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Discussion Starter #1
Just partially financed through KIA a new 2020 Soul EX. Was going to pay cash but there was another $1750 rebate if I finance through KIA. Finance guy says if I pay off loan before 3 months KIA will charge me back the rebate. I am 99% sure this is finance guy BS but just want to be sure. Has anyone RECENTLY paid off a KIA FINANCE LOAN and been charged back the rebate? Dealer also hit me with 5% interest rate which also is BS but he said KIA won't do the $1750 rebate AND 1.9 or 2.9 financing. The interest for 3 months would be minimal even at 5% so it's no big deal to wait. If I got the 1.9 or 2.9 I may have just been a nice guy and waited the 3 months.

NOWHERE in writing does it say I can be charged back so it seems like BS for sure.

Any recent experience with this?
 

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Same situation here. My salesman told me I could pay it off after 3 months. I asked for him to point out to me in the contract where it said I can pay it off after 3 months. He just showed me the no penalty for early payoff provision. It didn’t say anything about 3 months. I could pay it off immediately. He then said, yeah, if I pay it off immediately it will cost me nothing but they will charge the rebate back to the dealership. So they were just asking me to keep the loan for three months in good faith. I have no idea if that’s true or not, or if those deals are just unenforceable so Kia gets the dealers to play along. As you say though, theres not much skin off my back to keep the loan for awhile so thats what I intend to do.

I wondered at the time if the whole thing is just a calculated gamble by Kia that most people will keep the loan. Seems like banks are always offering generous upfront deals to get you to take their credit card with no guarantee they will ever earn it back. I think the allure of putting off paying a loan is too much for a lot of people so the economics work for them on average.

Maybe they need to discount the cars anyway to sell them so then they just rationalize that if they require Kia financing that will get them $X back 80% of the time without losing more than 5% of the sales they would have made without that requirement. In the end overall the numbers all work out, even without any mechanism to guarantee they will keep the loan.
 

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Had they been honest when I asked I (probably) would have accomodated them for the 3 months but the dealer BS kills me and I will be paying it off the day I get my first bill.either with a 1.9% from a credit union or just cash.
 
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