Debunking 3 Volkswagen Financing Myths

Don’t let all those rumors you hear about auto financing fool you. Financing is actually a relatively easy—and beneficial—process. North Penn Volkswagen is debunking three of the most common Volkswagen financing myths to give you a clearer picture of your path to financing.

Avoid Financing if You Can

When you have the cash to buy a car outright, it can save you money in the long run because you don’t have to pay interest on a loan. However, by financing, you can keep your money in your savings, which is helpful too, as it accrues interest. Plus, by paying comfortable monthly payments instead of one lump sum, you have the flexibility to increase your budget if you want.

Financing Isn’t Available for Used Vehicles

The vehicle you choose can be a big factor when you’re applying for a loan. Lenders can shy away from a used car that is older or has high mileage because they don’t want to risk loaning money for a vehicle that won’t last. However, if it’s a vehicle that appears reliable, or one that’s a Certified Pre-Owned vehicle, many see no issues with extending a loan offer.

Small Payments are Best

Lots of buyers shop by monthly payment, which isn’t necessarily the best way to go about it. While your auto payment is an important factor, it’s also paramount to look at the total picture. For example, extending a loan term out longer may give you smaller monthly payments, but you’ll end up paying more for your vehicle overall because you’ll have to pay more interest.

Apply for Volkswagen Financing in Colmar, PA

There’s no reason to dread the car-buying process. With one quick visit with our financial team, we can easily get you approved for Volkswagen financing with terms that work for you. Stop by North Penn Volkswagen to get started today!