Can I Apply for a Car Loan Online?
Instead of going to the dealer and hoping for the best, car buyers would like to know whether they qualify for a loan ahead of time. One of the best ways is to apply for a car loan online.
Many lenders allow you to “pre-approve” your application, meaning that you can have the finance you need ready to go before heading down the dealership.
The benefits of applying for a car loan online are many. Not only do you avoid having to go through all the paperwork, but it also saves you time. Plus, buyers who have already applied and have received loan pre-approval dramatically improve their negotiating position.
Is it Better to Apply Online or In-Person?
For many of you, especially those of you who are computer-savvy, applying online is the better option. In general, it is more convenient than trying to fill out forms in person. You just enter your details into a few fields offered by the lender and they will then come back to you with whether or not you qualify. Usually, decisions take a matter of minutes. Sometimes they are instant, depending on the service that you use.
Online applications also allow you to quickly adjust your budget if creditors deem your borrowing requirements too high. If AUD 20,000 is too much, they may offer AUD 15,000 based on your credit score and ask you to cough up the difference.
Online applications, however, don’t have a monopoly, and they may not be best for all people at all times. If you’re not confident with filling out forms online or using the internet, then in-person may be better. Here, the dealer or the lender will sit down with you, help you complete the various forms, and tell you what to do next. Just be warned, though – the lender may still refuse to provide you with the credit under some circumstances, so prepare yourself for the possibility of bad news.
Applying online has one final benefit: the fact that you already know you have finance when you arrive at the showroom. Pre-approval gives you more freedom to relax and select the vehicle that is the best match for you, given your budget. It simplifies the negotiation process, providing you with the same leverage that you could enjoy as a cash buyer. You maintain the option of going to another dealer if the current one doesn’t meet your needs.
What do I Need before I Apply?
Lenders won’t lend to anyone looking to buy a car. If you want them to provide credit, you need to prove that you can repay both the principal and interest. And to do that, you’ll need the following documentation:
- Payslips. Lenders want to know how much you earn before they hand over money. Australian car buyers, therefore, must usually provide evidence of their earnings from two or three recent payslips. Lenders look at both the raw amount that you earn and the stability of your wage over time to determine your level of risk.
- Proof of residence. You’ll need to prove your residence in the country with a utility bill, voter enrollment form, or another official document with your address printed on it.
- Proof of identity. Lenders want to make sure that they’re lending to the person they think they are. You may, therefore, have to provide your driver’s license or passport to confirm your identity.
- Employer contact details. Lenders will check with your employer that you are a member of the firm and that your pay is what you claim it to be.
- Your liabilities. Your liabilities encompass all of the money you owe other people, such as your mortgage, credit card debt and personal loans. The lower these are relative to your income, the more you can borrow, all else held equal.
Besides documentation, you will also need to determine the type of car that you want to buy, the monthly repayments that you can afford, and the amount you need to borrow. If you have an excellent credit score and a high income, you will be able to borrow more. If, however, you do not have these in your favour, then you may have to settle for less. The pre-approval stage, therefore, is an excellent opportunity to find out whether you can afford the car you want.
How to Apply for a Car Loan Online
Applying for a car loan before you hit the dealership is simple with Awesome Car Loans. You just go to the application page, fill out your details, and then wait for a representative to get in contact with you.
The application form itself is easy to fill out. Just enter your name, email address and phone number and then answer some simple multiple-choice questions. Once you complete these, all you need to do is wait for one of our team to contact you to discuss taking out a loan further.
We recommend that you collect all of the documentation you need before the call so that you have it ready to go when the rep gets in touch with you. Doing this will help to speed up the process.
Going through a broker like us also helps you to get the best deal on your new loan. Brokers aren’t lenders. Instead, they are agents who connect you to those providing them. They offer independence, allowing you to get the best deal for your circumstances and at the lowest price. Thus, you’re not locked into a single provider. You get a meaningful choice over who you borrow money from. Remember, brokers know the difference between a good and a bad deal, and can advise you accordingly.
Conclusion
In summary, the answer is yes; you can apply for a car loan online. What’s more, pre-approval is the better option for the vast majority of people. You just enter your details and then wait for an agent to contact you. Plus, you have extra leverage once you reach the dealership (as if you were paying cash).
