Hey all, I'm in the market to get a SUV and a finalist for me is the Sorento EX Turbo. Kia Canada is running a promo till may 31st, 0% financing on up to 84 months. It sounds like a great deal to me. That Sorento would come to 500$ per month for 84 months. Thoughts? Is it such a good deal? I would've preferred to wait 1-2 more months before pulling the trigger but I'm worried I'd pass up on this occasion.
It's hard to go wrong with a good financing deal. I would have loved to have taken advantage of that, but I had to replace my vehicle after it was totaled, so I didn't have time to be choosy.
0% interest is a great deal, especially for that long (84 months). You can't beat paying no extra interest when it comes to financing. They're not making any money off you, and all it does is raise your credit score in the end.
If you're ok paying the $500 per month, then I would do it if you enjoyed the test drive. I would consider the V6 though because the gas mileage is still quite good and you won't have to deal with any turbo lag or repairing the turbo in the future (it's also more suitable for towing large items).
I would still shop your business and you should be able to get another $2500 off list (at least).
I would contact all the KIA dealers within a 4 hour drive.
actually look the 0% more closely IMO. if you pass on the 0% they will knock $2,000 or $3,000 off the MSRP (in addition to any other deals you might get).
see attached pic from my local dealer website which lists MSRP for EX Turbo at CAD $39k. with HST that is about $44k. with the cash back offer of $1,000 that likely is what you are paying. as another poster suggested push for more. if you are in the toronto area check Orangeville Kia (i've no connection with them it is just that they supposedly make good deals and list their sale prices on teh website)
/** Edit - apologies for adding the file with prices that does not mention Sorento. I downloaded that last year End Edit **/
It's almost always better to pay no interest, unless you can get a very low interest rate along with the $3k-off deal. Let's say the price for a new Sorento is $33k. If you take the no-interest deal, you end up paying exactly $33k over the life of the loan. If you take the $3k-off deal and find a great finance deal for like 3% interest for 84 months, you end up paying almost $3300 in interest over the life of the loan. So you end up paying slightly more, even if you get a fantastic rate (which is very unlikely if the term is 7 years).
And aside from that, I would never mix negotiating finance with negotiating the price of the vehicle. Those should always be separate.
That all depends on your negotiation tactics. Never bring up how you want to finance your car before getting to a final price on the car itself. I got 60 months 0% financing, 0% down and 3 months no payments, and a good discount on the car.
Thank you all for your useful replies, I'll see what I can knock down. Otherwise, I was thinking of asking for winter tires and/or carpets, side steps, etc.
I'm really torn between pulling the trigger now on the Sorento given the rebates or waiting to see what the 2018 Tiguan brings...
I just walked out of a dealership for a 2017 Sorento LX V6.
Finally got them down to $430/month financed at 0% over 84 months, but they wouldn't throw in the $600 worth of accessories I wanted. We negotiated over the price for an hour, then they balked at the accessories so I walked. They will probably call me back, then I will demand they throw in some oil changes for wasting my time haha.
If I get the deal I want, my all-in cost will be 36K at a Toronto dealership.
I don't get it. I know the cost on those accessories isn't all that high.
I am still kicking myself for not getting the dealer to throw in all weather floor mats. All I have are the carpeted ones, which will be utterly destroyed next winter lol
I got the 0% financing last year and they say they have to make a number so they charged 0.11% which always bothered me. Did anyone else experience this?
I got the 0% financing last year and they say they have to make a number so they charged 0.11% which always bothered me. Did anyone else experience this?
relying on my memory now but i recall the salesperson saying something similar. it couldnt be 0% in reality they would have to put in a small amount. that made no sense to me. I decided to use the upfront discount ($3,000) and relied on bank credit line plus a rising stock market to fund the purchase.
Financing is almost never free. In this case, you're giving up the $2000 rebate so cost of money for $42,000 over 8 years is 1.27% - still cheap but not zero. I'm somewhat surprised that everyone seems to be fine with financing a rapidly depreciating asset for 84 months. You are literally into deficit equity from day one (this sounds like it's 100% financing) and getting worse every month. Many people will tire of the car between 48 and 60 months and then roll their deficit equity into whatever they decide to buy, financing 110% of the new purchase (and at this point, 0% financing ceases to be an option). It's very easy to get into severe financial problems this way versus putting down at least 20% and financing for no more than 60 months (48 follows the depreciation curve much more closely). I'm probably just old school, driving my current vehicle (2003 4Runner) until I've saved the cash to buy new with no financing. Also, people who buy based on the monthly payment are a car salesman dream versus those that understand the cost of the asset itself and then make decisions on how to pay for that item.
i got attitude for deciding not to finance with the dealer. Not the salesperson who was older and IMO came of age when credit wasnt as easy as it is now. the guy attempting to sell me the extended warranty kept saying "You people who wait to buy a car with money saved" when i said i would like to think more about his "deal". He may have been referring to my ethnic heritage but i chose to view his remark as of a person not willing to finance through the dealer or to buy everything that was on offer )
Those 2 topics are directly linked....You can't talk money with the dealership without bringing the finance/cash matter to the table. They aren't idiots, they know where and how to make money.
The moment you kick off the negotiation, salesman will ask you..are you paying cash or financing?
I'd like to know the credit score of someone who has never "bought beyond their means". That's how you build credit in the first place, which is necessary for the majority of the population who can't keep saving up for decades before they can buy a house or a car in a 100% cash deal.
No question that there's lots of debt farming going on these days (which is what prompted the whole SUV boom to begin with), but if you're paying 0%, it's a good deal for a young first-time buyer.
How is that relevant? If you want to drive if for 84 months there is no difference between financing it or buying it outright, if you want to switch cars every 3-5 years, lease.
I own my home, our daughter's condo as well as the four vehicles in my signature...outright. I've never 'bought beyond my means'. Not going to post my credit score but we didn't 'save up for decades' to do what we've done. If that type of financing works for you, fine, but I've never taken that route.
Guess not everyone has same priorities. Some people take the 84-month term because is the only way they can afford the vehicle they want. As long as you are aware of the implications, I don't see the problem. Cigarette causes cancer, bad breath, stained teeth, stinky hands and cloths and are expensive, yet people keep smoking.
It doesn't matter if it's 0% or not, bottom line is watch out the final out of the door price: monthly payment x months + fees+tax+.... = $$ --> that's the price you should focus on, and always be.
There are thousands of ways the dealer can calculate the price and present you with the "deals". 0% & 84 months means nothing if you are not talking about the final OTD price.
What's the configuration of the car? with $42k, you might be able to get the best trim and config already. Don't know what's the current market anymore. Check out a post that ppl shares their car purchasing price. That's a good start for you.
What's the configuration of the car? with $42k, you might be able to get the best trim and config already. Don't know what's the current market anymore. Check out a post that ppl shares their car purchasing price. That's a good start for you.
OP (based in Canada) was interested in EX Turbo which at dealer about 2km from me is MSRP $39k. i figured the $42k total of tax, fees and advertised rebate ($1000?).
hopefully s/he got a better price from a dealer in wider metro area who advertises "deal prices" online. and the "0%" thrown on top of it to swing him/her away from the alternative: Volkswagen
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