A Guide to Financing Your New Kia Purchase

new kia vehiclesPrior to buying a brand new ride, it pays to have good knowledge about the processes involved. You must not settle for something that seems ‘too good to be true’ and familiarize yourself with the latest happenings in the marketplace, local dealers, and new make/models of vehicles. Subsequently, you have to study well, perform great research, and soon you will be bumping in a ride that is well worth you paid for. However, where owning a new vehicle is almost everybody’s dream, only a few people can actually afford the costs.

Unless you have just won the lottery or been hoarding cash for past few years, the only way you can buy a “new” ride is if you obtain financing through a loan. Bear in mind this is not a bad thing. Financing can actually help you in purchasing a ride in much simpler and less burdening terms. If your credit rating is “excellent”, you can leverage amazing interest rates with 0% down payment. However, even if the ratings are “poor”, you can still manage to get a new car with a financing plan that suits your budgetary limitations.

Are you planning to purchase a new Kia ride? If so, then don’t hesitate on reading this detailed guide on financing car purchases.

Do Buyers Have the Ability of Paying in Cash?

Not many people have the appropriate finances available for buying a new ride in full-cash payment, but yes, it is completely possible. If you’re a super saver and can easily write a check (without breaking your bank and totaling your limit), then you should have no problem paying in cash.

In fact, by avoid taking out a plan and making interest payments, you can save thousands of dollars on the final bill. Dealers are more willing to offer exceptional discounts to those buyers who pay for a new ride in cash. You can leverage amazing incentives and rebates, resulting in significant savings.

How Much Down Payment Should Buyers Put Down?

In circumstances, you are not able to buy a new ride in full-cash payment; it is always a good option to obtain automobile financing. If you choose this option, it is recommended that you put down a 20% down payment in cash of the car’s total value.

By doing this, you are knocking out at least fifth of your total financing loan. This makes it easier for you to pay off your loan. If you can secure a low interest rate and have excellent credit rating, it may not be necessary to put down such a large down payment.

On a general note though, the more you can pay in down payment, the better off you will be.

Who Should Provide You with Financing for New Kia Purchase?

When it comes to obtaining financing for a new Kia, you have plenty of options available. Many different lenders will happily provide you a loan. However, this doesn’t mean that you accept the very first offer you get. It is imperative that you do your research, shop around, and analyze different lenders’ deals – before picking one that’s best for you.

Credit Union Loan

If you want to leverage the best interest rates on the market, there is no better option than a Credit Union Loan. However, the only catch with this financing option is that credit unions only lend money to their members. This means, it is imperative for you to have an account with them. If you aren’t already a member, you can easily sign up, open an account, and ask for financing by obtaining a loan that suits your budget limitations and monthly income.

A Dealer Loan

Dealerships have their own special financing deals that buyers can leverage. Every dealer will offer you their own unique loan plans through one of their affiliated banks. Since dealers are more “accepting” of borrowers, as they may good business – they will be more willing to accept buyers with bad credit or young buyers with limited credit. This special financing does come at a price though, in the form of high interest rates. When compared to other lenders, dealership-sponsored loans increase car prices.

However, if you want to leverage nothing but the BEST rates, do not hesitate on visiting Burlington Kia. With years of experience in the field of selling cars, we have a specialist Finance Department that works hard to come up with a financing plan that best suits your needs and requirements, without empting your pockets or breaking your bank. You can even take advantage of special deals for new Kia vehicles, including the Cadenza, Sorento, Soul, and Rio.

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A Bank Loan

You can always qualify from a local bank for an auto loan, depending on whether you have a good credit rating or not. These loans are preferable over dealership loans, but often have to be approved with a strenuous and tiring process. The dealership will need to get into contact with the bank, before letting you take the car home. This means, you need to seek pre-approval of the dealership, before ever finalizing the loan and its monthly payments.

What Type of Loan Should You Get?

Once you explore your options by visiting different lenders, opt for financing that offers you the best and lowest interest rate. Most auto loans will come with five, four or three-year terms, depending on how much you can afford. It is usually best to opt for a short term. Yes, your monthly payments will be high. However, the total cost of the vehicle will be lower. As a general rule of thumb, the longer the duration of your loan, the higher the costs of the vehicle. This means, where the vehicle might cost you $22,000 in three years, it might raise up to $24,000 by five-years. However, it all depends on your financial condition, stability is an important factor when determining the duration of a particular loan.

Therefore, now that you are familiar with the types of loans available, obtaining financing for your new Kia purchase won’t be a problem.