Car Loan Myths Debunked
21 April, 2025
Synopsis
As you navigate the Car Loan process, you may come across various myths that can misguide you into making poor decisions.
Some of the popular Car Loan misconceptions are about the non-financing of used cars, low credit score resulting in rejection, longer car tenures being good, 100% financing being great, and dealership financing serving as the right way to get Car Loans.
Spending time researching on Car Loans on getting the Car loan misconceptions cleared helps you take advantage of good offers and avoid confusions.
Financing a car purchase has been easier thanks to Car Loans. If you are considering funding your dream car purchase with a Car Loan, you will find various options. Comparing such offers can get overwhelming for a first-time borrower. To add to this, you may come across various misconceptions that can misguide you. You may end up making poor decisions and lose out on the many benefits Car Loan has to offer due to such myths. To help you avoid this, this blog debunks some of the popular misconceptions with Car Loan facts.
Car Loan Misconceptions and the Truth Behind Them
Some of the most common myths and the Car Loan facts to debunk them are as follows:
Myth: Car loans are Only for New Cars
Fact: Car Loans are not limited to new vehicles. You can also finance a pre-owned car through a Used Car Loan. The terms and conditions may slightly vary as lenders consider the age and depreciation of the car. Banks and financial institutions accommodate your interest in buying a used car with competitive interest rates and tenures.
Myth: Dealership Financing is the Easy and Right Way
Fact: When you buy a car, you will find dealers promoting the ease of getting a Car Loan and insurance from them. They may lure you with pre-approved loan offers, which may seem appealing as you don't need to worry about going through the hassle of application. However, an Auto Loan fact is that this is not always in your best interest. Dealerships often partner with specific lenders that may not give you the best terms. Thus, it is better to compare Car Loan deals yourself and find the one that best suits your interest and affordability.
No Room for Myths with HDFC Bank Xpress Car Loans
Navigating the application process can seem daunting when Car Loan misconceptions cloud your judgment. A little research goes a long way to uncovering the Car Loan truths behind such myths. Being thorough with the important loan terms and the overall Car Loan process will help you avoid falling into false traps. Use this guide as a start to stay away from the myths. Now that you are prepared to make a well-thought-out choice, find a reliable solution in HDFC Bank Xpress Car Loan. It finances your dream car while ensuring complete transparency.
Apply for Xpress Car Loan online
FAQsp
Is the Car Loan amount fixed?
No, the Car Loan amount is not fixed, it depends on factors like your age, income, employment history, car value, etc. You can borrow within the financing limits the lender sets based on these eligibility parameters.
What happens when I default on Car Loan?
When you default on a Car Loan, you incur penalties. It also negatively impacts your credit score. Lenders may typically provide you with a grace period of 90 days since the default and if the amount is still due, the loan gets classified as a Non-Performing Asset. The dues are then recovered by selling the pledged car.
How do I detach myself from a Car Loan?
You must pay off the remaining balance on your Car Loan to detach yourself from the Car Loan. If you plan to sell your car before clearing your dues, you can transfer the loan to the buyer.
Apply for Xpress Car Loan online
*Disclaimer: Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Credit at sole discretion of HDFC Bank Ltd. Other charges and taxes as applicable. The offer is unconditionally cancelable without prior notice. Interest rates are subject to change. Please check with your RM or closest bank branch for current interest rates.
