Busting Car Finance Myths
Myth #1: The only place to get car financing is at the dealership.
You'll find great car finance deals outside of the showroom, despite the fact that dealerships across the nation will make an effort to entice you with eye-catching displays and seductive offers.
Before leaving your house, you can acquire a quote for car financing without harming your credit score from reliable lenders or car finance brokers like CF2U.
Myth #2: Only brand-new cars are eligible for auto financing.
Wrong! The beauty of car financing is that there are a variety of options available. There are several choices that will allow you to buy a new, almost new, or used vehicle, although some types of financing, like leasing, are only accessible for the purchase of new cars. There is a financial solution for everyone, even if they need a bad credit car loan, and we can help you with that.
Myth #3: A car loan equals a bad credit rating
The entire purpose of car finance is to enable the customer to purchase the ideal vehicle for their needs without delay or financial constraints. Therefore, having a car finance agreement by itself won't result in a poor credit rating. Making your payments on time will really demonstrate to potential lenders that you are a "low credit risk" borrower.
However, lenders will see that you are a larger risk if you don't make your repayments on time. Therefore, we’ll help you to pick a deal that is inexpensive and won't leave you insolvent at the end of each month. Ultimately, it's important to make your payments on time.
Myth #4: Customers with a low credit score are not eligible for car finance.
Car financing is available regardless of your credit history, although having good credit will provide you access to lower interest rates and a wider variety of loan options.
You might have had trouble making payments on time in the past, you might be self-employed, or you might have previously experienced bankruptcy. To provide you the finest vehicle finance deal, we work with lenders who will consider your unique situation.
Myth #5: You’ll have to put down a deposit for a car loan
Most car finance agreements typically call for a down payment (about 10% for a regular loan). This reduces your monthly fees and demonstrates to your provider that you are serious about your agreement.
It's not always that simple, though. In many cases we are able to provide customised packages, some of which won't require a deposit.
Myth #6: Getting pre approved will take time
Back in the day, when loans typically came solely from the bank or a traditional finance provider, you would have to wait weeks, sometimes months for a finance application to be approved. But those days are long gone. Nowadays we can get you pre approved for your car loan within an hour.
Myth #7: One Car loan is the maximum you can get
There is no rule within the world of car financing that says you can't have more than one finance deal at a time. However, this isn't a situation to take lightly. You need to be financially secure and able to afford the monthly repayments even to be considered for one finance package, let alone two!