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Kia forcing me to finance with them

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Kia forcing me to finance with them

Kia offered me a decent deal but I must use their financing.

I am sure this is a scam to make money on the interest end. I should get 1 to 3 % with a 760 score but what if I go in and they offer 5 and they have already done a hard pull?

I also see kia charges an origination fee not sure what that means
Message 1 of 10
9 REPLIES 9
Established Contributor

Re: Kia forcing me to finance with them

Yes, they make money off the loan, that is how they are able to your offer you the price they are offering. That is not a scam.

If you want to avoid all of this, secure your own financing, from your own lender before you walking into the dealership. Explain up front to the dealer that you are a cash buyer and you are not interested in having your credit run so they can "beat" the rate. Don't let them do it. Freeze your reports if you have to. They can still soft pull you for ID verification.

I just returned from financial hell. Don't go, the brochure is a lie.
Message 2 of 10
Valued Contributor

Re: Kia forcing me to finance with them

Take some time to educate yourself before signing any deal.

 

Kia cannot make you sign anything you do not want to. I would advise that you get pre-approved financing and work from that point.

 

There are times that a manufacturer may offer a special financing rate or cash back if you finance with them. Is this what the dealer might have been referring to?

Message 3 of 10
Frequent Contributor

Re: Kia forcing me to finance with them

You're right not a scam. Just wondering if they will give me a rate that I could get elsewhere. If they give me 2% for a 780 credit score I will go with them but they want me to come in, run my credit and then feel like I have to sign. 

 

Working with other dealers now to secure same deal but with the aciltity to run my own financing.

Message 4 of 10
Frequent Contributor

Re: Kia forcing me to finance with them

No. They offered me an out the door price on a car as long as I fiance through Kia only which they will work out when I arrive at dealership to run the credit. I have no way of knowing if they will offer me 2% or 5% for my 780 credit score. 

 

I contacted another dealer and asked them to meet that out the door price if I can do my own financing. 

Message 5 of 10
Valued Member

Re: Kia forcing me to finance with them

I know it sounds like they are pulling your arm and forcing you to do something. Just like everyone here is saying there are multiple ways to get financing.

Not to bore your with the technical stuff. Always remember if you feel like the walls is closing in
Walk away there is nothing wrong with regrouping... Buying a new or new to you vehicle can be challenging or I’m in control experience and the difference between the two is
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Message 6 of 10
Valued Contributor

Re: Kia forcing me to finance with them

If they're requiring financing through Kia it is most likely that there is a financing specific rebate that requires financing through the captive.  Ford is notorious for this.  Not necessarily a scam.

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Message 7 of 10
Frequent Contributor

Re: Kia forcing me to finance with them

Ando - it sounds to me like they are using the 4-square on you, and are trying to bury one good deal somewhere  with a bad deal somewhere else (low interest rate is the good deal, the Acquisition Fee is the bad deal). Also, it sounds to me like you are doing a lease. Dave Ramsey calls it a "Fleece" and I tend to agree with him.

 

You need to start by negoitiating the deal piece by piece. That way they can't slip overpricing past you. When buying a car, here are the steps (in order) that most experts suggest:

 

1: Decide on what kind of car you want (year/make/model, new or used, what options). Do your research on line. Do this for a couple of models for each make you are considering.

 

1A: do the same for any trade in that you may have. See what the Kelly Blue Book is.

 

2: Price shop the financing on line. Capital One has a pretty good tool for that. While I have never used Cap1 to finance a car, they sound pretty good. I would suggest avoiding Santander at all costs. You should be able to get a firm commitment on the type of car you are looking for.

 

3: Now you are ready to go to the dealer and test drive. The salesperson will try to get you to commit right then and there. Don't do it unless you are at the LAST dealership on your list. Use the test drive to see what no on line service can do - let you see how you personally fit inside the car - comfort, convenience, ambient noise, etc.

 

4: Negotiate the "out the door price" on the car. This will take into consideration all the fees, extras (title/tax/bull**bleep** fees), trade in allowance - everything except the financing. It will also eliminate 3 of the 4 squares that the dealer will try to confuse you with. Your conversation at this time is treating the purchase as a cash sale, no financing. Refuse to talk financing until you have a firm "out the door" price.

 

5: Once you have found a car you like at a price you like, you produce the letter from step 2 and tell them you will finance with their source only if your source gives you a better deal than the one you just handed them. If they can't, then stick with your source. If they can then go with theirs.

 

6: If you use their financing source, DO NOT TAKE DELIVERY UNTIL YOU HAVE VERIFIED THAT THE FINANCING HAS BEEN APPROVED. Drive home in your car and leave theirs on the lot.  That will keep you from getting screwed with "yo-yo financing". If they don't like any of these steps, get the keys to your car back, get up and walk towards the door. Walk through the door if you must. If they are playuing the "we can't find your keys" scam to try to keep you there, call the police and claim that the dealer has stolen your keys and refuses to return them. If I have to get up and walk towards the door (and I have done this several times) I have almost always found the deal becoming much more agreeable by the time I get to the door. When I get to the door I tell the salesman "I will stand here for one minute. After that, if I open this door, I will not be back."

4/1/2017 EQ 579 TU 595 EX588
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Message 8 of 10
Regular Contributor

Re: Kia forcing me to finance with them


When I get to the door I tell the salesman "I will stand here for one minute. After that, if I open this door, I will not be back."

 

If they let you walk that means there's no more profit in the deal..I'd say bye have a nice life then.

@Flyingifr wrote:

Ando - it sounds to me like they are using the 4-square on you, and are trying to bury one good deal somewhere  with a bad deal somewhere else (low interest rate is the good deal, the Acquisition Fee is the bad deal). Also, it sounds to me like you are doing a lease. Dave Ramsey calls it a "Fleece" and I tend to agree with him.

 

You need to start by negoitiating the deal piece by piece. That way they can't slip overpricing past you. When buying a car, here are the steps (in order) that most experts suggest:

 

1: Decide on what kind of car you want (year/make/model, new or used, what options). Do your research on line. Do this for a couple of models for each make you are considering.

 

1A: do the same for any trade in that you may have. See what the Kelly Blue Book is.

 

2: Price shop the financing on line. Capital One has a pretty good tool for that. While I have never used Cap1 to finance a car, they sound pretty good. I would suggest avoiding Santander at all costs. You should be able to get a firm commitment on the type of car you are looking for.

 

3: Now you are ready to go to the dealer and test drive. The salesperson will try to get you to commit right then and there. Don't do it unless you are at the LAST dealership on your list. Use the test drive to see what no on line service can do - let you see how you personally fit inside the car - comfort, convenience, ambient noise, etc.

 

4: Negotiate the "out the door price" on the car. This will take into consideration all the fees, extras (title/tax/bull**bleep** fees), trade in allowance - everything except the financing. It will also eliminate 3 of the 4 squares that the dealer will try to confuse you with. Your conversation at this time is treating the purchase as a cash sale, no financing. Refuse to talk financing until you have a firm "out the door" price.

 

5: Once you have found a car you like at a price you like, you produce the letter from step 2 and tell them you will finance with their source only if your source gives you a better deal than the one you just handed them. If they can't, then stick with your source. If they can then go with theirs.

 

6: If you use their financing source, DO NOT TAKE DELIVERY UNTIL YOU HAVE VERIFIED THAT THE FINANCING HAS BEEN APPROVED. Drive home in your car and leave theirs on the lot.  That will keep you from getting screwed with "yo-yo financing". If they don't like any of these steps, get the keys to your car back, get up and walk towards the door. Walk through the door if you must. If they are playuing the "we can't find your keys" scam to try to keep you there, call the police and claim that the dealer has stolen your keys and refuses to return them. If I have to get up and walk towards the door (and I have done this several times) I have almost always found the deal becoming much more agreeable by the time I get to the door. When I get to the door I tell the salesman "I will stand here for one minute. After that, if I open this door, I will not be back."


 

Message 9 of 10
Frequent Contributor

Re: Kia forcing me to finance with them


@navyitaly wrote:

When I get to the door I tell the salesman "I will stand here for one minute. After that, if I open this door, I will not be back."

 

If they let you walk that means there's no more profit in the deal..I'd say bye have a nice life then.

In negotiations the only time there is a last word is when the sides no longer speak. Opening teh door, or threatening to open the door, is the equivalent of saying "I am not happy with the deal as it is right now. Make me a better offer." If they refuse to, then the deal was just not meant to be made. Sometimes you have to walk away from a deal.


 

4/1/2017 EQ 579 TU 595 EX588
9/20/2018 EQ 810 TU 807 EX 795
6/12/19 EQ 820 TU /789 EX 793


Message 10 of 10
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