Keeping up with the financing portion of the automotive industry isn’t something many people do as a hobby. It is, however, something all drivers should strive to increase their knowledge on before they head to the dealership to buy a car. Check out these common financing myths so you aren’t caught by surprise!
Myth: Dealerships tend to offer special incentives that are basically the same as paying cash.
Reality: While this is good in theory, the problem becomes quite clear once the promotional period for the special incentive ends. More often than not, the interest rates on such financing offers are higher than if you had paid cash to begin with.
The promotional period often plays up the fact that you won’t pay any interest on the loan. What happens after the promotional period ends often catches many buyers by surprise. Once the annual percentage interest rate kicks in, the total amount owed tends to rise significantly. That can be a huge setback to many drivers on a budget.
Make sure to read the financing terms carefully to avoid any unfortunate surprises.
Myth: Shopping around for the best loan isn’t worth the time.
Reality: Just like shopping around to find the best price on a car, shopping around for the best loan is well worth the time. Even the slightest difference in interest rates can lead to thousands in savings over the course of the loan contract. On top of that, different financing institutions have different programs, special offers, and other deals that may appeal to the right buyer.
Finding the right deal, however, can be time consuming and could require a hefty amount of applications.
Fortunately, the financing department at Pollard Used Cars of Lubbock keeps up with the current deals and offerings by financial institutions. The financial experts will go above and beyond to get you the best deal around and ensure you leave the lot with a smile.