Busting car finance myths: the truth revealed!

Busting car finance myths: the truth revealed!

Unless you have applied for car finance before, it can be a confusing thing to tackle. Making that confusion no clearer is the number of myths that abound about car finance. On our blog you'll find a whole series of articles on car finance, but to try and clear up some of the misconceptions quickly, we've summarised here some of the most common myths and whether they are true or false:

Myth 1 - Checking your own credit report affects your credit score - true or false?

False.

While multiple applications for credit can have a negative effect upon your credit score checking your own report actually leaves no footprint at all. It's really important to regularly check your credit report, once a month, to ensure there are no inaccuracies that could be negatively impacting your score.

Myth 2: Car finance is available for both brand new cars and used cars - true or false?

True.

At Carbase we stock quality used cars and have a range of finance solutions to suit your personal circumstances. From Hire Purchase (HP) to Personal Contract Payments (PCP), we offer the same finance solutions you would find in most new car dealerships but for the purchase of cars at a significantly lower cost.

Myth 3: You can't get car finance with a bad credit score - true or false?

False.

At Carbase we aim to try and provide a car finance package to whoever needs it. Of course, it's always best to have a good credit score in order to secure finance so have a look at our article on ways to boost your credit score for some hints and tips on how to prepare before you make your application for car finance.

Myth 4: The car belongs to you and you can modify it how you wish - true or false?

False.

No matter whether you have a Hire Purchase car finance package or have chosen to go for Personal Contract Payments, you do not own the car out-right until such a time as you have paid off the finance agreement. That's why if you miss a payment your car could be re-possessed. Until such a time as you do own the car out-right you cannot make any modifications.

Myth 5: You can have a finance package for more than one car - true or false?

True.

If you are financially secure and can afford the monthly repayments then there is no rule which prevents you from having two car finance deals at one time.

Myth 6: You need to be 21 to get car finance - true or false?

False.

Surprisingly, there is a common belief that you need to be 21 in order to get car finance, but in the same way that you can get credit cards and mobile phone contracts, car finance can be secured from 18. The challenge for younger applicants is having the credit history to have formed a credit score to be able to secure the finance and many teenagers frequently will apply with their parents to show that monthly payments can be met.

If you think you'd like to apply for car finance to get your new used car then pop into one of our branches today to find out more. In order to process your application we will conduct a credit check and this will leave a footprint on your credit record. Please be aware that all applications for credit can affect your credit score. See our article on credit scores for more information. 

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