Few topics in the car world have as many misconceptions as that of car financing. Due to the fact that various misconceptions that are currently out there, this issue generates some confusion. Let's take a look at some of the more common frequently asked questions regarding car financing.
Question: I have heard that those with bad credit history issues can forget getting a car loan. Is that true?
Answer: This is not true. Some car dealers specialize in providing drivers with credit issues car loans. In fact, it might even be possible to get a zero money down car loan.
Question: Are zero money down car loans a myth? Recently, someone I know said that they were.
Answer: Zero money down car loan options most certainly do exist, and they happen every day! The bottom line is that you will not know whether or not you can get a no money down loan until you visit your car dealer and find out.
Question: I don't have anyone to cosign for my car loan, can I still get a loan?
Answer: Yes, there are many car dealerships willing to give you a loan despite all sorts of credit related issues.
Question: I am currently self-employed, can I get a car loan?
Answer: Being self-employed isn't a factor in whether or not you will be approved for a car loan.
Question: I am rather nervous about what interest rate I will be charged, as I have some credit issues. What should I do?
Answer: The first step you should take is to not assume that you will be assessed a high interest rate. The interest rate that you pay depends largely on your credit score and a range of other factors.
Question: There are mistakes on my credit report that I know will cause me trouble when it comes time to get a car loan. Do you have any advice for me?
Answer: You should immediately get in contact with the different credit agencies and begin working to straight out your credit issues. Remember that mistakes on your credit report can last for years or even forever if you don't take proactive steps!
5 Car Financing Tips
- Do your research to find the best financing situation for your particular situation.
- If you are looking to spend less, consider a used car.
- Don't just settle on the first car financing offer that you receive.
- Take into account that many experts say that it makes the best financial sense to make the largest down payment that you can afford.
- Make sure that all fees and interest rates are clearly outlined on paper.