A powerful first step in the car buying process is to get pre-approved for a loan. It lets you know exactly where you stand on what you can afford, and a better picture of what car will best fit your needs. Getting PreApproved is absolutely no-obligation, but it does let you know what Interest Rate you qualify for, what kind of money down you’ll need, and what your other options are - like how long your financing can be, and ultimately, what your payments will run you on a particular car each month.
The interest rate is determined based on several factors. Some of the factors are: vehicle, credit, job, income, residence status, term of the loan, and a couple other contributing factors. At the Kia Stores, we’re experienced with all types of customers, and have relationships with a number of lenders that we can match with your specific situation for the best result. This way, lenders can compete over your business, as opposed to getting your financing done elsewhere, which is usually just one offer, and no competition.
The standard finance term is usually 60 months. Factors such as your credit, job, residence and down payment and the vehicle you're purchasing can allow you to get extended terms of 72, or even 84 months. If you’re ambitious, we can also work with our lenders on a shorter term that best fits your situation.
Yes – In fact, this happens more often than you might think. Because The Kia Stores are locally owned and operated, and have a track record and personal relationships with the lenders we work with, you’d be surprised at how often we get a customer done, when others simply can’t make it happen. It feels great for us - flexing a touch of muscle to get your deal over the curb - and even better for the customer, driving off the lot in their new car with a huge smile on their face. Regardless of your past experience, it pays to have the experts review your credit with our lenders and yourself, to see just where you stand. And in the situation that we can’t help you, we can show you the couple of areas where your credit could be improved, so that you get feedback, and the steps to improve. And OF COURSE, all your information will be kept purely confidential. Everyone’s credit, and situation is entirely personal.
Yes, in nearly every situation, you can drive your car right off the lot today.
Warranty prices are determined by the vehicle you are purchasing, the age and miles, vehicle specs, and ultimately, which of our Service Programs best fit your needs and budget.
Yes, like any large purchase, there are several forms you will need to sign and we need to make sure you fully understand the whole car purchase process.
We can generally handle the whole process in 45 minutes to an hour. There are some instances that take longer in making sure you get the car you want.
No, if you live in the state where the car was purchased, we will do all the title work and get you your license plates. We will call you in about 7-10 days to come pick up your plates. Some instances out of our control will take longer than the standard 7-10 days.
Your payments will go to the finance company on the paperwork, not to the dealership. The 1st payment is usually 45 days after signing the paperwork. The finance company will send you a statement letting you know where to mail your payment. You will also give the finance company to your insurance carrier as the lienholder on your financed vehicle. Most of the companies we work with can also setup an automatic payment, if that is easier for you.
When you take out a loan, all of the money used to pay it off applies to your eventual ownership of the vehicle. The initial down payment and principal on the loan cover the total cost of the purchase. Lease payments, however, apply only to the use of the vehicle. The total sum of payments covers the vehicle's depreciation over the time you drive it and is usually less than the outright price of the vehicle.
When paid in full, a loan terminates and you assume ownership. Your bank sends you the title that had been held while the loan maintained an outstanding balance. When a lease period ends you forfeit the vehicle to the lessor, unless the lessor offers to sell the vehicle afterwards. During the entire lease period the lessor maintains ownership and simply allows you to use the car. Lease ownership is only transferred if you chose to buy the vehicle after the lease terminates.
The good news for a lease, is that often, the manufacturer will provide extra special lease incentives, because they want to get the car back at the end of the lease term, to be able to re-sell a second time. Sometimes these incentives can result in a very low monthly payment, so it is often very worthwhile to at least pursue this option. In formulating a monthly payment structure, a lessor is primarily concerned with the extent to which the vehicle will depreciate throughout the lease and the cost of borrowing money to finance the car during that period.
First, the adjusted capitalized cost is determined. This figure represents the real purchase price after elements such as the down payment, incentive discount and trade-in credit are deducted from the capitalized (actual) cost, while any fees or charges (e.g. destination) are added.
Second, the residual value, or estimated value of the vehicle at the end of the lease, is determined and then subtracted from the adjusted capitalized cost to yield a depreciation figure. The residual value depends on the length of the agreement, expected mileage and make/model of the vehicle.
Finally, a lessor assesses the money factor, a number that correlates with the cost of borrowing money during the lease period. While these terms may seem unfamiliar, the Federal Reserve Board now requires dealers to publicize all leases' down payment amounts, lengths, residual values and interest rates.
Most leases rely exclusively on the residual value in determining the end of term purchase price. These closed-end deals require you to pay the fixed residual amount regardless of the actual market price. Open-end leases work differently in that the actual market value helps determine the purchase price. As a customer you are responsible for any difference between the residual and actual value when buying outright.
The size of monthly loan payments depends on the amount borrowed, the length of the loan, the interest rate and other factors such as your credit history. Paying more money initially lowers the principal of the loan, thus reducing individual payments. At any period during the loan you may opt to pay off the principal in its entirety, at which point the title of the vehicle is transferred to you.General loan specifications:
Down payment amounts may range between 10 to 20 percent of the vehicle's total cost, although some purchases require no down payment. A typical loan period is five years with an annual percentage rate around 8 percent. Some manufacturers offer lower rates, but be sure to investigate any associated conditions or clauses.
Yes, registration, taxes, extended service plans and other add-ons you choose may be included in the financing plan if you want them to be.
The answer to this question depends on how you plan to use the vehicle. If you like the idea of driving a more expensive vehicle for a smaller monthly payment, leasing is a great option. However, if eventually owning the car is important, financing with a loan is the way to go.
Annual mileage restrictions are a major limitation for customers who choose to lease. Lessors want their vehicles returned in saleable low-mileage conditions, so they place mileage caps on them. A typical yearly figure is between 12,000 and 15,000 miles. Beyond the established limit, fees accrue on a per-mileage basis, usually in the range of $0.10 to $0.25 per mile. So if most of your driving is local, leasing makes sense. However, if you consistently tack on 500 or more miles a week, definitely look into a loan.