In the past few years, more and more people have been getting auto loans online. A recent study by Forrester Research says that online shoppers will spend $15.9 billion on cars and car parts in 2006. The study also says that the Web has an effect on 22% of offline sales.
"Direct financing" (b>b>)
"Direct financing" is the term for getting auto financing online directly from a bank, credit union, or other lender. Consumer advocates recommend direct financing because it lets you negotiate the cost of your financing separately from the price of your car. If you get your financing first, you'll also know how much money you have to spend before you go shopping. And if you are pre-approved, you won't have to go to the high-pressure finance department of a dealer.
You can find out almost right away if you are eligible for an auto loan. Online applications don't take long to fill out, and you get a quick response. It is simple and easy, and you can do it whenever you want from the comfort of your own home. Thanks to modern browser technology and electronic encryption, the process of getting a loan online is completely safe.
Not only can you get auto financing on the Internet, but it's also a great place to find tips on buying a car, shopping guides, and a vehicle's safety record. If you are buying a new car, you can find out if there are any rebates from the manufacturer. If you are buying a used car, a site like CarFax.com can tell you about its past. If you want more peace of mind, you can also buy an Extended Service Contract or Guaranteed Auto Protection (GAP) insurance.
Security on the Internet
The Federal Trade Commission gives the following tips to make sure that your online financial transactions are safe and that your personal information is safe:
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Use a secure browser, which is software that scrambles or encrypts the information you send about your purchases, 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.
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Before you give a site any personal or financial information, 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.
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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.
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Only give payment information to companies 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.
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Keep track of what you buy and sell online, and check your email for messages from merchants you do business with. Check your monthly credit card and bank statements carefully and quickly for mistakes or purchases you didn't make.
It's important to work with a lender who has a good reputation for being fair and offering reasonable rates. One company like this that gives free online quotes for auto financing is www.autoloansinseconds.com. Even if you have bad credit, they will try to get you the best rate possible for your situation. Their free quote has no strings attached.
If you want to buy a new car, you should start your search online. You'll be glad you did it because you'll save time and money.
