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Credit union or dealer incentive financing

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Re: Credit union or dealer incentive financing


@Betatrone wrote:

So the  question i should i finance with the CU at 3.3% or take the 1.5% finance incentive that Kia is offering.

Incentive $1500 on the niro

 


We don't know you limitation as to payment  amounts, price of vehicle, loan term etc.

So I will give you middle of the road numbers.

A $25,000 loan @ 1.5% for 5-years has a payment of ~$433/mo and interest loss of ~$965 over the 5 years.

A $25,000 loan @ 3.3% for 5-years has a payment of ~$453/mo and interest loss of ~$2154 over the 5 years.

 

If you take the Incentive of $1500 on the car and the 3.3% loan

A $23,500 loan @ 3.3% for 5-years has a an interest loss of ~$2000 over the 5 years.

The 1.5% loan wins big time !

A HP to save $1000, I would do any day !!

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Message 11 of 15
Valued Contributor

Re: Credit union or dealer incentive financing


@Kforce wrote:

@Betatrone wrote:

So the  question i should i finance with the CU at 3.3% or take the 1.5% finance incentive that Kia is offering.

Incentive $1500 on the niro

 


We don't know you limitation as to payment  amounts, price of vehicle, loan term etc.

So I will give you middle of the road numbers.

A $25,000 loan @ 1.5% for 5-years has a payment of ~$433/mo and interest loss of ~$965 over the 5 years.

A $25,000 loan @ 3.3% for 5-years has a payment of ~$453/mo and interest loss of ~$2154 over the 5 years.

 

If you take the Incentive of $1500 on the car and the 3.3% loan

A $23,500 loan @ 3.3% for 5-years has a an interest loss of ~$2000 over the 5 years.

The 1.5% loan wins big time !

A HP to save $1000, I would do any day !!


Save $1000 in interest but lose $1500 in incentives, no? It seems your numbers actually make an effective argument for taking the $1500 & 3.3%

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Message 12 of 15
Established Contributor

Re: Credit union or dealer incentive financing


@James_A wrote:

Save $1000 in interest but lose $1500 in incentives, no?

It seems your numbers actually make an effective argument for taking the $1500 & 3.3%


Good Catch.  Smiley Surprised

Proof you should not be drinking Mai-Tai's while playing with a loan calculator.

Yes with my above example you are correct, better to take the $1500.

Note: The larger the loan amount and/or longer the loan term numbers can swing the other direction.

One should calculate with good numbers and while not drinking  Smiley LOL

 

FNBO 2% Cashback Visa (20k) / Bank of the West Cashback MC (20k)
US-Bank Cash+ (15k) / FNBO Travel Elite (15k) / Citi Double Cash (18k)
Ficos : 840 / AAoA : 9 yrs / AoOA : 23 Yrs / AoYA : 3
Message 13 of 15
Established Member

Re: Credit union or dealer incentive financing

yes the  math works out to be very close either way.  as i t turns out though teh better half has decided on a used lincoln mkc rather than the new niro

Message 14 of 15
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Established Member

Re: Credit union or dealer incentive financing

And after all that she fell in love with a used lincoln MKC so the Credit union financing was the better deal

 

Message 15 of 15
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