Special finance is often misunderstood, surrounded by myths and misconceptions that can discourage individuals from exploring this option. In reality, special finance offers a lifeline to those with less-than-perfect credit, providing dignified opportunities to secure vehicle financing when traditional avenues may seem closed. Dave Says Yes has a whole team of experts to help debunk common myths about special financing.

Let us debunk common myths surrounding special finance:

Myth:

Special finance is only for people with bad credit.

Reality:

While special finance does cater to individuals with credit challenges, it’s not exclusive to them. People with limited credit history, recent bankruptcies, or other financial setbacks can also benefit from special finance programs.

Myth:

Special finance loans have very high interest rates.

Reality:

While interest rates for special finance loans may be higher than those for prime borrowers, they are not necessarily excessive. Rates vary based on factors such as credit score, income, and loan term. With responsible borrowing and timely payments, individuals can improve their creditworthiness over time and refinance at lower rates.

Myth:

Special finance loans require a large down payment.

Reality:

While a down payment may be required for some special finance loans, it’s not always substantial. Many lenders offer flexible down payment options to accommodate different financial situations. Additionally, down payments can help lower monthly payments and overall loan costs.

Myth:

Special finance loans have strict approval criteria.

Reality:

While special finance lenders may have different approval criteria compared to traditional lenders, they are often more flexible and considerate of individual circumstances. Factors such as employment history, income stability, and debt-to-income ratio play crucial roles in the approval process.

Myth:

Special finance loans are predatory.

Reality:

Special finance lenders operate within regulatory guidelines to protect consumers from predatory practices. They provide valuable opportunities for individuals to rebuild credit and achieve their financial goals responsibly.

In conclusion, special finance is a viable option for individuals seeking to finance a vehicle despite credit challenges. By debunking common myths and understanding the realities of special finance, individuals can make informed decisions and take advantage of the opportunities available to them.