Pros and Cons of Online Auto Loans

Advantages & Disadvantages of online finance

Online auto loans

Online auto loans offer a lot of benefits for car shoppers looking to arm themselves with a good finance deal but as with any auto loan application there are things to watch out for. This page is aimed at giving a clear outline on the advantages and disadvantages of applying for car finance online.

The pros:

· It’s quick and easy. The obvious advantage of online auto loans is the convenience of being able to research different options, compare prices and apply from the comfort of your home. Many websites offer instant responses and loan approval without the hassle of a sales pitch and the application process is often much quicker than in dealerships or banks.

· It’s cheaper. Most websites offer interest rates of between one and two percent lower than the national average so finding the best finance deal for your credit score should not be a problem. This can be a particularly appealing bonus for those with a bad credit score. Along with lower interest rates, many websites offer free online application.

The cons:

· You won’t always find the best deal online and quite often dealerships can offer very competitive rates that you won’t find on the internet. In many cases it is also possible to find similar finance deals from credit unions or banks if your credit score is good. If your credit score is particularly healthy then you may even be eligible for zero percent finance from a dealership.

· No face-to-face interaction. While having to deal with salespeople can be part of the irritation in finding the best auto loan, speaking to a real person can also be very helpful. Talking to someone who has plenty of experience and who can give you advice on the best options available to you and to suit your personal situation can be invaluable. Finding a good finance deal is about more than just interest rates so consider looking for a website that has a customer services number so you can speak to someone about your options.

· Interest rates and services vary depending on what type of website you visit; independent websites, dealership internet departments or intermediary websites affiliated with banks, credit unions or other finance company.

Quick tips:

Make sure you know who you’re dealing with and what you will be charged. Find out if there are any application fees, paperwork fees and administrative fees as you don’t want to get any nasty surprises.
Many sites boast quick response times but be aware that while it is possible to get a response in minutes, it’s not unheard to wait for hours or even days.

 

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