Clearing Up Misconceptions About Dealership Financing
Posted in Buyer Advice
Clearing Up Misconceptions About Dealership Financing
Dealership financing is riddled with common misconceptions that are easy to take at face value when being spouted by competing financial institutions.
The truth of the matter is, there are loads of financing options in the market. We want your car-buying experience to be a positive memory which means providing you with the options so you can compare and source the best deal for yourself.
That's why we've put together this list debunking the common misconceptions and myths around dealership financing.
You Need Perfect Credit for Dealership Financing
Many believe that only those with excellent credit can secure dealership financing, but this is a myth.
At Motorama, we work with various lenders to accommodate our customers with different credit profiles, including those with less-than-perfect credit.
You're Stuck with the Car for the Entire Loan Term
Not true! If you find that your circumstances have changed and you need to move into a different car, our finance consultants are able to assist to sell your current car and pay out the loan with the proceeds.
We can then help you utilise the equity you built to put you into your new car under a new finance agreement.
Applying for a Loan at a Dealership Hurts Your Credit
While multiple credit inquiries can impact your credit score, applying for a loan through dealership financing has a minimal effect.
The biggest factor for improving your credit score over time is making timely payments on your auto loan.
Dealership Finance Terms are Far Too Strict
It's a misconception that dealership financing is too limited and inflexible. In actual fact, financing through a dealership offers you many ways to structure your loan and often have less barriers to paying out your loan early than other financial institutions.
At Motorama, we encourage you to discuss your needs with our finance consultants to find the repayment options that suit your budget and lifestyle.
Dealership Financing is Always More Expensive
This is not necessarily true. Motorama is accredited with some of Australia's largest and most reputable financiers, providing you access to a range of financing options that are often more flexible and feature less payout penalties than those offered by competitors.
On top of this, as an authorized dealer of many global automotive manufacturers, we frequently have exclusive manufacturer-backed finance offers supported by the immense resources of these global brands, giving you access to low-interest deals that are often better than anything you'll find elsewhere.
Dealership Financing is Only for New Cars
This is incorrect. Dealerships offer financing options for both new and used vehicles. The availability of financing isn't limited to just new car purchases.
By understanding these misconceptions, you can make more informed decisions regarding financing and avoid being swayed by erroneous myths.
If you're keen to learn more about dealership financing or would like to apply for a loan with Motorama, get in touch with the team today and speak to one of our financing specialists.
