KIA Motors Finance Dealer Finance Manual · PDF fileOur team of automotive finance experts are dedicated to your success As your captive financing provider, Kia Motors Finance (KMF)

KIA Motors Finance

Dealer Finance Manual

Our team of automotive finance experts are

dedicated to your success

As your captive financing provider, Kia Motors Finance (KMF) has developed some exciting products and services that can enable you to deliver exceptional value and reliable, responsive service directly to your customers. Your success is our success. We also work closely with Kia Motors America (KMA) to further enhance customer service capabilities.

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KMF also offers these additional benefits to your dealership

We’re excited to showcase the benefits that KMF will bring to your dealership. Our team of automotive finance experts are dedicated to your success – through our service excellence we help to generate increased customer satisfaction, which may provide your dealership with the best opportunities for repeat sales.

Introduction

A dedicated team for dealer support – with operations in Irvine, Dallas and Atlanta

Retail and lease prospect lists

Buying empowerment and flexibility allowing for the best decisions up front

Credit and funding support that can enable same day funding

Wholesale floor plan financing offering special promotions, and attractive rates and terms

Industry leading technology with Personalized URLs (PURLs) and Dealer Access – your portal for all things KMF

Kia Motors Finance Dealer Finance Manual

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© Q1 2014 Kia Motors Finance

Content Guide

KMF Contact & Other Information For Customers

Customer Payment Options 1

Customer Statements 2

Customer Payment Due Dates 2

Customer Payoff Information 3

Addresses & Phone Numbers for Customers 4

Customer Service Contact Information 5

Retail & Lease Information Overview 6

Lease Agreement 7

Lease Documentation Checklist 7

Zero Down Lease FAQs and Guidelines 7

Lease-End Lease-End Overview 8

Lease-End Tips & Resources 9

Best Practices 10

Lease Pull Ahead Program 12

Power of Attorney Ordering Process 12

Used Vehicle Valuation Standards 12

Special Programs Certified Pre-Owned (CPO) Program – Low APR and Standard Rates 13

Commercial Vehicle Financing 13

College Grad Program 14

Corporate Sponsored Program 14

First Time Owner Program 15

Military Program 15

Pre-Approval Program 15

Credit & Funding Information Contract Standards Overview 16

Business Applications 18

Helpful Tips to Expedite Funding 19

Wholesale Floor Plan Financing Overview 21

Industry Leading Technology Dealer Access 23

Registration 24

Dealer Reserve Statements 25

Dealer Prospect Report 25

Dealer Direct 25

PURLs 25

iiKia Motors Finance Dealer Finance Manual © Q1 2014 Kia Motors Finance

Customer Payment OptionsKMF offers the ability to make a one-time payment, or set up recurring payments. Payments can be made using checking accounts and certain types of savings accounts. A bank account number and bank routing number will be needed to make payment. Account must be current to set up recurring payments. With this option, monthly payment is automatically deducted from bank account on the date selected. Payments submitted after 8 p.m. Eastern Time on any day will be posted to account as of the next day.

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Pay Online Make payment online at KMFUSA.com.

Automatic Payments To have a monthly payment automatically deducted from bank account, click “Payments” at the top of the page and log-in to enroll.

Pay by Phone Call toll free (866) 331-5632. There is a convenience fee to make payments by phone. KMF may retain a portion of this fee. Customers should have their KMF account number and checkbook readily available.

Pay by Mail Retail Payment—Mail payment and remit coupon to: Lease Payment - Mail payment and remit coupon to:

Regular MailKia Motors Finance - RetailP.O. Box 650805 Dallas, TX 75265-0805

Regular MailKia Motors Finance - LeaseP.O. Box 660891Dallas, TX 75266-0891

Overnight Mail Kia Motors FinanceBox 6508051501 North Plano RdRichardson, TX 75081

Overnight MailKia Motors FinanceBox 6608911501 North Plano RdRichardson, TX 75081

Pay by Cash Call Western Union toll free at (800) 325-6000 to find a location. Provide the City Code (Kia) and State Code (CA). Or, call MoneyGram at (800) 926-9400 to find a location. Provide the code (3814).

Western Union or MoneyGram will charge a convenience fee for these services. KMF may retain a portion of this fee. When using one of our “cash only” locations, please reference billing statement to ensure the correct account number and codes.

Contact & Customer Information

Kia Motors Finance Dealer Finance Manual © Q1 2014 Kia Motors Finance

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Customer Statements

The customer billing statement is generated 20 days before the payment due date. Customers should receive a billing statement from KMF approximately 10 days before their due date. By registering their account on KMFUSA.com customers can:

• Sign up to receive an e-mail alert when their statement is available for viewing online

• Enroll in paperless statements, by signing in, then going to “My Account,” and clicking on the “My Profile” tab, then clicking on the “Paperless Statements” where they can choose electronic delivery. If they select this option, they will receive an email notification when their monthly statement is available for viewing online.

• Sign up to receive notification when payment is received

• Sign up to receive other alerts regarding their account

Customers can view their statement online to determine if it has been generated, and if their address is correct. If there is a problem, they can contact customer service at (866) 331-5632.

Customer Payment Due Dates

If a customer would like to change their monthly due date on their account you may refer them to KMFUSA.com. Have them sign into their account and go to the Account Summary section. There they will find a Payment Due Date area. They can click on the Edit Button to change their monthly due date there. Due dates are only available for Retail Accounts.



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Customer Payoff Information A customer may obtain a payoff/buyout quote by logging into their account at KMFUSA.com. After logging in, they start by clicking on the Payments Section. They will then see a Payoff/Buyout Quote button they can click to obtain a quote.

Retail Customers

Mail a check or money order for the full payoff amount, along with account number, to:

Kia Motors FinanceBox 650805Dallas, TX 75265-0805

Retail payoff checks must be payable to Kia Motors Finance.

Lease Customers

Mail a check or money order for the full buyout amount, along with account number, to:

HCA Exchange, Inc.Dept. 143015505 North Cumberland Ave, Suite 307Chicago, IL 60656-1471

Lease buyout checks must be payable to HCA Exchange, Inc.

KMF will mail the title or lien release to the address on record for the primary account holder. Customers should let KMF know if they would like KMF to mail the release to a different address by contacting (866) 331-5632. To mail the title or lien release to a third-party, the primary account holder must provide written authorization.



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Addresses & Phone Numbers for CustomersCustomers may send their payments through regular mail or overnight service. Please remind them that they must include their account number in the memo section of their check. As a reminder, retail account numbers are 14 digits and a lease account number has 10 digits.

Customer Payment Addresses

Customer Payoff- Regular MailRetail PayoffKia Motors FinancePO Box 650805Dallas, TX 75265-0805

Customer Payoff - OvernightRetail PayoffKia Motors FinanceBox 6508051501 North Plano RoadRichardson, TX 75081

Lease Buyout- Regular MailPayee must be: HCA Exchange, Inc Dept CH 14301Palatine, IL 60055-4301

Lease Buyout - OvernightHCA Exchange, Inc 143015505 North Cumberland Avenue Suite 307Palantine, IL 60055-4301

Retail - Overnight PaymentKia Motors FinancePO Box 6508051501 North Plano Road, Suite 100Richardson, TX 75081

Lease - Overnight PaymentKia Motors FinancePO Box 6608911501 North Plano Road, Suite 100Richardson, TX 75081

Insurance Repair Checks

Kia Motors FinanceAttn: Customer ServicePO Box 20809Fountain Valley, CA 92728-0809

LeaseKia Titling TrustPO BOX 20809Fountain Valley, CA 92728-0809

Proof of Insurance Address RetailIt’s Successors and/or AssignsPO Box 20809Fountain Valley, CA 92728-0809

Customer Complaints

Kia Motors FinanceAttn: CARE DepartmentPO Box 20809Fountain Valley, CA 92728-0809

Total Loss Checks

Kia Motors FinanceAttn: Recovery Settlement PO Box 20875 Fountain Valley, CA 92728-0875

Credit Disputes

Kia Motors FinanceAttn: Customer ServicePO Box 20835Fountain Valley, CA 92728-0835



Lease - Regular MailKia Motors FinancePO Box 660891Dallas, TX 75266-0891

Retail - Regular MailKia Motors FinancePO Box 650805Dallas, TX 75265-0805


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Phone

Automated Account Access - (866) 331-5632Customers may access information regarding their KMF account, including account status, date of last payment received, and payoff information by calling the KMF automated phone system.

Note: Customer should have account number or Social Security number available.

Customer Service Department - (866) 331-5632

Monday to Friday, 8 a.m. to 9 p.m. (Eastern)

Lease-End Servicing Team - (855) 463-5378


Collections Department - (866) 331-5632


Saturday, 8 a.m. to 3 p.m. (Eastern)

Consumer Affairs - (866) 331-5632


For answers regarding Kia Motors America and warranty issues.

24-hour Roadside Assistance - (866) 331-5632For answers regarding disabled vehicles, dealer location, ID card inquiries, and program guidelines.

Mail

Written correspondence only (Not payments)

Kia Motors Finance

PO Box 20829

Fountain Valley, CA 92728

Direct Credit Disputes

Kia Motors Finance – Credit Dispute

PO Box 20835

Fountain Valley, CA 92728

Customer Service Contact Information


Overview

See current bulletins for instructions and eligible FICO tiers and vehicles.

Retail

Retail financing is the foundation of what KMF offers to your customers. We have developed the following products and services specifically for retail business:

• Attractive APR incentives may include Bonus Cash on select models

• FICO® based pricing makes doing business easy

• Consistent quarterly programs that allow sufficient time to advertise in your market

• Great standard rates

• College Grad Program that offers both 72 month term & 90-days to the first payment (conditions & exclusions apply)

• CPO Program

• Preferred Used Program, tied to specific vehicles in order to provide specialized pricing

• First Time Buyer’s Program

Lease

Leasing can offer many advantages to your customers and, in turn, to your dealership. Leasing can be a win-win alternative to buying, and with KMF’s demonstrated ability to return your customers to your dealership at the end of their term, repeat business increases.

Dealer Benefits

• Great brand/dealership loyalty • Increased gross margins • Shortened trade cycle • Increased profit due to greater sales frequency • Increased customer satisfaction • Guaranteed future value • Lower marketing costs • Quality used car/CPO inventory • Service opportunities

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Retail & Lease Information

Customer Benefits

• Shortened trade cycle • Vehicle is covered under warranty • Lower maintenance costs • Lower monthly payments • More car for the money • No trade-in hassles • Reduced or no down payment • Factory lease cash support may be included on select models • GAP coverage included • Purchase options at lease-end


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Lease AgreementTo avoid funding delays, KMF requires that any fees and optional products and services financed in connection with a lease must be permitted under applicable law and the KMF leasing program. Those fees and optional products and services must be itemized on the Lease Agreement in accordance with applicable law.

Lease Documentation ChecklistKMF realizes that in different locations and states, there are different rules and regulations. We provide a customized checklist according to your region. You can find these checklists on Dealer Access at www.HCAdealeracess.com.

Zero Down Lease FAQs and Guidelines

$0 Down Payment/$0 First payment/$0 Security Deposit

We periodically offer special lease programs where customers have $0 due at lease signing. ($0 down payment, $0 first payment and $0 security deposit). Customer is responsible for all other fees, such as tax, registration, title, license, etc.

Retail & Lease Information


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Lease-End Information

KMF Lease Maturity Prospects• Listed on Dealer Access• Timing - Six months before maturity

KMF Customer Communication• Lease-end communication campaign• Timing - begins six months before maturity

Final Customer Billing Generated

Dealer

† Exclusivity period subject to certain conditions. See KMF Dealer Direct at kmfdd.com for further details.

Lease-End Overview

Vehicle Inspection• Inspection company sets appointment with customer• Timing - 60 days from maturity

Vehicle Turn-in: Dealer Role• Dealer grounds vehicle through Dealer Direct• Timing - Ground immediately upon vehicle turn-in• Dealer can ground vehicle using KMF GroundScan. This is an app

that can be downloaded on your Apple or Android mobile device

Exclusive Lease Return Purchase• Grounding dealer has exclusive right to purchase lease return

through Dealer Direct• Timing - up to 48 hours†

Dealer Direct Online Auction Purchase• Two closed “one-day” auctions begin for all Kia dealers• One closed “one-day” auction for all “cross channel” dealers• If no sale, three “one-day” auctions begin for all other dealers

Auction Transport• If sold online, purchasing dealer arranges pickup• Unsold vehicle transported by KMF to auction

Vehicle Turn-in: Customer Role• Customer referred to return to dealership• Timing - varies

Dealer

Customer


Lease-end Information

Lease-End Tips & Resources

KMF Lease Maturity Prospects

Beginning at six months from maturity.

Best Practices

• Establish a lease return team and customer contact plan to maximize the renewal opportunity

• KMF Lease Maturity Prospects are updated monthly through Dealer Access

KMF Customer Communication

KMF begins contacting customer six months from maturity with lease-end messages.

Best Practices

• Become familiar with KMF strategy when speaking with customer• KMF contacts customer via Phone, Direct Mail, Email / PURL

Vehicle Inspection

Inspection company calls to setup a free inspection starting at 60 days before maturity.

Best Practices

• Encourage the customer to receive inspection before returning the vehicle to your dealership

• If customer doesn’t have inspection upon return, an inspection request will be generated after grounding

Vehicle Turn-in: Customer Role

Best Practices

Improve overall customer experience by establishing a lease-end manager or team, creating a consistent process.

Vehicle Turn-In: Dealer Role

Beginning at six months from maturity.

Best Practices

• Complete the vehicle turn-in checklist with your customers to document items returned and review vehicle condition.

• Dealer grounds lease return through Dealer Direct at kmfdd.com• This step initiates the purchase option and final billing for customer• For optimal customer experience, dealer can ground vehicle using KMF

GroundScan. This is an app that can be downloaded on your Apple or Android mobile device

Exclusive Lease Return Purchase

Best Practices

• Take advantage of the incoming returns and convert vehicles to the CPO program• 80% of returns are eligible opportunity• KMF Lease Maturity Prospects are updated monthly through Dealer Access

Dealer Direct Online Auction Purchase Auction Transport

Necessary Items

Manual, Keys, and Key Fobs; Odometer Statement, Plates (if state applicable); Repair Receipts (if applicable)

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Lease returns result in exclusive used car purchase options for up to 48 hours† after grounding. Note: Selecting “Request MBP” will restart timing for up to 48 hours†. Payoff amount will no longer be available after MBP is requested.

Best Practices

• Search and create alerts in Dealer Direct for eligible vehicles from other dealerships for needed inventory

After exclusive period expires, two closed “one-day” auctions begin for all Kia dealers. If no sale, the auction opens to all “cross channel” dealers for one closed “one-day” sale. If still no sale, three “one-day” auctions may follow.

Best Practices

• Clearly mark lease-end returns to increase efficiency and reduce confusion at time of pickup

• Create process to release vehicles for transport

Purchasing dealer will arrange pickup. If vehicle doesn’t sell online, KMF will transport to auction.

Resources

Dealer Access Help (800) 357-7932 or kmfdd.com

† Exclusivity period subject to certain conditions. See KMF Dealer Direct at kmfdd.com for further details.

Dealer Direct Helpline (888) 512-7711

KMF Remarketing Dealer Direct Team (855) 889-4041 or kmfdd.com

Customer Service Team (855) 889-4117


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Best PracticesMaximize your lease return opportunities by following best practices below.

• Appoint Lease-End Manager (or designated team) to work your lease maturity prospects on Dealer Access.

• Communicate dealership designees to KMF and update your Business Development Manager. Access KMF Lease Maturity Prospects through Dealer Access.

• Lease maturity prospects are posted on Dealer Access when they reach 180 days to maturity. Make it a priority to contact these customers.

• Review KMF Communication Timeline available on Dealer Access.

• Manage customer satisfaction (CSI) and establish your in-house lease return process including appointment setup. Having a clearly defined process will help retain and improve customer satisfaction.

• Assist customer in completing Lease-End obligations. Vehicle inspections and odometer statements are key to customer lease completion. Know the process and utilize your resources if needed.

• Understand KMF potential end-of-term fees. Excess wear and use, over mileage, and disposition fees are frequent on final customer billing.

• Complete the online KMF Dealer Direct Tutorial. Dealer Direct allows you to ground, buyout leases, and purchase lease returns. Registration setup at kmfdd.com.

• KMF Resource Phone Numbers for support are also available on Dealer Access.


Kia Dealer Direct

At vehicle turn-in, you should immediately ground the returned vehicle through Dealer Direct and obtain a Vehicle Return Receipt through Dealer Direct. This receipt can then be provided to the customer as confirmation of the vehicle turn-in.

The grounding process notifies us that the customer has returned the vehicle and triggers final billing. This is a required step for fee waiver programs as the grounding also triggers processing of waivers before final billing if applicable.

We also encourage you to complete the Vehicle Turn-In Checklist. The checklist mirrors what is needed to complete grounding in Dealer Direct. It’s also a great tool to create and maintain a consistent customer return process.

Vehicle Turn-In Checklist

Vehicle Condition Comments

KMF Dealer Direct (888) 505-7364 | KMF Remarketing Dealer Direct Team (855) 889-4117.

Received Completed

Ground the Vehicle (KMFDD.com)

Vehicle Return Receipt to Customer

Fax signed Odometer statement (714) 965-3995

© 2013 Kia Motors Finance

Note: Vehicle Turn-In Checklist is only a checklist tool for dealers and not determinative of final excess wear and use.

Customer has removed all personal belongings from the vehicle Customer present at vehicle turn-in

Customer Name:

Dealer Name:

Dealer Representative:

Drop-off Date:

Vehicle Year & Model:

VIN:

Mileage Reading:

Signed Odometer Statement

Vehicle Inspection Report

License Plates (if applicable)

Keys (#)

Keyless Remotes (#)

Manual

Completed By: Date:

Front Left Rear Right

Example of Vehicle Turn-In Checklist


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Select the purchase type on Dealer Direct

Dealer Direct Purchase Type Use When... Lessee Sent Final Billing Statement?

Payoff Customer is trading in a leased vehicle as part of a new Kia lease or purchase

No

Dealer Purchase Customer returns leased vehicle and dealer opts to purchase after grounding

Yes

Lessee Purchase Customer is purchasing their current lease No


Dealer receives vehicle and grounds

through Dealer Direct

Exclusive sale for grounding dealer. If no purchase vehicle

goes upstream to online auction

Two closed ‘One Day’ auctions occur for all

in brand dealers

One closed ‘One Day’ auction for all cross

brand dealers

KMF may open ‘One Day’ auctions to all

Dealer Direct dealers

Varies† Two Days† One Day† Varies†

† Allotment varies depending on grounding time and purchase type, quoted times are approximates. See kmfdd.com for details.

Ground (Immediate)

Note: Whenever purchasing a lease return please follow the Online Auction Process below to insure your customer’s experience is not affected by an unexpected bill.

Not signed up for Kia Dealer Direct yet? You can contact our Dealer Direct Team at (855) 889-4117.

Online Auction Process

Important! Selecting the incorrect purchase type in Dealer Direct may result in additional customer billing.


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Lease Pull Ahead ProgramKMF works closely with KMA to develop Pull Ahead programs for targeted customers – providing quality leads to your dealership. These program guidelines can vary but may include waiving final lease payments and/or waiving certain fees such as excess wear & use and disposition fees. Pull Ahead leads are posted on Dealer Access for you to manage.

Pull Ahead campaigns are executed through various channels including emails, direct mail, and statement messaging that invite customers to their personal website (PURL), providing the customer a personalized experience.

Note: The existing KMF lease must be in good standing and the customer must lease or finance their next vehicle through KMF. Eligibility limited to one lease or financed vehicle per returning customer.

Customer Communication Timing

Refer to the following table to determine when specific KMF communications are reveived by lease-end customers.

Customer CommunicationDays from Lease-End

180 150 120 90 70 50 30

Email and PURL

Outbound Phone Call

Inbound Phone Call

Statement Onsert

Direct Mail Postcard

Direct Mail Letter

Power of Attorney Ordering Process

KMF has a 72 hour turn around for each Power of Attorney Ordering (POA). If the dealer needs a POA to register the customer’s vehicle they can call (714) 369-1905 or email [email protected].

Used Vehicle Valuation Standards

Generally, NADA and Kelly Blue Book (“KBB”) are the official used car market guide for Kia Motors Finance. For dealers in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Wyoming KBB is the official used car market guide. Please refer to the ‘Wholesale Lending’ category for valuation. Dealers in all other states should refer to NADA’s National Edition ‘Finance Advance’ category for valuation. Advance percentage is based upon NADA and KBB and is adjusted for mileage. Please refer to the current KMF rate sheet for your state.


Certified Pre-Owned (CPO) Program – Low APR and Standard RatesThe best new cars make the best used cars. And with our CPO program we provide your customers with an additional choice between new and used vehicles.

Potential Benefits of Kia CPO:

• Can supplement new vehicle inventory

• Drives additional traffic to the dealer, supporting new vehicle sales

• Maintains residual values (in general) and demand of auction and off-lease vehicles (grounded leases)

• Strengthens dealer profitability and franchise value

• Higher recommendation and loyalty to the brand and dealer than used vehicle buyer

• Low retail rates competitive with new cars

Commercial Vehicle Financing (CVF)KMF offers CVF for business customers who wish to finance or lease a Kia vehicle.

KMF’s CVF program provides a specialized financing approach and improved service level to KMF’s business customers.

Key Dealer Benefits

• CVF accepts applications from many business customers, such as Sole Proprietor DBA, Small Business, Professional Business, Partnership, Not-for-profit Organization, LLC/LLP, Corporation

• Standard applications require cosigner/co-lessee

• No cosigner option may be available for eligible business customer applicants

• Specialized credit team to process applications

• New Dealer Checklist for business applications to facilitate information collection

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Special Programs

See current bulletins for details


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College Grad ProgramIf your customer is graduating in the next six months, or graduated within the past two years, they can buy any new Kia with:

• No down payment required

• An additional KMF rebate on top of current Kia rebates

• Ninety days until the first payment (note: not available in the states of CT and PA)

Here’s what they’ll need

Proof of eligibility is simple. Two things:

• A copy of diploma or a letter from the registrar’s office stating that customer graduated or will graduate

• Proof of employment, such as a pay stub, or an offer letter from a prospective employer. KMF must deem their salary sufficient to cover living expenses and vehicle payments.

Eligible Applicants

Customer must be a graduate of a four-year university, accredited two-year college, or a nursing school. They must have graduated from a U.S. university within the past two years or be on track to graduate within the next six months. The offer includes graduates and graduate candidates attending accredited masters or doctorate programs.

*Additional KMF rebate on top of any available KMA rebates. The KMF College Graduate rebate can only be applied to KMF bookings (sales) and may not be combined with other KMF special offers or programs. Visit the promotions page for all available rebates.

Corporate Sponsored Program (CSP)

KMF offers CSP to provide retail installment credit to persons residing in the United States, with no social security number or limited or no U.S. credit history who do not have a qualified cosigner in the U.S., to purchase a Kia at an affordable interest rate with the guarantee of a friend, employer or family member residing abroad who is approved under the CSP Program to act as guarantor of the applicant’s financing for his/her vehicle purchase.

Eligible Applicants

Applicants may be students, temporary U.S. residents or U.S. citizens so long as they have a friend, employer or family member residing abroad who is approved under the CSP Program. There are no employment or income requirements; however, all applicants must be of legal age to contract and clear Office of Foreign Assets Control (OFAC) requirements.

Special Programs


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First Time Owner ProgramFirst Time Owner means applicant has no previous automotive secured loan/credit tradeline on their credit report.

• First automotive secured loan or credit transaction.

• Minimum six months on current job or qualified co-buyer.

• Qualified applicants are eligible for a reduced rate.

Minimum down payment may be required.

Eligible Applicants • No adverse credit history. No bankruptcies, foreclosures, repossessions, collection accounts, charge-offs, tax liens, judgments, or

any other delinquent credit.

• Verifiable (paystub, W-2, etc.) monthly income sufficient to cover vehicle payment, ordinary living expenses, and all currently outstanding debt, if any.

• Payment to applicant’s gross income from primary job cannot exceed 15%.

• Total monthly debt to monthly income ratio of 50% or less. Total monthly debt includes, if applicable: monthly vehicle payment, monthly rent or mortgage payments, other monthly payment obligations (installment loans, revolving loans, alimony or support payment, etc).

• Subject to additional KMF credit guidelines.

Military ProgramKia Motors America provides an additional $500 to your military customers off any new Kia vehicle distributed by Kia Motors America.

Eligible Applicants • Customers (or spouse) must be Active Duty, Reservists/National Guard, Veteran with Honorable Discharge, or on Retired status in

the U.S. Military at the commencement of the program period.

• Active, Veteran, or Retired U.S. Military for this program are defined as customers serving or having served in the United States Air Force, Army, Coast Guard, Marine Corps, Navy, National Guard, or Reserves.

• Not offered by Kia Motors Finance

Pre-Approval ProgramKMF also provides Pre-Approval Programs which deliver qualified leads back to your dealership.

• KMF will notify eligible retail in-market and end of lease customers that they have been Pre-Approved for auto financing through KMF

• Notification channels will include, email and direct mail that invite customers to their PURL, providing them a personalized experience, including Pre-approval details and dealer contact information.

• These leads are posted on Dealer Access for you to actively manage

Special Programs


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Credit & Funding Information

Contract Standards Overview

Maximum Contract Term

The maximum contract terms are established by vehicle age, mileage, and credit tier to ensure an acceptable level of risk taken in approving the credit request. Maximum terms are published within the ‘Rate Bulletin’ and the Credit Policy Matrix.

Minimum Amount Financed

The Minimum amount financed is established by term to ensure an acceptable level of risk taken in approving the credit request. The minimum amount financed is published in the ‘Rate Bulletins’ and the Credit Policy Matrix.

Minimum Buy Rate

Minimum buy rates are established by date, state of contract origination, vehicle age, term, advance, and credit tier to ensure an acceptable level of return for the risk taken in approving the credit request. Minimum buy rates are published periodically to dealers by the Sales and Marketing Department and serve as the basis for reference. Dealer Rate Sheets are listed by state.

Minimum Dealer Processing Fee

Minimum dealer processing fees are established to ensure an acceptable level of return for the risk taken in approving the credit request. Minimum dealer processing fees are published to dealers by the Sales and Marketing department in the ‘Rate Bulletin’.

KMF may require you to pay a processing fee for applicants that score within a certain risk tier. The dealer may not charge the customer for the dealer processing fee directly, or indirectly as part of the sale price or any other amount financed.

Maximum Dealer Rate Markup

Dealer mark-up is allowed over the approved buy rate for certain promotions. Some special rate programs do not allow any mark-up over the published special rate.

Check programs guidelines on all special promotion programs under “Dealer Participation” for the latest information. Maximum dealer rate mark-ups are published to dealers by the Sales and Marketing Department in the ‘Rate Bulletin for Standard Business and the on the rate sheet for Special Programs.


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Dealer Flat Fee Program

A flat fee will be paid to the dealer on all contracts (New, Used, Demo, Preferred Used, and Program) written at the buy rate, based upon the amount financed, tier and vehicle model. Flat fees are published in the ‘Rate Bulletin’. Please refer to monthly program bulletin.

Minimum Down Payment Percentage

A minimum down payment percentage is established by credit tier to ensure approved customers contribute a sufficient personal investment to the collateral they are financing. The minimum down payment percent is based on the customer’s overall credit and is defined by tier. See Credit Policy Matrix.

The down payment percent is equal to the sum of the total cash down plus net trade–in allowance (exclude rebates and bonus cash), divided by the invoice/wholesale value.

Manufacturer’s rebates are not be used to meet the minimum down payment requirement.

Pick Up Payments

Pick up payments, also known as Pick Payments or Deferred Down Payments, are down payments that are due after the contract date. These types of payments are allowed only within the state of California. These types of payments must be stated on the contract, including the amount and date due.

Regulation Z of the Truth-in-Lending Act mandates the following if any portion of the down payment is deferred.

• Deferred amount(s), and due date(s) are disclosed on the contract.

• Deferred amount(s) are not subject to a finance charge.

• Deferred amount(s) are due on or before the first payment date.

Dealer Participation ProgramsDealers may elect to participate in the following KMF Dealer Participation program:

Split Up-Front Plan and Limited Chargeback

• Amount – Under this plan, the dealer’s participation in finance income is calculated by multiplying the ‘Split Up Front Participation with Limited Chargeback’ percentage stated in the then effective dealer rate sheets times the amount of participation that would result from the calculation method.

• Payment – The participation is paid monthly, by check or electronic funds transfer, by the 10th calendar day of the month following. The dealer’s portion portion is considered fully earned upon the timely receipt by KMF of the first, second, and third scheduled monthly payments from the customer under the contract. The payment to the dealer is net of any amounts due from the dealer to KMF. If the balance in the dealer participation account, at the end of any calendar month, is negative, the dealer is required to immediately pay any amount due.

• Prepayments – If a contract prepays or otherwise terminates before timely receipt by KMF of the first, second, and third scheduled monthly payments from the customer under the contract, the dealer is required to repay the full amount of the participation, paid up front, which is considered unearned.


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Business Applications

KMF will accept standard business applications with an individual as a co-buyer / co-lessee and will evaluate them under the consumer credit policy.

• Eligible business customers may qualify for No co-buyer / co-lessee options if the following information is submitted:

• Completed Business Credit Application

• Last two year-end financial statements or tax returns and most recent interim financial statement for the business (only required if total KMF exposure, new request + outstanding balances, is greater than $50k).

• Signed Certified Corporate Resolutions and Incumbency Certificate

Ineligible Vehicle Use Types: The following uses are prohibited: vehicle alteration or up-fitting; sublease to another person or entity; use of the vehicle for hire (taxi, shuttle service, shared transportation service, pool vehicle, driving school, etc.); lease vehicles used for commercial transportation of people, regardless of whether payment is received; or for the transportation of hazardous material. Government agencies, municipalities and non-profit organizations may be considered.

NOTE: All Business Applications subject to credit approval by KMF, and programs may change at any time. Not all programs available in all states.If you have any questions, please contact your BDM or CVF Credit Analyst.

CREDIT APPLICATION

Credit Application HMF.2.11-08-01

RETAIL BALLOON LEASE Individual Credit – Applying for credit in your own name and relying on your own income or assets, not the income or assets of another person, as the basis for repayment

of the credit request. Joint Credit – Applying for joint credit with another person. Relationship to applicant: spousal non-spousal Individual Credit Relying on Other Income – Applying for credit in your own name but relying on income for alimony, child support, and separate maintenance or on

income or assets of another person for the repayment of credit requested. Note: If married, the spouse is not required to be the JOINT applicant

DEALER NAME & NUMBER: CONTACT NAME: APPLICANT INFORMATION JOINT APPLICANT INFORMATION

Last First Middle Init Last First Middle Init

Date of Birth SSN Home Phone Number Date of Birth SSN Home Phone Number

Street Address City State Zip Street Address City State Zip

How long at address?

Yrs Mos

Mtg or Rent Payment $ Residential Status Own Lives with Parents Rent Other

How long at address?

Yrs Mos

Mtg or Rent Payment $ Residential Status Own Lives with Parents Rent Other

Primary Email Address Primary Cell Phone

Previous address (if less than 2 years at present address)

Yrs Mos

Previous address (if less than 2 years at present address)

Yrs MosEmployer Employer Phone Number Employer Employer Phone Number

Job Title / Occupation

Yrs

Job Title / Occupation

Yrs Gross Monthly Salary Employer’s Address Gross Monthly Salary Employer’s Address

Previous employer name, address, phone number & length of employment (if less than 2 years with present employer)

Previous employer name, address, phone number & length of employment (if less than 2 years with present employer)

OTHER INCOME NOTE: ALIMONY, CHILD SUPPORT OR SEPARATE MAINTENANCE INCOMES DO NOT HAVE TO BE REVEALED UNLESS THE APPLICANT WISHES TO HAVE SUCH SOURCES CONSIDERED AS A BASIS FOR REPAYMENT OF THE REQUESTED.

Applicant Source of Other Income (A) Monthly Amount $ Joint Applicant Source of Other Income

(B) Monthly Amount $ Total Other Monthly Income (A & B) $

INDICATE RELATIONSHIP OR OWNERSHIP OF ACCOUNT BY X-ING THE APPROPRIATE LETTER: A-APPLICANT, B-JOINT APPLICANT, AND J-JOINT Nearest Relative Name and Address

A B J Relative’s Phone No. ( )

Nearest Relative Name and Address A B J

Relative’s Phone No. ( )

Personal Friend Name and Address A B J

Friend’s Phone No. ( )

Personal Friend Name and Address A B J

Friend’s Phone No. ( )

EACH OF THE UNDERSIGNED APPLICANTS: (1) MAKES THE ABOVE REPRESENTATIONS, WHICH ARE CERTIFIED CORRECT, FOR THE PURPOSE OF SECURING CREDIT; (2) AUTHORIZES HYUNDAI MOTOR FINANCE ("HMF") TO GATHER WHATEVER CREDIT AND EMPLOYMENT HISTORY IT CONSIDERS NECESSARY AND APPROPRIATE, INCLUDING PERIODIC CONSUMER CREDIT REPORTS, AND ALSO TO REPORT INFORMATION CONCERNING ITS CREDIT EXPERIENCE WITH THE APPLICANT TO OTHERS; AND (3) UNDERSTANDS THAT HMF WILL RETAIN THIS APPLICATION WHETHER OR NOT IT IS APPROVED, AND THAT IT IS THE APPLICANT'S RESPONSIBILITY TO NOTIFY HMF OF ANY CHANGES OF NAME, ADDRESS OR EMPLOYMENT. UPON REQUEST, THE APPLICANT WILL BE INFORMED WHETHER A CONSUMER CREDIT REPORT WAS REQUESTED AND THE NAME AND ADDRESS OF THE AGENCY FURNISHING THE REPORT (SEE PAGE 2 FOR OTHER LEGAL NOTICES).

Applicant Joint Applicant Signature X Date: Signature X Date:

DEALER USE ONLY RETAIL OR LEASE

NewUsedDemo

Year Make Model Mileage (Used Only) CASH PRICE: $ INCL. TAX, TITLE, REG, AND FEES DOWN PAYMENT:

Trade-in

Year Make Model Mileage CASH / NET TRADE $ REBATE $

UNPAID BALANCE OR CAP COST: $Amount $ Owed $ Payment $ Financed With Invoice $ or MSRP Term APR or Factor Payment $

Example of Credit Application


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Helpful Tips to Expedite Funding

Please check the following before completing your funding package:

• Aftermarket Product Program Guidelines

• See the current Aftermarket Products - Program Guidelines for information about:

• Additional Loan Term Value advance for permitted aftermarket products

• Aftermarket products permitted with no additional LTV advance

• Aftermarket products not permitted to be sold in connection with KMF retail contracts or lease agreements

• Maximum addition to invoice for dealer-installed equipment

• You must submit all aftermarket product agreements, forms or binders with the retail contract or lease agreement.

• Your dealership must comply with any product or state filing limits for each product sold and must accurately disclose all products in compliance with applicable law.

• Manufacturer Accessory Pricing List for proper MSRP amounts and residual guidelines.

Double-check the accuracy of information (e.g., spelling of customer and business names, address, Social Security Numbers, whether customer rents or owns, etc.)

Include the following with your funding package:

• The bar-coded coversheet. Place coversheet on top of the contract or pending documents.

• All required worksheets and/or checklists, which can be found on Dealer Access

• Stipulations, if applicable. Common sources include:

• Proof of income (e.g., recent paycheck, W2, 1099, tax returns, Schedule C for self-employed, Schedule E for rental income, bank statements for fixed income (i.e.,social security, disability income)

• Proof of residence (e.g., drivers license or utility bill, bank statement, paycheck stub or credit card statement less than 30 days old)

• Please match contract to approval.

• Approvals or counter offers are good for 30 days.

• Ensure that your dealer contact information is always accurate. Please provide any updates to your BDM.

• Double-check the accuracy of the lienholder’s name and address.

Please note that the payment details are updated once a week. If you didn’t see the information you are looking for, please contact Dealer Services at [email protected] for immediate support.

Lease Funding Checklist West

Funding Checklist KMF Lease West.7.12-10-30 Page 1 of 1

Effective Date: October 30, 2012

______ Kia Motors Finance Approval Fax

______ Complete and Signed Credit Application Include name, address, Social Security number, date of birth, employer information, and complete references

______ Completed and signed Customer ID Verification Form

______ Dealer Lease Worksheet (if available)

______ Vehicle Lease Agreement Original and copy signed and dated by dealer and customer

______ Assignment of Contract to Hyundai Lease Titling Trust Must be original assignment, cross outs or corrections will not be accepted

______ Invoice

______ MSO (New) / Copy of Signed Title

______ Title Application with Lienholder/Owner name/address as specified on state Rate Sheet

Note: If there is an option to have registration renewals and property tax bills sent directly to the lessee, please select that option on the title application

______ Kia Motors Finance Insurance Verification and Acknowledgement Form Must be complete including Agent name, address and phone number, policy number, effective and expiration dates, liability limits, comp and collision deductibles, lienholder information as verified, must be signed by dealer representative and customer

Coverage as follows: Bodily injury with minimum coverage of $300,000 per accident and $100,000 per person; property damage with minimum coverage of $50,000; collision and comprehensive with a maximum deductible of $1000. Combined Single Limit: $300,000

Loss Payee: Hyundai Lease Titling Trust Its Successors and/or Assigns P.O. Box 20809 Fountain Valley CA 92728-0809

Note: The address above is the preferred address, for a list of additional acceptable addresses please refer to the Lienholder Name and Address Document provided on Dealer Access

______ Extended Warranty/Service Contract (complete and signed), if applicable With lienholder address: P.O. Box 20809, Fountain Valley CA 92728-0809

Note: The address above is the preferred address, for a list of additional acceptable addresses please refer to the Lienholder Name and Address Document provided on Dealer Access

______ Kia Motors Finance Gap Waiver Addendum, (completed and signed) all states except CT and NY

______ Original Notice to Co-Signer (completed and signed), if applicable

______ Stips (as specified on approval fax), if applicable

FIRST PAYMENT IS DUE AT LEASE INCEPTION AND THEREFORE WILL BE WITHHELD FROM DEALER PROCEEDS AT THE TIME OF FUNDING. FUNDINGADDRESSES:

Via FedEx Via UPS, USPS Mail, and other courier KMF eDocs Program, Suite 2065 4054 Willow Lake Boulevard Memphis, TN 38153

KMF eDocs Program- Suite 2065 4070 Willow Lake Boulevard Memphis, TN 38118

FUNDING HOTLINE: 866-341-5632 FUNDING FAX LINE: 866-327-5632

AK / AZ / CA / CO / HI / ID / MT / NV / OR / UT / WA / WY

Checklists by region are found on DealerAccess.


Kia Lease Titling TrustIts Successors and/or AssignsP.O. Box 20835Fountain Valley CA 92728-0809

Kia Lease Titling Trust

P.O. Box 20835 Fountain Valley CA 92728-0809

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You may provide a FedEx account to KMF for overnight funding. All monthly program payments to terminated/buy/sell dealers are held for three (3) months prior to payment release.

Your BDM will provide you with the required forms once you update your existing bank information. You can also find the forms on Dealer Access under Forms/Contracts. Please see the below for the required documents per different type of changes:

Type of Changes W-9 Form EFT Form Copy of a void check† Legal Agreement

New bank account number & bank number

No Yes Yes No

New bank routing number No Yes Yes No

New entity/corporate name reorganization

Yes Yes Yes Yes

Entity/corporate name change

Yes Yes Yes No

New DBA Name Yes Yes Yes No

†Account verification letter from your bank may be provided in lieu of a void check copy.


KMF offers several flexible floor plan financing options to Kia dealers. Not only do we offer competitive rates and terms, many times we offer special promotions that are available only to our wholesale dealers. Finance your floor plan with us and you can essentially lower your net rate with every retail deal funded by KMF.

Wholesale Floor Plan Financing

• Special promotions for wholesale dealers only

• Competitive rates and terms

• Cash Management Account up to 50% of new outstandings

• Expedited application turn time

• Exclusive retail incentive programs

• Flexible retail relationship

• Competitive insurance coverage available - inclusive billing

• State of the art electronic flooring and remittance systems

• Auction direct flooring

• Quick turnaround for increases in wholesale lines

• Automated statements - no hidden fees

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Wholesale Floor Plan Financing

Wholesale Floor Plan Insurance

• Consolidated billing

• Highly rated insurance carrier

• Streamlined application

• Zone pricing – no individual underwriting

• Competitive rate structure

• Premium based on actual inventory values

• Deductible (choice of deductible level) aggregates on weather-related claims


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Retail Bonus Incentive (RBI)

• Lower your net rate floorplan with every deal funded by KMF

• KMF will provide monthly payment through dealer reserve

Real Estate Loans

• Fixed and floating rates

• 5-year term with monthly principal payments based on a 20-year amortization

• Competitive rate and advance structure

• 70% Loan to Value

• Purchase or refinance purposes

Capital Loans

• Loans available to provide facility upgrades or dealership working capital

• 5-year amortization

• Competitive rate structure

Wholesale Floor Planning Financing


Dealer Access

Dealer Access is our personalized website for your dealership; giving you instant access to information you need and key contacts like your BDM and Retail Credit Analyst. You’ll have direct support from our team of dedicated professionals, as well as the ability to conduct business directly; just login for support, no waiting. Visit at www.hcadealeracces.com.

If you have any questions, please contact the Dealer Access Help Desk at: Phone: (855) 889 4117 or email: [email protected].

Dealer Access Key Features & Benefits

Credit/Funding Individual Reserve Statement Download

Bonus Cash Statements

Credit/Funding FAQs, Checklists, Guidelines

Center Contact Information & Hours of Operation

Quick Access to all Forms/Contracts/Checklists

Funding Summary Reports

Sales Program Announcements & Key Communications

Key Messaging to Dealers

Program Archive

Clear Support Team Contract Information

Lease Originations & Lease-End Training

Titles/Payoffs ACH Payoff & Automated Title Release

Outstanding Title Reports Download for Dealers

Title/Payoff Guidelines & FAQs

Lead Management Lease Prospect Lists

Pre-Approval Customer Lists

Lease Pull-Ahead Lists

Lead Management FAQs

Floorplan Commercial Credit Wholesale Management System Tutorials

Wholesale Statement Reports

F&I Products Total Protection GAP Product

Product FAQs

General Key System Links (Dealer Track, Dealer Direct) – Access All Key Links in One Spot

Ability for Each Dealership to Set-Up Users

Chat Functionality

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Industry Leading Technology


RegistrationIf you don’t already have a user name and password, you will need to create one by following the steps below.

Adding New Users

After you register, you can grant access to the Dealer Access portal to other members of your dealership. You can even determine what portal features and content the users will be able to access.

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Important! You must provide the new user with the user name that you have established for them. They must set-up their own password for the portal.

Step 1Visit www.kmfdd.com and click the Register link.

Step 2Complete the registration form. Note: You will need your Dealer Number. You are able to set-up your own user name and password. Please use your e-mail address as your user name. Each user name will need to be unique.

Step 3After you complete the registration process, you will receive an e-mail confirmation. Click on the link in your e-mail to return to Dealer Access. You must accept the Terms & Conditions before you will be able to use the portal.

Step 1Login to www.kmfdd.com and click on User Management in the upper right corner.

Step 2Click Add User. Add the details about the user, including their role at the dealership. Note: You will also need to assign a user name for the user. User names should be the employee’s e-mail address.

Step 3Determine what level of access you want the new user to have. Please ensure that you carefully review the permission access you provide to other users. Click Save when you are done.

Step 4The new user will receive an e-mail confirmation.


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Dealer Reserve Statements Dealer Reserve reports are a critical tool in helping dealers monitor their earnings from the financing of a deal. These statements can be found on Dealer Access and are posted on a monthly basis.

The Dealer Reserve functionality enables dealers to track finance earnings month to date with each participating finance source to which they are associated.

Dealer Prospect Report These lists are found on Dealer Access and are comprised of either retail customers in a specific equity position or lease customers nearing termination, and they are regularly updated with incoming prospects. The more your dealership takes advantage of KMF offers, the more leads we can provide you.

The retail prospect list is updated once a quarter and the Lease Prospect list is updated monthly one year from scheduled maturity date.

Dealer DirectDealer Direct is an KMF dedicated auction website providing you with certain exclusive opportunities to purchase preowned Kia vehicles. Dealer Direct acts as a tool for grounding as well as off lease purchases. Visit at www.kmfdd.com. Other benefits include:

• Grounding dealer has first right of refusal

• Available Pre-Owned Kia’s – Purchase lease returns, repossessions, and fleet vehicles online with 24/7 access.

• Closed Auctions – Much of the inventory included on the site will be sold via closed auctions. If you ground lease returns, you have an exclusive opportunity to purchase with NO competition.

• Title Expedition – Pay through the site by ACH to expedite receipt of your title.

• Lease Returns – Purchase and ground lease returns as well as arrange for their pickup. Please note that all KMF lease returns must be grounded on Dealer Direct

• Dedicated support on our Dealer Direct Helpline (888) 512-7711

For further instructions, please reference the “User Guide Link” on the bottom right hand corner of the Dealer Direct home page.

PURLsPersonalization is at the heart of our customer experience strategy. One of the ways we personalize our messages is through PURLs. A PURL is a personalized URL which adds an individual experience to each visitor. We take the customer information from our database and use it to tailor a webpage experience to that specific person. We focus on driving the customer back to you, their dealer. We use email and direct mail marketing campaigns that invite customers to their personal website – providing them with their account information in one click.

• The website is dealership loyal, sending them back to the originating dealer • It can deliver incentive messages, pull ahead, and pre-approval offers and call to action messages • Prospects are posted on your dealership Lead Management section of Dealer Access



© Q1 2014 Kia Motors Finance

Documents

KIA Motors Finance Dealer Finance Manual · PDF fileOur team of automotive finance experts are dedicated to your success As your captive financing provider, Kia Motors Finance (KMF)