Outside financing

[donaldblake]

I asked my dealer what is the current interest rate through Kia finance and he said with my excellent credit score (800's), it would be low 5%. I told him I can get a better rate somewhere else. He then told me that I would have to pay an additional $500 for outside financing! Has anyone heard of these bullshit tactics? So on top of the markup, you want to charge me a fee if I were to cash out the vehicle or seek outside financing!

 

[judojim]

Yes, we were given a $500 discount for using Kia financing. Paid the loan off with first payment. I think that this is what your salesman is saying.

 

[rcoplien]

I got my financing through Kia financing last month and my credit was only 717 and was able to get 3.75% before the May 1st interest rate hike. However I had a big down payment and I have my payments auto deducted every 2 weeks when I get paid so ask them if there is discounts on the interest rate for doing that.

 

[donaldblake]

Yes, we were given a $500 discount for using Kia financing. Paid the loan off with first payment. I think that this is what your salesman is saying.

No, he's saying if I go with any other finance company other than Kia, I would have to pay an additional $500. If I were to cash out, I would have to pay an additional $500 on top of the markup.

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[stavesacre03]

Could you just refinance almost immediately with another bank/credit union?

 

[donaldblake]

Could you just refinance almost immediately with another bank/credit union?

They told me that I would have to wait 90 days.

 

[bmc000]

They told me that I would have to wait 90 days.

They will always say that because they get a kickback in that first 90 days. Once you drive off the lot you can do whatever you want.

 

[emj123]

They told me that I would have to wait 90 days.

This is false.

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[emj123]

They will always say that because they get a kickback in that first 90 days. Once you drive off the lot you can do whatever you want.

Exactly.

 

[donaldblake]

They will always say that because they get a kickback in that first 90 days. Once you drive off the lot you can do whatever you want.

That's sounds like a plan, just have to make sure there's no penalty.

 

[Tell22SX]

5/13 KIA FINANCE 3.25 60 months

 

[donaldblake]

5/13 KIA FINANCE 3.25 60 months

5/13 KIA FINANCE 3.25 60 months

Wow, you go from 3.25 to 5 in less than a month. When I called them out on it, now they're saying 4.6%. I just have to refinance with my bank. I hate the games!

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[rcoplien]

I got 3.75 for 66 months

 

[ncpilot]

As maybe a one-off benchmark, I found financing thru REV federal credit union (limited membership opportunities) of:

60 months 2.25%
61+ months 2.5%

Fed inreasing rates next Wed by .5% will drive up loan rates again.

I'm giving my dealer a chance to compete, but it will be tough. They did give me a 2.99% thru BofA for 72 months. Pushing for lower. That's from their finance manager. One of the sales guys gave an off the cuff estimate of 4.5% range--ha ha, no way... My current credit union is doing 4%/4.5% for 60/72 months though, although they've never really had great rates, especially for a credit union.

Financing after next Wed will get worse...

 

[donaldblake]

As maybe a one-off benchmark, I found financing thru REV federal credit union (limited membership opportunities) of:

60 months 2.25%
61+ months 2.5%

Fed inreasing rates next Wed by .5% will drive up loan rates again.

I'm giving my dealer a chance to compete, but it will be tough. They did give me a 2.99% thru BofA for 72 months. Pushing for lower. That's from their finance manager. One of the sales guys gave an off the cuff estimate of 4.5% range--ha ha, no way... My current credit union is doing 4%/4.5% for 60/72 months though, although they've never really had great rates, especially for a credit union.

Financing after next Wed will get worse...

Are they trying to change you fees for going outside their financial partners?

 

[beato1]

Last summer, I came with a check from my credit union. No more discussion. It was 2.2 % for 72 months. The dealer said they cannot match it! "Good for you", they said! Thanks.

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[Tell22SX]

Times have changed for sure. Looks the consumer is almost out of options and at the mercy of the seller

 

[ncpilot]

Are they trying to change you fees for going outside their financial partners?

No

 

[Senator20]

Glad I got mine when I did, 1.9%. You can refinance the next day if you want. , no need to wait 90 days. They like to scare you just like selling you on the extended warranty.

 

[LAM]

They told me that I would have to wait 90 days.

As far I know you can refinance immediately after. I asked my credit union