Do you have to use Kia’s financing?

[ccorry21]

This would be my first foray into car buying. I typically hear from others who get financing through their bank or credit union. Is that an option here, or are the rates better for the Telly through the “special” financing via Kia?

 

[TellTastic]

@ccorry21 , no, you do not. Personally, when it comes to the car buying experience, I would always plan to come already pre-approved from your financial institution. Though it depends on your own financial situation, generally, rates from your financial institution or CU are better. There are some caveats - if 'brand' (Kia in this instance) financing is 0% APR for X amount of months or there is a $$ incentive, it may be in your benefit to go that route. You could also take the incentive and refinance that loan later down the road. The current incentive is $500, which for our personal taste, isn't worth it to take and then refinance.
But, no, you do not have to finance through Kia (or their third party).

 

[Wee]

@ccorry21 , no, you do not. Personally, when it comes to the car buying experience, I would always plan to come already pre-approved from your financial institution. Though it depends on your own financial situation, generally, rates from your financial institution or CU are better. There are some caveats - if 'brand' (Kia in this instance) financing is 0% APR for X amount of months or there is a $$ incentive, it may be in your benefit to go that route. You could also take the incentive and refinance that loan later down the road. The current incentive is $500, which for our personal taste, isn't worth it to take and then refinance.
But, no, you do not have to finance through Kia (or their third party).

There are plenty of credit unions and banks out there who will refinance your loan for $0 origination charge. Free money is free money, I would take the incentive all day and refi with my CU immediately into a lower rate at no charge.

 

[TellTastic]

@Wee , You bring up a good point. Free money IS free money. And some institutions don’t penalize you for refinancing. If your credit can take the hit, it’s not a bad option. We fall into this category and something we’re looking at. If not, you’re leaving money on the table.

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[noles1983]

I always go into it with approved financing and let the dealership try to beat the rate.

 

[Familyman20]

@Wee , You bring up a good point. Free money IS free money. And some institutions don’t penalize you for refinancing. If your credit can take the hit, it’s not a bad option. We fall into this category and something we’re looking at. If not, you’re leaving money on the table.

Another credit tip; if you're shopping for a large purchase like a new vehicle or mortgage, you typically get a 2 week grace period to shop different lenders for competitive rates before your credit is negatively impacted by all the inquiries. If you wait the "90 days" every dealer tells you to wait, it'll be another hard hit inquiry seperate from the first and these can remain on your credit for two years. They tell you that 90 day figure so they receive a retention bonus for the loan, but your credit ultimately gets hit twice for the same vehicle purchase.

 

[TellTastic]

@Familyman20 , also a good point! I failed to mention that. I've never 'had' to do the process.
@ccorry21 - with this, I hope this helps.

 

[TellTastic]

Another credit tip; if you're shopping for a large purchase like a new vehicle or mortgage, you typically get a 2 week grace period to shop different lenders for competitive rates before your credit is negatively impacted by all the inquiries.

Bringing this back to life - I am not doubting this comment, but I did want to provide an update in that I called my financial institutions (USAA / Navy Fed) and both stated that to apply and secure a refinance loan, it would be a second credit hit. Both of these institutions, I trust and have been a member for years.
That said, though my credit is in no danger of a hit or two, it goes back to what I was saying that we are making the personal choice to go with a single institution over taking an incentive and refinancing with another. I'd argue that if the dealer's rates are better and Kia offers a decent incentive, then one should go that route. Otherwise, go through a financial institution that you trust and are comfortable with.

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