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How to finance a Kia

First-time car buyers, recent university grads and service members may even be eligible for discounts.

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You’ve probably spotted at least a dozen Kia Souls or Fortes zooming around town — and for good reason. The popular Korean car brand ranked as the number one non-luxury automotive brand according to a 2019 JD Power study in the US. If you’re interested in getting behind the wheel of one of these cars, you have a few financing options to choose from. And you may be able to score a discount if you’re a first-time car buyer, recent university grad or service member.

How can I finance a Kia?

When you’re looking to buy a new or used Kia, comparing your financing offers first can help you score a better deal. The cheapest way to go is likely taking out a car loan from an online lender, bank or credit union. Filling out pre-approval forms with several lenders can give you an idea of what terms you may qualify for to help you find the lowest rate.

Another option is comparing personal loan offers. However, rates will likely be higher since your loan won’t be secured by the car you’re buying. You can find out more about using a personal loan to buy a car in one of our other articles.

If you’re looking for the financing option with the fastest turnaround, then going directly through an authorized Kia dealer is likely your best bet. Though you can usually secure financing and drive your new car home the same day, you often end up paying more in interest than you would by taking out a car loan from an outside lender.

Kia Motors Finance (KMF) options:

  • Financing through KMF. Kia allows you to apply for credit to buy a new or used car through one of its licensed dealers. This comes with a few added benefits, such as access to your credit score and less hassle compared to shopping around at different lenders.*
  • Leasing through KMF. Leasing allows you to switch up your Kia every few years to ensure you always have the latest bells and whistles. While KMF leasing offers will vary depending on where you live, past promotions include leasing the 2021 Seltos LX FWD from $63 weekly at 1.99% APR for 48 months or the Sorento LX from $97 weekly at 2.99% APR for 48 months.*
  • Look for promotions. As of March 2021, KMF is offering several promotions, including a 1% rate reduction for qualifying Kia customers to be used towards any new and unregistered models financed or leased from a Kia authorized dealer in Canada. You must be the current owner/lessee of a current Kia vehicle for the past 90 days to claim the 1% rate reduction as long as the rate isn’t reduced to below 0% APR. KMF is also offering to pay for your first six months of financing on any 2021 Sportage models, up to $4,300 in value.*

Local dealerships may offer their own special deals as well. As with all loans, the exact rates and terms you qualify for will depend on your credit and financial situation.

*Rates as of March 15, 2021.

Compare car loans for financing a Kia

Name Product Min. Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
CarsFast Car Loans
$500
4.90% to 29.90%
12-96 months
300
Min. income of $1,800 /month, 3+ months employed
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
Loans Canada Car Loans
$500
0% to 29.99%
3-96 months
300
Min. income of $1,800 /month, 3+ months employed
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
Car Loans Canada
$7,500
3.99% to 29.95%
12-84 months
300
Min. income of $2,000 /month, 3+ months employed
Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
Coast Capital Car Loan
$10,000
Varies
18-84 months
650
Able to service debt payment of $300/month
Finance or lease both new and used vehicles with competitive rates and flexible terms from one of Canada's largest credit unions. No credit union membership required for this product.
Canadian Auto News
$7,500
3.99% to 29.95%
12-84 months
300
Min. income of $2,000 /month, 3+ months employed
Answer a few simple questions to get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
LoanConnect Car Loans
$500
9.90% to 46.96%
3-120 months
550
No min. income requirement
Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.
Canada Auto Finance
$500
4.90%-29.95%
3-96 months
300
Min. income of $1,500 /month, 3+ months employed
Canada Auto Finance is a broker that connects borrowers with partnered local lenders. Financing for a new or used car is available for borrowers with bad credit, no credit, CERB, EI or bankruptcy.
Carloans411 Car Loans
$500
1.90% to 19.99%
Up to 72 months
300
Min. income of $1,600 /month, 3+ months employed
Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.
Fairstone Secured Personal Loan
$5,000
19.99% to 23.99%
36-120 months
560
Established credit history and own your home
Fairstone offers secured personal loans up to $50,000.
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Representative example: Ash buys a Kia

Ash, an Ontario resident, is looking for a new car. He visits a dealership where he finds a 2021 Kia Forte LX priced at $19,800.00. After trading in his old car for $4,200.00 and putting a 20% down payment of $3,120.00 on the Kia, Ash heads to his local bank where he applies for an auto loan to cover the remaining cost ($12,480.00) plus 13% HST. Because of his solid credit history, he is approved for loan. Ash also pays approximately $150.00 to register his vehicle with the province of Ontario – this includes the cost of a license plate sticker and vehicle permit. (Fortunately, he can reuse his old plates and doesn’t need to buy new ones.)

Cost of new car$19,800.00
Loan typeAuto loan (term loan)
Loan amount$14,508.00
Interest rate (APR)5.50%
Loan term6 years
Additional fees4.00% origination fee ($580.32)
Payment $237.03 monthly or $109.28 biweekly
Total loan cost$17,066.16 with monthly payments or $17,047.68 with biweekly payments

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

Does Kia have any car-buyer programs or special discounts?

Yes, Kia offers several discount programs or APR offers, including the following:

  • Military Benefit Program.Offers members (active, reserve or retiree) of the Canadian army, navy or air force a $500 voucher to apply towards the purchase of their Kia vehicle.
  • $500 Grad Program. Provides a $500 discount to recent graduates from post-secondary institutions who have graduated within the past 2 years or will be graduating within the next 8 months.
  • 1% Loyalty Rate Reduction Program. For repeat Kia buyers who are current owners/lessees of a current Kia vehicle that has been properly registered and licensed for at least the past 90 days.
  • $750 Mobility Assistance Grant. Available to Canadians with a disability. The funding can be used for the purchase and installation of specialty equipment for a Kia vehicle intended for use by passengers with special needs.

Is 0% financing in Canada a good idea?

For quick clarification, a 0% APR car loan allows you to borrow money to buy a vehicle without having to pay interest and financing fees, which combined is known as the annual percentage rate (APR). This type of financing is mostly offered by dealerships as a way to sell more cars. Also, it is usually reserved for customers who have excellent credit (above 700). Depending on your credit situation, this may not be an option available to you.

If it is, you’ll need to take stock of the situation before deciding if a 0% APR deal is the right choice for you. Here’s what to consider:

  • How long is the 0% APR on offer? Keep in mind, a promotion like this is typically for an introductory period, after which interest rates will kick in. Make sure you double-check to see how long you’ll receive this deal and what your APR will jump up to afterwards.
  • Is 0% APR available for the vehicle you want? You may only be able to secure 0% financing for certain kinds of vehicles, especially those that the dealership is trying to move out of its inventory.
  • Can you qualify? To be approved for 0% financing, you need spectacular credit and a high income. It may not even be on the table for some people.
  • Will your monthly payments be higher? 0% car loans often come with shorter terms to reduce the risk that you’ll default. As a result, you could be on the hook for higher monthly payments. Double-check that you can manage the repayment plan you’re brokering with the dealership.
  • Do you need wiggle room for price negotiations? Because you’re already cutting a pretty good deal with 0% APR, you may not get as much money for your trade-in vehicle or you’ll have difficulty with negotiations on the price of your car.
  • Did you want flexibility in your loan repayments? With a 0% APR deal, your loan structure will likely be set in stone. If you wanted an option to make lump-sum payments or other arrangements, check with your dealer first to see if this is possible.

After working your way through these questions, you’ll know if 0% financing is a good choice for you or if other options are a better fit. It’s ultimately an individual decision. While getting a 0% car loan can save you money on interest rates, there may be some downsides that don’t make it an ideal loan situation.

Zero interest car loans: How it works

What will a new Kia cost me?

While you can expect to pay $18,000 to over $42,000 for a 2021 model, the total cost of a new Kia will depend on any add-ons you select as well as your negotiation skills.

Choose a build

Cars

rio kia car

2020 Rio

  • Starting MSRP: $18,045
  • Build: Sedan
  • City/highway L/100 km: 7.2/5.9
forte kia car

Forte

  • Starting MSRP: $17,695
  • Build: Sedan
  • City/highway L/100 km: 8.6/6.4
optima kia car

Optima

  • Starting MSRP: $28,495
  • Build: Sedan
  • City/highway L/100 km: 9.5/7.1
stinger kia car

Stinger

  • Starting MSRP: $39,995
  • Build: Sedan
  • City/highway L/100 km: 11.1/8.1
cadenze kia car

Cadenza

  • Starting MSRP: $41,545
  • Build: Sedan
  • City/highway L/100 km: 11.6/8.5

SUV / Crossover / Minivan

soul kia car

Soul

  • Starting MSRP: $21,195
  • Build: SUV
  • City/highway L/100 km: 8.6/7.1
niro kia car

Niro

  • Starting MSRP: $25,495
  • Build: Crossover
  • City/highway L/100 km: 4.5/4.8
sportage kia car

Sportage

  • Starting MSRP: $25,795
  • Build: Crossover
  • City/highway L/100 km: 10.8/9.1
sorento kia car

Sorento

  • Starting MSRP: $28,295
  • Build: Crossover
  • City/highway L/100 km: 10.7/8.2
sedona kia car

Sedona

  • Starting MSRP: $31,995
  • Build: Minivan
  • City/highway L/100 km: 12.7/9.9

Telluride

  • Starting MSRP: $44,995
  • Build: SUV
  • City/highway L/100 km: 12.5/9.6

Electric

soul EV kia car

Soul EV

  • Starting MSRP: $42,595
  • Build: Electric SUV
  • Range: 383 km

The fuel efficiency may differ depending on which model you buy. Also, how much you actually end up paying will vary based on where you live, what promotions you qualify for and your haggling skills. Since these are the costs of Kia’s brand-new models, you’ll likely be able to score a lower price on a used model.

Does Kia offer a warranty on new vehicles?

Yes, all new Kias are eligible for industry-leading warranties, including:

  • 5-year/100,000 km – worry-free comprehensive warranty
  • 5-year/100,000 km – powertrain warranty
  • 5 year/ unlimited mileage – 24/7 roadside assistance
  • 1-year/20,000 km – first-year adjustments

Bottom line

Kia’s budget-friendly prices, industry-leading warranties and award-winning ratings make it a popular choice for car buyers. You have a few different financing options to consider — from traditional car loans to applying directly through Kia. And depending on if you’re a service member, recent grad or first-time car buyer you may be able to get a special deal.

To learn more about the car-buying process and compare lenders, check out our guide to car loans.

Frequently asked questions

Pictures: Getty Images and KIA’s official page

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