Competitive Bonus Program

[E. Moll]

I recently had an incredibly frustrating experience as I was about to lease/purchase a 2018 Kia Stinger GT2 (RWD) in Southern CA. I saw the very attractive incentives on the table and found on the Kia Motors Finance website that my Honda CRV would qualify me for the $3K Competitive Bonus program. Woot! No need to wait to wait to the end of the year with the Stinger GT at that price!

Ultimately, I negotiated a great deal and was ready to pull the trigger, but my dealer found that my Honda CRV was 2 years too old to qualify for the Competitive Bonus program. Also, while the Honda Pilot is also on the incentive list, my 2018 Honda Odyssey Elite - which shares the same platform as the Honda Pilot - is not on the incentive list. Ugh!

I finally had to walk away from the deal, since I can’t get past the fact that Kia is effectively penalizing me $3,000 versus someone who owns a Honda Pilot instead of a Honda Odyssey (or who owns a 2012 CRV instead of a 2010).

I tried calling Kia Motors Finance to see if there’s someone I could talk to in order to see if exceptions can be granted, but – after getting bounced around – it’s clear that their customer service is not set up for prospective customers.

My message to Kia is that the Competitive Bonus program is extremely alienating to potential customers. Apparently, since I own an Odyssey instead of a Pilot and my CRV is a bit too old, Kia doesn’t want my money. Maybe I should see what the new BMW 3-series looks like in a few weeks. (Heck, the reason I own a 2010 CRV is because not a damn thing ever went wrong on it and I couldn’t justify upgrading it. Maybe I should look into a Civic Type R.)

 

[Waynerm002]

Based on the dealer discounts and lease cash, you could have gone that route and got one. The Competitive bonus is not available on the lease but with discounts, it ends up being better than the finance if you buy it out.

 

[E. Moll]

Both the Kia website and my Kia salesman suggested that, with the 36-month lease (which, of course, I could buyout shortly after signing), I could be entitled to my negotiated price (via the Costco program) with both the $6,900 incentive for the RWD GT2 and the $3,000 of "Conquest" cash under the Competitive Bonus Program (assuming I had a qualifying vehicle). Would have been a screaming good deal. I don't like being arbitrarily penalized versus another buyer who is very similar to me.

 

[DaJackson]

I don't like being arbitrarily penalized versus another buyer who is very similar to me.

You’re not being penalized, you just aren’t eligible for a discount.

Kia probably has a military discount too, are you mad you don’t get that because you play Call of Duty

Or a New Grad discount because you graduated 20 years ago?

Also it’s not arbitrary, Kia has decided they want to target the owners of those vehicles. You just aren’t in their target demographic.

Sucks it means you can’t afford the car, but that’s not Kia’s problem.

 

[phxgt]

^^Agreed. OP will BMW give you extra for trading in a Honda?

 

[E. Moll]

OK, chief. Calm down. Let me try to illustrate my point another way.

As I understand, the Competitive Bonus program (together with the parallel Kia loyalty program) applies to owners of essentially all cars other than non-luxury compact cars and minivans - probably ~90% of the likely car buying public.

If you’re investing in any asset - let’s say widgets, would you think it’s a good investment to purchase a widget at a price that’s $3,000 more than what almost everyone else is paying? I’d rather invest on equal footing (in this case, so I’m not subject to accelerated depreciation).

For the record, I don’t think a military or new grad discounts are arbitrary. There are obviously very good reasons to offer those programs. (Military should be entitled to more than the $400 discount that Kia offers, IMO!)

I suspect that I’m the sort of young professional with a young family, financially secure enough to pay cash for an entry level luxury vehicle, that Kia is targeting with the Stinger GT2. There’s really nothing you can say to convince me that there’s a meaningful difference between owners of a 3-row seat Honda Odyssey vs owners of a 3-row seat Honda Pilot (since I was in the market for both last year).

That said, if Kia believes that Odyssey owners are so harmful to the Stinger brand that they will charge them $3,000 more in order to dissuade them from purchasing, then, well, mission accomplished!

 

[E. Moll]

^^Agreed. OP will BMW give you extra for trading in a Honda?

I doubt it, but I’m not trading in any car - that’s not what the incentive is based on. You qualify for the discount simply based on being the registered owner of a qualifying vehicle.

At the end of the day, though, I’d be way more likely to buy a BMW if I felt that I was being treated fairly - paying about the same as (or less than) the next guy, which is exactly my point.

 

[Ruturaj]

I would agree with E. Moll, Kia created eligibility list which seems to be just to get more customers in. If I can't get this deal (i.e. if I am not eligible), I would rather wait. I don't want to buy far for 'x' amount when someone else can buy for 'x-3' with no sensible (to me) reason. Better wait and get 2019 or see what Kia does when these incentives are expired.

 

[phxgt]

If you would rather have the BMW go for it. If you would rather have the Stinger who cares what deal someone else got? Dealers across the country have different promotions.
Why pay more for something that is your second choice because you got a "better deal"?

 

[Ruturaj]

If you would rather have the BMW go for it. If you would rather have the Stinger who cares what deal someone else got? Dealers across the country have different promotions.
Why pay more for something that is your second choice because you got a "better deal"?

Kia wants to sell car at lower price since the competitive bonus elgible cars don't make sense. Dealer prices are unfair but there is no option. So I should just go with even more unfair prices? I assume kia deals will change soon or 2019 will be a better buy.

 

[DaBears4Lyfe]

You’re not being penalized, you just aren’t eligible for a discount.

Kia probably has a military discount too, are you mad you don’t get that because you play Call of Duty

Or a New Grad discount because you graduated 20 years ago?

Also it’s not arbitrary, Kia has decided they want to target the owners of those vehicles. You just aren’t in their target demographic.

Sucks it means you can’t afford the car, but that’s not Kia’s problem.

lol

That deal even without that extra competitive bonus still is an AMAZING DEAL.

 

[DaJackson]

Just because you don’t understand it doesn’t make it wrong.

 

[Ruturaj]

Just because you don’t understand it doesn’t make it wrong.

Sure. Honda pilot being in the competitor list makes sense. I understand now.

Edit: I am going to rephrase my point. Usually, incentives (small ones) are to get people in. A competitive bonus is to get customer which are leasing a competing car as they are more likely to get the same/similar car. Kia's incentive is big and doesn't seem like it focuses on competitor cars, it just's like other incentives like KMF financing discount of 3K. They want to sell the car for cheaper and at this point (end of the model year), it is sensible. If you can not get the discount and paying a higher price, why not get the newer car (2019 model) which is better (some extra features and fewer issues as most are worked out).

 

[Waynerm002]

I'll say this, not every place does great prices on these cars. It seems like the volume places get money for selling a lot of them while the smaller shops are sticking close to MSRP or around invoice. The deals are great no matter which way you go. If you want the car get it. The 2019 have a different set of specs and pricing, maybe next year they will have similar deals but I doubt it. As more folks are realizing what a bargain the car is based on its performance, they will sell more and won't need as much incentive to get them out.

 

[NYLAWBIZ]

Buy at the end of the month at a larger dealership: if they make quota, they get a bonus on the entire month's sales. If you car is their 100th or 200th car for the month, that may put them over. So it is worth even losing money on your sale, to get the bonus on all of the other cars sold that month!

 

[MerlintheMad]

OP, you don't get free Harman Kardon headphones. So I would tell Kia to stuff it.

 

[NYLAWBIZ]

OP, you don't get free Harman Kardon headphones. So I would tell Kia to stuff it.

Still waiting for mine, bough in March

 

[E. Moll]

If you would rather have the BMW go for it. If you would rather have the Stinger who cares what deal someone else got? Dealers across the country have different promotions.
Why pay more for something that is your second choice because you got a "better deal"?

This is a fair point, but it’s not like I’ve decided that the Stinger is my top choice at any price. (If that were the case, I’d probably have bought one months ago.). Probably like most people, the Stinger is one of 5 or 6 cars I’m seriously considering - all with multiple trade offs. With the extra $3k competitive bonus incentive, the Stinger’s value sealed the deal - until I learned it wasn’t available.

There’s a psychological component as well, when the incentive feels arbitrary. If Kia said they are giving a $3,000 incentive to everyone other than people whose last name starts with ‘Z’, there’s no way to avoid pissing off the people whose last names actually do start with ‘Z’.

 

[celwin]

So what year is the Competitive Bonus not applicable for eligible vehicles? I was tryingto figure this out on Kia's website. But it simply list the make and models

 

[Ucinn]

I believe it's 2012 and newer.If I'm wrong, someone will be along shortly to correct me.