I am being told that Kia financing is offering a 'KMF Dealer Choice Bonus Cash Program (506) which offers a rebate of $1750'
Does anyone have additional information or experience with this program?
For example, how much is the minimum I need to finance, one dealer told me its $7,500, but has nothing to show on paper.
Also, how soon can it be paid off, I do not really want to finance, but am considering it because of the rebate and want to pay it off asap.
I have asked the dealers about it, and they don't have anything to show, but insist that it can be paid off within 1 month (some dealers say this) or 3 months.
I gave my dealer a cash offer, and they came back with a similar proposal. They explained that they make money on the financing (and I've subsequently learned that if you sign up for financing and you aren't careful, they will also be charging you for "gap insurance", which they probably also make money on). My recollection suggests that the 7.500 part is consistent with what I was told, and I think I was also told that I could pay it off in entirety after six months with no penalty if I wanted to do that.
I contemplated going along with that for a day or two, because my offer was less than MSRP and I'd already fought and lost a negotiation with a different dealer, so I was feeling a little worn down, and I also was cognizant that the salesperson I was working with had to make a living, and there were a lot of places where the dealership would subtract from the sale price before the salesperson's commission was calculated.
But then I thought: hey: I started planning for this day years ago, and I managed to squirrel up enough savings over the years that I could finally pay cash for a new car, so why should I subject myself to unnecessary financing, liens, additional paperwork about who actually owns the title, and all the rest. It seems like I shouldn't have to deal with all of those headaches if I'm actually able to pay cash. So I told my salesperson that I didn't want to do their financing.
It took about a week or maybe two of swapping e-mails, but eventually the dealer agreed to the original offer I had made, all cash, no Kia financing, no lien, title in my name, etc. I found some additional fortitude in the interim by reaching out to a slightly more distant dealer and asking if they might be interested in the terms I had offered to the first dealer. They were reluctant at first, but eventually agreed, and that gave me more confidence when negotiating with the first dealer.
I recall that the night I signed all the paperwork and picked up the car: there were a lot of smiling faces on the other side of the table. Even though they didn't get the kickback on the financing or other add-ons, in the end they were still happy to sell to me at a price that, while less than MSRP, evidently felt reasonable to them.
Hope this info helps. Every deal is different. I also burned through two other Kia dealers that wouldn't give my offer the time of day, so your mileage may vary.