A Few of the Most Common Auto Loan Myths Finally Debunked

Posted on Jul 30 2018 - 8:14pm by Admin

A car key being passed between two menThe only way for most people to get a car is by taking out a loan to pay for it entirely. Based on an article posted on Consumer Reports, at least 56% of new vehicles and at least half of pre-owned vehicles purchased in the 2017’s third quarter were entirely financed with auto loans.

Although getting only the best auto loan rate in Utah is everyone’s goal, there are still a few misconceptions about it that may affect your decisions. Here are a few of the most common myths about car loans and how you can work your way around them:

You won’t be able to apply for a car loan with bad credit

Although it is somehow true, always remember that you can still rebuild your credit history in less than a year. All you need to do is to pay your bills on time and try your best to avoid credit inquiries. These things can only hurt your credit score and may even turn it for the worse.

You can easily afford any car as long as the lender approves me for a loan

It may be quite tempting to get the most expensive car, but doing so will only put you into more risk. You always have to be realistic when making decisions and see which vehicles will fit your monthly budget.

Every lender has the same rate

According to Bankrate, several people still commit the same mistake of going by the interest rate. Doing is often misleading since there are quite a few lenders who charge customers with additional fees. Get the actual cost of the loan to check certain items in the contract, such as origination fees.

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It’s always important to know what you’re getting yourself into, especially when it comes to loans. You may want to work with a financial service provider near your area to get the assistance you need when it comes to loan applications.