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Finding auto loans online.


For most of us, buying a car is a big purchase and, unfortunately, often quite a stressful experience. Car dealers are notorious for their sale tactics, and banks compete ferociously in the market of extending loans.

Auto loans are very lucrative and a fairly secure business for lenders as they can repossess the property (your vehicle) should you not repay the loan.

Because of these practices, more people are looking to buy a car using online resources, and even more so, to secure an auto loan on the internet before they make a trip to a car dealership.

Auto loan online – direct lenders versus loan brokers.

Many big and small banks have established their presence on the internet, and they offer online auto loan applications. There are also countless websites of lending brokers who do not underwrite loans themselves. If you have good credit it is probably best to go with a direct lender (a bank or a credit union), since you are going to get the best deal on a car loan no matter where you go. However, a reputable loan broker can match you with a bank that will “take you” if your credit score is less than perfect. One way of quickly scrutinizing whether a website offering car loan applications online is trustworthy or not is by checking its standing with the Better Business Bureau. And, it is always a good idea to read the page(s) about the company titled “about,” “privacy,” and “information collected.”

Get a car loan before you go to the dealer.

All car buying guides suggest that it is much better to secure an auto loan, before you go shopping at a dealership. It is not likely that the dealer will be able to offer an auto loan on better terms than a bank, but there are situations in which a dealership might have special promotions with outstanding terms, usually available only to very well qualified buyers. Securing a loan allows you to shop at different places and compare their prices.

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It also forces the seller to compete for your business, but most of all, it creates a clear distinction between a car price and the cost of the financing.

See also: dealership car loan, car insurance cost, lowering auto insurance




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