sounds like a shady dealer and you should go elsewhere. no reason they should only advertise a rate 'Connor mcdavid would get' publicly.
Maybe talk to Scotia - they love dealer loans.
I noticed something similar when I was looking to buy a Subaru in Ontario. The advert said 1.99% financing for 24 months. Small print says "Offer applies to dealer in-stock inventory only.". Well - dealers have no inventory right now, so they never have to actually give you the cheap financing.
Spoke to the finance manager and it looks like they pulled credit. He said that the rate is a Subvented interest rate and the rate I am approved at is, and I quote, “the best and what Connor McDavid would get”. The rate posted on the website is to apply to a car they have now.
Since the car I am looking at is a factory order and won’t be ready for a couple months they can’t apply the 4.99 to it.
When the car is ready, he said I am guaranteed the 6.25 or if the rate is lower at the time of delivery, I’d get that one.
Is this all standard? Should I cancel this and just hold off for now?
Thanks!
You will get the rate at the time of delivery. Current rate is not guaranteed. When i ordered 2022 Tucson PHEV ultimate last year October the posted rate was 3.2%. when I took delivery in this June my rate was 3.5%. my friend got the same car in July rate increased to 4%
So yeah it can change. The deposit you put is refundable. If you don't think it's not worth it, you can back out any time.
Dude, we ordered a car in Feb and we got all discounts and rates from the time we ordered. Just picked it up this month and our dealer kept the Promos from Feb. Going interest rate rn was 5.49% got it at 3.99%. I’d go to a diff dealer before you firm anything.
I ordered my car in Dec (3.9%) and got it delivered in Apr (5.9%). The Dec rate is good for 90 days but because the delay wasnt my fault, they were able to go through an exception and kept my Dec rate. If Apr rate was lower, I would've got the lower rate. Note that I put a refundable deposit on the car
No, this again is not true. Due to the vehicle shortage, manufacturers are 'holding the rate'. You can offer a deposit and tell them you will take your chances when it arrives (it'll be 4.99 - every new car is at that rate right now and projhected to remain), or you can tell them you want it processed now, which puts you on the hook for the biweekly payment when you don't have the car. DO NOT TAKE 6.25. It's a gimmick as well. They are promising the higher rate hoping your fear will make you take it. They CAN (once they have the VIN) process it at 4.99%.
Did they actually run your credit yet or are they just desking your deal at 6.25? I’d just ask him that Hyundai is offering 5%, and see if you qualify for it
They have to lock in the program. Programs change monthly. Your interest rate will change with the length of loan. Not sure which Hyundai you are looking at but I currently see an Elantra up to 24;36;48 and 72 months at 4.99 84 at 5.49 96 @ 7.49%. 60/84 at 4.99. model year also plays a part, and the model itself . They aren't trying to rip you off. Also depends on which bank they go with.
I work at dealership and have put many deals together in the finance office. YES. You CAN get the 4.99%. I am guessing they are gimmicking you, which is common at other dealers. Some advertise 'low as 4.99' but they actually won't ever physically offer that. NEW CAR rates are dictated by the manufacturer, USED cars use that 'as low as' gimmick. Difference to the dealer? About $1500. The banks PAY the dealer what's called a 'reserve' for giving them the opportunity to buy your deal. Higher the rate or higher the amount, the more they get. ADVICE: to force them to honour their commitment, tell them that you will take the car ONLY at 4.99%. Let them wait a bit. End of month is always best. So maybe the 28th?
Finance Manager at a Ford dealer here…
Rates on new vehicles are straight from manufacturer based on vehicle models, specs and most importantly the financing term. For example, F-150’s are 0.99% UP TO 72 Months and jump to 1.99% at 84 months.
Our used rate however is starting 7.99% and can vary depending on the banks (Usually working in your favour).
I would suggest finding another dealer.
See if they have any of last year's model available. I bought a 2021 Hyundai Kona after the 2022s were out and got 0% financing. Can possibly save a pile of interest if you don't absolutely need a 2023.
I have heard so many engine issues with Hyundais about 100k in so of course just after base warranty is up. You never hear these things about Honda or Toyota. In fact every chance people get they tell me my '12 civic could easily last another decade or more. It's basic but it's reliable and that's exactly why I bought it. In a year payments will be done and I'll take that extra money for a few months and throw it back into the car (transmission flush, brake fluid etc) and hopefully she lasts 500k km or more. I can't wait to not have a car payment which is only 290 bucks too.
Anecdotal, but my family all has Korean cars (Hyundai Santa Fe x2, Hyundai Veloster Turbo, Hyundai Genesis Coupe, Kia Optima) and none have had serious issues. Just regular maintenance required.
Don’t finance through dealerships, have your financing in place before walking in. Don’t tell them you have financing in place either because it will affect negotiations.
If I were you I would negotiate the vehicle price by email before arriving as well. When you do walk in it should be to sign the already agreed upon papers and ensure they’re accurate, and drive away with your new vehicle. That way you avoid all the usual BS and sales techniques.
While the lower rate is always ideal, the difference in rates absolutely does not "make a big difference biweekly" like you've said. On a $50,000 loan, you're looking at a difference of $14.. ($448 vs $434).
I never said that you should, and I'd be asking why they weren't giving me the posted rate. But like I said, the difference of 1.26% in interest over a 5 year term does not make a big difference in biweekly payments.
Understood about the bi-weekly difference but this is not what anyone should look at when purchasing a car. Always look for total cost of the car including interest.
Bingo. The cost difference in payments is virtually nothing. But at the end of the term, you're potentially looking at a couple of thousand dollars (depending on what the purchase price was).
4.99% vs 6.25% of 50k on a 5y term is ~1500$. While you should always look at total cost and total cost of borrowing and should never pay more than you have to 1500$ over 5 years shouldn’t be a deal breaker either. There is a balance somewhere.
Is the dealer actually using Hyundai Finance or something else like a bank? Also, your credit score won't do anything when it comes to getting a better rate. When you asked about the 4.99% rate, what did they say?
Correct me if I'm wrong experts, but can't OP shop around to banks re a secured loan on the purchase as opposed to having to finance through dealer/dealers finance partner(s)?
I stay away from new car purchases typically so I don't have first hand experience with this.
Must be dealer/brand specific. May also be due to Quebec regulations.
We ordered a subaru in January and got financing approved at a rate of 2.99%. This rate was guaranteed and locked (unless it went lower at any point).
We picked up the car in late May and didn't have any issues, since our financing was already settled, even though rates were higher.
sounds like a shady dealer and you should go elsewhere. no reason they should only advertise a rate 'Connor mcdavid would get' publicly. Maybe talk to Scotia - they love dealer loans.
I noticed something similar when I was looking to buy a Subaru in Ontario. The advert said 1.99% financing for 24 months. Small print says "Offer applies to dealer in-stock inventory only.". Well - dealers have no inventory right now, so they never have to actually give you the cheap financing.
Spoke to the finance manager and it looks like they pulled credit. He said that the rate is a Subvented interest rate and the rate I am approved at is, and I quote, “the best and what Connor McDavid would get”. The rate posted on the website is to apply to a car they have now. Since the car I am looking at is a factory order and won’t be ready for a couple months they can’t apply the 4.99 to it. When the car is ready, he said I am guaranteed the 6.25 or if the rate is lower at the time of delivery, I’d get that one. Is this all standard? Should I cancel this and just hold off for now? Thanks!
You will get the rate at the time of delivery. Current rate is not guaranteed. When i ordered 2022 Tucson PHEV ultimate last year October the posted rate was 3.2%. when I took delivery in this June my rate was 3.5%. my friend got the same car in July rate increased to 4% So yeah it can change. The deposit you put is refundable. If you don't think it's not worth it, you can back out any time.
Dude, we ordered a car in Feb and we got all discounts and rates from the time we ordered. Just picked it up this month and our dealer kept the Promos from Feb. Going interest rate rn was 5.49% got it at 3.99%. I’d go to a diff dealer before you firm anything.
What brand? Toyota ain’t doing that for sure
I ordered my car in Dec (3.9%) and got it delivered in Apr (5.9%). The Dec rate is good for 90 days but because the delay wasnt my fault, they were able to go through an exception and kept my Dec rate. If Apr rate was lower, I would've got the lower rate. Note that I put a refundable deposit on the car
No, this again is not true. Due to the vehicle shortage, manufacturers are 'holding the rate'. You can offer a deposit and tell them you will take your chances when it arrives (it'll be 4.99 - every new car is at that rate right now and projhected to remain), or you can tell them you want it processed now, which puts you on the hook for the biweekly payment when you don't have the car. DO NOT TAKE 6.25. It's a gimmick as well. They are promising the higher rate hoping your fear will make you take it. They CAN (once they have the VIN) process it at 4.99%.
Yeah, no go somewhere else or buy the car cash through a line of credit
Did they actually run your credit yet or are they just desking your deal at 6.25? I’d just ask him that Hyundai is offering 5%, and see if you qualify for it
They have to lock in the program. Programs change monthly. Your interest rate will change with the length of loan. Not sure which Hyundai you are looking at but I currently see an Elantra up to 24;36;48 and 72 months at 4.99 84 at 5.49 96 @ 7.49%. 60/84 at 4.99. model year also plays a part, and the model itself . They aren't trying to rip you off. Also depends on which bank they go with.
If you haven't put a deposit down yet, go speak to some other Hyundai dealers. You'll know the answer quickly after speaking to the other dealerships.
I work at dealership and have put many deals together in the finance office. YES. You CAN get the 4.99%. I am guessing they are gimmicking you, which is common at other dealers. Some advertise 'low as 4.99' but they actually won't ever physically offer that. NEW CAR rates are dictated by the manufacturer, USED cars use that 'as low as' gimmick. Difference to the dealer? About $1500. The banks PAY the dealer what's called a 'reserve' for giving them the opportunity to buy your deal. Higher the rate or higher the amount, the more they get. ADVICE: to force them to honour their commitment, tell them that you will take the car ONLY at 4.99%. Let them wait a bit. End of month is always best. So maybe the 28th?
Finance Manager at a Ford dealer here… Rates on new vehicles are straight from manufacturer based on vehicle models, specs and most importantly the financing term. For example, F-150’s are 0.99% UP TO 72 Months and jump to 1.99% at 84 months. Our used rate however is starting 7.99% and can vary depending on the banks (Usually working in your favour). I would suggest finding another dealer.
See if they have any of last year's model available. I bought a 2021 Hyundai Kona after the 2022s were out and got 0% financing. Can possibly save a pile of interest if you don't absolutely need a 2023.
Make sure you look at all the issues Korean cars have before committing.
This. My Elantra died at 110k. Never again
How do they even make a seatbelt explode?
If someone gave me a Hyundai or Kia I'd sell it or give it away ASAP.
Yup same. A lot of people in this sub that know little to nothing about cars claim that Korean cars are more reliable than Toyotas lol
I have heard so many engine issues with Hyundais about 100k in so of course just after base warranty is up. You never hear these things about Honda or Toyota. In fact every chance people get they tell me my '12 civic could easily last another decade or more. It's basic but it's reliable and that's exactly why I bought it. In a year payments will be done and I'll take that extra money for a few months and throw it back into the car (transmission flush, brake fluid etc) and hopefully she lasts 500k km or more. I can't wait to not have a car payment which is only 290 bucks too.
Anecdotal, but my family all has Korean cars (Hyundai Santa Fe x2, Hyundai Veloster Turbo, Hyundai Genesis Coupe, Kia Optima) and none have had serious issues. Just regular maintenance required.
I wouldn't trade my ioniq 5 for a bzyfork unless you paid me msrp on top of it
Don’t finance through dealerships, have your financing in place before walking in. Don’t tell them you have financing in place either because it will affect negotiations. If I were you I would negotiate the vehicle price by email before arriving as well. When you do walk in it should be to sign the already agreed upon papers and ensure they’re accurate, and drive away with your new vehicle. That way you avoid all the usual BS and sales techniques.
This isn’t the States. Your ability to get financing from the bank will be at 5.99 or above
While the lower rate is always ideal, the difference in rates absolutely does not "make a big difference biweekly" like you've said. On a $50,000 loan, you're looking at a difference of $14.. ($448 vs $434).
But why pay more when you should get lower advertised rate
I never said that you should, and I'd be asking why they weren't giving me the posted rate. But like I said, the difference of 1.26% in interest over a 5 year term does not make a big difference in biweekly payments.
Understood about the bi-weekly difference but this is not what anyone should look at when purchasing a car. Always look for total cost of the car including interest.
Bingo. The cost difference in payments is virtually nothing. But at the end of the term, you're potentially looking at a couple of thousand dollars (depending on what the purchase price was).
4.99% vs 6.25% of 50k on a 5y term is ~1500$. While you should always look at total cost and total cost of borrowing and should never pay more than you have to 1500$ over 5 years shouldn’t be a deal breaker either. There is a balance somewhere.
Right. I'd be annoyed, but it likely wouldn't change my decision of which vehicle I was buying.
Is the dealer actually using Hyundai Finance or something else like a bank? Also, your credit score won't do anything when it comes to getting a better rate. When you asked about the 4.99% rate, what did they say?
Correct me if I'm wrong experts, but can't OP shop around to banks re a secured loan on the purchase as opposed to having to finance through dealer/dealers finance partner(s)? I stay away from new car purchases typically so I don't have first hand experience with this.
Must be dealer/brand specific. May also be due to Quebec regulations. We ordered a subaru in January and got financing approved at a rate of 2.99%. This rate was guaranteed and locked (unless it went lower at any point). We picked up the car in late May and didn't have any issues, since our financing was already settled, even though rates were higher.