Truth or Dare: Let’s Burst Some Car Financing Myths for 2023

by AutoExpert   |  21 July, 2023

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Hello, all you car enthusiasts and savvy spenders out there! Today, we're throwing ourselves headlong into the whirlpool of car financing. Now, we know it's often as clear as mud with all the myths flying around. But don't sweat it; we're here to bust these myths wide open and pave the road to the truth. Ready? Let's bust some of the most prevalent car financing myths of 2023 wide open!

Myth 1: You Need a Flawless Credit Score

Reality Check: Look, we'd all love a gleaming credit score, right? But if yours is more 'meh' than 'marvellous', don't lose heart. Lenders aren't just looking at your credit score. They also check out other stuff, like your income and how much debt you already have. So, imperfect credit score? Don't panic. There are still options.

Car Financing

Myth 2: The Cheaper the Monthly Payment, the Sweeter the Deal

Reality Check: Sure, a small monthly payment might look appealing. But don't let it fool you. It could mean a longer loan term and more interest over time. So, remember, it's not just about what you pay each month. Consider the total cost of the loan too.

Myth 3: You Must Finance Through a Dealer

Reality Check: Dealerships? They're just one of the kids on the block. You've also got credit unions, banks, and online lenders who might give you a sweeter deal. Don't limit your horizons to just dealerships. Shop around!

Myth 4: Refinancing a Car Loan Is Impossible

Reality Check: You've heard of refinancing a mortgage, right? Well, you can do the same with car loans! If interest rates take a tumble or if your credit score takes a hike, refinancing could save you some serious cash.

Car Financing

Myth 5: Used Cars = Cheaper Financing

Reality Check: Yes, used cars often come with a lower price tag. But financing one isn't always cheaper. Used car loans sometimes come with higher interest rates. That can balance out any savings from the lower purchase price.

Myth 6: Pre-Approval Will Damage Your Credit Score

Reality Check: Many folks fear that getting pre-approved for a car loan will hurt their credit score. Yes, a hard credit inquiry can nick your credit score. But it's usually a minor wound that heals quickly.

Car financing doesn't have to be a head-scratcher. By debunking these myths, you can cruise through the process and snag the best deal. Ready to rev your engine for 2023? Let's roll!

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