This is the first offer they gave me. I didn’t ask for anything or negotiate, just went in for a test drive. The 5.5% rate feels high, and I know I can get a better one. Their website shows 4.49% for 25 models and 3.9% for 24s. We plan to buy because we want to keep the car until it’s no longer usable, hopefully for around 10 years. Leasing didn’t seem ideal since we’ll be driving to visit family in NY and other places often. What do you all think about the dealer price, especially the third line down?
I work as an auto broker helping clients across the country, and from what you shared, the pricing on the 25 model doesn’t include any dealer discount—just a $1000 rebate from Kia, assuming you use their financing at higher rates. If you use your own financing, you’ll lose that rebate.
For the 24 model, the $4100 savings includes a $1500 finance rebate, with the rest being the true dealer discount. Dealers often mix their discounts with manufacturer rebates to make it look like they’re giving you a better deal, so it’s important to know what’s what.
Since you’re planning to keep the car for 10 years, the depreciation difference between model years won’t matter much. The 24 model might be the better option with its larger dealer discount. You might also consider an extended warranty, as some parts like the navigation screen can be expensive to replace after the basic warranty ends. Good luck with your purchase—hope this helps .
@Zachary
Thank you for this detailed explanation. I know the 25 model only has the rebate they listed online. Do you think it’s reasonable if I go back and ask for $2k or $4k less?
GriffinOtiz said:
@Zachary
Thank you for this detailed explanation. I know the 25 model only has the rebate they listed online. Do you think it’s reasonable if I go back and ask for $2k or $4k less?
I think asking for $2000 off on a 25 model is realistic, especially if there aren’t any extra fees like big doc fees or accessory packages. If they do have those, it can affect the discount. Asking for $4000 might be a stretch unless the dealer is really desperate to sell or it’s the end of the month.
For the 24 model, you could push for a $3000 dealer discount since it has a larger finance rebate. If the Kia finance rate isn’t great, you could take the rebate and refinance the loan later for a lower rate. That could save you a lot in the long run. Just a thought.
@Zachary
I didn’t even think about refinancing a car loan for a better rate. Is it straightforward, or does it come with hidden fees like a mortgage? I don’t know much about this stuff, but I really appreciate your advice.
@GriffinOtiz
Usually, there aren’t penalties for paying off a car loan early, so refinancing is pretty simple. A few years back, during the car shortage, some dealers added early payoff fees, but that’s rare now. Just avoid dealers with shady terms like that.
If you’re buying a 24 model, you could take the $1500 rebate, make one or two payments, and then refinance for a lower rate. It might cost you a little in interest upfront, but you’ll save in the long term. It’s definitely worth considering. Good luck with everything!
@Zachary
Thanks so much for your time and advice. Really appreciate the help!
Just a few thoughts…
If this is an AWD EX with captain chairs, the MSRP you mentioned doesn’t seem right unless it includes extras like floor mats or cargo nets. The MSRP should be closer to $44,500, which is the ‘special’ price they’re advertising. Check the window sticker to confirm.
As for whether the Telluride will last 10 years, it probably will if maintained well…