With the pending resumption of activities in the automotive sector, it’s expected that we’ll be seeing an avalanche of tempting offers from auto companies in Canada. Manufacturers are dealing with massive inventory levels and 2021 models will be arriving soon.
Time to liquidate stocks, clearly.
But let's be clear - our goal here is not to encourage you to take advantage of one offer more than another. Rather, we're highlighting a trend that’s sure to hit the industry in the coming weeks and months. If you don't need a new vehicle, you can just block your ears and eyes. And don't forget either about the used-car market, which is going to be active as well.
Kia Canada’s strategy, then, is an aggressive one designed to kick-start sales. The company is For consumers who finance certain new models, the company says it will cover the first six monthly payments. Eligible models include the brand’s most popular products: Forte, Forte 5, Soul, Sportage and Sorento.
We’re not talking about a payment deferral here. Kia will cover up to six monthly payments. That works out to a maximum of $4,500 that the company is offering to absorb. In most cases, the first six months will be covered. For some models, that could be 4.5 or 5 months of payments.
Doubly interesting for consumers looking for a new vehicle is that this offer can be combined with those already in effect, that is to say 0% interest and monthly payments that can extend over 84 months.
In a post on LinkedIn, Kia Canada's senior director of national marketing Mark Scigliano called the pandemic "a difficult time for everyone" and pitched the new incentive program as a "industry-leading retail offer”. The program is in effect until June 1.
Robert Karwel, senior director of Power Information Network, the automotive division of J.D. Power Canada, said the combination of 0% financing and the 6 month of payments thrown in makes the offer "fairly aggressive”.
Typically, consumers can access one or the other of these types of offers, but not both at the same time.
The automaker is also currently offering a $500 credit to frontline workers in the current pandemic, which can be used for the lease or purchase of any new Kia vehicle. The offer is open to doctors and nurses, long-term care workers, police, firefighters and paramedics, as well as coast guard, RCMP and rangers patrol members. It is valid until July 31.