Online car loan approval
Australians, just like the inhabitants of many other developed countries, are doing more and more of their shopping online. As well as purchasing goods, such as food and clothing, you can also buy tickets for shows, make travel plans and get your car loan application approved via the Internet.
How does online car loan approval work?
Once you've checked the car loans available, and identified your preferred lender, you can apply for online car loan approval and get a rapid response without any obligation to accept the offer. If you haven’t identified a specific car yet, you can still apply for a preapproved car loan online. This indicates how much you’ll be able to borrow when you know which vehicle you want to buy.
If you already know which car you want, there's some basic information you'll need to have on hand to complete the online form. Generally you are asked to supply:
- The car's make, model and build year
- Details of badging and body
- Information on the transmission, engine and doors
- Vehicle condition and from where you are buying it
- Amount you want to borrow and your personal details.
There’s usually an option to choose ‘not sure’ for any of the car details if you’re not certain of them. Normally you will get an indicative response in a matter of minutes.
Why do people use online car loan approval?
As with most ecommerce options, you’ll discover that online shopping for a car loan is quick, easy and ultimately more convenient than having to telephone or write to individual lenders. Just as it’s easiest to make comparisons between car loans online, once you have made your decision it’s simple to make contact with a preferred lender immediately and gain loan approval promptly.
What are the features?
When searching for a car loan online, there are a number of finance options you can consider. Different types of loans with a variety of features are aimed at those seeking finance as individuals and those looking for car loans for business purposes. For business borrowers, there are options to investigate car leases, commercial hire purchases or chattel mortgages. For individuals, car loans can be secured or unsecured.
Pros and cons of online car loan approval
If you’re happy to have your car loan secured, then seeking online car loan approval will offer some or all of the usual benefits:
- A choice of fixed or variable interest rates
- A possible tax deduction if you plan to use your car for business purposes
- Flexible contract terms
- Lower interest rates because the loan is secured
- Reduction of the borrowing amount by contributing a deposit
- The potential to apply a residual to reduce monthly instalments
If you prefer an unsecured car loan, the approval guidelines are less stringent and most of the benefits are the same, except that you will have the advantage of not having to secure the loan against your car, although as a result you may not qualify for lower interest rates.