Which is Better: 0% APR or $7500 Rebate?

I was told by a Kia dealership in Washington that I can only choose one of these options. It’s 0% APR for 60 to 72 months on a car with an MSRP of $59K. What would be the best option for me to go with?

It probably depends on the interest rate you would get with the $7500 rebate. If you’re paying more than $7500 in interest over the loan term, then the choice is clear.

You could lease the car. Kia is offering a $15K rebate for leases. You can always buy out the lease at the end if you decide to keep the car.

Zen said:
You could lease the car. Kia is offering a $15K rebate for leases. You can always buy out the lease at the end if you decide to keep the car.

Thanks for the tip. I’ve reached out to Kia in Bellevue for leasing options on the GT Line.

@Chen
You mean Kirkland? There’s no Kia dealership in Bellevue. I’m also in WA. Kirkland was selling a GT Line last week with a $4K discount, but they sold it. Everett might still have some with a slight discount. Stay away from Auburn, they’re not great. Good luck!

@Zen
Yes, I meant Kirkland. Thanks so much for the info.

@Zen
Of the 4 dealerships I reached out to, this one seems the most reasonable. I haven’t negotiated yet, but does this look like a good deal? Thanks in advance.

Chen said:
@Zen
Of the 4 dealerships I reached out to, this one seems the most reasonable. I haven’t negotiated yet, but does this look like a good deal? Thanks in advance.

@Chen
It’s hard to negotiate in WA because there aren’t many GT Lines available. I wouldn’t put money down on a lease. What’s the $2,434 cash for? Are you trading in a car with equity? That seems a bit high. For perspective, I had a deal from Puyallup last month for $1,900 off MSRP, but they sold the car after we disagreed on my trade-in. I’d try negotiating more.

@Zen
Everett Kia told me to use the payment options on their website and input the numbers. I added $2K as a down payment, but I’m not sure where this $2,434 came from. I don’t have a car to trade in right now.

@Chen
I’d ask them what the cash is because it also says you’re paying $1,946 at signing. If I were you, I’d ask about the cash and try to negotiate a lower price off MSRP.

Zen said:
@Chen
I’d ask them what the cash is because it also says you’re paying $1,946 at signing. If I were you, I’d ask about the cash and try to negotiate a lower price off MSRP.

Yeah, they just sent me an estimated cost, which is different from what I got online. I was told to use the online payment estimator. It’s frustrating.

@Chen
Yeah… it’s hard to get a good deal on a GT Line here. You might have better luck with an Ioniq Limited if you’re open to that. There are around 200 in the area, compared to about 10 GT Lines.

Zen said:
@Chen
Yeah… it’s hard to get a good deal on a GT Line here. You might have better luck with an Ioniq Limited if you’re open to that. There are around 200 in the area, compared to about 10 GT Lines.

This comment is empty, admin should fix.

@Chen
My daughter works at Everett Kia, and a few friends and family have bought from them and had good experiences.

Ainsley said:
@Chen
My daughter works at Everett Kia, and a few friends and family have bought from them and had good experiences.

I’ll try one last time tomorrow to get the quote. Hopefully it will work the third time.

It kind of depends on the interest rate you would get. If you plan to pay it off in 2 to 3 years instead of the full term, you should do the math with a total interest calculator. For example, 4% APR over 72 months will add about $7,500 in interest on $59K. Personally, I’d take the rebate and pay the loan off early if possible.

@Lyle
Right now, I’m being offered 6.75% for 60 months on $50K. The interest would be around $9K, which is less than the $7,500 rebate.

Chen said:
@Lyle
Right now, I’m being offered 6.75% for 60 months on $50K. The interest would be around $9K, which is less than the $7,500 rebate.

Yeah, the 0% interest is a better deal unless you plan on paying it off early.

Or, you could wait and see if a better offer comes up. I believe the current offer expires around 1/2/25, and there might be a better one. Last December, I had a deal for 2.49% APR for 60 months with a $5K rebate. It expired, but I got a call a few days later with a new offer: 0% for 60 months with a $7.5K rebate and $4.5K off MSRP. Also, I didn’t have to pay for dealer-installed options like tinted windows, pulse brake lights, and wheel locks.