Online Auto Loans are the newest craze in the auto lending industry. People love that they can shop around for a low interest car loan in their pajamas, and they love that Online Auto Loans offer them fantastic interest rates. You can apply right now, if you’re ready!
Anatomy of an Online Car Loan
One of the greatest attributes of the Online Auto Loan is its speed. Lots of Online Auto Loan dealerships advertise with statements like “auto loan in ten minutes!” and can deliver true to their word. The application process is fairly simple. You fill out a basic application with information about your debts (namely mortgage), income (they will probably ask how long you have been at your job, too), loan needs (are you refinancing, buying new or used, etc.), and if you have ever filed for bankruptcy. They will ask permission to retrieve your credit score, and then you will submit your application through a secure system. Within minutes, you will receive an email that details the results of your application. If you are approved, the company you applied through will send you some paperwork to sign and a check for your loan amount. The check is usually good for about thirty days, and you can write it over to the dealer once you’ve found your car. After that, you just have to do a little clean up work with your lender, and you’re all done.
Online vs. Dealership vs. Bank Auto Lenders
The other great thing about Online Auto Loans is that they are usually cheaper than any other resource. Because they have such a wealth of investors and product options at their fingertips, online lenders are more likely to offer you a low interest rate with great terms. If you’re still a little unsure about applying online, look to your bank as a second option, and steer clear of your car dealer—their rates are always the highest.
* Auto Loan Center is not an auto loan lender or broker, but provides information about auto loan products and lenders. Not all products and services are available in all states.