Technology has been at the forefront of completely transforming the human condition. In no way has this been more apparent than through online banking. In fact, the online bank has streamlined many of the functions of traditional banks.
In addition to allowing consumers to be more proactive in taking care of their business, the online bank has made it possible to complete a number of functions, including tools for you to secure a personal loan online.
The car loan, more specifically, is one of the many loans that consumers can easily apply for online, and while it is not a traditional route to securing a loan, applying online is a viable way to get financing.
Continue reading to learn more about how to secure a car loan online and what’s involved.
Online Versus Onsite Applications
Applying for a car loan through online methods is very different than going through a traditional bank. For one, brick and mortar financial institutions will either ask consumers to fill out a paper application or an electronic one, if the institution supports an online portal. While the online application is also submitted online, there are a few differences in the process.
For one, because online banks do not have to worry about overhead associated with managing a physical space, they can afford to offer customers inexpensive interest rates.
Online car lenders have become popular because lower interest rates are one of the benefits of applying online. Furthermore, most online banks have no application fee, and getting an approval is usually done within one business day. Finally, the lock-in rate for these types of loans tends to be longer with some banks lasting as long as 60 days.
Benefits Of Using Online Financing
One of the major benefits of using the online bank is that everything is accessible through the online portal.
You can fill out your loan application online from any location as long as you have a working device and an internet connection.
Much in the same way you can pay bills and keep track of your accounts through online banking consumers can make payments to their financing company, and payments through the online portal are much safer than with traditional offices.
The loans tend to be more flexible, some suggest forgiving, in that the terms allow the applicant more options. Normally, consumers can choose an amount above the cost of the vehicle, as opposed to being given an amount.
In fact, some plans allow consumers to choose the day of the week, the frequency, and the length of the payment schedule. Finally, with the mobile app, you can access account information from any location.
Disadvantages Of Online Financing
Disadvantages of going with an online financing institution relate to being able to actually visit a branch when needing assistance.
Of course, customers are often routed to a phone number that can be used or an email address, but sometimes sitting down with a bank representative is the only way to resolve an issue.
Furthermore, while online banking institutions do not typically charge an application fee, they do charge fees to open the loan, they charge a fee beyond the interest rate for balances on the loan, and they typically will charge an early termination fee, which can add a significant amount to the loan.
Financing Your Vehicle Online
The major plusses to online banking relate to its convenience in providing applicants with a quick response to any application.
In a perfect world, the online car loan completely eliminates the bureaucracy that comes with filling out a paper application, and in a safe manner. This expediency and safety make the loan process much more accessible.