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Kia Launches Captive Finance Arm

30 November 1999

Kia Launches Captive Finance Arm

    IRVINE, Calif., Nov. 30 -- Kia Financial Services, a
private-label financing source created by PRIMUS Financial Services and Kia
Motors America, will become available to Kia dealers as soon as Dec. 1.
    Kia Financial Services will offer retail and lease financing to Kia
customers, and floorplan financing will be available to all Kia dealers in the
United States.  A three-phase rollout will see the new financing source become
available Dec. 1 in California, Texas and Florida.  The second phase will
include 35 states launching on Dec. 15 and, in the final phase during early
2000, 11 states will launch upon receipt of required licenses.  Those 11
states are Illinois, Louisiana, Maryland, Massachusetts, Michigan, Montana,
New Jersey, New York, Rhode Island, Vermont and Wyoming.
    "Since 1994, when we began selling Kia vehicles in the United States, one
of our major objectives was to gain enough of a foothold so that we could
offer consumers a source of financing," said Dick Macedo, Kia's executive vice
president of marketing and sales.  "It's great that we're on the brink of
achieving that objective."
    PRIMUS President Andy Menzyk said, "This partnership will give Kia dealers
a private-label finance source -- something they've wanted -- and I expect it
to be very successful."
    Kia Financial Services will offer consumers a range of financing plans
with terms up to 60 months on new and used vehicles.  Special-tiered, low-APR
(annual percentage rate) programs will be available periodically, and balloon
programs will be available in selected states.
    For dealers, Kia Financial Services will assist qualified dealers in
carrying adequate vehicle inventory through a wholesale line of credit for
new, demonstrator and program Kia vehicles.  Maximum terms range from 180 days
to 24 months from the funding date.  Dealers also can qualify for
capitalization loans, revolving lines of credit and mortgage loans.
    Kia Motors America is the sales, marketing and service arm of Kia Motors
Corp. in Seoul, South Korea.  Since its U.S. debut in 1994, Kia now has more
than 550 dealers and is one of the nation's fastest-growing car companies in
America.  Kia offers the Sephia compact sedan, Sportage sport-utility vehicle
and Sportage 2-Door Convertible.
    PRIMUS Financial Services, based in Nashville, Tenn., is one of the
largest automotive finance sources with offices in 32 metropolitan areas in
North America.  PRIMUS provides a comprehensive range of private-label
financial services to automobile manufacturers, dealers and their customers
throughout the United States and Canada.