Auto Loans Articles

Auto Loans-Dealership Offers Versus Online Lending

If you are purchasing a car from an auto dealership, it isn't necessary to obtain your auto loan from them as well. After all, money is money and everyone's money spends exactly the same. Therefore, you could do yourself a favor by obtaining your auto loan from an online lender rather than relying on the auto dealership to give you a great deal.

While auto dealerships might have opportunities to access a number of loan options for their customers, these resources are limited to companies that they are associated with and this means that your opportunity to realize savings on your auto loan is also limited. Auto dealerships provide this service as a means of expediting the car purchase, not as a means of providing the customer with savings. If you want lower monthly auto loan payments, then you are going to have to go out on your own to find them.

Fortunately, you don't even need to leave your home in order to find reasonable auto loans. All you need is access to the Internet and a few spare minutes. The process of obtaining an online auto loan starts with a secure online application. Best of all, a single application is all that it takes to receive several quotes from lenders that are willing to provide auto loans to someone who is purchasing a car from an auto dealership.

To compare these offers, you can look at the APRs attached to the loans. The APR or annual percentage rate portrays the annual cost of having a loan. The higher the APR is, the more you are going to pay out of pocket. However, you also have to take into consideration such things as the term or number of years that you get the auto loan for as well as the interest rate charged for borrowing the money.

Auto loans usually come with short terms of three, four, or five years. Plus, used auto loans are sometimes more affordable simply because you are borrowing less money.

You can save money by shopping around and getting your loan online. The results come back in just a few minutes, sometimes a bit longer if more people are searching for ways to save on their auto loans. Moreover, online lending is available for consumers with all types of credit backgrounds, you don't need to worry about a few missed payments in your credit history. Why not avoid the high interest rates and exorbitant fees that dealerships offer and take advantage of what online lenders have to offer today?