You can easily find different types of facts about car finance by searching online. These are enough to confuse your brain. As a result, you refrain from taking this financing option.
The prime concern while purchasing a car is the money you have to spend. It does not matter if it is a necessity or a luxury for you. Without money, you cannot even buy luxury.
Car finance is not a complicated subject as it may seem. You need to be aware of a few things before you go ahead with this financing alternative.
You should figure out your requirements first and might need to finance your vehicle. But you lack good credit scores. In this case, car finance bad credit in Ireland is your perfect match.
Oftentimes, it is tricky to decide the type of financing option one should opt for. Having a query is natural.
But, for clarity you must enquire a few things so that decision making is easy. Once you get in the process, you can unveil myths. Some of the misconceptions need your common sense to be busted.
This blog has addressed some of the prevailing myths. You can read through it to understand if they are wrong or right.
Check out Some of the Common Misconceptions related to Car Finance
- You cannot get Car Finance with Low Scores
It is not true, as you are also eligible to get car finance with less than perfect credit scores. Since you don’t carry a sparkling credit history, interest rates will remain high in your case. But you can keep the payment manageable.
Firstly, make sure to save a considerable amount for the deposit. Secondly, think of getting an inexpensive car to afford the overall cost. This will let you opt for a small loan option.
You can choose a personal contract purchase. If this is not viable for you, then go for hire purchase. These two options are available even when your credit scores are not good.
- Don’t Borrow Money as Car Finance to Purchase a Car
It is feasible to get a car with your savings. But car finance has some additional benefits despite a few drawbacks. An interesting fact is that people usually buy new cars through car finance.
Your savings can buy you a debt-free life. However, you will miss out on the extra perks that you can avail yourself of only with the financing option.
- Go for Lower Monthly Payments with Car Finance
A specific term is fixed for payments. You have to stick to it. Your finance options will decide if you should get payments spread over a few years.
You can choose to borrow money with lower monthly payments. But this means you will have to drag payment for long. Moreover, this will cost you more interest.
You can calculate to find it out on your own. It is so easy to bust this myth. You don’t need any strong facts.
Your calculation skills are enough to debunk the myth that says lower monthly payments are convenient.
- It is ideal for Getting Car Finance through a Dealership
You should not depend on one option only. Weigh your options thoroughly before you take any decision. A dealer will work based on the commission that the finance company offers them.
Don’t overlook this point. Without comparing, you may pass over attractive offers, discounts etc. You cannot get flexible offers when you finance from a car manufacturer.
The same goes with cash also. If you wish to avail of these benefits, draw a comparison first. After that, you must confirm your choice.
- Comparing different Car Financing options can Damage your Scores
In most cases, the finance provider runs a soft check to validate the eligibility. This can tell you about the approval chances. But once you apply, your scores will undergo hard checks.
For this reason, you must avoid opting for multiple car financing options at the same time. The full application for all these options will require hard credit checks. These are not going to be favourable for your credit profile.
Multiple checks done within a gap of few days are harmful for your credit scores. Keep these aspects in mind while you shop around for the best offers.
- Paying off Early is not possible in the case of Car Finance
You are free to pay back the due amount at any time during the span of the agreement. This might require you to pay additional fees for pre-payment. It is essential to make sure about this by going through the agreement before signing it.
- Car finance can slow down the Process of Getting a Car
You can choose traditional dealer for car finance. In the traditional process, the finance providers or car dealers would require personal details in written format. This is a time taking process.
Furthermore, dealers search for offers manually. This again eats away some time. You will have a different experience when you go ahead online.
Every step completes in a matter of a few minutes. Getting a quote online is easy and takes much less time.
Above all, you can finish the online steps for the car finance application from the comfort of your home.
- Deposit in Order to Fetch Car Finance
It is not true in the case of all finance providers. There is a difference of opinion on this matter. You can discuss this with your provider.
Finance providers might demand a deposit. But this has to have some valid reasons behind it. The possible reason behind asking for a deposit is to make sure the borrower acts responsibly.
You must handle borrowing sensibly, or it can hurt your future. This can even destroy future financial opportunities for you.
The provider cannot just ask you to make a deposit. They should give a valid explanation. They should also provide you with options so that you can choose as per convenience.
- Compare Interest Rates of Car Finance only
While comparing, you focus on the interest rates. Car dealers tend to extend the length by lowering the monthly payment. If you evaluate, you can find out that an extended term is not good for you.
Final Words
Sometimes it is hard to believe some facts. You cannot relate to it based on your common sense and know-how. Possess this same attitude while you search for car finance.
It is because the car finance world is also full of myths. Some misconceptions are like bad creditors are not eligible to get loans when the reverse is possible. They can indeed access legit loans for bad credit in Ireland. You can see some popular myths getting busted in this blog. Be patient to read between the lines to point out the prevailing misconceptions.
Hudson is a graduate of banking and finance and works as a financial consultant at MyLoansBoat. He has a professional qualification to counsel people about money management. At MyLoansBoat, his key duties include shortlisting applications of borrowers and counseling them about credit score improvement, building an emergency cushion, retirement funds, and getting rid of debt. He is an ardent reader of finance books and uses the gained knowledge to help people with their finances. He also writes for the company’s blog on various topics like budgeting, investing, saving, debt management, joint finances, and the like. His aim is to dedicate his life to helping people have a debt-free life.
