Whether you want to buy a new or used car, the best option is probably to get it on finance. This allows you to spread the cost over several years and enables you more flexibility in your repayments than if you were paying cash. However, there are benefits of getting car finance online that are even more worth considering:
The first advantage of getting your loan online is that you will have a greater choice of lenders. Many people don’t even realise that they do not have to take out finance from the car dealer, and therefore are missing out on massively reduced interest rates.
If you get a loan from the dealership, they will give you an interest rate which makes it attractive for them rather than for you. This is especially true of finance agreements where they ‘top-up’ the price of your car as it makes them money if you exceed the value of your loan and have to pay interest on that additional amount.
Getting your loan online will also save you time because there are fewer hoops to jump through. The process tends to be quicker, and you can get a decision in minutes. You can also do it remotely from anywhere, say if you’re based on the west coast of Australia and would like to obtain car finance in Sydney from the desired lender you can do this easily with an online platform.
A third advantage is that it is easier to compare the different lenders when they are all online instead of just from one car dealership. You should be able to access many more deals which will give you much greater choice and flexibility.
If your credit score isn’t perfect it means that you may not even be able to get a deal from the car dealerships. Getting your loan online can help you find an alternative, but it is important that you are careful about who you choose and know what funding they are offering.
The final advantage of getting your car loan online is that the whole process tends to be far cheaper because there is no need to pay for someone to show you around the car, and there is also no need for a salesman.
Each of these advantages can save you time and money, but it remains up to you whether they outweigh any initial attraction of getting your finance from the dealership.