Some consumers prefer to finance online rather than bother with going to a financial institution in their area, or working directly with a dealership. In addition to convenience, there are a number of reasons that taking this route can be very beneficial when buying a car. Let’s look at what a few of them are:
- Interest rates are cheaper. Auto buyers have quickly discovered that working directly with an online financial institution provides access to significantly lower interest rates. For example, if you go directly to a dealership to acquire financing for a new vehicle, the lowest average rate you will be eligible for is around 7%. However, if you choose to finance online, you might find average rates as low as 5.44% – that’s a huge difference!
- Getting approved is fast and simple. Another benefit of securing your financing online is that the application process moves quickly. Most of the internet financial institutions seem to compete with each other in reference to offering the fastest application process. As a result, you usually only have to disclose a few important details, including your SSN, DOB, length of time living at your current residence, employment details, and information regarding the car you like. The process only takes a few minutes, and afterward, you may receive a response from an account representative in as little as 30 minutes.
- You are given a check that you can take to any dealership. If you’ve been approved for a loan online, your next step is actually buying a car. Many institutions that finance online send you a blank check in the mail that allows you to pay for the vehicle. By filling the check out (as you would any other check), you determine the amount of the loan you will need to pay back to the financial institution.
Buying a car can be tedious for sure. But by taking the opportunity to finance online, you may just be able to make the process a little easier.