Everyone needs a car, and today that need is greater than ever before. With the distances people are traveling to work, and most consumers are driving to their vacation destinations this year rather than flying, autos have become more of a need than a luxury. A car is not just a status symbol any longer but something that caters to every persons need on a daily basis. The demand for automobiles has increased even though the financing options have not. As a result of the resent climate of our economy, many consumers are having a hard time getting financed for an auto loan. Many lenders have increased the down payment requirements and most have raised their minimum credit criteria so a much larger percentage of customers no longer qualify. With that said, many consumers are going online to find auto financing options.
Why Online?
The World Wide Web has opened up many news ways to conduct business. As consumers conduct more and more financial transactions online, it makes sense the auto lending would be one of the fastest growing financial products out there. To go online and apply for auto financing is quite simple. Do your research and find the right company conducting business online. There are several finance companies doing business exclusively online that seem to cater more to the consumers needs while proving exemplary customer service. Consumers fill out a simple one page application and within minutes in most cases you will have all of the information you need regarding your loan approval. Some online sites allow you to complete the entire loan process on the web saving you valuable time at the dealership.
Speed
Going online and completing an application for financing the purchase of a new or used automobile is easy and takes just a few minutes to complete. In fact in most cases, you can complete an application and get a decision back from the lender in a matter of minutes. Compared to the traditional way of getting auto financing where you shop around from dealership to dealership trying to find that “right” car just for you; then you complete a finance application with the sales person who sold you the car (meaning your personal private data is now floating around on a piece of paper at the dealership somewhere!); then you wait to see the “mystical” finance manager. They then proceed to tell you what your payments are, how much down payment is required and what you new payments will be.
Convenience
When you secure your financing online with a lender, you know all the facts before ever stepping foot into a dealership. What does that mean? It means the consumer is more in control of the buying process which in turn helps you negotiate a better deal on the vehicle you are trying to purchase. No longer do you step foot into the finance managers office wondering what kind of rate you will be getting or what your payments will be. You know that information before you ever get to the dealership.
Flexibility
One of the beauties of finding an online lender is you are not just limited to loan products for the purchase of a new or used vehicle. If you like the current vehicle you are driving but are not a fan of your monthly payments, refinancing your existing loan may be a good option. Refinancing your existing loan works just like the refinance of your mortgage. You keep your current vehicle but the lender pays off your account with your existing lending institution and then creates a new loan for you and in many cases, saves you money each month on your monthly payments. This is done by giving you a better interest rate than you are currently paying and/or extending the term in which you are paying for your vehicle. Either way, more money in your pocket each month is good for you.
Savings
Last but not least, when you finance your next vehicle with an online lender, you typically pay a lower interest rate. Some online lenders like OpenRoad Lending do not charge any application fees either. That means you can go online, apply and see the terms and conditions of your loan approval before you have to commit to anything. Be aware that some online lenders do charge such fees. Do not forget that when you have your financing wrapped up before you step foot into the dealership, you are in control of the car buying process and you now have the power to negotiate like a cash buyer.