Author: Eric Patrick

Most people, when purchasing a new auto, end up borrowing at least part of the money from a bank, credit union, or other financial institution. For some, this process can be filled with mystery and uncertainty. In some cases, a lack of knowledge about the auto loan process can even result in a choice to put off purchasing a new vehicle altogether.

Here are some common myths about auto loans. By understanding the truth about auto loans, you will be empowered to purchase the best vehicle for your situation, on terms that you are comfortable with.

1.    The Cost of a Loan is Too High to Pursue One

Many people believe that, by the time they pay off the loan, they will have paid so much in interest and fees that the whole thing will not be worth it. Nothing could be further from the truth!

While it is true that you will pay for a loan—after all, the bank or lending institution has to show some return on the money it allows you to use—the truth is that the cost of a loan is not usually going to be very high. This is especially true now that the Internet has allowed consumers to shop around for loans: the more lenders you have access to, the better your chances of landing a great deal on a loan.

2.    I Am Limited to Local Lenders

It used to be that getting a loan meant you went to the local bank (or credit union) and talked to someone about your credit. Your options were pretty much limited to those financial institutions within a reasonable distance of where you lived. This limited selection also meant that you would likely pay more for your loan—less competition for your business meant that lenders could charge more.

With today’s technology, this is not the case. With just a few minutes on the Internet, you can apply for loans from lenders across the country. This means more options for you, and a better lending experience overall. And of course, increased competition for your business means you are going to see more favorable loan terms.

3.    I Won’t Ever Qualify

It used to be a bit of a challenge to get a good loan unless you already had stellar credit. Today, this is not necessarily the case. While having great credit is always better than having poor credit, the reality of the situation is that the larger number of potential lenders (all vying for your business) means that more lenders will be willing to offer you credit than ever before.

Don’t let a non-existent (or poor) credit history stop you from applying. You will be surprised at how many options you have.

4.    No Lenders Want My Business

This myth is similar to the one above. Perhaps you have had a rough patch over the last few years, and your credit score is not as stellar as you would like it to be. Or, perhaps you have never borrowed before, and you feel like you don’t have the necessary track record to be attractive to lenders.

Keep in mind that with lending aggregate sites, you can fill out a single loan application and submit it to thousands of lenders across the country. With these kinds of numbers, it is pretty much a given that you’ll find a bank or other financial institution that is willing (and even wanting) to do business with you. So, give it a try, and see what kind of results you get!

5.    I Have to Pay Extra Each Month

Some consumers feel that it is a must that they pay off their loan early. Whether this is due to a common misconception about how credit works, or just a desire to be debt-free, this is a myth that must be addressed.

While it’s usually a good thing to pay off your loan early, it won’t hurt your credit to stick to the terms of the loan. Lenders want to see that you are responsible, and making your payments on time shows just that. Paying off a loan early may give you some additional peace of mind, but taking the full term of the loan can actually help you build your credit score.

Even if you do decide to pay off the loan early, there’s nothing wrong with taking a few years (as opposed to the full term of the loan) to get it done. You’ll show lenders that you are capable of managing your finances on an ongoing basis, and you’ll find that your credit score goes up as a result.

6.    My Credit Score Will Take a Long Time to Fix

If you have suffered some damage to your credit—such as by making a few payments late, or even defaulting on a loan—you may be of the opinion that it is going to take you too long to get things rolling again. The truth of the matter is, repairing your credit can be done much more quickly than you may believe.

Lenders understand that life happens sometimes, so a few late payments won’t really damage your score all that much, so long as they have been preceded and followed by several on time payments. And, as the saying goes, “A journey of a thousand miles begins with a single step.” So don’t put off repairing your credit, as you’ll have to start some time.

Don’t Let Credit Myths Dissuade You from Applying

Long story short, getting credit is not nearly as difficult as many people may believe. There are thousands and thousands of lenders out there looking for consumers with whom they may do business. And, with today’s technology, it’s easy to apply.

And, once you have a loan, you don’t have to put nearly as much time and effort into paying down the loan as you may have thought. Just make your regular payments, one month at a time, and watch your credit score rise.

 

 

Why You Should Always Buy Used Cars Directly from a Dealership

Some people prefer to buy used cars rather than brand-new cars. While there are arguments both for and against this practice, at the end of the day some consumers will always look to purchase used cars. To be sure, there can be some very good upsides to purchasing a used car. While it may require a significant amount of checking around, you can often find very good deals on a used car. Depending on factors such as who the prior owner was, how frequently he or she had the car serviced, and what type of driving the car was primarily used for, it is sometimes possible to get a car that is nearly as good as new for a significant amount less than you would otherwise pay.

That being said, many people are faced with the question of who should they buy a used car from. Whether purchasing from a private individual, an online clearance site, or some other entity, the question of where you purchase your used car is one that should be approached with caution. The fact of the matter is, there are significant risks involved in purchasing a used car from anywhere besides a dealership. Here are a few things to consider when you are buying a used car, and a few reasons why you should only buy your used car from a reputable used car dealership.

Dealerships Have a Reputation to Uphold

Perhaps one of the biggest things you should consider when you are buying a used car is what may happen in the event that the car proves to have some problems. While many used cars are in perfectly fine shape, there are also many that have hidden issues. These issues can show up shortly after the sale, or father down the road, and could cost you serious cash. if you cannot get help from the party that sold you the vehicle.

If you purchased your used vehicle from a private party, you may find that he or she is unwilling to help you out, as most used cars are considered to be sold “as is,” unless stipulated otherwise in writing. Even if a mechanic’s inspection shows no apparent problems, repair issues can develop anytime. On the other hand, dealerships are not as quick to spurn the requests of their customers. For one thing, they have a reputation to uphold. They are aware that people talk to each other, and that a disgruntled customer will spread word of his or her experience around. As such, they are usually much more willing to assist customers with repairs for conditions that existed when the vehicle was sold. In addition, most reputable used car dealership will provide their customers with a warranty covering some, or all, of the vehicle’s components for a specified number of months or miles. And many dealers offer their customers the option to purchase extended warranties.

Dealerships Have Experience in Maintaining and Evaluating Cars

Another thing to keep in mind is the difficulty in evaluating a car. Many private party sellers may have no intention of selling you a used car that they know is on the verge of breaking down, but they may simply be unaware of hidden issues. On the other hand, dealerships know how to examine the car and determine whether something may be about to cause problems. They will carefully inspect the car they are selling and make sure that any obvious defects have been repaired before they sell it to you. Remember, they want to establish a strong relationship with you, and they want to earn your future business, so they’re going to do everything they can to be sure that the used vehicle they sell you is mechanically sound.

You Always Know Where to Find Your Dealership

If you purchase a car from a private party, and the car turns out to be a lemon, you may find that the seller is gone when you go back to ask him or her for help. This is especially true in the case of someone who is selling their possessions in anticipation of a move, or a private party in the military who is getting ready to switch duty stations. Whatever the story, you may find that the private party seller is nowhere to be found just when you need him or her. In contrast, dealerships are staples of the communities in which they are located. Many of them have been in operation for decades, and they are not likely to vanish anytime soon. So, if you have any issues, you know just where to go to find them.

Dealerships Can Help with Financing and Reduce the Hassle of Selling Your Old Vehicle

Finally, when you purchase a used car there is a good chance you will need to take out a loan to do so. Very few private sellers are going to be willing or able to finance your purchase. On the other hand, dealerships frequently have the ability to help you drive away in the used car of your choice, even if you don’t have the cash on hand.

Finally, if you buy your car from a private party, that means you’ll still have to figure out a way to sell your current vehicle. Running an ad, fielding calls, and haggling over the price can be a real headache. On the other hand, if you purchase from a dealership, chances are very good that you’ll be able to trade in your old set of wheels, meaning one less issue for you to deal with. Buying a used car fro a private party might cost a little less than from a dealer, but buying from an established dealership will give you peace of mind and confidence in your new vehicle.

Fairless Motors has been family owned and operated for over 30 years, and we’re here to help you find a reliable, affordable used car or truck for all your driving needs. When you shop for a vehicle at Fairless Motors, you’ll be greeted by an amazing sales team that provides a no-pressure buying experience. Every vehicle in our inventory has received a complete inspection, professional detail, paint-less dent repair, if needed, and has been serviced and test-driven to ensure quality and capability. You’ll receive a Carfax or AutoCheck vehicle history report with any vehicle, so you can always shop and drive with confidence.

Financing options are available for all types of credit, with APR rates starting as low as 1.9%. When you come to Fairless Motors for a used car or truck, you’re buying a quality vehicle that you know is worth the price on the sticker. We offer a fast-track to credit approval with our simple and secure online finance application; simply fill out the online form and you’ll receive a personalized auto loan quote in minutes. We’ll accept your trade-in vehicle as well, and you can use our Value Your Trade tool to see how much you could get for your old car, and how much you could offset the cost of your next vehicle. Whether you have good credit or poor credit, Fairless Motors’ financial team will help you create the financing options that work best for you.

How Should You Inspect a Used Car?

Buying a used car is common, but knowing what you are buying when looking at used cars is not always easy. A lot of people try to hide issues with used cars by cleaning up the engine or getting a fresh car wash right before you come to look at it. This can make spotting issues a bit more difficult; however, if you know what you are looking for it can be a little bit easier. Here are some tips for inspecting the used car you are interested in, to help you decide if it would be a good buy or not.

First, Check the Exterior of the Car

Floodlights that surround used car lots are there for a reason. They are great at hiding minor imperfections or dings in the vehicle’s exterior. Try and look around the entire vehicle, top to bottom, under the bright sun. This gives you the best chances of noticing any problems with the exterior of the vehicle. Check the bumpers, look at all the glass for problems, make sure each of the door handles work, and look closely at the trim. Make sure everything that should be on the exterior of the vehicle is still firmly attached. It shows that the vehicle was better maintained than one that was left outside and ignored.

You also want to look at the vehicle from a distance of 10-15 feet. The tires should be round and even, and should look as though they have equal pressure in them. The vehicle should be level as it sits on the ground as well. If you notice one side of the car sits lower than the other, it could indicate an issue with the vehicle’s suspension. This can be an expensive fix, so get it checked before you buy.

Then, You Want to Look Thoroughly At the Interior

Now, it’s time for you to get into the car to check out the inside. First, you want to notice if there is any type of a smell. Burning oil has a very distinct smell, and could mean the car might have engine issues. Look around and see what condition the interior of the car is in. Are the pedals worn beyond the mileage of the vehicle? Is the headliner intact? Are the seats in good condition? Remember to look at all the components of the interior of the vehicle, keeping in mind the mileage. If the vehicle has lower miles, it should be in better condition than a vehicle with higher miles. Make sure to try out every button, lever, and option to make certain they work properly. This includes the sunroof, radio, heat and air conditioning, and things like cruise control when you take it for a test drive.

Make Sure to Check Under the Hood

Looking under the hood can be difficult for many. Those without a mechanic’s experience may struggle to have any idea what they are looking at, or looking for. If this is the case, bring a knowledgeable friend or relative with you, or take the vehicle to a mechanic to have them look over it for you. Many will do this for little or no cost. What you want to look for are signs of spills or leaks, fluids that do not look right, hoses and belts that look worn or are not connected, and the condition of the battery. The fluids should be clear (not cloudy) and full.

Hoses should not have cracks in them, and belts should be taut. If you notice duct tape anywhere in the engine area, beware. There are better ways of holding things together within the engine compartment than by using tape. Make sure to check fluid levels and colors on a white paper towel. That way, as you wipe off the dipstick, you can tell if any of the fluids are the wrong color. And make sure the battery terminals are not corroded or showing signs of wear.

Finally, Look Beneath the Car for Signs of Trouble

When you are done with the outside, inside, and under the hood, you finally need to look beneath the vehicle. This is where most people do not take the time to clean, so you can tell a lot about the vehicle by looking here. Look for signs of drips first. This can be anything from gas to brake fluid, oil, antifreeze, transmission fluid, or even windshield washer fluid. If you see any on the ground beneath the vehicle, check the corresponding spots to see if this vehicle was dripping them, or if it was another vehicle parked there before.

You should also feel along the tailpipe (only if it is cool) for any type of residue. This can tell you if anything was burning off the engine that may have been cleaned up, so it was harder to see from above. Burning oil can easily build up in this area, making it easy to spot when you lie down beneath the vehicle to inspect it. You also want to inspect the structures beneath the vehicle. They should be relatively clean and not cracked or broken. So long as everything here checks out, it is then time to take the vehicle out for a good test drive. If you can go without the dealer or owner, that is ideal, since you can test the vehicle more extensively this way.

Make sure that you use your senses when it comes to inspecting a used car, and while out on your test drive. If you notice something off, trust your gut. Used cars are likely going to have a couple of issues, but that does not mean the vehicle is a bad buy. Some issues are very minor and can easily be fixed, but may allow you to ask for some wiggle room in the asking price. Listen for noises, pay attention to smells, and do not ignore any leaks you notice. If you can do that, you will do well in your used car purchase.

At Fairless Motors, every car and truck comes with a Carfax or AutoCheck vehicle history report, so you can always shop and drive with confidence. Each car on our lot has received a complete inspection, professional detail, paintless dent repair (if needed), and has been serviced and test-driven to ensure quality and reliability. When you come to Fairless Motors for a used car, you’re buying a quality vehicle that you know is worth the price on the sticker.

Fairless Motors provides outstanding service in helping you find an auto loan thanks to our outstanding Finance Department. We offer a fast-track to credit approval with our simple and secure online finance application; simply fill out the online form and you’ll receive a personalized auto loan quote in minutes. We’ll accept your trade-in vehicle as well, as you can use our Value Your Trade tool to see how much you could get for your old car, and how much you could offset the cost of your next vehicle. Whether you have excellent credit or poor credit, Fairless Motors’ financial team will help you create the financing options you need, and we even have APR rates starting as low as 1.9%.

Stop in to our convenient family operated dealership at 435 Lincoln Hwy, Fairless Hills, PA, or call us at 855-560-9740 to check out our extensive inventory of late-model pre-owned cars and trucks. Our staff will help you find the vehicle that best fits your needs and budget.