The unseen is great fuel for the imagination. We tend to fill in the blanks by adding our own personal views to the little information we already have. When it comes to auto financing, we are doing ourselves a disservice by making decisions based on limited or incorrect information.
In today’s edition of Myth Busting, we have some interesting facts that will change the way you look at auto financing with any credit.
6 Car Financing Myths
Myth:
Fact:
Fact:
The sales rep is lying when he needs to “talk to his manager”.
There are certain things that just won’t fly in the eyes of lenders or their manager, and they need to get approval for anything out of the ordinary.
There are certain things that just won’t fly in the eyes of lenders or their manager, and they need to get approval for anything out of the ordinary.
Myth:
Fact:
Fact:
You can only get approved if you have great credit.
Truth is, most people give up after the first try and stop looking. Places like Auto Credit Express have a nationwide network of dealers that can help people with damaged credit.
Truth is, most people give up after the first try and stop looking. Places like Auto Credit Express have a nationwide network of dealers that can help people with damaged credit.
Myth:
Fact:
Fact:
You have to finance through the dealership to get approved.
Getting interest rate quotes from outside lenders like banks and credit unions can help you bargain with the dealership on the interest rate; if they can’t beat or match the best rate, you can use it.
Getting interest rate quotes from outside lenders like banks and credit unions can help you bargain with the dealership on the interest rate; if they can’t beat or match the best rate, you can use it.
Myth:
Fact:
Fact:
Longer loans (48-60 months) can save you money.
A longer loan term may reduce your monthly payments, but you end up paying for a longer period and end up owing more in interest than the car is worth.
A longer loan term may reduce your monthly payments, but you end up paying for a longer period and end up owing more in interest than the car is worth.
Myth:
Fact:
Fact:
You must own a home before you can qualify for an auto loan.
An auto loan is actually pretty easy to get compared to a home loan. It is based on your credit score, income, and financial background; not on larger assets you have.
An auto loan is actually pretty easy to get compared to a home loan. It is based on your credit score, income, and financial background; not on larger assets you have.
Myth:
Fact:
Fact:
I need to have my job for years in order to be approved for a subprime loan.
A job history of 6 months or more is satisfactory. Lenders simply want to see if you are responsible.
A job history of 6 months or more is satisfactory. Lenders simply want to see if you are responsible.
Learning More Credit Financing Facts
At Auto Credit Express we don’t believe in myths - we only believe in facts. And the fact is that we will do everything we can to help you. And the more you know the more power you have when it comes to making the right decision when buying a car. Squash the myth with the power of knowledge!
