How to qualify for "0.9% APR for 24 months"?

[Rev_Night]

So I see that Koons Kia (Woodbridge, VA) is having this offer next to several Stinger GTs that I am interested in. Did anyone on this forum get this APR? What are the conditions that were applied to get it?

USAA/NFCU is offering me 2.9%, so obviously this would be yuuge.

Edit: Just got off the phone with the dealer. He said, surprise surprise, there is more to the 0.9% deal

Option 1: Take the 0.9% loan.
Option 2: Take the 2.9% loan and receive $2000 off.

With the 2019 Stinger GT AWD costing total out the door ~$35K, Option 2 saves me $10 more per month. But its the same APR as USAA, why what incentive is there for me to bank with Kia?

edit 2: If KIA and USAA both offer 2.9%, then might as well go with KIA since they offer $2000 off. Duh

 

[Wendy Schiavi]

I took it. You have to keep the Loan for 3 months, then you can pay it in full if you want

 

[Capecod]

I was offered the 0.9% or the 2.9% with the $2000 rebate, it worked out to be $1 dollar less a month for me to go 2.9%

 

[Rev_Night]

I took it. You have to keep the Loan for 3 months, then you can pay it in full if you want

This confuses me. If you have the full amount of cash lying around, why would you even care about the APR in the first place? What good is a loan for 3 months? Just pay it off immediately.

 

[Regs120]

I took it. You have to keep the Loan for 3 months, then you can pay it in full if you want

You must mean refinance at a lower interest rate.

 

[Ruturaj]

Why not lease and buyout? You will end up saving more money.

 

[Rev_Night]

Buyout immediately? I don't have the cash. I plan on paying this over 4 years

 

[Capecod]

So I see that Koons Kia (Woodbridge, VA) is having this offer next to several Stinger GTs that I am interested in. Did anyone on this forum get this APR? What are the conditions that were applied to get it?

USAA/NFCU is offering me 2.9%, so obviously this would be yuuge.

Edit: Just got off the phone with the dealer. He said, surprise surprise, there is more to the 0.9% deal

Option 1: Take the 0.9% loan.
Option 2: Take the 2.9% loan and receive $2000 off.

With the 2019 Stinger GT AWD costing total out the door ~$35K, Option 2 saves me $10 more per month. But its the same APR as USAA, why what incentive is there for me to bank with Kia?

If you finance with KIA @ 2.9% you get a $2000 incentive, if not I believe you get $0

 

[Rev_Night]

Yep, thats what I said in the OP. The 0.9% doesn't get you the $2000 off. Its more or less a wash.

 

[Capecod]

Yep, thats what I said in the OP. The 0.9% doesn't get you the $2000 off. Its more or less a wash.

I was referencing your comment "But its the same APR as USAA, why what incentive is there for me to bank with Kia?"

I took the 2.9% on mine yesterday

 

[Rev_Night]

Oh, i see. If KIA and USAA both offer 2.9%, then might as well go with KIA since they offer $2000 off. Duh

thanks

 

[Ruturaj]

Buyout immediately? I don't have the cash. I plan on paying this over 4 years

You can get finance for buyout.

But rebate on GT is $5,500 for 24 months. But you pay around 1,000 extra in fees when you go lease route, plus hassle of finding new finance can get tricky.

 

[celwin]

You can get finance for buyout.

But rebate on GT is $5,500 for 24 months. But you pay around 1,000 extra in fees when you go lease route, plus hassle of finding new finance can get tricky.

This. And no guarantee your refinance to buy out lease would be lower than the lease rate. This is the exact reason I did finance as opposed to lease buy out; And the state I'm in I would have been taxed again on the lease buyout. In my case it was not beneficial at all. Coincidentally I purchased my GT from Koons Kia. They offered the best price within my max driving distance.

 

[Ruturaj]

This. And no guarantee your refinance to buy out lease would be lower than the lease rate. This is the exact reason I did finance as opposed to lease buy out; And the state I'm in I would have been taxed again on the lease buyout. In my case it was not beneficial at all. Coincidentally I purchased my GT from Koons Kia. They offered the best price within my max driving distance.

Being in NC, taxing is much better for me. I had trouble getting my car financed because there are fewer options when you are doing lease buyout opposed to new purchase. But being on work visa, I got offers for higher interest rate at best and most banks declined.

Still going with 4.6% interest rate with lease buyout vs 3% directly, first option will win most times when in states that tax car only once.

I looked in to koons kia, traded few emails. To me it felt like they had short term memory loss as they replied to each email as new during conversation and never told me how much was actual dealer discount from prices shown on their website, I asked them do you even read emails before replying, and then they never replied. Being around 150 miles away from me, I just didn't bother emailing again.

 

[Rev_Night]

all this leasing info is confusing me. How is this better than just buying it outright at 2.9%?

 

[Ruturaj]

all this leasing info is confusing me. How is this better than just buying it outright at 2.9%?

It is confusing because it is complex.
Basically by starting lease you get rebate of say 5,500, out of that you are losing around 1,000 to extra lease fees. (net savings 4,500)

Now you want to buy out the car, you need a bank that will finance a lease buy out (most probably with higher interest rate than 3% you could have got, lets assume you were paying 3,000 in interest if you had got loan at 3% and 4,500 if you get loan at 4.5%) (net savings 3,000)

Now your state charges extra tax, lets say 'x'

Now if,

2000 (finance incentive) + x < 3,000 (lease buyout saving) + trouble of leasing and buyout

then to lease buyout.

 

[Ruturaj]

For me, NC doesn't charge twice for taxes. And Kia wasn't offering any finance rebate, they were offering 0.9 rate for 66 months though. I took lease rebate of $6,500. Next month the lease incentive went even up (7,200 then kept going up to 8,500 for GT2 AWD).