Auto loans can be tricky to navigate, especially if this is your first loan. Sometimes, myths can be confused with the facts, so we here at Drivers Lane want to make sure your questions are answered.
The Myths and the Truths
Here are some common misconceptions about auto loans:
Myth: I need good credit to get an car loan.
Truth: You don’t need perfect credit for an auto loan.
If your credit is less than perfect, have no fear. Special finance dealers have experience with credit-challenged borrowers and can work with poor credit and even bankruptcy. The biggest downside of subprime financing is it can be difficult to find these lenders.
Myth: No down payment is needed for a car loan.
Truth: Down payments are often required.
Depending on your lender and credit situation, a down payment may be a requirement in order to get approved. A down payment can help lower your monthly payments and save you money in interest charges. Putting money down shows the lender you’re serious about successfully completing your loan.
Myth: I need to own a home to get an auto loan.
Truth: You don’t have to own a home.
As long as you can show the lender proof of residency, there's no need to be a homeowner. When lenders look at your credit profile for an auto loan, your assets aren’t taken into account.
The Bottom Line
It’s easy to get caught up in myths about auto loans, especially if you’re dealing with bad credit. Not all dealers are involved with subprime financing, and that’s where Drivers Lane steps in to help.
We work with a nationwide network of special finance dealers, who have lenders available that are able work with people who have no credit, low credit, bankruptcy, or even repossession. Taking the first step is easy; just simply fill out our online auto loan request form today.
