Hyundai Finance Rate First Time Buyer

darnoc23

Hello,

Anyone know what the tier 1 rate is and if being a first time buyer disqualifies you for the tier 1 rate? I have a 705 credit score and have no balances on credit cards. However, I've never financed a car and being told the rate is higher. How do I know if the rate is being marked up? TIA.

kyfdx

darnoc23 said:

Hello,

Anyone know what the tier 1 rate is and if being a first time buyer disqualifies you for the tier 1 rate? I have a 705 credit score and have no balances on credit cards. However, I've never financed a car and being told the rate is higher. How do I know if the rate is being marked up? TIA.

If you don't have auto-related payment history, then you likely aren't going to qualify for Tier 1.

In addition to that, dealers often mark up rates for extra profit.

Are you buying or leasing?
What is your location?

darnoc23

Buying in southern CA. Dealer states if I buy gap insurance at $800 the interest rate will be reduced from 6% to 4%???

kyfdx

darnoc23 said:

Buying in southern CA. Dealer states if I buy gap insurance at $800 the interest rate will be reduced from 6% to 4%???

Selling you $200 worth of insurance for $800, then giving you a lower rate. I'll guess you either already qualify for 4% or 5%, and this is a naked money grab.

For finance, 705 gets you Tier 3 rates (maybe lower, if no auto credit history)
Tier 3 adds about 0.90% to the Tier 1 rate.

On a 72 month loan, with LTV of 80%-100%, the Tier 3 rate would be 4.99% APR

There are special lower rates available, but those take money out of the dealer's pocket.

darnoc23

Thank you!! Ugh, these dealers find every way to sneak in money.

darnoc23

There's no way to really tell whether a dealer is marking up the interest rate, correct? I tried calling Hyundai and they kept referring me to the dealer.

kyfdx

darnoc23 said:

There's no way to really tell whether a dealer is marking up the interest rate, correct? I tried calling Hyundai and they kept referring me to the dealer.

Correct, it will be hard. Shop multiple dealers.

azuki

Can you lease for less than 10k/year? I have barely used my vehicle (leased since aug '17, only at 14k miles) ever since WFH, but I do like having the convenience of a car and rotating into a new vehicle. I'm looking at the 2021 Elantra N Line.

Michaell

mochicat said:

Can you lease for less than 10k/year? I have barely used my vehicle (leased since aug '17, only at 14k miles) ever since WFH, but I do like having the convenience of a car and rotating into a new vehicle. I'm looking at the 2021 Elantra N Line.

Hyundai does not offer lease mileage allowances lower than 10K.

Perhaps you should find a nice, well cared for used model, and just purchase it outright.

azuki

Thanks! I'll try to negotiate. I just like to have a new vehicle every few years. In this scenario, do you get some equity back towards next lease from having lower mileage (say like 15k on a 30k lease)? I searched online and really didn't get a solid answer- was wondering if anyone experienced this.

Michaell

mochicat said:

Thanks! I'll try to negotiate. I just like to have a new vehicle every few years. In this scenario, do you get some equity back towards next lease from having lower mileage (say like 15k on a 30k lease)? I searched online and really didn't get a solid answer- was wondering if anyone experienced this.

If you turn the lease in, then the market value doesn't really matter.

I turned in a lease a year ago and I only drove 16K (out of the 36K I was allowed). Nothing for me from that.

azuki

Got it. Thank you!