Hyundai Financing: What You Need to Know
Buying a car is not as easy as picking up take-out or purchasing a new outfit for fall. And financing is the most dreaded part of getting a new ride, which is understandable considering the large amount of money involved.
At World Car Auto Group's eight Greater San Antonio area dealerships, we see many customers come in who are confused about the loan process. So to help navigate the realm of automotive finance, we've put together a Q&A about Hyundai financing.
Q: What is Hyundai Motor Finance?
A: Since 1989, Hyundai Motor Finance has provided customers with financing options to assist in their vehicle purchase. HMF provides individuals and businesses with a range of finance and leasing options and convenient account servicing. Hyundai Motor Finance is a branch of Hyundai Capital America, which also supports the finance needs of Kia Motors Finance. Simply put, if you buy a Hyundai and get a car loan through Hyundai rather than a bank loan, you will be working with Hyundai Motor Finance and making your payments to them.
Q: What is the difference between a bank or credit union and Hyundai Motor Finance?
A: If you have a solid credit score, chances are you will get a better loan with a lower interest rate from a bank or credit union than with the dealer finance company. Finance companies such as Hyundai Motor Finance have to make a profit to stay in business, and they make that profit from higher annual percentage rates. If your credit score is less than stellar, dealing with the finance company is a good option. Sometimes, it is your only option. Regardless of what financing option you go with, if your credit is not very good, you will have a higher annual percentage rate to pay on your loan.
Q: How does Hyundai Motor Finance work?
A: When you are ready to try pre-approved financing, you need to visit HMFUSA.com; everything you need to complete is there. Once you submit the application, you will select the car you're interested in. The site will then give you a list of dealerships in your area, and you must select one to proceed. From there, you will begin the application with listing your finance requests (how much cash you will put down, the term of the loan agreement, if you're buying or leasing, etc.). Your personal, residential, and income information will follow. You will have the opportunity to review your application before applying. Within minutes of your submission, you will hear an answer.
Q: What if I don't receive my response?
A: If you haven't received a response shortly after applying, this could mean that Hyundai Motor Finance and/or the dealership need a little more information before making a decision. It will send you additional instructions if that's the case.
Q: What happens next?
A: If you are approved, you will receive an Approval Certificate. This certificate is valid for 30 days at the dealership you selected during the application process. The dealership may contact you about scheduling an appointment or discuss your financing needs. When you are ready to make your purchase, a finance representative will go over all of the terms and conditions for financing.
Q: Why should I bother looking at finance options before I make any decisions at the dealership?
A: The best defense is a good offense, and the same applies for purchasing a car. If you know your financing options before going into the dealership, you will make the right choices that fits your needs without having to give up an arm and a leg. Also, Hyundai offers a variety of programs for loyal customers, college graduates, military families, and car buyers who need mobility modifications made on their car. These programs can involve credits toward your purchase, deferred payments, and vouchers for maintenance services. These promotions don't last forever, but knowing that they are an option is important.
Q: What if I am not pre-approved?
A: Not getting pre-approved doesn't necessarily mean that you can't get a car loan. If this happens, your best bet is to work one-on-one with a financial specialist at the dealership. Representatives at World Car Hyundai can help buyers with financial obstacles get vehicle financing. The key is to never give up. If one dealership can't give you the assistance you need, then take your business to another dealership and see if they can secure a loan that fits your needs.