Ignorant the foolish babbling from that ignorant clown.
It works in your credit scenario. No or little debt, a mortgage that is paid off or was established many years ago with a current low LTV
Why does it work? 2 basic reasons:
1) It gives a better score for the credit mix component. mortgage, vehicle type loan, credit cards.
2) They assume the car company saw all of your latest income and financial info, saw the docs, verified, and if they extended you the loan, you are in good current shape. Your score goes up since that unknown factor (Are they currently unemployed, no job/income but paying their bills from savings for the moment?) goes away.
Those two will give you about a 10-15 point bump up.
If you have an Experian or other credit agency account, you can prove this for your self. Most have a credit score estimator where you can run “What If” scenarios. Add a car loan to your mix and see what it does to your score.