The Hyundai family and your independently owned and operated Hyundai dealer, Mike Miller Hyundai, care about helping you have the best vehicle purchase experience possible. Whether you're choosing to purchase a new Hyundai car or have decided to buy used, we want you to be an informed consumer to make the best choices about purchasing and financing a vehicle. Our Hyundai finance department has provided the essential information below about vehicle financing. We hope it will help enhance your vehicle purchasing and financing experience. If you have further questions about the financing process, give us a call or contact Mike Miller Hyundai online today. We look forward to working with you at our Peoria, IL Hyundai dealership.
Take an active role to manage your credit score as you would any financial matter. Your credit score can be improved by developing long-term habits that include:
Have the following items available with you to assist in the application process.
|At the dealership |
1. Understand your options
2. Making and financing your Hyundai purchase
» You make a credit application
To finance the purchase of your vehicle at the dealership, you will make an application for credit with the dealer. You will give the dealer permission to see your credit report and obtain other credit and employment information.
» You enter into a retail installment contract with your Hyundai dealer
You will enter into a retail installment contract directly with your Hyundai dealer. The dealer is the seller/creditor and you are the buyer/debtor. You should review and agree to all the terms of the contract, including the amount financed, the APR, the number of monthly payments and the monthly payment amount.
» Consider your cost of credit
Your Hyundai dealer may be able to provide competitive rates to finance your purchase, because there may be several credit sources competing for the dealership’s business.
» Your dealer may sell the contract to Hyundai Motor Finance, or another creditor
After you and your Hyundai dealer sign the contract, the dealer may sell the contract to Hyundai Motor Finance or some other financing source. Some dealers may keep the contract and have you make the monthly payments to the dealer, but most dealers sell their contracts. If your contract is sold, you will make the monthly payments to the creditor who buys the contract. This creditor is also called the "assignee" and the sale of your contract is referred to as an “ assignment.” Except for changing the creditor you make payments to, selling your contract will not change its terms.
» Your Hyundai dealer is a locally owned, independent business.
Your Hyundai dealer is an independently owned and operated business, part of your local business community. The dealer is not part of the manufacturer or any financing source and is not required to sell your contract to Hyundai Motor Finance or any other financing source.
» The dealer may be paid a fee for the contract
The financing source that buys your contract from the dealer usually pays the dealer a fee for your contract. This amount may be a flat fee or a percentage of the amount financed. This fee is sometimes called “participation.” This payment is between the creditor that buys the contract and the dealer. It does not change any of the contract terms that you and the dealer have agreed upon. The fee compensates the dealer for its time, effort, resources, and overhead as well as for services performed on behalf of the purchaser, such as recording the lien on the vehicle’s title. In some cases the fee compensates the dealer for taking on a financial risk, because after a contract is assigned, under certain circumstances, the dealer may be obligated to buy it back. In addition, the dealer offers you the convenience of financing with the dealership directly. For these reasons, the dealer is compensated by the purchaser. Most states do not limit the fee paid to the dealer, although some states have limits.
» Preparation is the key.
Financing a vehicle purchase can be done in the convenience of your Hyundai dealership. Being prepared and understanding the process will enhance your financing experience.
| Frequently asked questions |
» How is my APR [Annual Percentage Rate] determined?
Your APR is set between you and the dealer. Your creditworthiness and the other terms of your contract (such as the number of payments, your down payment, the amount you are financing) may affect your APR. The fee that a potential purchaser might pay to the dealer to buy your contract can also affect your APR.
» The dealer asked me to sign a credit application, which says Hyundai Motor Finance can look at my credit information. Why?
The law restricts who may access your credit information. The dealer has obtained your consent so that Hyundai Motor Finance can review your credit information. Based upon Hyundai Motor Finance's response to your credit application, the dealer may sell your contract to Hyundai Motor Finance.
» My retail installment contract has a logo for Hyundai Motor Finance at the top. Does this mean that Hyundai Motor Finance is the creditor?
No. The dealer may or may not assign your contract to Hyundai Motor Finance. Often, creditors supply forms to dealers, some of which contain their logos, as a way to remind dealers to consider them as possible purchasers of the contracts.
» Doesn't the finance company set my APR?
No. The APR, like other contract terms, is determined between you and the dealer.
» Does the finance company or bank pay the dealer for the contract?
Yes. The dealer usually receives a fee for the contract. This may be based upon a percentage of the APR or it may be a flat fee.
» The dealer is making money on my purchase. Why does the dealership make money on my financing?
The fee compensates the dealer for work that is not involved in a cash sale or where a customer has arranged for financing directly from a lender.
» My dealer sent my credit application to a financing source before we even wrote a contract. Why?
The dealer may begin to look for potential purchasers for your contract even before the contract is complete. That permits the dealer to make sure the terms of the contract will make it saleable.
» My brother and I got different rates financing the same model car from the same dealership in the past couple months. Why?
There can be many reasons for the difference. Probably there are differences in your creditworthiness. Interest rates may have changed, or special financing programs were available. Other terms of your financing, such as the number of payment, may have differed, too.
» How do I know the APR, Amount Financed, etc.?
These terms are set apart on your contract in the "Truth in Lending" box. The dealer will give this information to you to review before you sign your contract. You should take the time to be sure you understand these terms.
» Does the Truth in Lending box show the price paid to assign the contract?
No. This box shows the cost of credit to you. You are entitled to disclosures of the credit terms you agreed upon. The Truth in Lending box does not show the business arrangements between the dealer and any potential purchaser.
Some contracts contain a reminder that the APR may be negotiable with the dealer and that the dealer may be retaining a portion of the finance charge. Hyundai Motor Finance voluntarily includes this reminder on contract forms it provides to Hyundai dealerships.
» Can I finance directly with Hyundai Motor Finance?
No. Hyundai Motor Finance provides financing only through vehicle dealerships like Mike Miller Hyundai. Hyundai Motor Finance is an “indirect lender” – it does not make financing available directly to consumers.