Getting an online auto loan puts you in a better bargaining position when you go to the dealership. With financing already secured, you are in effect a cash customer. You know how much you have to spend and can’t be talked into exceeding your limit by a pushy salesperson. You will also stay out of their finance department, which is a good thing.
Brian Reed, director of Internet lending for Capital One Auto Finance says, “Most consumers have front and center the information about the cars that they want to buy. But then they go into the finance office and all the savings could go out the door.”
Reed notes that many consumers arrive without approved auto financing in hand, either because they are not aware of all the financing options available, or they assume they will qualify for a low rate at the dealer.
Lower You’re Stress
An online auto loan can take a lot of stress out of the car buying experience. Here are two other car buying stress-reducers suggested by Money Magazine:
1. Buy your auto online: First go to Edmunds.com and use the True Market Value (TMV) tool to find out what people in your area are paying to drive your desired model off the lot. Aim to pay this price or less. Next, solicit dealer offers online. At Edmunds.com (or Autobytel.com), you enter the model you want, your contact info and your zip code, and within a few hours you will get quotes by e-mail or phone.
2. Hire an auto buyer: If you don’t want to do the work yourself and you are willing to spend an extra $400 to $800, you can reduce the entire car buying experience to a couple of phone calls and one visit to the dealer to pick up the keys.