Car Finance Myths

Learning to drive and having your very own car is something nearly everyone aspires to. Being able to drive opens up a world of opportunity, allowing you to take up your dream job without having to move to a new house or get three connecting buses that can cost you in both money and time. With this being the case, why is it that so many people don’t drive? The likely answer is that many people, perhaps yourself included, have fallen for some of the myths surrounding car finance and have been put off making the investment in your future because of the misinformation you have taken as gospel.

In this article, these myths will be dispelled, and you will learn that learning to drive and owning your own car doesn’t have to be a pipe dream anymore.

To dispel the myths around car finance, you need to make sure you understand the essentials of car finance, otherwise you won’t know what exactly needs to be clarified. So, let’s go through some myths.

Paying it back

One myth is that car finance can only be paid off in the time you agreed, but this is false. You can actually pay the finance off within any period of your loan and even, if you’re saving astutely, earlier than planned. To pay it off early, you will need to make sure there aren’t any fees attached so you don’t get stung, but this should all be explained to you by the provider.

Sorting out the deposit

Another myth is that you can only qualify for car finance if you are able to put down a deposit and already have a brilliant credit score, which is entirely untrue. Car finance is there to help people onto the roads, not keep them off, so you will be able to find providers that don’t require a deposit and that are designed to help drivers who don’t have a great credit score, such as young people. There are also numerous ways to save money for your car deposit.

Effecting your credit score

A third myth about car finance is that if you get it, then it will negatively impact your credit rating. This particular myth is interesting because it is actually the exact opposite which is true. Having car finance can actually improve your credit score. The key to getting this benefit is making sure that you understand your arrangement with a reputable car finance company and are able to afford the monthly repayments. By showing you are reliable, you can actually use your financed car to build your credit score up.

Investing in a car is easy when you have some help from a car financier who can walk you through the process so you can begin enjoying the freedom of driving as soon as possible.

More people than ever are choosing to finance their cars and it could just be a great choice for you too and, perhaps, the best thing you will do all year.