Step 1: Application
If you are looking for an online auto loan, Car Deal Expert makes sure you get the best rate available to you and the right amount of funding. First, you share some basic information with Car Deal Expert on your application, including how much you’re looking to borrow and your contact information.
Car Deal Expert will then contact several lenders and choose the best one for you. You can decline the lender’s offer, of course, at any point. In some cases, you may be able to select your own lender from a list of offers.
Step 2: Pre-approval
After you’ve accepted a loan offer, your lender will perform a credit check and then tell you what amount and interest rate you are approved for. This is called pre-approval. Your lender will supply you with documentation that shows how much you have been approved to borrow. You don’t actually take the money at this point — that comes after you have found your car.
Pre-approval for a loan is an excellent tool while car shopping. When you find a car you want that is within your price range, you show the documentation of pre-approval to the dealer so they know how you will be paying for your vehicle.
Once your dealer knows that you will not be getting financing through them and how much you will be spending, it takes a lot of the pressure off. We’ve all dealt with one of those salesmen who shows you a $13,000 vehicle after you say you’re looking for something less than $10,000. But if you already have an amount locked in, the dealer doesn’t have a chance to offer you more financing so you can get a more expensive car. You’ll end up with what you want, and nothing more, with no pressure and haggling.
Step 3: Dealer agrees to sell you the car
At this point in the process, you will be dealing with your lender and dealer only — Car Deal Expert simply finds that lender for you. So Car Deal Expert won’t actually be involved when you get your loan, but here is what you can expect: The dealer and you will agree on a price for your car and draw up a bill of sale.
You then show the bill of sale, which includes details about the car, to your lender. As long as you stick with your original pre-approved loan amount you should have no problem getting financing. Your lender can deny your loan based on the car, but if your lender does say they won’t accept the car you selected as collateral for your loan, that usually means that vehicle is not worth what you’re paying. So your lender can act as a bit of a safety net.
Step 4: Get your loan and drive away
Once you and your lender reach an agreement, your lender pays the dealer, and voila, you are done. Get the keys, and drive away in your new car. You don’t have to talk to your dealer ever again if you don’t want to. After you’ve gotten your car, your lender is in charge of ironing out the details of paying the dealer.
All that’s left is to pay back your loan, but your lender will have already made everything this entails clear to you by this point. When it comes to paying it back, an online auto loan is no different than any other auto loan, except that you will likely end up paying back less.[apply_button]