More and more people are getting financing for their cars online instead of at the dealerships where they buy their cars. There are some good things about getting auto financing from a dealership:
- Convenience: You can buy a car and get a loan at the same place, and the dealer wants to help buyers get loans no matter what their situation is.
- Special programmes: Dealers can sometimes offer low-interest programmes that are paid for by the manufacturer, but usually only to people with good credit.
- More choices: Because a dealer works with many banks and finance companies, they can offer a variety of loans to buyers with different credit scores.
But there are even more benefits to getting auto financing online:
- Certainty: Buyers know how much they can spend before they set foot on a dealer's lot.
- Save money on cash: Because of competition, online buyers often get the lowest interest rate possible for someone with their credit rating.
- Clout: Buyers who already have financing are treated the same as cash customers and have more power in negotiations.
- Peace of mind: A dealer's finance department doesn't use high-pressure sales tactics on buyers.
Getting your financing sorted out first can save you a lot of trouble. If you know how much money you can borrow, you can narrow your search to cars that you can actually afford. Why dream about a Hummer if your budget says Hyundai?
Play it safe
Because Internet security has improved, most online financial transactions are safe and secure. Still, the Federal Trade Commission has these tips for buying and selling online:
- Only give payment information to businesses you know and trust, and only when and where it's needed, like on an order form. Don't tell anyone online your password, not even your Internet service provider.
- Before you give a website any information about yourself or your finances, check the site's privacy policy. Find out in particular how the information will be used or shared. Also, read what the site says about how your information is kept safe.
- Use a secure browser, which is software that scrambles or encrypts the information you send about purchases over the Internet, to help keep your information safe as it is sent to a website. Use the latest version of your browser's software to make sure it has the most up-to-date encryption features.
- Don't tell anyone about your private information. Don't give out your address, phone number, Social Security number, bank account number, or email address unless you know who's collecting the information, why they're collecting it, and how they'll use it.
When people go to a site, they should be able to fill out the application easily which will be sent right away to reputable dealers in your area. The one with the best offer contacts the applicant within a few hours with the amount of the loan that has already been approved. The loan quotes are free, and the person who asks for them doesn't have to take the offer.
