Busting Myths About Financing a Used Car

Sometimes we are amazed by the myths and misconceptions visitors to our Long Island used car dealership have about car loans. The reality is that securing a loan to buy a vehicle isn’t as tough as many people imagine. The truth is that the better used car dealerships can usually get you pre-approved for a car loan before you even get to the used car lot. 

This Major World article blows holes in the biggest myths we hear about buying and financing a used car or truck. 

Myth 1: You Need Perfect Credit to Get a Used Car Loan

Obviously, having a good credit score can help you secure better loan terms, like a lower down payment or interest rates. But—you don’t have to have anything near perfect credit to get a car loan. If you did, we’d hardly sell any vehicles at all. 

Our lenders understand that people are under financial stress now and that people also make mistakes. Don’t assume you can’t get financed for a used vehicle loan. Instead, think positively. You can even pre-qualify yourself for an auto loan right here with NO effect on your credit score. 

Myth 2: Dealership Financing is More Expensive

Nope. Dealerships like Major World have relationships with multiple lenders, which lets us offer competitive used car loan rates that you wouldn’t otherwise have access to. Larger used car dealerships like ours have special promotions or incentives that can make financing options more attractive. That said, if you belong to a great credit union or something, there’s no harm in seeing if they can do even better for you. 

Myth 3: You Have to Make a Big Down Payment on a Used Car

The size of your down payment depends on several factors. The cost of the vehicle and your credit score are two. But the size of your payment can also play a part. So can your trade-in vehicle. A bigger down payment can get you to lower monthly payments. It can also lower the interest you pay over time —- but it’s not always necessary and sometimes it’s better to leave that money in the bank for other things. At Major World, we’ll always take the time to work with you to craft a payment plan that makes sense and gets you into the vehicle you want comfortably. 

Myth 4: Financing a Used Car is Harder Than Financing a New Car

We’re not sure where this myth even came from, but financing a used car is generally similar to financing a new car. The main difference is that used car loans sometimes have slightly higher interest rates due to the vehicle’s depreciation. But we use first-class lenders that offer competitive rates for used car financing, and the process is typically straightforward. 

Myth 5: You Can’t Negotiate Financing Terms

Just like the price of the car, financing terms can be negotiable. Talk to us. If you need a lower monthly payment, tell your salesperson! If you want a lower down payment, let us know. Don’t be shy about telling us what you need and what you can afford. We want satisfied customers! You can negotiate the interest rate, loan term, and other aspects of the loan with us. Here’s a page from the federal Consumer Financial Protection Bureau that defines the key terms used in auto loan paperwork to help you get even more up to speed. 

Myth 6: Pre-Approval is Not Necessary

Ok, it’s not required, but there’s no good reason at all not to seek pre-approval for your used car loan. It doesn’t ding your credit and it will save you time once you get to Major World. There’s literally no downside. Getting pre-approved for a car loan can help you better understand your budget so you know what you’re working with before you even get to our used car dealership in Queens. 

Myth 7: The Lowest Monthly Payment is Always the Best Option

Everyone wants a low car payment, of course. But you should try to balance things out a bit. If you can afford even an extra $25-50 a month, that could lower the downpayment you need upfront. It could also save you a little money in the long run because you’ll pay less interest if you pay your vehicle off sooner. Think about the total cost of the loan, including interest, when evaluating financing options.

Major World: Where Long Island Shops for Used Cars

Our number one goal here at Major World is satisfied customers. We hope this little breakdown of some of the myths about used car financing will help you make the best decision for you. 

Browse our inventory of used SUVs right here on our online search portal, or skip to the chase and come on down, and we’ll hand you the keys for a test drive. You can pre-qualify yourself right now to save time, and it won’t hurt your credit.  Our no-nonsense financing process is the best in the business. 

Don’t settle for less than the best used car dealership in New York. 

You deserve the Major World standard of customer care. Call now: (866) 614-2884.