Considering that auto financing is a major decision and can make or break finances, care has to be taken while referring to tips that could easily be myths meant to lure customers. Whether you are buying your first car or your tenth, some facts are always going to stand true. It is best to educate yourself in auto finance before buying a vehicle. Here are 10 auto financing tips that are nothing but myths.

1. Don’t go for auto finance if your credit score is low
Bad credit scores do not mean bad finance deals. A good credit score will give you the luxury of finding the best rates easily, but a bad score doesn’t mean that it’s impossible to get a similar rate. It means getting a good rate would involve more research. Do not be scared to get involved with auto finance if you have a bad credit score. Be willing to put in the time and effort to compensate for a bad credit score, and a good deal will pop up.

2. You cannot relax on terms
The terms and conditions are established to meet some financial requirements and for the safety of all the parties involved. These terms can be negotiated, and term relaxation is always possible. Always ensure that you meet and discuss with the necessary authorities well ahead to avoid any complications when availing these relaxations. Negotiating terms is possible and can remove any worry you might have when reading the terms for the first time.

3. Getting the loan approved means the car is affordable
This is an auto financing tip that’s actually a common misconception. Banks and financial institutions will always be ready to give large loans because this would mean larger interests, and at the end of the day, the interest is their profit. When applying for a loan, always ensure that the car is what you can afford. Don’t be emotional and let logic drive the decision.

4. Give a minimal down payment
It doesn’t come as a surprise that this myth is accepted as one of the most common auto financing tips. Having leftover cash after a loan seems attractive but makes no sense in the long run. Interest is always calculated on the principle. Hence, putting down a minimal would mean a higher principal amount and, in turn, higher interest. Money paid as interest is never going to end up in your pocket. Only put down as much as you can afford so that the principal remains low. This strategy will save a huge amount in the long run. This myth is by far one of the most dangerous “auto financing tips” out there.

5. Car dealers are scams
If ample research is not done before choosing a car dealer, this could prove to be a fact rather than a myth of an auto financing tip. That being said, good car dealers can get you better deals as they are professionals. Always make sure the dealer is reputed and has a good track record.

Auto financing is no joke. For that matter, anything related to your money should never be taken lightly. Take care to not fall for these myths that parade themselves online as auto financing tips and tricks. Some might seem less obvious than others, and only educating yourself in auto finance can help you differentiate between facts and myths.