Kia Dealership Requiring 3rd Party Financing?

Ask the Hackrs
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Hi, I am located in the DMV was somehow able to find a KIA dealer in PA who will be getting a Telluride in their inventory within a reasonable time period and selling at MSRP. The dealer says that they don’t assist with financing/leasing for out of state customers and that I will have to handle it on my own.

Can I still get financing through KIA Financial (assuming they have the best MF/Residual combo)? The KIA website allows me to apply for pre-approval but I figured I’d ask the experts on this forum.

Thanks in advance!

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You’re pretty much out of luck for leasing it if you go that way, although these are generally a better purchase anyway.

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I doubt they lend to customers directly & bypassing their own dealers. Captives don’t really work like that.

Just use your own credit union or a federal CU like DCU.

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Are you drawn to this option because of their exceptional interest rates?

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I mean in P.A it’s 1.9 for 60. DCU gets pretty close to that.

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It would seem that the more difficult way to do this is through Kia, if the selling dealer isn’t going to facilitate.

Doesn’t seem worth the effort based on your post.

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I called Kia Financial and they said they don’t do direct to consumer and only go through the dealers. I was only interested in Kia Financial just because I was exploring lease options. I know this forum is generally against Kia leases but I didn’t want to be stuck with a higher payment for 5 years, even I do end up owning the vehicle at the end.

Will likely end up going finance route through DCU.

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I don’t think that’s necessarily true. Right now a lot of vehicles don’t make sense to lease, Kia or otherwise. :slight_smile:

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Yeah market is bad in all kinds of ways but unfortunately the existing lease on our only vehicle expires in 2 months so forced to jump in. OTOH, we’re looking at some good equity when we sell the current vehicle and don’t plan to sink most of it into this purchase.

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Have you done the math re lease payments versus financing for 60 months? Admittedly I don’t know what state you are in, which definitely matters for taxes but It doesn’t seem to be like the Delta would be that great in terms of payment size.

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Assuming there’s no MF markup, the payment I saw from the Leasehackr calculator there would be about a $200-250 difference in monthly payment.

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What about total cost of ownership, being that ultimately that’s what matters.

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It never made sense to lease a Telluride vs finance it, even before leasing sh!t the bed across most of the industry.

Aside from the lower TCO (total cost of ownership), the other intangibles are in favor of buying/financing. You have multiple ways to exit, i.e. sell Carmax/Carvana/Vroom etc or sell to a Kia/Hyundai dealer who knows they have to compete with Carmax/Carvana/Vroom etc or trade in to any dealer or sell to a private party if the lien is paid off.

When you lease a Kia, you are really stuck with it. No lease transfers. No sales to third parties. You cannot sell to anyone except a Kia/Hyundai dealer. And they know they don’t have to compete with Carmax/Carvana/Vroom etc. All they have to compete with is the next closest Kia/Hyundai dealer.

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