Auto Loans Online: The Easy Road To Your Dream Car

2007-03-08 10:33:40

( Automobiles )



According to American consumer groups, car dealerships overcharge their customers by as much as 3%. This could amount to an additional $1000 to your loan. Now, that is certainly money better spent on other more important things. So what’s an alternative source for car financing, you may ask. A good alternative would be auto loans online.

How Auto Loans Online Work

Online loans are a lot like bank loans. In effect, they are quick and convenient forms of direct financing. Direct financing takes the dealer out of the picture—allowing you to negotiate a price and give you more bargaining power. After you file your online loan application, what most lenders do is send you a bank draft in the mail which you then present to any dealership as cash. You will be notified about the approval of your loan by email. You can also check your account at your lender’s site for your application status. Don’t worry, auto loans online are usually approved within an hour.


Benefits Of Auto Loans Online

Apart from the convenience and greater consumer control, applying for auto loans online gives you interest rates that are lower than the average national interest rate. How much lower? 1% to 2%! What’s even better is you can have this rate locked in for thirty to sixty days, depending on your lender. The online loan application itself is free, and the approval is almost instant. You are also allowed access to your account at any time of the day.

Disadvantages

There aren’t that many disadvantages with online auto loans—and that is what makes it such a great option for financing your car purchase. But another good alternative is a good credit union. If you belong to a stable and reliable one, and if your loan amount is small, then you can get an equally inexpensive deal as an online lender.

Tips To Getting The Rates You Deserve

Even with an online auto loan you still have to make interest payments, of course. So here are some tips to improve your credit score which in turn will decrease the life of your loan. First, get your credit score from online credit bureaus. All US consumers are entitled to free reports so there should be no problem in getting one. Scan the report and check for errors. These errors just might cost you a lot of dollars worth of interest payments. Have any and all of those errors corrected. Your credit score must be 680 or higher to take advantage of the lowest rates. If unfortunately your score falls below this number, try increasing it by paying off some debt or changing some bad credit card habits. You’ll be surprised how much they affect your credit score. Finally, use auto loan payment calculators to compare rates of various lenders and pick the one that offers you the best deal.


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