Kia rip-off Duluth Minnesota

I was shopping for my first new car. I was hoping for 0.0% financing but when my credit was checked I had a score of around 660. Not quite high enough for 0.0% but they said we could still make a deal. I explained that I was a medical student and had only a limited income at the present time but I DID have money. I have 4 major credit cards and have never missed a payment. I informed them that I graduate from the program in May and already have several job offers and will be making good money. My college professor who bought a car from them was with me and verified all of this. I test drove a few vehicles and finally setteled on one.

While signing all the papers the dealer prepared my vehicle for me. I kept asking what my interest rate would be but they were evasive. I was given a form to fill out which among other things, asked about my current income. I explained again that I am only earning a few hundred a month as an intern until I graduate and they said no problem. The salesman suggested I put down what my projected income would be when I am working full time so I did.

As I was being handed the key to my new car I was told at the very last minute I would need a co-signer because I was a first time buyer. I was ready to walk out but by then I was so hooked on the idea of a new car that I reluctantly asked a relative with EXCELLENT credit to co-sign and he agreed. I again inquired about my interest rate and they said they would get back to me after checking my co-signers credit. In the meantime they let me take the car, a Kia Rio, home for the weekend.

The car heater did not work and I nearly got frostbite driving to the hospital where I work. Over the weekend I got a call from the salesmen who said that even if I did not get a co-signer he would make sure I got the car. 2 days later the business manager told me the co-signer had been approved and I was overjoyed.

I naively assumed that the interest rate would be based on the co-signer's credit. I was expecting 0.0% or close to it. Boy was I in for a surprise! I was told the rate would be 18% because the cosigner lives in another state! I told them to forget about the deal but the manager told me that if I just made 6 payments I could refinance down the line. I said OK. They asked me to bring in proof of income but when I told them I made only $4000 in the last 4 months they balked and said forget it. Even though I don't have a large income I do have savings and school grants but this didn't satisfy them so I just said good riddance!

I believe that even though my co-signer has excellent credit, because he lives in another state it would be a hassle for the dealer to sue him should I default on my loan. I am GLAD they turned me down. In 3 months I will have an excellent job and I assure you that I will NOT do business with these people again. I advise others to steer clear of them as well!

Norman
Duluth, Minnesota
U.S.A.