Financing through Telluride MUST go through Kia?

[trish]

They have an odd clause in their agreement which says something to the effect of: "we apply any overpayment first to future payments..." which is strange to me, because in many other consumer loans an overpayment is sent to the principal (think a mortgage). Apparently a statement like Kia's is not uncommon in the auto industry. I'm not sure how that actually works in practice - except that if I were to make a double payment, I woudn't have one due for another two months. But, eventually they'd have to credit an overpayment to the principal if someone were to make payments ahead of schedule. I guess I could try! Oh well. In any case, it will zero out. I don't know what your balance or rate was, but if you calculate the difference between your payoff amount and the sum of remaining payments, I bet you'd see something close to 1100 and it just needs to reset in the system - recognizing that you paid the principal.

That makes perfect sense.

 

[Clairebear314]

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

So this happened to me but I didn't catch it at the time. Is there anything I can do now or is it too late?

 

[jw_tx21]

So this happened to me but I didn't catch it at the time. Is there anything I can do now or is it too late?

No, not if you purchased the vehicle and drove it off the lot. To change the rate - it's called refinancing. It's not much - maybe added $800 to total finance cost? Perhaps just pay down the car early. That will save you cash. My dealer wouldn't take off the 100 bps markup on the 48-month term- I said fine since I got the vehicle without markup - I wasn't going to walk over that 100 bps - and the dealer knew that.

 

[Clairebear314]

No, not if you purchased the vehicle and drove it off the lot. To change the rate - it's called refinancing. It's not much - maybe added $800 to total finance cost? Perhaps just pay down the car early. That will save you cash. My dealer wouldn't take off the 100 bps markup on the 48-month term- I said fine since I got the vehicle without markup - I wasn't going to walk over that 100 bps - and the dealer knew that.

True. You live and you learn. Had I caught it and they said they wouldn't change it I still would have signed..I'm sure they knew that.

______________________________

 

[CGeorge]

My math was very similar for 48 months. Both deals were quite close. It's hard for me to put more money down or pay cash when the rate is 0.9%. FWIW, I feel I'm better off investing the money elsewhere and paying over the term of the loan.

Your absolutely correct...

 

[B121]

Your absolutely correct...

After the market recently, I might have been better with the 0.9% return vs losing 15%