Obtaining financing is an important step when purchasing a new or used vehicle, but it’s also a time-consuming part of this process. A growing number of dealerships are offering online time. Here’s what you need to know about applying for car loan financing online.
Why apply online?
Filling out your car loan application online and uploading supporting documents on your computer will help the process move quicker.
Since most workplaces use digital paystubs, you won’t have to worry about printing anything out or driving back and forth to the dealership in case you forget to bring all the necessary documents.
During Q2 2020, 36% of used cars were financed. With an online application, you can easily compare the cost of financing with other options like using your savings to buy a vehicle. Plus, you’ll know exactly how much you can borrow and what kind of APR and loan terms you can get. If a vehicle caught your eye, you’ll know exactly how much your monthly payments will be.
What happens after you apply online?
The dealership will receive your information and run a credit check. They will take additional steps like verifying your employment status, and they’ll reach out to you if they need more information.
Dealerships work with different financial institutions to offer car loans. After you submit an online application, your dealership will compare financing options offered by their different partners and get back to you with the best deal you qualify for.
When you’re ready to visit the dealership, your information will already be on file, and you’ll know exactly how much you can afford to finance. All you have to do is see the vehicle in person and go for a test drive. Overall, you can expect to spend less time at the dealership and spend most of this time focusing on the vehicles available.
Is it safe to apply for car loan financing online?
Your personal information is valuable to criminals because they can use it to steal your identity. However, there is no reason to worry as long as the dealership you use has a few safeguards in place:
- Encryption is a technique that protects data by encoding it. Dealerships can use encryption to make data useless in case an unauthorized party accesses it. The hacker won’t have the encryption key needed to turn the data into something they can read.
- A firewall can protect the dealership’s network and prevent data breaches.
- Strong data management policies will keep you safe. Ideally, dealerships should have policies that outline who can access the data you share with them and how long they will keep this data on file.
Applying for car loan financing online is a great way to save time when purchasing a new or used vehicle. Plus, you’ll know in advance how much you can afford to finance, what kind of APR you qualify for, and what your monthly payments will be so you can make a better purchase decision.