If you are hoping to buy a new car and are looking for a car
loan, then you may be able to find what you are looking for from an
online car finance provider.
Except for the fact that they may not actually sell cars themselves, in many other respects the service offered by some online car finance could be seen as a sort of one-stop shop.
Car finance calculator
This is a tool that may help you work out what you can afford to pay.
At a very basic level, you can key in a purchase price and see how this would translate in to a monthly payment. You may typically be able to try out various options of different amounts and longer or shorter repayment periods to find the closest match to you own circumstances.
The figures quoted are typically for illustration only and may differ to the actual loan offered once all your application details have been considered.
The application
Online car finance sites use your application details such as your income, for example, and your credit score from the credit check that they will carry out to work out the terms of you offer.
Your income level may give an indication of how much you could comfortable afford to repay each month. Your credit status will determine the interest rate they charge you.
This information will allow them to find the most suitable deal for you and your circumstances, from their panel of lenders.
Once this has been done, you will have your credit limit and can start your search for the perfect car.
Registered sites
What happens then will depend pretty much on your own personal preferences.
Some car finance providers have access to registered dealership lists so you can browse through these online and look at those cars that most closely match your requirements - as well as how much you may be able to afford to pay.
On the other hand, you may prefer a more hands-on approach and prefer to visit car dealerships yourself to get a first hand feel for the car, though do note that with some providers you are limited to selected dealerships only.
Deal done
Either way, once you have found the car for you, your finance supplier may typically need the registration and the mileage. They will use this information to compare the car against industry standards to verify that the value of the loan does not exceed the value of the vehicle.
If it does, they may ask that you find an alternative car.
Once everyone is happy, for many purchases the supplier of your online car finance will usually pay the dealership directly and the car will be yours.
Except for the fact that they may not actually sell cars themselves, in many other respects the service offered by some online car finance could be seen as a sort of one-stop shop.
Car finance calculator
This is a tool that may help you work out what you can afford to pay.
At a very basic level, you can key in a purchase price and see how this would translate in to a monthly payment. You may typically be able to try out various options of different amounts and longer or shorter repayment periods to find the closest match to you own circumstances.
The figures quoted are typically for illustration only and may differ to the actual loan offered once all your application details have been considered.
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| Car finance calculator |
The application
Online car finance sites use your application details such as your income, for example, and your credit score from the credit check that they will carry out to work out the terms of you offer.
Your income level may give an indication of how much you could comfortable afford to repay each month. Your credit status will determine the interest rate they charge you.
This information will allow them to find the most suitable deal for you and your circumstances, from their panel of lenders.
Once this has been done, you will have your credit limit and can start your search for the perfect car.
Registered sites
What happens then will depend pretty much on your own personal preferences.
Some car finance providers have access to registered dealership lists so you can browse through these online and look at those cars that most closely match your requirements - as well as how much you may be able to afford to pay.
On the other hand, you may prefer a more hands-on approach and prefer to visit car dealerships yourself to get a first hand feel for the car, though do note that with some providers you are limited to selected dealerships only.
Deal done
Either way, once you have found the car for you, your finance supplier may typically need the registration and the mileage. They will use this information to compare the car against industry standards to verify that the value of the loan does not exceed the value of the vehicle.
If it does, they may ask that you find an alternative car.
Once everyone is happy, for many purchases the supplier of your online car finance will usually pay the dealership directly and the car will be yours.