First Time Buyers FAQ – Car loans made simple

Looking to buy your first vehicle and have a few questions? Lauria Hyundai is here to help!

We understand that not every buyer has previous vehicle credit history and we make it possible to get into your first vehicle quickly and easily. With our no-nonsense process and straight forward financing and leasing requirements we will get you on the road!

First Time Buyers Frequently Asked Questions

Do you need to make monthly payments?

While some buyers choose to pay for their entire vehicle at time of delivery, the majority of people choose to finance or lease their vehicle with a more manageable monthly, bi-weekly, or weekly payment schedule to allow for a more flexible purchase decision.

What is the difference between leasing and financing a car or truck?

When you finance a vehicle with a car dealership or decide to take out a loan, the initial down payment and principal on the loan cover the complete cost of the vehicle including tax and license.

However, if you choose to lease a vehicle the payments apply only towards the time you will be using the vehicle. The total sum of payments covers the vehicle’s depreciation over the time your drive your new car. At the end of the lease you have the option of simply returning the vehicle to the dealership or buying out the remainder of the amount owing.

What does “Transfer of Ownership” refer to and when does it occur?

If you are financing a car or truck, the loan ends when the vehicle is paid in full and the ownership is then transferred to you. Your lender will send your title that had been hel during the financing period of the contract.

If you choose to lease a vehicle, when the lease period ends you must turn in the vehicle to the lender, or choose to buy the vehicle at that time. During the entire lease period the lender maintains ownership and is allowing you ti use the car – similar to a long term rental. Ownership is transferred to you if you choose to purchase the vehicle after the lease ends.

How big is the down payment?

In most cases, a down payment is not required but it can range between 10 and 20 percent of the vehicle’s initial cost. The size of your down payment will affect the monthly payment.

The less money you use for your down payment the higher your monthly payment. Likewise, the more money you use for your down payment, the less you’ll owe with each monthly payment.

Can I finance other fees and charges?

Yes, registration, taxes, extended warranty plans, winter tires, accessories and other charges may be included in your financing payments.

Should I finance or lease my vehicle?

This is a personal decision for each car buyer to make, and depends on your own set of circumstances. Both options offer a great deal of flexibility and allow you to drive away in a new car much sooner. Feel free to talk to any one of our financial service consultants to find the best solution for you.

Car Financing Frequently Asked Questions

How is the finance loan rate decided?

The finance rate depends on your own personal credit history, the amount currently borrowed, the length of the term, and the year, make, and model of the vehicle you are planning to finance. A bigger down payment lowers the amount borrowed which reduces your payments and may also reduce the loan rate.

What is the car loan time frame?

Car financing time frames can range as long as 8 years depending on the year of the vehicle being purchased, but this is largely dependent on how long the customer is choosing to finance the vehicle and the model age of the vehicle. Some used cars may only qualify for a 3 to 4 year finance term.
It is also important to note that used car loans have some difference to new car loans as the interest rate can be higher based on your credit history and the make/model of the vehicle.

Car Leasing Frequently Asked Questions

How are the monthly lease rates determined?

To create a lease agreement, Hyundai calculates the extent to which a vehicle will depreciate over the lease term and then compare it against the cost of financing vehicle during the same time period.

To determine this, there are 3 important factors:

• First, the adjusted capitalized cost is determined. This value represents the real purchase price after down payment, incentive discounts, additional fees and trade-in value are determined and then added or subtracted from the actual cost.
• Second, the residual value needs to be determined by estimating the value of the vehicle at the end of the lease. Once this is decided it is then deducted from the capitalized cost to yield a depreciation figure. The residual value depends on the length of the lease, estimated mileage, and make/model of the vehicle.
• Third, a lender determines the money lender, a number that correlates with the cost of borrowing money towards your vehicle use during the lease period.

How is the purchase price decided at the end of the lease?

The purchase price is decided largely by the residual value determined at the start of the leasing term. To purchase the vehicle at the end fo the lease requires you to pay the fixed residual value plus any applicable taxes or fees.

Are there any restrictions to driving a leased vehicle?

Mileage terms are established at the start of the lease in order to ensure the vehicles will be still be available for sale at the end of the lease. A rule of thumb to figure out average annual mileage under ordinary driving conditions is between 16,000 and 25,000 kilometers. Beyond the established mileage limit, fees may accrue on a per KM basis. Leasing can be a great option whether you are a low or high mileage driver, but it is best to speak to one of our financial services consultant to determine the best option for you

Dealer Information

Contact Us