Financing July vs August

[internetgirl6191]

Vin # was created July 7th and just received an eta from the dealership of 8/8/2020. From looking at the KIA website, 1.9%+ financing is being offered through August 3rd. We wanted to get the ball rolling on financing paperwork but our salesman says it's too soon. Anyone know if the rate is going to change after August 3rd? For anyone interested in my process, SXP + T order was placed around 2/18/20 w/Austin, TX dealership. When the order was placed was told the delivery would be in September so August is a happy surprise.

 

[jw_tx21]

Vin # was created July 7th and just received an eta from the dealership of 8/8/2020. From looking at the KIA website, 1.9%+ financing is being offered through August 3rd. We wanted to get the ball rolling on financing paperwork but our salesman says it's too soon. Anyone know if the rate is going to change after August 3rd? For anyone interested in my process, SXP + T order was placed around 2/18/20 w/Austin, TX dealership. When the order was placed was told the delivery would be in September so August is a happy surprise.

They let you negotiate down on the markup at Kia of South Austin? Hopefully - that would be a good experience. In any case, the low APR offers have been around since early last year, so I doubt that they are going to change in August. Anything is possible, but I would bet that they are still available when you take delivery.

 

[mgoblue]

I’m curious about this too.

From what I’ve read, they’ve had the current rates (0.9% for 48 mos, 1.9% for 60, etc) in place for a while, so I’m hoping they’ll continue again in August.

I think the finance incentive for taking a non-promo (higher) rate went away in July. I doubt it’ll be back in August.

 

[jw_tx21]

I’m curious about this too.

From what I’ve read, they’ve had the current rates (0.9% for 48 mos, 1.9% for 60, etc) in place for a while, so I’m hoping they’ll continue again in August.

I think the finance incentive for taking a non-promo (higher) rate went away in July. I doubt it’ll be back in August.

The finance rebate was reduced to $500 on 2021 MY. Don't know if it will be there in August, but probably will stay. The ultra low APR would be the way to go unless paying cash with such a low rebate.

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[internetgirl6191]

They let you negotiate down on the markup at Kia of South Austin? Hopefully - that would be a good experience. In any case, the low APR offers have been around since early last year, so I doubt that they are going to change in August. Anything is possible, but I would bet that they are still available when you take delivery.

Thanks for your insight! Hoping the rates stay the same.

 

[ccorry21]

Kia site says Low APR Special Financing expires on 8/3/20. Anybody know if they have a habit of extending? And is it possible to lock in a rate, or if you order in August, do you only lock in a rate when the car is delivered (months later?)

 

[Familyman20]

Those dates are for all of their incentives; cash back, military, lease cash etc. Financing rates have been very similar if not the same month to month this year on the Telluride. You can not lock in a rate and the incentives and rates available at time of delivery would be applicable to the sale unless you work out a deal with the dealership to honor those incentives at time of order as some here have documented.
Maybe some dealers here can share next month's incentives when they become available to them, if not KIA eventually posts them on their website after the prior month's expiration date. GL

 

[mgoblue]

Update - the Kia website shows the Low APR offer (0.9% for 48 mos, etc) has been extended through September 8.

I don’t know what rebate incentives there are though. @StephenCantrelle @Jason Fox have you heard anything?

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[DigMyRide]

Some quick math (I am a finance guy, sorry): If you put down half on a $50K car, and can get the 0.9% APR / 48 months with a $500 rebate; the rebate covers the interest you will pay over the length of the loan.
Below is a summary based on the assumptions above. You will see the total interest paid is $462.07 which is roughly the $500 rebate. My advice: If the APR and rebate still exist, take the loan and put down roughly half (if you can) and the rebate covers your interest payments over time! It is 'free' money.

 

[BrendonSF]

Some quick math (I am a finance guy, sorry): If you put down half on a $50K car, and can get the 0.9% APR / 48 months with a $500 rebate; the rebate covers the interest you will pay over the length of the loan.
Below is a summary based on the assumptions above. You will see the total interest paid is $462.07 which is roughly the $500 rebate. My advice: If the APR and rebate still exist, take the loan and put down roughly half (if you can) and the rebate covers your interest payments over time! It is 'free' money.

View attachment 8830

You can also assume at least 2% annualized inflation, which is likely to be higher given the recent adoption of our helicopter money approach to monetary policy. If you adjust for the time value of money over the course of the loan, inflation will be paying you back as the value of those dollars erode.

 

[joelpend]

Some quick math (I am a finance guy, sorry): If you put down half on a $50K car, and can get the 0.9% APR / 48 months with a $500 rebate; the rebate covers the interest you will pay over the length of the loan.
Below is a summary based on the assumptions above. You will see the total interest paid is $462.07 which is roughly the $500 rebate. My advice: If the APR and rebate still exist, take the loan and put down roughly half (if you can) and the rebate covers your interest payments over time! It is 'free' money.

View attachment 8830

I have not seen a rebate mentioned on Kia's website since the $1000 rebate expired. Is anyone seeing a $500 rebate mentioned on Kia's site? I know it has been mentioned in threads but I have not seen it in any official form. I will be using the 48 mo. .9% for sure assuming it will be available whenever my vehicle is ready for delivery. A rebate would certainly be nice especially since I will be paying full MSRP for the vehicle.

 

[mgoblue]

Someone can correct me if I’m wrong but my understanding is that the $500 rebate is if you take a higher, non-promotional rate for your financing. In other words you cannot take the 0.9% *and* the $500 incentive.

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[Familyman20]

Someone can correct me if I’m wrong but my understanding is that the $500 rebate is if you take a higher, non-promotional rate for your financing. In other words you cannot take the 0.9% *and* the $500 incentive.

Correct. It used to be $1000 on the 2020s.

Look here for fairly accurate incentives. You can verify with your local dealer what they're offering currently.

2021 Kia Telluride Incentives and Rebates | Autobytel.com

Find out what standard Incentives and Rebates are being offered on the 2021 Kia Telluride. See both cash rebates and financing rates for every trim and model.

www.autobytel.com

 

[Austin3000!]

You cannot take both the $500 rebate and the low 0.9/48 or 1.9/60 month rate . It is one or the other .

I took the $500 and got a rate of 3.49% and then refinanced it before my first payment was due with a credit union. The credit union gave me 1.95% for 60 months.
They also let me delay payment with no interest for 90 days .

So if you refinance it immediately you can effectively get both offers . It takes a little bit of paperwork but when you are spending $50k on a car every penny saved is worth it .

 

[mgoblue]

Makes sense. I'm planning on taking the 0.9% for 48 months, which works out cheaper than taking the rebate at a higher rate and refinancing at a still higher rate.