Where is the catch? About to lease a NIRO

mariengb

Hi Folks,

I hope someone can help me on that... I've been to KIA and they proposed me a lease on 24 months instead of 36 months due to my status (under transfer employee visa).

But they say I can continue to pay for 10 months or more... is it true?

Where is the catch? I think KIA get higher MF for 24months than the 25 to 36 months part.

But I would have higher residual value correct?

I'm even more lost knowing that under this foreign business program I should end up in Tier 4 and if I'm correct KIA is not doing 24months for lower than Tier 3...

Can the car dealer get another financing partner than KMF?

Thanks for your help guys

kyfdx

mariengb said:

Hi Folks,

I hope someone can help me on that... I've been to KIA and they proposed me a lease on 24 months instead of 36 months due to my status (under transfer employee visa).

But they say I can continue to pay for 10 months or more... is it true?

Where is the catch? I think KIA get higher MF for 24months than the 25 to 36 months part.

But I would have higher residual value correct?

I'm even more lost knowing that under this foreign business program I should end up in Tier 4 and if I'm correct KIA is not doing 24months for lower than Tier 3...

Can the car dealer get another financing partner than KMF?

Thanks for your help guys

You are correct. KMF will only do Tier 3 or above for 24 month leases.

You have to take anything a car salesperson or finance manager says about what the leasing bank will, or won't do, at a later date. Policies can change in 24 months, and if it isn't in your contract, it won't matter what the dealership told you.

The 24 month Kia residuals aren't high enough to make them cheaper than 36 months, but to make up for it, Kia gives more lease cash on that term. In theory, this should make the payments competitive with 36 months. The money factor is only slightly higher.

Kia dealers have access to other banks, but it's not likely any of them can match KMF's program.

Nothing wrong with the 24 month lease, as long as you are prepared for alternatives, if you must turn it in when it's up. Also, nothing wrong with seeing if they can get you approved for Tier 3 and 24 months.

mariengb

Thank you so much! I feel a little bit lost within this new world and car dealers not knowing so much about the foreign programs!

Of course if they put me on tier 3 it's another story but still... if I have like 8 months left after the 24 months I will be really blocked to refinance a car...