Hyundai Kia - Cash is not king

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Tue 2 Mar 2021 10:55
Hyundai Kia - Cash is not king - andy4

Morning,

Have been ringing around a few Hyundai and Kia dealers recently trying to sort out a good deal on a Kona or a Stonic. I am slightly surprised how little leeway there is on prices, especially when mentioning that the buyer will be a cash purchaser. I get that they would prefer finance for their commission, but didn't expect an almost complete lack of interest from some dealers.

Has anybody taken out a finance deal with Hyundai or Kia recently and then paid off the balance after a short time later? If so was it straightforward? Are there any major pitfalls the buyer needs to be aware of?

My preference would be a pre reg deal. No Kia or Hyundai dealers I contacted seem to do these anymore. Is this a Kia/Hyundai thing or something as a result of the pandemic? Or is it a seasonal thing ie more will be available at the end of March and September if their sales targets are not met?

Grateful for any advice

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Tue 2 Mar 2021 11:18
Hyundai Kia - Cash is not king - chris87
Dealers are holding on to whatever stock they have in the hope that it will sell at a premium in a few months time. It’s a desperate attempt to reverse or ignore fundamental market principles. Also, cash or finance makes absolutely no difference, they get the same amount either way. The moment you signed, money is being transferred into their account, so it’s not like it takes days/weeks/months to process that.

My advice to you would be to wait, if you can...

Edited by chris87 on 02/03/2021 at 11:18

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Tue 2 Mar 2021 11:30
Hyundai Kia - Cash is not king - daveyjp

Don't mention how you are paying until you have negotiated the price. That's not of their concern.

Tell them if they want to incentivise you to take finance that's for them to sell to you, you can then pay it off immediately if the deal works for you.

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Tue 2 Mar 2021 12:17
Hyundai Kia - Cash is not king - Rerepo
Dealers are holding on to whatever stock they have in the hope that it will sell at a premium in a few months time. It’s a desperate attempt to reverse or ignore fundamental market principles. Also, cash or finance makes absolutely no difference, they get the same amount either way. The moment you signed, money is being transferred into their account, so it’s not like it takes days/weeks/months to process that. My advice to you would be to wait, if you can...

Wrong on all counts..

They get finance commission which can be more than the profit on the car in some cases.

Also its not a desperate attempt to ignore the market. The market is very very strong in relation to the supply. I have two friends who own small businesses and both have never had more money thanks to Covid grants and loans - both have new prestige cars on order (Audi and Mercedes) - and they are buying, not leasing. Also the property market is red hot. I bought a small house to renovate in 2019. Paid 121k. Spent 7k tidying it up. Exchanged contracts last Friday at 209k after a long delay due to solicitors overwhelmed with conveyancing work. I have never seen so much money sloshing around.

Edited by Rerepo on 02/03/2021 at 12:23

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Tue 2 Mar 2021 12:39
Hyundai Kia - Cash is not king - skidpan

When we bought the Ceed SW bargain deals were simply not available and even now very few brokers offer them.

But the important thing for us was the size of the cheque we were writing to buy the car. The price to change was less than a smaller, less powerful, less well equipped Focus Estate and that was all that mattered (the Focus came with a large discount but a stupidly inflated list price).

Work colleague would only buy a car from the dealer that offered the highest PX price on his old motor, he spent loads more than he should have but would not accept a large discount and lower PX could actually be a better deal. He could not understand that the price to change was the most important figure.

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Tue 2 Mar 2021 12:39
Hyundai Kia - Cash is not king - mcb100

I'm always a bit perplexed that people think cash is king when buying a new car. It's not like they can keep the transaction 'off the books' like someone paying a handyman cash in hand, no questions asked, no receipt given.

Finance will always trump it with commission from the finance companies, dealer deposit contributions and general quarterly incentives from manufacturers.

If a purchaser really wants to put themselves in a weak position, you don't offer a part exchange. If they can see a profit from selling your car, that's more room for manoeuvre.

Edited by mcb100 on 02/03/2021 at 12:42

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Tue 2 Mar 2021 13:02
Hyundai Kia - Cash is not king - _

Last year..( in fact a year ago) I bought a Sportage via Carwow (others are available) and got £4600 off list. 2100 from the dealer and 2500 from kia in taking their PCP

Paid it off a few weeks later and cost me £1.46 a day in penalties, it depends on your interest rate and duration.

Others on here have paid off PCP contracts and may possibly reply.

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Tue 2 Mar 2021 13:25
Hyundai Kia - Cash is not king - skidpan

Last year..( in fact a year ago) I bought a Sportage via Carwow (others are available) and got £4600 off list. 2100 from the dealer and 2500 from kia in taking their PCP

Paid it off a few weeks later and cost me £1.46 a day in penalties, it depends on your interest rate and duration.

Others on here have paid off PCP contracts and may possibly reply.

We have bought 3 cars that had PCP contributions and have paid all off withing a few days of taking delivery.

Seat Leon - £2000 PCP contribution + £2500 broke discount Total £4500

Nissan Note - £2000 PCP contribution, £0 service deal since we took out the PCP + £500 saving since we owned a Nissan and a dealer discount of £1600, total saving £4500

Skoda Fabia - £2000 PCP contribution, £1000 off for taking a test drive and broker discount of £2200 total savings of £5200.

We got a £3500 broker discount off the first Superb and 0% finance over 3 years.

On the Superb iV (pre reg) we saved about £6000 on a car 3 weeks old with 10 miles on clock and got a good PX as well (£1000 more than WBAC offered). What made it even better was the lead in time for a factory order back in late October was 6 months on that model.

Total savings on list in 5 cars about £23,700. But no doubt deals would have been available without PCP's or broker intervention, just not that much.

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Tue 2 Mar 2021 14:01
Hyundai Kia - Cash is not king - Ian_SW

I'd give up trying to speak to dealers direct if they aren't interested in offering any discount.

Perhaps try via a few of the brokers instead. A quick look at one broker which gives indicative prices without needing to register seems to show it's possible to get about 15% off a petrol Kona and 8% off a Stonic even with cash. Play the whole finance game and the discounts get a bit bigger.

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Tue 2 Mar 2021 16:00
Hyundai Kia - Cash is not king - andy4

Re brokers: which ones act purely as a middleman and just introduce you to a main dealer?

Its not my money so I would be reluctant to go down the "buy from a broker" route. I'm sure they are 99% safe but I would be distraught if there were any problems with the purchase.

Thanks

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Tue 2 Mar 2021 16:16
Hyundai Kia - Cash is not king - RT

Re brokers: which ones act purely as a middleman and just introduce you to a main dealer?

Its not my money so I would be reluctant to go down the "buy from a broker" route. I'm sure they are 99% safe but I would be distraught if there were any problems with the purchase.

Thanks

Don't use a broker that wants money - I used Carwow who get paid commission by the dealer so the only monies I paid were direct to the dealer.

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Tue 2 Mar 2021 17:55
Hyundai Kia - Cash is not king - chris87
This. List prices have nothing to do with the actual production cost of the car or the market. If the dealer is not flexible, move on, honestly. Try another dealer or another brand!
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Tue 2 Mar 2021 14:33
Hyundai Kia - Cash is not king - andy4

Thank you all for your very interesting comments.

I must admit I didn't think that the scenario was that perplexing. I assumed (wrongly) that the opportunity for a dealer to complete a very quick "cash" sale, perhaps with a service plan as an added extra, would have been warmly welcomed. We'd have been in and out so quick they wouldn't have known we were there! Even though they make more profit from finance sales I still assumed the dealer would have been delighted to notch up another sale to meet their targets. I accept though that this is on the assumption that there is a very big field full of Stonics and Konas somewhere that desperately need to be sold. Perhaps that's not the case. If stocks are limited then I could see why they would much prefer finance buyers.

Re finance contributions, do some companies reclaim the finance contribution if the balance is repaid, say, within the first three of six moths? I'm sure I read of it somewhere a few months ago but can't remember which manufacturer it was.

Edited by andy4 on 02/03/2021 at 14:35

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Tue 2 Mar 2021 15:05
Hyundai Kia - Cash is not king - _

Thank you all for your very interesting comments.

Re finance contributions, do some companies reclaim the finance contribution if the balance is repaid, say, within the first three of six moths? I'm sure I read of it somewhere a few months ago but can't remember which manufacturer it was.

Mine didn't.. Kia use hyundai Capital finance who uses Santander, as do a few of the dealers.

I don't think Skidpan paid any penalty either, but maybe he will be good enough to confirm..

and he got some cracking deals.

Edited by _ORB_ on 02/03/2021 at 15:07

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Tue 2 Mar 2021 17:19
Hyundai Kia - Cash is not king - jc2

Last few cars I've bought dealer didn't want cash-told me to buy on HP-they get the comission and knock it off their quoted price.I make one payment-ask for a settlement figure and pay that.

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Tue 2 Mar 2021 17:58
Hyundai Kia - Cash is not king - nick62

I'm in the middle of a deal on a new car ATM.

Told dealer that CarWow were offering around 10% discount and dealer agreed a price at almost 12% discount.

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Wed 3 Mar 2021 08:30
Hyundai Kia - Cash is not king - skidpan

Re finance contributions, do some companies reclaim the finance contribution if the balance is repaid, say, within the first three of six moths? I'm sure I read of it somewhere a few months ago but can't remember which manufacturer it was

It would be illegal under UK law to reclaim contributions, All you have to do is request a settlement figure, if that is within 14 days all you pay is daily interest, after that there is a formula they have to use but its more expensive.

I don't think Skidpan paid any penalty either, but maybe he will be good enough to confirm..

and he got some cracking deals.

Never paid a penny back, in fact some dealers have actually encouraged me to take out the PCP and pay it off as a way of sweetening the deal.

But there will always be a sales person who will lie to you and put the fear of god into you saying you will have to pay it all back but just accept, they are trained to lie, its part of the game.

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Wed 3 Mar 2021 08:49
Hyundai Kia - Cash is not king - andy4

Thanks Skidpan, thats very helpful.

This is what I found looking at the "I would like to withdraw from the finance agreement" part of Renault Finance Q&As.

  • If your Finance Agreement was subject to a deposit contribution you may need to repay this.

Is this normal? Is "I would like to withdrawal from the finance agreement" the same as paying it off early?

I'm finding the whole thing a bit of a minefield. We've never had a car on credit before. Not because we are loaded, just that we've always done it the old fashioned way and saved up in advance!

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Wed 3 Mar 2021 16:23
Hyundai Kia - Cash is not king - skidpan

his is what I found looking at the "I would like to withdraw from the finance agreement" part of Renault Finance Q&As.

Our Nissan Note was bought on a PCP with contribution from Renault Finance (RCI bank). We paid it off within 14 days with no requirement to pay back the contribution.

To repeat what I said earlier, they are not allowed under the law to ask for the deposit contribution back. They can however put weasley words in the T & C's stating a settlement fee if paid off early but I have never seen one yet.

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Wed 3 Mar 2021 22:58
Hyundai Kia - Cash is not king - SLO76
“ Never paid a penny back, in fact some dealers have actually encouraged me to take out the PCP and pay it off as a way of sweetening the deal.”

Cash isn’t appealing to dealers, who all receive commissions on any finance products sold, often you’d make more from selling the finance than the car. When I went seeking a used Volvo XC60 recently the local dealer tried his best to get me into a new one via a deal that seen very nearly £10,000 taken from the list price via a PCP in part thanks to a manufacturer subsidised deal. They encouraged me to pay this off within 14 days of taking delivery and I’d enjoy the £3,500 manufacturer subsidy along with the heavy dealer discount. No penalties applied. I still bought used though.
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Thu 4 Mar 2021 11:40
Hyundai Kia - Cash is not king - BPL
“ Never paid a penny back, in fact some dealers have actually encouraged me to take out the PCP and pay it off as a way of sweetening the deal.” Cash isn’t appealing to dealers, who all receive commissions on any finance products sold, often you’d make more from selling the finance than the car. When I went seeking a used Volvo XC60 recently the local dealer tried his best to get me into a new one via a deal that seen very nearly £10,000 taken from the list price via a PCP in part thanks to a manufacturer subsidised deal. They encouraged me to pay this off within 14 days of taking delivery and I’d enjoy the £3,500 manufacturer subsidy along with the heavy dealer discount. No penalties applied. I still bought used though.

www.discounted-new-cars.com/ quoted me for a Skoda VRS cash only 20+ week wait though

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