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Instant Auto Loans: Pros and Cons
Instant auto loans can be costly for applicants who see them only as a means to save time. Instant auto loans offer convenience, quick comparisons and products that are adaptable to niche applicants, such as students or those with poor credit. Fast auto loans have disadvantages, too. They will not offer the same personalization that a human-to-human car loan can. Also, with the staggering number of companies supposedly offering auto loans, the risk of submitting personal financial information to dishonest lenders can be quite high for applicants who are not comfortable with the Internet. Finally, the same fast processing that makes instant auto loans attractive can also make applicants lazy when it comes to checking terms, hidden fees and obtaining enough comparisons.
Hundreds of auto loan lenders are available on the Internet. The convenience of having so many options as close as your morning cup of coffee can make the auto loan process seem paralyzing. Choosing an auto loan lender from such a list of possibilities can be even more daunting when you consider the risk of identity theft when you make your personal information available online. While there are many lenders, there are far fewer reputable lenders. Luckily, you can weed out the bad ones by combing Internet reviews, checking the Better Business Bureau website and even by asking friends and family.
Once you have a list of possible lenders, you will be facing a computer screen, rather than a person, to fill out the application. While this may be convenient, it does leave you vulnerable to cold approval formulas and without a cheerleader in the bodily form of a salesman eager to make an auto sale. As a result, you may be faced with higher interests rates or fees. As with any loan application, prepare your credit report by making your bill payments on time for at least six months and correcting any errors that might be present before you apply for credit.
Instant auto loans save time, but spend this time wisely. Like any other loan, instant auto loans are a legal contract, and, as such should be read carefully. Before you accept a loan offer, know your interest rate, the loan’s duration, prepayment penalties and financing fees. Knowing the total cost of a loan over its lifetime will keep you well-grounded while you are shopping for a vehicle, and get at least three price quotes before committing to an auto loan.
Instant auto loans are a convenient tool for the financially savvy applicant. With the convenience of so many lenders competing for your business, and a fast process that leaves you time and energy to check the finer details, fast auto loans provide many advantages. However, the conveniences of instant auto loans could make for hasty decisions. Create a timetable that allows time to weigh your options.
