Common Car Finance Myths (And the Truth Behind Them)

Car finance is one of the most commonly misunderstood topics in the motor trade. Myths and misconceptions put people off applying, lead to poor decisions, or cause unnecessary anxiety. At Auto Choice Car Supermarket, we believe in transparency, so let's tackle some of the most common car finance myths head on.

Myth one: You need a perfect credit score to get finance. This simply isn't true. While a strong credit history will generally get you better rates, there are specialist lenders who work with customers with adverse credit. Our panel of lenders covers a wide range of credit profiles, and we always encourage customers to check their eligibility before assuming the answer is no.

Myth two: Applying for finance will damage your credit score. A full application does involve a hard credit search, but using our free eligibility checker only triggers a soft search — which has no impact on your score at all. It's always worth checking eligibility first.

Myth three: You need a big deposit. While a larger deposit does mean lower monthly payments, many finance agreements are available with a small deposit or even no deposit at all. Your part exchange vehicle can also act as a deposit.

Myth four: Dealership finance is always more expensive than a bank loan. Not necessarily. Because dealerships work with multiple lenders, they can often find competitive rates tailored to your profile. Bank loans also come with a hard credit search and no guarantee of approval.

Myth five: You can't change your car during a finance agreement. In many cases you can. It's possible to settle your agreement early or part exchange your financed vehicle for another — your dealer can talk you through the options.

Don't let misconceptions stop you from getting on the road. Speak to the team at Auto Choice Car Supermarket in Blackburn for honest, straightforward advice.