Ask a Buerkle Hyundai Expert: Auto Financing FAQs
Financing a car can seem like an intimidating process, whether you're a first-time car buyer or seasoned driver. That's why the Buerkle Hyundai finance team strives to make the process as simple, straightforward and seamless as possible, so you can feel confident throughout your car-buying experience.
Jacob Dorner and Meghann Welch are two of our expert Finance & Insurance Managers who specialize in helping drivers get approved for a car loan that they're happy with. They're used to answering questions about everything from auto loan rates to refinancing and more, and they've compiled some of the most common queries they hear into a helpful list of car financing frequently asked questions to help you out ahead of your visit!
Take a look at our informative auto loan and car-buying FAQs below, then head to our Hyundai dealership in St. Paul to get things started.
Car Financing FAQ
01What are the current interest rates to buy a car?
This is a very complicated question to give an accurate answer to. Interest rates vary based on the credit of the borrower, whether the vehicle is new or used, the amount of miles on the vehicle, the term of the loan, and the loan to value percentage.
With all those factors considered, we also have some promotional rates available that are lower than the market average as well. Our rates currently start around 5% and go up from there depending on the variables listed above. If you’re looking for custom financing options, our online takes minutes, saves time, is secure and simple, and is customized based on your information
02How do I get a good car loan interest rate?
The first step is having a good credit history. People with great credit get great car interest rates based on the current market. You can also get a lower loan rate by taking out shorter term loans, or by putting additional money or trade equity down.
03How much of a down payment do I need to finance a car?
Many lenders have options for $0 down, depending on the specifics of the loan you are looking for.
04Does my credit score impact my auto loan rate?
Absolutely, this is the single largest factor in determining your interest rate.
05I have a low credit score -- can I still finance a car?
Yes, we have many lenders that work with all kinds of credit, whether you have had a bankruptcy, foreclosure, judgement or repossession. Whatever your situation might be, we likely have some options.
06I don’t have a credit history yet -- can I still finance a car?
Yes, however some lenders may require a down payment for a first-time car buyer or a qualified co-signer on your first loan. We work with some lenders that have first-time buyer programs as well. We also recommend getting pre-approved before selecting a vehicle, as the lenders can be a little more particular about what vehicles they will finance for a first-time car buyer.
07Can you offer a better interest rate than my pre-approved rate?
We can often beat most banks' pre-approval programs. We lend out millions of dollars every month through our lenders, giving us some buying power that most consumers can’t compete with on their own. It doesn’t cost anything to compare your pre-approval with what our lenders can do.
08What is the benefit of financing a car through a dealership vs. a local lender or credit union?
Financing through the dealership gives a level of convenience you can’t get at your local bank or credit union. We do most financing on the spot and can sometimes even finish the transaction in under an hour, so you don’t need to make multiple stops to complete paperwork and the transaction.
We offer financing with most of the local banks and credit unions here to provide our customers with a level of familiarity with their preferred lender and can still provide the same rate. Financing through us can save you time and make the entire experience more convenient.
09What does the dealership do with my credit information?
The dealership has many different safeguards in place to protect your private, non-public information against identity theft. We have made significant investments in our software to keep that information private and only a few select employees who have completed a rigorous annual compliance training have access to that information.
Car Buying FAQs
01What additional costs will I be responsible for when buying a new car?
In addition to the price of the vehicle, you will be responsible for sales tax, which is 6.5% of the sales price (minus trade value if applicable) for MN residents, plus state title and registration fees. Minnesota dealers charge a $125 documentation fee across the board.
02How can I find the value of my trade-in?
There are a lot of tools to find your car's trade-in value, including on our website. The more accurate the information you enter into our online tools, the more accurate the end number is. It’s always best to confirm the number afterwards with one of our sales consultants, as sometimes increases in demand can make those vehicles worth more than our online quotes produce.
03What’s the best length for a car loan?
Our average loan terms are between 60-72 months, however we have lenders that will go up to 84 months for certain types of loans.
04Can I reduce my monthly car payments down the road?
You always have the ability to refinance your loan at any time during the loan, assuming that the refinance amount and credit is within the lender's guidelines at that time.
05Can I sell my car while I’m still paying it off?
Absolutely! Most customers trade or sell their vehicles prior to final payoff. The best part is we handle all of the complex paperwork associated with clearing the loan information.
06Can I end a lease early?
Yes, you can end them early. However, there may be some penalties to do so with some leases. This is a great question to bring up with one of our sales consultants, as there are quite a few variables that come into play in these scenarios.
07What do I do with my car after my lease is up?
You have three options -- you can lease another vehicle, turn it back in to the dealer/leasing company, or buy it out for the residual on your lease contract.
08Can I add a warranty when I buy a car?
Yes, we offer car warranties on almost every vehicle we sell to ensure that you can have many years of trouble-free driving without expensive out-of-pocket repairs.
09Should I finance or lease?
This depends on the type of driving you plan on doing with your vehicle. At the end of the day, they both offer a way to finance your vehicle, and each choice has its own pros and cons. Leasing gives a guaranteed value at the end of the lease and provides you with more options, but it does come with some mileage restrictions to fully qualify for all of those options.
The good news is, if you reach the end of your lease and wish you would have just financed it instead, you can do so easily with one of our business managers. All of your lease payments have gone toward lowering your buyout figure at the end of the lease.
10What is Easy Buy at Buerkle?
is our online buying portal. You can complete the entire transaction from the comfort of your home and have the vehicle delivered to your door. Or, if you prefer, you can do your shopping through a completely transparent process that gives you access to all of the information we have here at the dealership while at home, then come in-store to complete the process. You are in control of how much or how little you want to do from home or work 24/7/365.
11Does Buerkle Rewards affect my credit score?
Buerkle Rewards does not affect your credit score. It simply rewards our customers with our internal account to give 5% back on what you spend in service and reward repeat customers with purchase credits, PDR credits and complimentary oil changes.
