Auto loan myths debunked
Finally become a car owner and drive on singapore roads comes with a unique feeling of freedom and success.
However, many people rarely manage to make this dream come true because raising the thousands of dollars needed to buy cars is never easy. The next best alternative, using automobile financing, but it is marred by myriads of myths.
If you don’t have enough money to buy the car on your own, go for auto finance Singapore. In this article, we’ll debunk common myths about car loan in Singapore, and also demonstrate the best method of applying for car financing:
# 1: Your Car Loan Cannot Be Approved With Bad Credit
This is not true. When reviewing auto loan applications, lenders use the credit score of borrowers to determine their creditworthiness. If you have a bad credit score, that doesn’t mean you won’t get auto financing. On the contrary, the loan could be approved, but it will carry a higher interest rate.
So it would be a good idea to start with improve your credit score before applying for auto financing in Singapore. If you get the loan and the score improves dramatically over time, most lenders will allow you to apply. refinancing.
# 2: all auto lenders are the same
This is a mistake. Not all auto finance companies are the same. You might find a dealership with higher car prices, one that deals only with used cars, and one that only works with imported models. Auto lenders can be classified into two broad categories:
- Car dealer: In this case, you get the loan from a car dealership who takes care of all the paperwork and guarantees the loan from a bank on your behalf.
- Direct auto bank loans: Instead of going to a third-party dealership to get the car loan, this option is to work directly with the bank. The overall cost of the loan may be lower than that of a reseller because there is no third party.
# 3: a car is very expensive to maintain
Well, that’s a misconception. While it’s true that a car has its own set of expenses, such as insurance, the cost of gasoline, and maintenance, it’s how you see them that determines whether they’re worth it. For example, a person who takes a car loan for a business vehicle will get some income from the vehicle despite the expenses.
To avoid being overwhelmed by the cost of operating a car, it will be a good idea to think about its running costs and make adjustments to your budget. If you plan it right, every moment in the car will be worth celebrating.
Apply for car financing through Lendela
Now that we’ve debunked the myths, it’s time to come down and apply for car financing. The best way to do it is through Lendela, a lender comparison site designed to simplify the loan application process. Here are the main steps to follow when apply for a car loan via Lendela:
- Visit Lendela’s website to create an account and make a short request.
- Lendela will send the request to different lenders who will make offers.
- Review the offers and select the most preferred option.
- Make an appointment and sign the loan.
- Go in the car of your dreams. Congratulations!
As you can see, there are many obstacles that can prevent you from getting the car of your dreams. However, now you know the truth and can hit the road to enjoy every moment of your life. Remember to follow the agreed terms and conditions for loan repayment strictly.