Cash or Credit?

[PassingTime]

Ok I’m confused and on the verge of freaking out...
I purchased my Telluride on Thursday and without running my credit which all 3 scores are over 720 and was offered a 5% on anything over 48 months! Did they bamboozle me? I went with my credit union at 3% but I didn’t see any of those options at all!

Sorry about the predicament it does look like the .9% is being offered on the 2021 model. Up until today, I would have been were you are or taken the cash route but seems the offer is on their website now. I have found out that I have to check and double check anything that the sales staff or management tells me about my order. I have learned to not take anything they tell me as valid without double checking. Sad but true.

 

[jw_tx21]

Ok I’m confused and on the verge of freaking out...
I purchased my Telluride on Thursday and without running my credit which all 3 scores are over 720 and was offered a 5% on anything over 48 months! Did they bamboozle me? I went with my credit union at 3% but I didn’t see any of those options at all!

Probably. The low APR and APR with rebate offers (Dealer Choice program) are KMF (Kia Motor Finance) offers. They likely just tried to steer you to a lender that offered them the highest kickback. 5% when Fed Target Rate is at 0.25%? That's laughable for a customer with a Prime or higher credit score. They were just hoping you would bite. Anyway, doesn't matter as you went with your credit union. Generally, in the US, all manufacturers offer ultra low rates to well qualified customers - rates that no financial institution can compete with. Financial institutions are left picking up customers with FICOs less than 720 at the higher rates.

It can pay to be informed about the low APR offers. But, you'll be fine with your credit union.

 

[jw_tx21]

Thanks, I hope that is in place when my car arrives (maybe November?). I would definitely go for that 48 month rate and the rebates and keep the cash or at least a good part of that! I have been trying to find decent rates and missed that one somehow. Maybe its regional because I am not seeing it around here? JUST checked the KIA sight and you are so right. Just went into effect on 8/4 and good through 9/8 on 2021! I think that I checked a day or two earlier. How things change. Might not be there when my car gets here but I can hope it goes on a little longer.

That offer has been there every month since the Telluride was launched. Called the low APR program. No rebate with the ultra low rate, but it's a good deal. Likely it will still be around in November. Sometimes you have to ask dealer about it - it's not always on the site - like the Dealers Choice program that includes the nominal rebate in exchange for a higher interest rate.

 

[WaxZ28]

Just wanted to say thanks to all for the insight on this thread, this forum ROCKS! I'm on the fence about cash or credit but that 0.9% 48 month Kia offer is tough to beat in this market. Does anyone know how to calculate the interest on that offer versus the 1.75% 48 month with $500 cash back? I'm curious to compare the two, especially when you factor in that you can pay off either loan without penalty after 120 days.

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[Tobstertx3]

Just wanted to say thanks to all for the insight on this thread, this forum ROCKS! I'm on the fence about cash or credit but that 0.9% 48 month Kia offer is tough to beat in this market. Does anyone know how to calculate the interest on that offer versus the 1.75% 48 month with $500 cash back? I'm curious to compare the two, especially when you factor in that you can pay off either loan without penalty after 120 days.

Loan Calculator | Bankrate

Bankrate's loan calculator will help you determine the monthly payments on a loan.

www.bankrate.com

 

[My Car is a 2001]

Just wanted to say thanks to all for the insight on this thread, this forum ROCKS! I'm on the fence about cash or credit but that 0.9% 48 month Kia offer is tough to beat in this market. Does anyone know how to calculate the interest on that offer versus the 1.75% 48 month with $500 cash back? I'm curious to compare the two, especially when you factor in that you can pay off either loan without penalty after 120 days.

Calculate Loan and Line of Credit Payments

This loan payment calculator shows the monthly amount due on your loan and the total amount paid over time, compared to a line of credit loan.

www.statefarm.com

 

[WaxZ28]

Thanks for the above two posts, the bankrate one is great. On the $500 cash back offer, does anyone know if that comes right off the price or is that a rebate check months later?

 

[Kao]

Thanks for the above two posts, the bankrate one is great. On the $500 cash back offer, does anyone know if that comes right off the price or is that a rebate check months later?

Seems to me the $500 cashl back is essentially one months car payment, depending on how you put down or trade. in. I'd rather have 0.9% over life of loan, and pay it off early. What is loan rate if you take the $500 rebate up front?

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[Familyman20]

Just wanted to say thanks to all for the insight on this thread, this forum ROCKS! I'm on the fence about cash or credit but that 0.9% 48 month Kia offer is tough to beat in this market. Does anyone know how to calculate the interest on that offer versus the 1.75% 48 month with $500 cash back? I'm curious to compare the two, especially when you factor in that you can pay off either loan without penalty after 120 days.

You can pay off the loan just as soon as the account is created, when you get an account number assigned and a payoff figure good thru 'x' amount of days would then be available. Im guessing the dealer told you that you must wait? There's a bonus they get for having your loan remain open, usually after 90 days. However there's zero penalty for early payoff with KMF.

 

[WaxZ28]

You can pay off the loan just as soon as the account is created, when you get an account number assigned and a payoff figure good thru 'x' amount of days would then be available. Im guessing the dealer told you that you must wait? There's a bonus they get for having your loan remain open, usually after 90 days. However there's zero penalty for early payoff with KMF.

Wow...yup that's what the finance manager told me, can't say I'm too surprised as it seemed odd but at least they are selling @MSRP. If that's the case then the $500 cash back (assuming it's $500 off the top at purchase) @1.75% is the better deal if you pay it off soon enough.

 

[WaxZ28]

Seems to me the $500 cashl back is essentially one months car payment, depending on how you put down or trade. in. I'd rather have 0.9% over life of loan, and pay it off early. What is loan rate if you take the $500 rebate up front?

That all depends on which model and how much you put down. Here is the current KMF promo (or at least it is in NY) Offer only valid 8/04/2020 through 9/08/2020

Financing Offer : 0.9% APR For 48 Months On Select Kia Telluride Models
Manufacturer Offers

• 0.9% APR for 24 months
• 0.9% APR for 36 months
• 0.9% APR for 39 months
• 0.9% APR for 42 months
• 0.9% APR for 48 months
• 1.9% APR for 60 months
• 3.9% APR for 72 months
• 2.9% APR for 66 months

Financing Offer : $500 Cash Back And 1.75% APR For 48 Months On Select Kia Telluride Models
Manufacturer Offers

• 1.75% APR for 24 months
• 1.75% APR for 36 months
• 1.75% APR for 39 months
• 1.75% APR for 42 months
• 1.75% APR for 48 months
• 2.5% APR for 60 months
• 2.75% APR for 66 months
• 4.0% APR for 72 months
• and
• $500 cash back

 

[MarcinTexas]

I am impressed you could fit one of those monstrosities in your garage. Where I live everyone seems to park them outside.

I am fortunate to have a large garage. Three car (26 feet deep on two bays and 22 on the third bay all three total 35 feet wide.). The funny thing when we built our house - the builder advertised in the model home that all their garages fit a Chevy Suburban. That is Texas for you! LOL.

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[alexdrums]

Proving the point once again that everything really is bigger in Texas!

 

[MarcinTexas]

Proving the point once again that everything really is bigger in Texas!

Haha! Our garage is going to swallow the Telluride. My wife's Honda Odyssey is longer than the Telluride and we have room to open the rear hatch with the garage door closed...the Telluride is going to look down right small!

 

[WD80PD]

Ok I’m confused and on the verge of freaking out...
I purchased my Telluride on Thursday and without running my credit which all 3 scores are over 720 and was offered a 5% on anything over 48 months! Did they bamboozle me? I went with my credit union at 3% but I didn’t see any of those options at all!

I was offered the same.. I got 2.49% through my credit union for 75 months but I’ll pay it off well before that.

 

[alexdrums]

Haha! Our garage is going to swallow the Telluride. My wife's Honda Odyssey is longer than the Telluride and we have room to open the rear hatch with the garage door closed...the Telluride is going to look down right small!

Okay, now I have garage envy, Big Time!

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[mrmac]

Depending on the price point of the vehicle, and the state of the economy, between 9% and 25% of new car buyers choose to pay cash vs financing.

As for me, cash is king, so at the right rate I prefer using OPM.

 

[Frankie Knuckles]

Haha! Our garage is going to swallow the Telluride. My wife's Honda Odyssey is longer than the Telluride and we have room to open the rear hatch with the garage door closed...the Telluride is going to look down right small!

Funny because my wife has a pilot and I am getting a telluride. We live parallel lives.