. They said the dealer may be reluctant to provide this, so they might say they can't, but they actually can. My questions are as follows:

1. Has anyone else gone through this process with a purchase order, on either side (dealer employee or customer)?
2. How do I get this purchase order? Talk to Sales?
3. Can I get it from a different dealer? I bought the car from a dealer an hour away, because the one close by had some expensive accessories on the car that I didn't want (e.g. remote start).

Thanks in advance for any help anyone can provide.

Hey [MENTION=1098]thefultonhow[/MENTION], congrats on your car!

I've had one customer ask for this because his CU told him he needed one. It's because the agent at the bank was new and was trying to process it as a NEW car finance instead of a refinance. It's a very simple transaction for them. I tell all of my customers to not even tell the CU that their car is in a lease contract; just tell them that you want to refi from the other lender.

As for the title, this is with ALL banks. One lender will never release the title until the next lender sends the money. You CU needs to fill out an "odometer disclosure statement" and it needs to be sent with the payoff check to KMF.

There is NO purchase agreement. You're not purchasing the vehicle again. You already did once.

Imagine if you went to your bank to refinance a car that you've had for 4 years that's not quite paid off. Would they ask you to go to a dealership to have them give you a purchase order on that car???? No way. They're just over thinking it because it's currently in a lease. You'll need to pay a title fee to have Kia's name taken off, pay tax for the residual portion of your car that you didn't pay tax for yet, and the odometer disclosure statement I mentioned above. That's it!

 

[thefultonhow]

I've had one customer ask for this because his CU told him he needed one. It's because the agent at the bank was new and was trying to process it as a NEW car finance instead of a refinance. It's a very simple transaction for them. I tell all of my customers to not even tell the CU that their car is in a lease contract; just tell them that you want to refi from the other lender.

No, they were definitely trying to do a refinance. The issue as the CU loan rep said it was that it's a totally different process between refinancing a loan (where you own the car and hold the title but another bank has a lien on the title, and all they have to do is change the lienholder) and converting a lease (where the bank owns the car "c/o" you and holds the title) to a loan (where you own the car, once again with a lien, and the ownership of the car changes hands).

As for the title, this is with ALL banks. One lender will never release the title until the next lender sends the money. You CU needs to fill out an "odometer disclosure statement" and it needs to be sent with the payoff check to KMF.

Yeah, except with a loan, you hold the title and thus can surrender it to the bank for them to apply for a new title with them as the lienholder. In this case, KMF holds the title.

There is NO purchase agreement. You're not purchasing the vehicle again. You already did once.

Well, once again, I don't actually own the vehicle. I'm making payments to KMF, who is the official owner, for the privilege of being able to drive and park the car where I want. This actually is a change in ownership, which I think is why the dealer needs to do the purchase order -- the first time, KMF purchased the car from the dealer, and this time, I am technically purchasing the car from KMF.

Imagine if you went to your bank to refinance a car that you've had for 4 years that's not quite paid off. Would they ask you to go to a dealership to have them give you a purchase order on that car????

Yeah, but that's because you're just changing the lienholder on a car you own, instead of changing the owner.

I should also probably state that the CU loan rep said they used to do all the legwork on converting leases to loans, but now they require the customer to do so. I'm guessing the reason you've never had to walk a customer through this is that their CUs are willing to do the legwork with KMF themselves. Yeah, it's not great customer service from my CU, but their rates are extremely low.

 

[MurlinatoR]

No, they were definitely trying to do a refinance. The issue as the CU loan rep said it was that it's a totally different process between refinancing a loan (where you own the car and hold the title but another bank has a lien on the title, and all they have to do is change the lienholder) and converting a lease (where the bank owns the car "c/o" you and holds the title) to a loan (where you own the car, once again with a lien, and the ownership of the car changes hands).



Yeah, except with a loan, you hold the title and thus can surrender it to the bank for them to apply for a new title with them as the lienholder. In this case, KMF holds the title.



Well, once again, I don't actually own the vehicle. I'm making payments to KMF, who is the official owner, for the privilege of being able to drive and park the car where I want. This actually is a change in ownership, which I think is why the dealer needs to do the purchase order -- the first time, KMF purchased the car from the dealer, and this time, I am technically purchasing the car from KMF.



Yeah, but that's because you're just changing the lienholder on a car you own, instead of changing the owner.

I should also probably state that the CU loan rep said they used to do all the legwork on converting leases to loans, but now they require the customer to do so. I'm guessing the reason you've never had to walk a customer through this is that their CUs are willing to do the legwork with KMF themselves. Yeah, it's not great customer service from my CU, but their rates are extremely low.

Their low rates don't equal crappy customer service. LOL

I've personally done this with cars and all it takes is a transfer of title to remove the lessor. Many people buy out their leases at the end, which is the same process mind you, with no intervention from a dealership.

The only time someone ever officially owns a vehicle is if they pay cash for it. Period. If money is borrowed on a vehicle, loan or lease, the lender and the customer are co- owners until the contract is paid in full.

I'm not questioning you what so ever. I just know that what you're experiencing is outside of any of my experiences. Many folks here have bought out their leases and this is the first time I've heard of an issue.

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[thefultonhow]

Their low rates don't equal crappy customer service. LOL

I mean, in this case they clearly do.

I'll talk to my local dealer and the CU. Also wondering if I maybe just got the wrong guy at the CU call center. Can you tell me how many customers you've worked with that have done this? Might be helpful to rub in the CU's face if they continue to insist on a "purchase order."

 

[MurlinatoR]

I mean, in this case they clearly do.

I'll talk to my local dealer and the CU. Also wondering if I maybe just got the wrong guy at the CU call center. Can you tell me how many customers you've worked with that have done this? Might be helpful to rub in the CU's face if they continue to insist on a "purchase order."

Dozens bro. LOL

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[thefultonhow]

Dozens bro. LOL

Cool, makes it easier to say to them, "STFU, you don't know what you're talking about."

 

[thefultonhow]

Took them 3 months, but they finally figured it out. Of course, I went to the MVA on Friday to get it titled and registered in my name, and they had forgotten to include the lien application.