Anyone else do the Balloon Program?

[Iswearit'saKia]

So just bought my Stinger GT2 AWD yesterday and went with the Balloon program for financing due to the $7k rebate. The car is loaded out with an MSRP of $52,625 plus some dealer add-ons like ceramic tint bringing the price to $54,022. With the Balloon rebate plus delear incentives I walked out with the Stinger for almost $42k even! The dealer said that I can refinance the car at anytime with any lender to get out of the program but still keep the incentives without any penalty. I confirmed this with two different dealerships just to be sure. So my question is, has anyone else done this and how was the experience? And if everything is like the dealer explained why are more people not doing this? Seems like a no-brainer and an easy way to save thousands on a car with no rebates. Thanks for the responses and input in advance.

 

[MoobyTheGoldenCalf]

I did the balloon loan. Got an AWD Premium w/ Drive Wise for $2K off MSRP + $6600 rebate. Made it $37k out the door including tax. Paid off the loan before my first payment was due. No problems or issues.

As to why more people aren't doing it, I have no idea. Maybe all dealers aren't offering it?

 

[Czar99]

OP, can you share the dealership details? Do they still do it? I heard about it too from a dealership in Arkansas but wasn't sure if it is a trap.

PM me if it is a problem to share the details in the forum. Thanks.

 

[Iswearit'saKia]

OP, can you share the dealership details? Do they still do it? I heard about it too from a dealership in Arkansas but wasn't sure if it is a trap.

PM me if it is a problem to share the details in the forum. Thanks.

Sure thing. The dealership I bought it from was Crain Kia in Fort Smith, AR. They actually weren't advertising the Balloon program and knew almost nothing about it. The only reason I went there was because a dealership in Fayetteville, roughly an hour away, had the exact same car they had for the $42k instead of 52k+ that my local dealership had. Just went up to my local dealership to check it out and use them for a test drive before heading up to Fayetteville to purchase. Once I told them about the other car they said they wanted to look into it and find out how they were selling it so cheap. They called Kia Cooperate and found out about the program then informed me about it and said they would match the price of the car in Fayetteville even though theirs had $1,400 in dealer add-ons. I said sold!! The dealership in Fayetteville still has 3 GT2s, one black with red interior like mine, and two red with black interior. By the way, here's my car.

 

[Czar99]

Wow, great. Congratulations. I am in Denver. I will try to pit our dealerships against this offer. If it doesn't work then I will drive to Arkansas in the coming weeks. Appreciate you sharing the info.

 

[Iswearit'saKia]

Wow, great. Congratulations. I am in Denver. I will try to pit our dealerships against this offer. If it doesn't work then I will drive to Arkansas in the coming weeks. Appreciate you sharing the info.

No problem! Hope everything works out for you.

 

[mldavis2]

Yes, I was the one who posted the balloon/finance payment deal. That's how I bought mine. If you can't afford to just write a check for the balloon payment, find a cheaper finance source. Finance using the finance/balloon deal to get the rebate. It takes about 2 weeks for your "account" to show up on the Kia Finance web page. On that page is a link for "Buyout" that gives you your monthly payment amount and the amount remaining on the buyout. I had given them $1,000 as "earnest" money for the order which covered my first month "payment" and I just sent them a check for the unpaid balance. Got the lein release papers about two weeks after that and the car is paid and clear. The ONLY thing you might watch is a difference in state lending laws which could create a difference in some "strange" states.

I bought my car from Superior Kia in Fayetteville, AR and highly recommend them. Nice people, no pressure. It's an old facility and needs a rebuild (which it is getting this year), but they are honest and will match any price. Ask for Rusty Jackson, the GM. Great young GM who came from their Mercedes dealership and who knows good cars.

I don't know anything about Crane Kia in Bentonville, AR. It was Fletcher Kia when I bought my car and they were in the process of selling out to Crane and refused to order a Stinger -- just wanted to clear off their lot. Fletcher was high pressure and not at all friendly so I went on to Fayetteville.

 

[Iswearit'saKia]

Yes, I was the one who posted the balloon/finance payment deal. That's how I bought mine. If you can't afford to just write a check for the balloon payment, find a cheaper finance source. Finance using the finance/balloon deal to get the rebate. It takes about 2 weeks for your "account" to show up on the Kia Finance web page. On that page is a link for "Buyout" that gives you your monthly payment amount and the amount remaining on the buyout. I had given them $1,000 as "earnest" money for the order which covered my first month "payment" and I just sent them a check for the unpaid balance. Got the lein release papers about two weeks after that and the car is paid and clear. The ONLY thing you might watch is a difference in state lending laws which could create a difference in some "strange" states.

I bought my car from Superior Kia in Fayetteville, AR and highly recommend them. Nice people, no pressure. It's an old facility and needs a rebuild (which it is getting this year), but they are honest and will match any price. Ask for Rusty Jackson, the GM. Great young GM who came from their Mercedes dealership and who knows good cars.

I don't know anything about Crane Kia in Bentonville, AR. It was Fletcher Kia when I bought my car and they were in the process of selling out to Crane and refused to order a Stinger -- just wanted to clear off their lot. Fletcher was high pressure and not at all friendly so I went on to Fayetteville.

You stated that you had to write a check for the Balloon payment, but I was told that I could just refinance with any bank I wanted. Is that not correct?

 

[mldavis2]

You stated that you had to write a check for the Balloon payment, but I was told that I could just refinance with any bank I wanted. Is that not correct?

I don't think Kia cares (or knows) where the balloon money comes from -- your other bank or your checking account. As long as they get paid for the buyout amount, it works. Worked for me. Just make sure you can pay it off somehow because if not, you're paying something like 7% interest every month and then at the end of the finance period (3 years? - don't know because it didn't matter to me) you have to either cough up the cash one way or another or turn the car in like a lease.

 

[Czar99]

THanks for the info @mldavis2. That will help a lot of us here.

 

[Iswearit'saKia]

I don't think Kia cares (or knows) where the balloon money comes from -- your other bank or your checking account. As long as they get paid for the buyout amount, it works. Worked for me. Just make sure you can pay it off somehow because if not, you're paying something like 7% interest every month and then at the end of the finance period (3 years? - don't know because it didn't matter to me) you have to either cough up the cash one way or another or turn the car in like a lease.

Okay that's what I thought. Thanks for the info.

 

[PieceOfChum]

Ok do you know if trade allowances still work with ballooon loans? In my state the trade amount reduces taxes which is a big deal for me. Also, how many months was your loan amortization period 7 or 10 years perhaps?