After finding the right car that suits both your needs as well as your budget; it’s time to find the best way to actually pay for this substantial purchase.
Most people don’t have the luxury to pay cash either because they don’t have that sum of money available in their bank account or in order to preserve their life savings and avoid losing a big chunk of it immediately.
Majority of buyers finance their purchase through auto loans, which enable them to make affordable monthly payments for a predefined number of months.
An auto loan can be obtained through a number of direct to consumer lending channels like credit unions, auto makers, dealers, banks and various types of financial institutions.
The interest rates that the borrower will be required to pay will be based on several key factors like his credit rating (the higher the score, the lower the rate), loan term (the longer the repayment period length, the higher the interest rate), vehicle type and age (in many cases, used car loans are typically financed at higher rates than new car ones), income level (a high enough steady income helps qualifying for a better rate) and overall market conditions that change from time to time.
Online car loans offer several benefits to the average consumer.
Loan rates on the internet are usually significantly lower than what you can get from most car dealers and the reason is quite simple.
When you browse the web, you enjoy the advantages of a competitive open market environment, which is filled with many players that fight for your business, while at the dealer, the consumer gets basically one offer from one monopolized source.
Additionally, most loan websites carry no application fees and there is no obligation to actually activate the loan, so it’s basically free to obtain a quick quote and compare multiple offers.
Many online lenders offer financing packages even to people with less than perfect credit.
It means that individuals with average, fair or bad credit or even no credit history at all (that pose a higher risk), can find a car loan that they’ll like.
Lastly, many auto loan websites work fast and offer near instant approval, which means that their credit decision can be given to the customer almost immediately, within seconds, minutes or a few hours at most, usually by email.
Many companies are able to review your loan or refinance request the same day.
It means that the whole cycle, that includes completing an online application, being approved, processed and even getting the actual funding can be completed within one day.
These quick money transfer deposits allow the borrower to complete the vehicle purchase process swiftly.
One of the most convenient financing options is to get pre-approved.
Being pre-approved for the maximum Dollar amount you think you would like to finance means that your used or new car financing is already completely taken care of even before you set foot through the local dealership’s door. Furthermore, fully understanding how much money you can potentially borrow will help you adjust your choices based on your particular finances and save precious time as you shop for your next vehicle.