Acton Car Loans - 5 Common Myths Busted!

Acton Car Loans - 5 Common Myths Busted!

Posted on July 28, 2021

We like these types of blog post. Those where we collect some common myths about Acton car loans and and put them to rest for good. It takes a little time to collect them but when we do, it results in posts like this.

Our Acton car loans team has provided these simple, factual explanations debunking common car loan myths we hear frequently from our customers.

1.   The rate you’re offered is the rate you’ll pay

Not true. Many customers will get pre-approved for a car loan and accept the interest rate they are offered. Whether it’s the heat of the moment, excitement at getting a new car or something else, fewer people than we would like negotiate their interest rate.

The loan offer you’re presented with at the dealership is just that. An offer. It is just as negotiable as the sticker price of the car or the value of your trade in.

2.   It’s all about the monthly payment

Not true. While the monthly payment will help you decide whether a car loan is affordable or not, it’s only one part of a car loan.

You should also make sure you recognize the price you’re paying for the car, the price you’re accepting for your trade in and the total cost of the loan over the term.

Each of these are critical in understanding whether you got a good deal or not. There’s no point thinking you got a good deal if the monthly payments are affordable if you’re overpaying for the car or accepting a low offer for your trade in.

3.   Dealers are only interested in trade ins

Not true. You can sell your car to a dealership whether you’re buying a car from them or not. The used car market is strong and getting stronger so there is always a need for good quality used cars.

A dealership will very likely buy your car whether you’re buying a new one or offloading another.

4.   If you’re approved for a car loan, you can obviously afford it

Not true. A lender does perform an affordability check during an application but that only takes into account the facts they have to hand.

It won’t take into account running costs, gas, extra expenses you didn’t declare, changes in circumstance, fluctuations in work or income and the myriad of other things that can influence whether a car loan is genuinely affordable or not.

5.   The lower the down payment, the better

Not true. While putting less money down means keeping more for yourself, it also increases the amount you’ll borrow and the potential for going upside when buying new.

A down payment may also reduce the chances of you being accepted for the loan.

Higher down payments are almost always better unless they empty your savings. You should always keep an amount in savings for emergencies but the rest is fair game.

Contact Unique Chrysler for help, advice and competitive Acton car finance and leasing.

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