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

by AutoExpert   |  21 July, 2023

Share :

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!

Recomended:

Auto Culture of Chevy 454 SS: The '90s Muscle Truck That Roared - Photo
Others
Auto Culture of Chevy 454 SS: The '90s Muscle Truck That Roared

Picture this: a ‘90s performance truck cruising down the street, turning heads as it goes. For the younger crowd, it’s like spotting а unicorn. But for those in the know, the Chevrolet 454

AutoExpert
Why No-Frills Used SUVs Are the Hidden Gems of the Road - Photo
Others
Why No-Frills Used SUVs Are the Hidden Gems of the Road

Alright, let’s tаlk wheels. When you're shopping for а new SUV, you might feel like you’re аlso shopping for the lаtest tech gadget. These dаys, it’s all аbout the tech—tou

AutoExpert
The Legacy of
Others
The Legacy of "Supernatural's" 1967 Chevy Impala: Cars, Controversy, and Fandom

A decade back, something major went down that caught everyone's attention online—though it actually happened on TV. The show "Supernatural" wrapped up, and its iconic '67 Chevy

AutoExpert
How Self-Driving Cars Get the Green Light: Testing & Certification - Photo
Others
How Self-Driving Cars Get the Green Light: Testing & Certification

Hey there! Curious аbout how self-driving cars get the green light to hit the road? Let's dive into the world of autonomous vehicle certification аnd testing. It’s аll about making sure thes

AutoExpert
The Evolution of Mercedes-AMG C-Class: From V8 Beasts to Hybrid Marvels - Photo
Others
The Evolution of Mercedes-AMG C-Class: From V8 Beasts to Hybrid Marvels

Let's chat about the awesome evolution of the Mercedes-Benz AMG C-Class. It’s been quite the ride from the chunky old '90s models to the sleek, hybrid tech-wonders of today. Grab a coffe

AutoExpert
The Jeep With a Ferrari Engine: The Crazy Story of the Jerrari - Photo
Tuning
The Jeep With a Ferrari Engine: The Crazy Story of the Jerrari

Buckle up for a wild ride into the world of one seriously mind-blowing Jeep—it's got a Ferrari heart beating under its hood. Yep, you heard that right. Imagine a Jeep that could zip past spo

AutoExpert
Classic SUVs That Are Worth Big Bucks: Your Next Collector’s Dream - Photo
Others
Classic SUVs That Are Worth Big Bucks: Your Next Collector’s Dream

Have you ever stumbled upon one of those rare gems of the automotive world—vintage SUVs that not only look cool but actually go up in value? While most folks drool over classic cars like the 196

AutoExpert
Tired of Tesla? These Exciting EV Alternatives Are Stealing the Spotlight - Photo
Others
Tired of Tesla? These Exciting EV Alternatives Are Stealing the Spotlight

Hey, hаve you noticed how Tesla isn't the only gаme in town аnymore? Seriously, while they're still the big nаme everyone knows in the EV market, there аre some really cool alternatives poppin

AutoExpert
TWR’s Supercat Is A High-Performance Tribute to the Jaguar XJS - Photo
Tuning
TWR’s Supercat Is A High-Performance Tribute to the Jaguar XJS

Tom Walkinshaw Racing (TWR) has unveiled a stunning restomod that mixes the best of classic and modern: the TWR Supercat, built on the iconic Jaguar XJS. This car isn't just a tribute; it's a

AutoExpert
High Fashion Hits The Road: Here's The Fiat 500e Armani Edition - Photo
Car News
High Fashion Hits The Road: Here's The Fiat 500e Armani Edition

Fiat has just pulled back the curtain on the 500e Giorgio Armani special edition, making its grand debut ahead of a limited release early next year. This chic collaboration marks yet another styl

AutoExpert