When you decide to buy a used car, there are many decisions you will have to make. However, some of the most important are those related to how you plan to finance a vehicle. Before you start to browse used cars, however, there are several car-buying myths we would like to warn you about that might seriously affect your financial future.
At first glance, it might seem that choosing the lowest payment choice possible will give you greater financial flexibility when it comes to buying a used car. However, if you have an average-to-fair credit score, lower payments usually come with a long-term loan. These loans can last up to five years, which means you may eventually end up paying more as interest mounts up.
This is one of the most common myths surrounding the used car market, but in truth, there are several advantages to financing with a dealership. If you have poor credit, in-house financing can help you secure a loan you may not be able to get from a larger financial institution. This type of financing can make paying for your vehicle more convenient as well because you pay the dealership directly.
There may be times when you need a quality used vehicle right away and do not have time to come up with a down payment. However, if it is all possible, having some kind of down payment in hand when you start shopping is usually better for your financial bottom line. A solid down payment can increase your payment options, the choice of cars open to you and may result in lower payments overall.
Venturing into the world of used cars can be challenging as a buyer. However, being aware of some common buying myths can help you make decisions confidently the next time you are ready to invest in a quality used car.