Online auto loans have all the advantages of traditional direct financing, and then some.
Wondering if an online auto loan is right for you? We’ll help you decide.
How online auto financing works online
auto loans are really just a very fast and convenient form of direct financing. (By “direct financing” we mean any car loan that is obtained without the help of a dealer.)
Online or off, direct auto loans are highly recommended by consumer advocates. They allow you to negotiate the price of your car independent from its financing and put more bargaining power in your corner.
And we think the best and fastest way to a new car is with an online auto loan. (More specifically, an online auto loan from one of the two great lenders we partner with, PeopleFirst and Eloan). Here’s why:
The advantages of online financing
Our recommended online lenders provide all the advantages of a good traditional lender: no application fee, no down payment, and the ability to negotiate as though you have “cash in hand”.
But they also provide features only an online service can: easy online application, almost instantaneous approval, online access to your account 24 hours a day, and a money-saving automatic payment option.
But best of all, their interest rates are usually 1% to 2% lower than the national average. (Now we’ve got your attention!) And the drawbacks?
The disadvantages of online auto financing
To be honest, there aren’t many. However, in these days of 0% financing, you may be able to score a better rate at the dealership. (We never thought we’d say that!)
And if you belong to a good credit union, and your loan is small, they may offer rates similar to an online lender’s, too. (Though it never hurts to shop around and compare.)
But be sure to keep in mind that special financing packages offered by dealerships often mean that restrictions apply. You may be penalized for early payments (neither of our recommended lenders does this), or have to accept a certain loan term.
Don’t get us wrong, you can’t beat zero percent financing. But most deals are going to have a hitch. So make sure you’ve got some figures to compare.
Online lenders we like
So who are these great online lenders?
Well, PeopleFirst is the biggest funder of online car loans in the country. They offer low-rate auto loans on new and used vehicles, and even on person-to-person transactions.
Their application process is a snap, and they’ll approve you in fifteen minutes. They’ve even got a cash-back satisfaction guarantee! Read more about them, or apply now.
Eloan is another service we like. And although they only fund franchised dealership purchases, you can download their instant car loan contract, and walk into the dealership today.
Read more about Eloan, or apply with them now. Need help deciding on loan term or monthly payment? Read our in-depth guide or use the auto loan calculator for fast figuring.
