Our Telluride is ready to pick up, but we are having a lot of trouble with the dealership financing person. She is telling us Kia won't give us financing because we don't have a car payment on our credit history. (We have bought our current 2 cars from family members, no financing.) Our credit scores are both over 700 and we have no issues on our credit reports. So she is saying we have to finance through a bank, and the "best" rate she found for us is 3.89%. This seems ridiculous. We are willing to do a 48-month loan to get the 1.9% offer. A salesperson at a different Kia told me it was a bogus story. Wondering if anyone on this forum has any experience in this area? TIA.
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Financing through Kia - does this sound right?
- Thread author AHM2020
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There is a terminology called faked 800’s that we (dealers) use.. which is people who have only a few lines of credit typically credit cards and no auto loans. Score is high but don’t necessarily qualify for best rates if reviewed.
The challenge on the bank side is they see no real debt behind this particular person credit. Maybe a 2,000 secured line of credit but no 20k loans or greater. So they have a hard time giving super aggressive rates on a 35k+ loan.
In your exact situation if you don’t get approved upon submitting to the banks computers then an individual reviews your credit and make decisions on rate.
If this has taken place a 3.89% is really not that bad.
Feel free to shop with your local credit union or personal bank.
In my opinion sounds like dealer is shooting you straight.. might be holding a point on interest if you are going 48 months but don’t know as each individual is unique.
"Over 700" is too vague. Usually the best rates are for 720+ with KMF, but there are other factors such as credit history. Very good credit is 740+, and exceptional credit is 800+.
I'd try to call KMF directly and ask. You have the right to see the credit score that they pulled for you. If it's less than 720, you're not going to get the top rate.
I'd also shop alternative financing... but as Stephen said, 3.89 isn't too bad - and you can refi later. Just pay it off faster.
