Car Loans Myths You May Believe

If you’re about to purchase a vehicle, it can feel like everyone you know has a theory about car buying. Unfortunately, many of these ideas are based on myths that keep people from getting the car they need.

We believe in being transparent and honest, so we think it’s high time to bust the most common car loan myths.

Myth: I Can’t Get a Loan with Bad Credit

Have you ever had someone tell you that you may have to lease because of your credit? Have you worried about applying for a car loan because your score is less than perfect? We are happy to tell you that car loans are available for people with bad credit.

Once upon a time, this myth was true. A few big banks used to control this market and could tightly control who could own a car. However, recent advancements have made car buying possible for many more people. Don’t let your credit score stop you.

Myth: Loans are Only for New Cars

Many people mistakenly believe that you can only finance a new car. However, we can finance both used and new cars. As a dealer, we can offer several financing options for the vehicles we sell. Don’t get sucked into this myth.

Myth: Your Own Financing is Better Than Any Dealer’s

For people with the DIY spirit, finding your funding and skipping the dealer may seem like a great deal. However, you could miss out on some great options. Even the best credit unions may not be able to match some of our deals. We encourage you to ask questions and see for yourself.

Myths: Car Loans are Expensive

This falsity is another myth that used to be true. Back when there were only a few major lenders, you could pay a lot in fees and interest. However, now that lenders compete for your business, financing can be relatively inexpensive.

Purchasing your next vehicle can be confusing, especially with so many myths around. We work hard to dispel these myths and give you the truth you need to make the right decision.

Scoring A Car Loan Despite Having Bad Credit

Having bad credit does not eliminate your chances of getting a car. We can work with you to seek out alternative financing options such as taking out a line of credit on your home if you have built up significant equity. Our financial advisors will work with you and take your personal situation into account to find the best and fastest way to get your car paid off. We understand that having bad credit does not mean you will not be able to pay back your loans.

Here to Help

Actually, there are multiple car buyers without great credit scores who are getting cars and living their lives behind the wheel thanks to financing we have helped them obtain. Every car shipper has a different approach and different needs or wants when it comes to finding the right loan for them. Fortunately, we can alleviate some of your stress by proving expertise advance on bad credit card loans and how to obtain them.

Understanding Loans

We can offer you education and information regarding how loans work and what to be aware of. Your time and money is valuable and we pride ourselves in finding your amazing interest rates and loan terms. Keep in mind a shorter loan period often requires higher payments, but your car is paid off quicker. A longer term, alternatively, reduces your monthly payment.

Lenders Consider Other Factors

Your credit score is not the sole factor in determining whether you are eligible for a loan. We work directly with lenders to ensure you are getting the right financing at competitive rates. Bad credit car loans are possible thanks to our trustworthy relationships and are ability to find creative ways such as rounding up your payments to get your car paid off in a timely manner.

We know it can be frustrating to apply for loans when you have bad credit, but we are here to offer financial assistance. It is possible to obtain financing regardless of your credit score. We have the tips and tricks to share with you and known other factors lenders consider when evaluating borrowers.

How to Get a Great Car Loan

If you are like most, you love the idea of driving a shiny, new car. Buying one can be exciting, but be careful not to get stuck with a bad car loan. Car loans come in many different forms, each with a wide variety of terms. Here are some suggestions for getting the best possible terms.

Know Your Credit

Before you go to the dealership, do some homework. Specifically, research your credit score and history. The big credit bureaus can give you a copy of your credit report. If you understand you credit worthiness, you will be in a better place to negotiate great car loan terms.

Determine a budget

Knowing how much you can afford to spend on your car each month will help you find a car loan that is realistic for you. Remember, though, that the cost of your car is more than just your payment. Don’t forget to factor in insurance, maintenance, gas, and other vehicle-related expenses. Once you know how much you can afford to pay every month, you can use a car loans calculator to determine the total price range of cars you can afford.

Shop Around

When you are ready to buy a new car, consider shopping several dealerships to find the best deal and loan terms. Not every automobile dealer will be able to sell you a car at the same price with the same terms. Remember, if you spend even a thousand dollars less for your car, you will save a tremendous amount in interest over the life of your loan.

Get Financing

You have several options for securing an automobile loan. Banks, credit unions, and financing companies all lend to car buyers. You might find, though, that financing through the dealership is the best option.

When you are ready to buy a car, you should try your best to get the best financing terms. By following a few suggestions, you will receive a great deal when shopping for car loans.

Tips for Getting an Auto Loan With Bad Credit

Bad credit car loans are available to those who have had some financial woes in the past, but are ready to improve their score. The key is knowing how to increase your chances of qualifying for a loan that has decent terms even though your credit might make finance departments a bit nervous.


Come Into the Dealership Prepared


When you are going to apply for financing at a dealership, there is some general information and documentation they need to ensure that you can be evaluated for a vehicle loan. You want to bring recent paystubs, your driver’s license, a utility bill and personal references. It is ideal that your paystubs show your year-to-date income so that they can better assess how much you earn monthly. With your references, at least one from an employer is helpful too.


Know Your Budget and Adjust Your Expectations


You should have a rough estimate concerning your budget when you walk into the dealership. Once you start working with the finance department, you might need to adjust your expectations based on the options they can offer you.


Prepare for a Larger Down Payment


Think of a larger down payment as a show of good faith. You are essentially telling the dealership that you are ready to drive off the lot today and that you know that your credit is not great, so you are giving them more upfront. This can be beneficial in helping you to get better financing options through them. To determine the best down payment, consider putting down 25 percent of the vehicle cost. For example, if you are planning to buy a vehicle that costs $10,000, bring at least $2,500 for a down payment.


You want to be upfront with the finance department about your credit history from the beginning. This saves time for all parties involved because they will be able to better focus their efforts on the options that you may qualify for.

What First-Time Buyers Should Know About Car Loans

Buying your first car is a thrilling if overwhelming, experience. There’s something so satisfying about making that investment for the first time. However, if you’re not prepared, financing your ride can be terrifying.


We believe in providing an exceptional car-buying experience. This experience should be exciting, not stressful. So, here are a few things you should know about car loans before buying your first car.


Total Loan Amount


When you discuss financing, you may hear about your total amount. This may sound complicated, but it’s just the price you negotiated for the car, plus any taxes and fees, minus your down-payment.




Don’t be confused by the term; the total loan amount isn’t the amount you will pay over the length of your loan. Car loans typically include interest, which is the percentage you pay to the lender for the service.


In the auto industry, you may see this rate referred to as “APR.” The lower the APR, the less you will pay over the life of the loan.


Monthly Payments


If you’re mostly concerned about your monthly budget, pay attention to your monthly payment. This will be your total loan amount plus your total interest, divided by the number of months on your loan.


Loan lengths can vary widely. You can get short, one-year loans or up to 84-month plans. The longer the loan, the less you will pay each month. However, you will be paying longer. We will work with you to find a loan that makes sense for your budget.


Know Your Credit Score


You may be able to receive financing no matter what your score is. However, your score may affect what type of financing you receive. For example, low credit may mean a higher interest rate. On the other side, if you have great credit, you may qualify for special financing options.


Don’t get overwhelmed by the terms surrounding car loans. Our financing professionals are here to help you understand and enjoy your first car-buying experience.