Get A Car Loan Without Getting On Your Knees!
There comes a point in every driver’s life when it’s time to get a car loan for a new or used car, but where do you go to get the best loan rates?
Depending on your financial situation, your credit rating and the amount you want to borrow, there are a number of loan options available. Once upon a time, most people headed straight to their local bank or credit union, but these days various lending institutions have created new opportunities for auto loans that weren’t previously available.
Most auto dealers are in partnership with one or more finance organizations so it’s likely they will offer you their services. But you need to know that most car dealers make a commission on every loan that is brokered through their dealership, so it’s in their best interests to ‘sell’ you both the car and the loan.
The most valuable decision you can make when getting a car loan is to shop around for the best loan, which is now easy to do via the Internet. From the comfort of your computer, you can check out the major banks’ lending rates, the loan rates offered by credit unions and also the choice of rates offered by the many online loan providers.
While it was once true that the major banks used to offer the most competitive loan rates for new and used car loans, that is not necessarily the case these days. Banks tend to have the most stringent lending guidelines; a deposit of up to 25% is often required and your credit rating has to be unblemished. In addition, most banks will only lend funds on new cars or used cars up to a certain age – usually 5 to 7 years.
The factors that apply to bank loans are important considerations when shopping around for the best car loan rate online. In most cases, Internet loan providers will request personal and financial details so they can make an assessment. Based on their analysis, they can choose the best lender for your particular circumstances from a comprehensive range of lending institutions.
The factors they will take into consideration are:
- The deposit you have available
- Your current financial position and your ability to meet repayments
- Your previous credit history
- Your work situation
- The age and condition of the car you want to buy
- Whether the loan will be secured or unsecured
- The repayment amount and the term of the loan
In most cases, online car loan brokers promise to get back to you within 24-48 hours with an answer. This time is necessary to verify your details, confirm your credit rating and determine the best car loan for your needs. No complicated forms to fill out and no need to get down on bended knees to beg!
You can make the process even easier by ensuring you have all the relevant information available. Important points to consider are:
- Do you have proof of steady employment, ie., income statements, recent tax returns?
- Have you checked your credit rating and is it acceptable?
- Have you calculated a reasonable monthly repayment amount? The less you pay per month, the longer the loan period and the more interest you will pay over the term of the loan.
The requirements to get a car loan are easier and more convenient than ever before with the use of the Internet. After all, the web is available to you 24/7 and you can do all the work from the comfort of your own home computer.
What’s more, the popularity of Internet loan providers has created a competitive, thriving industry where you can be sure you will get the best car loan rates available. Just be sure to do your homework first.
