Financing through Telluride MUST go through Kia?

[klledoux]

Hi,

My Kia Prestige is in, but the first time just heard from my dealer that all financing MUST be done through Kia? Not just to get the $1k rebate but if you want to get the car at all. Is this correct???

TIA!
Kim

 

[Husker Soze]

Hi,

My Kia Prestige is in, but the first time just heard from my dealer that all financing MUST be done through Kia? Not just to get the $1k rebate but if you want to get the car at all. Is this correct???

TIA!
Kim

You...as the consumer have options on how to finance your purchase. They (as the dealership) have preferred lenders that they have kickbacks/commission if you go with them.

Look at the math and run the numbers and go with what's best for your situation. Just my .02

 

[raydog9379]

Here's what I would do... take the 1k Kia $ off using their financing. Then see if you can find a better APR somewhere else and re-finance as soon as you can get a loan number (may take a few days/weeks). PenFed (military or a small donation of $5 or more gets you in the credit union) and Lightstream are 2 pretty well known orgs with cheaper than most rates.

 

[Jdgate]

Hi,

My Kia Prestige is in, but the first time just heard from my dealer that all financing MUST be done through Kia? Not just to get the $1k rebate but if you want to get the car at all. Is this correct???

TIA!
Kim

Your dealer is shady. Have Fun! Seriously though, you only need to go through Kia if you want the rebates. In my case I wanted the rebates and KIA also had the best rate. If they wouldn't have I would have finance through KIA for the rebate and then quickly refinanced it somewhere else for the lower rate.

______________________________

 

[StephenCantrelle]

Hi,

My Kia Prestige is in, but the first time just heard from my dealer that all financing MUST be done through Kia? Not just to get the $1k rebate but if you want to get the car at all. Is this correct???

TIA!
Kim

As mentioned by the others.. that is not true. Just finance with them to get the 1k rebate and if you can get lower apr through your bank or credit union simply refi when you get your loan number

 

[Lucas & Craig]

Hi,

My Kia Prestige is in, but the first time just heard from my dealer that all financing MUST be done through Kia? Not just to get the $1k rebate but if you want to get the car at all. Is this correct???

TIA!
Kim

Not correct

 

[Parmel]

Just to make sure I am correct on this issue, I have a couple of questions. Is the KIA finance rate determined by the local dealer or a KIA national organization? Is KIA simple interest calculation with the ability to pay off the loan at any time without incurring any additional future interest or, as at least one has suggested, are interest charges rolled back into the loan as principal at the time of loan initiation? I don’t believe rolling future interest charges back into the principal is legal.

 

[StephenCantrelle]

Just to make sure I am correct on this issue, I have a couple of questions. Is the KIA finance rate determined by the local dealer or a KIA national organization? Is KIA simple interest calculation with the ability to pay off the loan at any time without incurring any additional future interest or, as at least one has suggested, are interest charges rolled back into the loan as principal at the time of loan initiation? I don’t believe rolling future interest charges back into the principal is legal.

Simple interest loan. Rates are based off credit score.. over 720 is the national advertising rates.

0.9 for 48
1.9 for 60
2.9 for 66
3.9 for 72

If you opt to get 1,000 rebate with financing through Kia the rate goes up 1 point.

1.9 for 48 with 1k rebate
2.9 for 60 with 1k rebate
3.9 for 66 with 1k rebate
4.9 for 72 with 1k rebate

Say for example you want to finance for 72 and can get 3.74 then finance through Kia at the 4.9 refi through your bank/credit union to scoop the 1k rebate.

Only paying interest on the borrow money for “X days” that it takes for you to get your loan number and refi.

______________________________

 

[Parmel]

Simple interest loan. Rates are based off credit score.. over 720 is the national advertising rates.

0.9 for 48
1.9 for 60
2.9 for 66
3.9 for 72

If you opt to get 1,000 rebate with financing through Kia the rate goes up 1 point.

1.9 for 48 with 1k rebate
2.9 for 60 with 1k rebate
3.9 for 66 with 1k rebate
4.9 for 72 with 1k rebate

Say for example you want to finance for 72 and can get 3.74 then finance through Kia at the 4.9 refi through your bank/credit union to scoop the 1k rebate.

Only paying interest on the borrow money for “X days” that it takes for you to get your loan number and refi.

Thanks. I had seen some dealers advertising what appeared to be local rates

 

[Jdgate]

Dealers can option an additional percentage point on top of the advertised rates. I would call them out on it if they do though.

 

[Parmel]

Dealers can option an additional percentage point on top of the advertised rates. I would call them out on it if they do though.

Agree

 

[trish]

Simple interest loan. Rates are based off credit score.. over 720 is the national advertising rates.

0.9 for 48
1.9 for 60
2.9 for 66
3.9 for 72

If you opt to get 1,000 rebate with financing through Kia the rate goes up 1 point.

1.9 for 48 with 1k rebate
2.9 for 60 with 1k rebate
3.9 for 66 with 1k rebate
4.9 for 72 with 1k rebate

Say for example you want to finance for 72 and can get 3.74 then finance through Kia at the 4.9 refi through your bank/credit union to scoop the 1k rebate.

Only paying interest on the borrow money for “X days” that it takes for you to get your loan number and refi.

Can you pay off the loan with Kia immediately and still keep the rebate? And they only charge interest for the days they held the loan?

______________________________

 

[jw_tx21]

Can you pay off the loan with Kia immediately and still keep the rebate? And they only charge interest for the days they held the loan?

Yes.

 

[trish]

Agree

When they do this who get that extra money? The dealer?

 

[trish]

Agree

If the dealer does charge a higher rate who gets that extra interest? Ours quoted the lower rate when we were first looking and then during the buying process quoted the percentage point higher rate as they said that’s what it was with the rebate financing. But when I questioned this they changed back to the lower rate. Just wondering if the dealer has incentive to sign you up at the higher interest rate.

 

[Caseylou81]

Simple interest loan. Rates are based off credit score.. over 720 is the national advertising rates.

0.9 for 48
1.9 for 60
2.9 for 66
3.9 for 72

If you opt to get 1,000 rebate with financing through Kia the rate goes up 1 point.

1.9 for 48 with 1k rebate
2.9 for 60 with 1k rebate
3.9 for 66 with 1k rebate
4.9 for 72 with 1k rebate

Say for example you want to finance for 72 and can get 3.74 then finance through Kia at the 4.9 refi through your bank/credit union to scoop the 1k rebate.

Only paying interest on the borrow money for “X days” that it takes for you to get your loan number and refi.

This is really helpful, thank you! I just bought mine Saturday and wasn’t sure how soon I could refinance without losing the rebate.

______________________________

 

[Drewski]

Hi,

My Kia Prestige is in, but the first time just heard from my dealer that all financing MUST be done through Kia? Not just to get the $1k rebate but if you want to get the car at all. Is this correct???

TIA!
Kim

When they do this who get that extra money? The dealer?

In all cases, bottom line for the buyer/borrower is how much are you going to pay, right? So in the case of the dealer arranging the financing, the dealer is just acting as a broker for a bank that is making the loan. While their primary goal is to sell you a car regardless of where the money comes from, the dealer gets some agreed basis points from the bank if their finance dept gets you to take a loan from their preferred bank. And the higher rate they get you to take, the higher commission they get. Works the same at a mortgage broker. But while the mortgage broker earns his living on the points paid back from the lender, this commission is just gravy for the dealer; they're going to try and make as much as they can of course.

The official Kia deal that @StephenCantrelle details above is a bit different though - this is apparently what Kia corporate has negotiated through their own bank. They're still getting the bps "kickback" from their bank, so they are probably not losing out whichever way you go, that is, either with the $1k discount but higher rate (their lender "rewards" them for selling a higher rate) or nothing back at a lower rate. Just do the math and figure which works better for you.

I tried to look at that deal to see if there is any way to spin it to my advantage, but I don't see much. For example, the SX Prestige with no other options is listed at $47260, and as we know, there is little to no room for negotiation right now. Assuming a 7% sales tax rate, $500 in title / license / doc fee etc, a $20000 down payment and no trade-in, and using the rates in @StephenCantrelle 's post, you get these numbers on a 60 month loan:

1.9%, no rebate: $543.20/month, total $52591.87 after 60 payments
2.9%, $1k rebate (to principal): $537.70/month, total $52261.78

Not a big difference, but in this case the second deal is *slightly* less. With zero down, the monthly is almost exactly the same. The more you put down, the more you save on the $1k discount deal, but again, it's not much unless you're putting down a lot. And obviously, the more you put down, and the shorter the loan term, the more you save overall... duh. I was unable to find rates at other lenders that were any better, especially on a refinance, so the idea of "working the system" and taking the $1k back then turning around and getting a much better rate from a 3rd party lender on a refi doesn't seem to apply in this case. Kia's rates are pretty good. So either route is a better deal than going through your bank, it seems. The only way I can see to really take advantage of this offer is if you have the cash for the entire amount, but you apply for a loan anyway, get the $1k and then pay it off ASAP. Kia Motors Finance says loans "may be paid off at any time without penalty."


The decision my wife and I have to make is whether or not we want the Telluride or the Sedona. Much different vehicles, of course, but these are the biggest that Kia has to offer, and # of seats is what we're after. And since 2020 is the current Sedona's swan song year (new version for 2021), there are some heavily discounted minivans out there - e.g., $35k for a $43k Sedona SX without even negotiating.

 

[raydog9379]

And since 2020 is the current Sedona's swan song year (new version for 2021), there are some heavily discounted minivans out there - e.g., $35k for a $43k Sedona SX without even negotiating.

Shhhh... many of the dealers don't want people to believe that there is any profit in vehicles and that even at MSRP on a Telluride, their children are going to starve.

 

[Lucas & Craig]

Shhhh... many of the dealers don't want people to believe that there is any profit in vehicles and that even at MSRP on a Telluride, their children are going to starve.

@ below MSRP can you guys help a brother out? Need some grocery money .

 

[Drewski]

@ below MSRP can you guys help a brother out? Need some grocery money .

I thought that's what Pulse and Paint Protection were for...