• How to Apply for a Car Loan Online

    Many online companies are eager to have you apply for a car loan online with them. And it is a fairly easy process. Below are a few items to remember when applying for an auto loan online.

    • Some companies only allow you to apply for a loan for a vehicle that is being sold by a “certified” dealer. This means you must purchase your vehicle from a dealer that is approved and/or affiliated with the loan company. On the loan application website, you will find a list of the dealers allowed. Bear in mind, if this is the case, it means you cannot purchase your vehicle from a private buyer, an independent dealer or a dealer not on their list.
    • You must have a social security number to apply.
    • You must be a citizen or legal permanent resident to apply.
    • Often, there is a minimum loan amount (most likely around $7000) and a maximum amount allowed (usually around $100,000).
    • Many companies do not make loans for commercial vehicles; vehicles used for business; delivery, “gray market,” lemon law, salvage, rebuilt, or branded title vehicles; motorcycles; or recreational vehicles.

    To refinance a loan or for lease buyouts, the vehicle identification number, model, make and year are required.   

    • You must have the name of your employer and the amount of money you earn available.
    • You must have an email address to apply.
    • You can apply for either a new or used vehicle. You may also apply to refinance a current auto loan.
    • Interest rates are lower for new cars versus used vehicles.
    • You must use the money to purchase your vehicle directly from the dealer or private party—no third-party transactions are allowed, including power-of-attorney deals.
    • Vehicle restrictions apply. For example, a used vehicle often must have less than a certain number of miles and often must be less than a specified age.

    The process of applying for the loan is fairly simple. Once you select a company to which you would like to apply, often you must “sign in” and submit a password to begin the application process. Next, select whether you will finance a new or used vehicle, or whether you will be refinancing an existing vehicle. Then simply fill in the required information. This includes your first and last name, address, date of birth, social security number and employer information. Then you will be asked to describe the vehicle you choose to buy and from whom.

    After you have submitted all of the necessary information, submit the loan application, being careful to add any missing data and rectify any incorrect information. Some companies offer expedited service for an added cost, where you can receive a check in as little as one day.

    Once you receive your check, often in the form of a loan voucher, you can take the money to the dealership and purchase the vehicle.

    Check out the internet for the best companies offering used and new car loans.