Are you considering applying for a car loan? Are you wondering if there are any benefits to applying for a car loan online?
If you’re concerned about the security of an online loan application, your concerns are valid. For instance, you’ll need to protect your personal information during the online application process. However, it’s worth taking those precautions in order to get the following unbeatable benefits.
You’ll get better fixed rates
Car loans aren’t known for being cheap. In fact, some loans charge an interest rate of more than 20%. Your interest rate depends on you credit score, but also you lender.
Some online lenders are able to provide consumers with better fixed rates on car loans. By operating without a large overhead, these online lenders are able to pass their savings onto the customer and still make a profit. For instance, Australian Fintech company Loans.com.au has been extremely successful in providing fixed-rate car loans at low rates to Australians completely online.
You won’t feel pressured by a salesperson
Applying for a car loan while you’re at the dealership puts you into an awkward position. The excitement mixed with pressure to get the application completed might influence you to skim the loan terms without fully understanding every aspect of the loan.
By applying for a car loan online, you can take your time. You can download the terms of the loan agreement to your computer and take several days to review the details. You can even bring the contract to a lawyer to find out if there is anything you should be concerned about.
You don’t need to leave your house
If you’re a busy person and just want to get things done, applying for a car loan online eliminates the fuss. Why bother applying for a loan at the dealership when the convenience of the internet is already at your fingertips?
You can choose your lender
When you apply for a car loan at the dealership, they’ll provide you with limited options. Often, car dealers and lenders form a mutually beneficial agreement and the dealer will only provide applications for their specific lenders.
Provided you qualify, your application approval will be swift. Most online loan applications are approved within 24 hours. This means you won’t have to wait around for a phone call from the lender or your car dealership to find out if you’ve been approved. You’ll either get a phone call or an email informing you of the lender’s decision.
If you’re denied, you’ll know quickly so you can submit your next application without wasting any time.
Applying online makes it easier to compare
When applying for a car loan online, it’s easier to compare rates with other lenders. You can shop around from the comfort of your own home and compare what lenders are offering. You may even find a reputable company that will provide you with multiple lenders’ terms at once organized into a side-by-side comparison.
You won’t get side-tracked by a “buy here, pay here” dealer
If you apply for a car loan online, you’re less likely to get yourself into a mess with a “buy here, pay here” dealer. The “buy here, pay here” program essentially makes the dealer the lender and you make all payments directly to the dealer. Loan approvals are based on income verification rather than credit history, which means you’ll automatically pay a higher interest rate.
Most people wouldn’t know the difference right off the bat, but financing a car directly from a dealer is a bad idea. Applying for a loan online from a real lender is the best way to ensure you don’t pay more than you should.
An online car loan can save you time and money
Although convenience is important, applying for a car loan online can save you two of your most valuable resources: time and money.
Just remember to research the lender first to make sure they have a solid, trustworthy reputation. Also, take precautions to protect your personal information. Never apply for a loan using public, unsecured Wi-Fi and make sure the lender hosts the application using the https protocol.
When done right, an online car loan application can quickly get you behind the wheel of your dream car.