Kia 0% APR Conditional Sale?

PiKe · 11 Feb 2018 at 23:20

Looking at used Kia's and this offer popped up, the terms state 12-60 months, it sounds too good to be true that I could have 5 years at 0% APR, am I misunderstanding it?

Kenai · 11 Feb 2018 at 23:53

They'll just build the margin into the sale price instead, it's a simple marketing tactic. If you weren't to take the offer up, you could probably negotiate more headline discount.

Joe T · 12 Feb 2018 at 08:35

Even with Kenai's point this does seem a bit too good to be true. On a new car maybe, but not a used one. Do you have a link?

blueboy2001 · 12 Feb 2018 at 10:13

What is the deposit requirement?

Some of these 0% deals want 50% deposit, so you’re not actually borrowing that much.

The interest on a decent rate bank loan of £10k over 60 months is around £850 so it’s not a huge subsidy in the grand scheme of things.

VincentHanna · 12 Feb 2018 at 14:29

http://www.kia.com/content/dam/kwcm...newcars/kia-finance/KIA-PRODUCT-PRESENTER.PDF

Once you’ve chosen your car (which cannot be older than 14 years at the end of the agreement), you decide if you would like to fund the entire purchase price or put down a deposit. • You then decide on the length of time you want to spread the repayment of the balance over, this varies between 12-60 months. The minimum loan amount is £3,000. Criteria may vary dependant on campaign promotions, so please check with your local Kia Dealer. • Your interest rate is fixed so every month you’ll pay the same amount and after all repayments have been made you own the car.

PiKe · 12 Feb 2018 at 21:35

Called my local dealer, its 3yr 0% on used cars over £8k under 18 months old.

chaparral · 13 Feb 2018 at 06:15

blueboy2001 said:
The interest on a decent rate bank loan of £10k over 60 months is around £850 so it’s not a huge subsidy in the grand scheme of things.

The interest on my 3 year bank loan for 12k was around £1,100
That for personal loan and not HP

dl8860 · 13 Feb 2018 at 11:52

Is the only reason people would choose HP over a bank loan because the bank wouldn't loan them money? Because as far as I can see, bank lending rates are much lower than any HP rates you see out there. Is there something I'm missing?

HangTime · 13 Feb 2018 at 23:22

Bank loans are usually higher than 0%, at least for the amount / length being talked about here. Not saying that means taking out the loan is advisable, but it certainly isn't the case that people take HP solely because they can't get a bank loan.

Our current car could have been bought outright, but we took finance from the dealer because it was cheaper than paying cash due to the incentives for taking out finance.