Auto Financing – Getting Money for Your Car Purchase
Auto Financing – Getting Money for Your Car Purchase
When you need a car but don’t have the money, you need a loan. Auto financing is available from many different places, in several different forms. Finding the right loan for you may be confusing. But with so many options you are sure to find a great deal. Online lending is the hottest thing right now and will continue to grow. You might even be given a blank check from your lending institution so you can negotiate like a cash buyer at the dealership. Transportation is a necessary part of life. Getting a loan to fund your transportation can be painless.
Most auto loans are secured loans which means that you offer up something as collateral against your borrowed money. The car itself is your collateral. The loan is secured by the car. If you don’t pay your loan the lending institution takes the car instead. Auto financing has a much shorter term (the time in which you pay the money back) than other loans. Usually the auto loan term reflects the amount of time the car is expected to be useful. Auto loan terms can be anywhere from a couple of years to 72 months (six years).
There are two major types of auto financing, direct loans and indirect loans. A direct loan is when the lending institution gives the money directly to the person who applied for the loan. This is when you go to a lender yourself to get your financing. An indirect loan is when the car dealership acts as a mediator between the lender and the consumer. If you applied for a loan at the dealership this would be an indirect loan. The dealership does not offer the auto financing, but helps you apply to a lender.
Online lending is a great option for getting auto financing. The internet is the biggest store in the world. You can shop at your leisure and get lots of great deals because of the level of competition. Always make sure that you work with a trustworthy and legitimate site. Interest rates can be better online and the ease of securing a loan is unparalleled. Many web sites make getting a loan no sweat. Then you can download a blank check and go to the dealership and negotiate like a cash paying customer. Auto loans are the way to go when you need a car now, but don’t have the money.
