Kia to cover 6 monthly payments as part of aggressive pandemic incentive program

Kia Canada has launched an aggressive incentive campaign in an effort to drive sales during the COVID-19 pandemic, which has crippled new-vehicle sales and much of the economy.

Kia is offering to pay up to the first six monthly payments for consumers who finance certain vehicles. The list is comprised of some of the automaker’s best-selling products; The 2020 Forte, Forte5, Soul, Sportage and Sorento.

In a LinkedIn post, Kia Canada’s Senior Manager of National Marketing Mark Scigliano called the pandemic “a difficult time for everyone” and said the new incentive program is an “industry-leading retail offer.”

The program runs until June 1 and the maximum amount of the payment Kia will pay varies by model.

In addition to the six monthly payments, certain models also receive zero-per-cent financing for up to 84 months.

Robert Karwel, senior manager, Power Information Network, automotive division at J.D. Power Canada, said the combination of zero-per-cent financing and a six month payment waiver makes the offer “fairly aggressive.”

“We’ve seen bits of both, not at six months,” he said in an email to Automotive News Canada. “This is a tactic we have seen in the U.S. market be very effective, but it was also due to the fact that they have only recently moved to 84-month financing en masse.

“It will be quite effective in our market, but perhaps slightly less so than the U.S., only because the 84-month term is the dominant term in Canada for new vehicle financing already.

“Undoubtedly, proposing this with a payment waiver is going to provide a very clear offer of value to consumers, and that is key, it’s the simplicity and clarity of the offer that makes it a winner.”

The automaker is also offering a $500 credit to first responders on the front lines of the pandemic. The credit can be used towards the lease or purchase of any new Kia vehicle.

“We understand that these individuals may have vehicle needs and we want to make it as easy and affordable for them as possible to do so,” Kia said in a statement.

The offer is available to doctors, nurses, long-term care workers, police, firefighters, paramedics, Coast Guard, RCMP, and rangers patrol. It runs from until July 31.

Font: Automotive News Canada