Purchasing a new car can be an extremely stressful occasion if you are not prepared for it. Even worse, with salespeople and dealerships trying to make a commission, sometimes unscrupulous dealerships will try to take advantage of people. When people go out to get an auto loan, most of the time, they prefer to take the traditional route and get a loan from a bank or credit union.
In today's market, however, the best used car loans are online. Why? Although there are many advantages when choosing an online loan over a traditional loan, the main reason why the best used car loans are online is because when you get an online pre-approval for the auto loan before you walk into a showroom, you have much more power on the negotiation table.
Saves a Lot of Time
If you were to get a traditional loan, you would have to drive around from lender to lender looking for the best rates. With an online auto loan, you can eliminate this costly ritual out of the equation. Online pre-approval is fast and easy, usually taking only a couple of minutes to get done. Additionally, you never have to leave the comfort of your home to get it done.
You can Save Money
Aside from the gas savings that come from not having to drive around, you also save in a big way when you choose to get an online auto loan. Since the online market is much more competitive than traditional banks, car loan providers normally give favorable rates to attract customers. Additionally, since their are lower administrative costs associated with running an online auto loan business, these savings are often shared with customers in the form of lower interest rates.
You Get More Bargaining Power with the Dealers
Knowledge is power. And when you come to the dealership equipped with the knowledge that you are already pre-approved for a certain amount, you know exactly what budget range you are in and what type of car you can afford. For the car salesman who loves to up sell you on amenities and models, this is a terrible situation. But for you, the only thing that the dealership has to provide is your car, so they will not have the ability to try to manipulate interest rates, putting you in an excellent position to get the best deal.