Kia Finacing question...

[MekstingerGT]

So I'm finance through kia and I got a question, if I drop 5 grand onto my payment/loan does it make my payment lower from now on or does it make it that I dont have a payment for awhile?

 

[MekstingerGT]

Anyone?

 

[mldavis2]

Good question. I would think the payment would be lower. The other way, they would have to hold the down payment and apply it monthly until it was depleted. That might be possible, but it would likely be a non-starter with today's totally computerized systems. In other words, it would be a "custom" finance that would not fit the computer's idea of a finance agreement. But it doesn't hurt to ask your finance guy at the dealership.

 

[MekstingerGT]

I did ask but he wasn't sure either. He said if your going to make a payment more then the regular payment make sure to have it go towards the principle. I checked the web site and I'm pretty sure you can't "split" the payement.

 

[DodgetoKia]

It just lowers your payments. For every $1,000 you put down it lowers it by about $20.

 

[MekstingerGT]

Good to know thank you

It just lowers your payments. For every $1,000 you put down it lowers it by about $20.

 

[MurlinatoR]

Good to know thank you

No, No, NO.......
[MENTION=948]MekstingerGT[/MENTION], have you already signed up with Kia and purchased your car?

If so, when you send extra money it will simply apply towards your upcoming payments. That's the way they all work. You contracted for a certain payment for the term so the payment will NOT change.

You can, however, sent $100 less per month if you'd like because you have payed so far ahead. That's what my wife and I do because of my roller coaster income in the car business.

 

[MekstingerGT]

sorry im not understanding about the paying $100 less a month and yeah ive already bought the car. so let say my monthly payment is $350. the payments doesnt change even if i drop a bigger payment? but itll lessen the life of the loan? i guess its different with every car loan/finance. i remember having a 03 mustang that i would pay a little more a month and it actually drop the monthly payment down.

No, No, NO.......
[MENTION=948]MekstingerGT[/MENTION], have you already signed up with Kia and purchased your car?

If so, when you send extra money it will simply apply towards your upcoming payments. That's the way they all work. You contracted for a certain payment for the term so the payment will NOT change.

You can, however, sent $100 less per month if you'd like because you have payed so far ahead. That's what my wife and I do because of my roller coaster income in the car business.

 

[MurlinatoR]

sorry im not understanding about the paying $100 less a month and yeah ive already bought the car. so let say my monthly payment is $350. the payments doesnt change even if i drop a bigger payment? but itll lessen the life of the loan? i guess its different with every car loan/finance. i remember having a 03 mustang that i would pay a little more a month and it actually drop the monthly payment down.

So, on your old Mustang, because you were only paying little bits extra, it looked to you like it was lowering your car payment. In reality, it was not. It was simply reducing the amount due on your next car payment. If you pay extra towards your loan, you are paying down the balance due and shortening your payment term. The bank however, doesn't want you to pay it off early. So, they tell you to skip car payments instead.

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