Is BUY OUT of 0% Interest Loan for Stinger worth it?

[razor_ro]

Not sure if this is the right place to post this, but I am not even 1 year into my 7 year loan @ 0% interest.

Buying out the loan is now an option for me (it wasn't before when I purchased the vehicle).

I know the dealership may have tacked on a few thousand upfront and so was wondering if buying out my 0% loan is worth doing?

Are there any options for this type of scenario? Is there anything KIA Finance can do for these types of scenarios?

cheers!

 

[nhcowboy28]

There is no point on a 0 int LOAN. Kia won’t do anything for you.

if you just like the feeling of having the car paid off and have the resources. Go for it.

but money now vs money later. It’s the same amount.

Kia won’t give you a discount for paying off a 0 interest loan.

might even hurt your credit rating if that’s important for you.

 

[RedCal]

It makes no point to pay off a 0% loan... put it too work - invest the money elsewhere, and collect the interest

 

[razor_ro]

Thanks for the insight! I guess if there isn't anything KIA Finance would do to buying out a 0% loan then this is definitely not worth it ... wishful thinking i guess!

 

[RedCal]

It's a hard one... I've always paid things off as quick as I can, but 0% loan is FREE MONEY - invest it well, and you will be much better off

 

[razor_ro]

It's a hard one... I've always paid things off as quick as I can, but 0% loan is FREE MONEY - invest it well, and you will be much better off

I agree, but I know that some folks on here have been able to get a few thousand knocked off by switching a 0% loan to 2.99% - i wish i took advantage of that during my negotiating phase.

 

[RedCal]

You should be able to make more that a few thousand in 7 years on the $$ - You are better off with the money in your pocket

 

[razor_ro]

You should be able to make more that a few thousand in 7 years on the $$ - You are better off with the money in your pocket

true - but it does free up a nice chunk of change per month as well ... basically everyone's situation is different

 

[Ohiocruiser]

There is absolutely no point in paying 0% off earlier. It is a free money. And with accelerating inflation $1 today is more than $1 tomorrow. So why pay more?

 

[Snowwhite]

There is absolutely no point in paying 0% off earlier. It is a free money. And with accelerating inflation $1 today is more than $1 tomorrow. So why pay more?

and on a depreciating asset, no less. There is no sense in paying off 0% money early.

 

[Travis Wills]

and on a depreciating asset, no less. There is no sense in paying off 0% money early.

In these crazy times some Stingers are actually appreciating. It can stay this way for long though.

 

[Nedstand]

I agree with everyone who says there is no point in paying off a 0% auto loan, with one huge exception. If you are thinking about buying a home and taking a mortgage, getting the auto loan off your balance sheet may make you look better to mortgage lenders (I'm not an expert which is why I say "may").

OTOH, you might want/need the cash for a down payment.

Just don't gamble the money on risky stuff like Bitcoin and GameStop. My $0.02

 

[Travis Wills]

I agree with everyone who says there is no point in paying off a 0% auto loan, with one huge exception. If you are thinking about buying a home and taking a mortgage, getting the auto loan off your balance sheet may make you look better to mortgage lenders (I'm not an expert which is why I say "may").

OTOH, you might want/need the cash for a down payment.

Just don't gamble the money on risky stuff like Bitcoin and GameStop. My $0.02

I have seen a lot of people make enough from Bitcoin and GameStop to buy the house and car in cash without any credit at all.

I definitely agree that these aren’t legitimate ways to make money. However, some people have made absolutely incredible amounts of money off of them without adding anything of value to the actual economy.

 

[Snowwhite]

buying a house cash is fine, because that is *usually* an appreciating asset, meaning at some point in the future it should be worth more than it is when you buy it. You may have to hold it for 10 years to make money, but in the long run, you will.

A car, especially a kia or hyundai, is a rapidly depreciating asset. Cars don't appreciate in value unless they are 1 of 500 ever made, etc. and even then it's not a guarantee. No mass market car will ever appreciate significantly enough to make it a good investment. A car is an expense. So if you can get 0% to finance it, do it, and use that cash for something that will generate money, at a risk level you're willing to tolerate.

Yes, I know the current used car market is nuts, and yes, there is the opportunity to make some money out there right now if you sell your car for more than the payoff or what you paid for it, but then most people have to turn around and buy another car, so the earnings will get eaten up there unless you go for something substantially cheaper. And when the market stabilizes, the used car values will drop back to normal, putting you in an upside down loan for longer than normal.

 

[sycopupy]

Why would you want to pay off a 0% interest loan?

 

[ht_addict]

When i bought mine I took 2.99% to get $4k of up front. Key is I need to pay it down faster to reap the benefits which I am doing.

 

[stingLikeAee]

Why would you want to pay off a 0% interest loan?

A non financial reason might be to obtain the car title to expedite the resale of the car.

 

[Nedstand]

Just wanted to share my horror story of buying the Stinger at lease end.
First, everyone I spoke with at Kia finance has been very nice on the phone, but closing this out has been a problem.
Prior to the end of 36 month lease, I called and told them I wanted to buy the car. They emailed a closing statement, and I sent 2 payments for the total due. They told me I had to send it in two payments using KMFUSA website as there was a limit of 20 or 25K on a single payment. The total due was just under 31K. That was in May 2021.

Then I called back and was told I needed to send an odometer form. I filled it out and emailed it back. They acknowledged receipt of full payment and the odometer form on a subsequent call in June 2021 and told me I had done everything I need to do on my end, and I should receive title in the mail within 2 weeks.

Since then I have received 3 letters demanding I return the car, the most recent included a statement in ALL CAPS AND BOLD threatening legal action if I do not return the car to a Kia dealer.

Again, everyone at KMF has been nice on the phone, but they cannot complete a simple transaction. Will I buy/lease another Kia after this experience?

If I get another nasty letter, it's time for me to hire a lawyer.

 

[stoopid]

Just wanted to share my horror story of buying the Stinger at lease end.
First, everyone I spoke with at Kia finance has been very nice on the phone, but closing this out has been a problem.
Prior to the end of 36 month lease, I called and told them I wanted to buy the car. They emailed a closing statement, and I sent 2 payments for the total due. They told me I had to send it in two payments using KMFUSA website as there was a limit of 20 or 25K on a single payment. The total due was just under 31K. That was in May 2021.

Then I called back and was told I needed to send an odometer form. I filled it out and emailed it back. They acknowledged receipt of full payment and the odometer form on a subsequent call in June 2021 and told me I had done everything I need to do on my end, and I should receive title in the mail within 2 weeks.

Since then I have received 3 letters demanding I return the car, the most recent included a statement in ALL CAPS AND BOLD threatening legal action if I do not return the car to a Kia dealer.

Again, everyone at KMF has been nice on the phone, but they cannot complete a simple transaction. Will I buy/lease another Kia after this experience?

If I get another nasty letter, it's time for me to hire a lawyer.

More concerning than their letters is the fact this far along and you still don't have a title. What if you were trying to sell the car/get into a different vehicle? Seems like the right and left hands at Kia don't know what they're doing.

 

[Nedstand]

More concerning than their letters is the fact this far along and you still don't have a title. What if you were trying to sell the car/get into a different vehicle? Seems like the right and left hands at Kia don't know what they're doing.

I thought about that also since I got online offers about $7,000 over my lease buyout when I checked prior to deciding to buy the Stinger...

Good News! Title and bill of sale arrived today!