More and more consumers are getting their auto financing online instead of from the dealerships where they buy their vehicles. Getting auto financing from a dealership has some benefits:

• Convenience – vehicles and financing are in one place and the dealer is motivated to find financing for buyers, no matter their circumstances.

• More options – a dealer’s relationships with a variety of banks and finance companies mean they can offer a range of loans to fit a buyer’s credit rating.

• Special programs – sometimes dealers can offer manufacturer-sponsored, low-rate programs, but usually only to people with good credit.

But getting auto financing online offers even more advantages:

• Certainty – buyers know how much they can spend before setting foot on a dealer’s lot.

• Clout – buyers with financing in hand are treated like cash customers and are in a stronger negotiating position.

• Cash savings – because of competition, online buyers often get the lowest interest rate possible for someone with their credit rating.

• Calmness – buyers aren’t subjected to the high-pressure tactics of a dealer’s finance department.

Shopping for your financing first can save you a lot of headaches. If you know how much money you’re qualified to borrow, you can limit your search to a vehicle you’ll actually be able to afford. Why set your heart on a Hummer when your checkbook says Hyundai.

Play it safe
Due to advances in Internet security, online financial transactions are for the most part safe and secure. Still, The Federal Trade Commission offers the following advice regarding online transactions:

• Use a secure browser – software that encrypts or scrambles the purchase information you send over the Internet – to help guard the security of your information as it is transmitted to a website. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer.

• Check the site’s privacy policy, before you provide any personal financial information to a website. In particular, determine how the information will be used or shared with others. Also check the site’s statements about the security provided for your information.

• Keep your personal information private. Don’t disclose your personal information – your address, telephone number, Social Security number, bank account number or e-mail address – unless you know who’s collecting the information, why they’re collecting it and how they’ll use it.

• Give payment information only to businesses you know and trust, and only when and where it is appropriate – like an order form. Never give your password to anyone online, even your Internet service provider.

Visitors to the site can fill out a simple app, which is instantly submitted to reputable dealers in their area. The one with the winning offer contacts the applicant with a pre-approved loan amount, usually within a few hours. The loan quotes are free and the inquirer is under no obligation to accept the offer.

A payday loan allows you to receive a cash advance based on the expectation that when you are paid, you will pay the lender back. Finance fees vary between payday loan companies, so it is best to investigate several lenders before filling out an application. Once approved, you can receive your money within hours. Then you just repay your loan on your next payday to avoid any financial problems.

Find A Lender

Before you fill out an application, you should start by comparing lenders. You can easily find information on lenders’ sites. Look for the lowest finance fees and best terms.

On average you can expect to pay $15 for every $100 advanced. You can borrow up to $1000, but the typical amount is between $200 and $300. Your state’s laws will dictate how much you can borrow and the terms.

The Application

With online payday loan lenders, you don’t have to worry about paperwork. You simply provide your contact information, income level, and checking account info.

For large payday loans, you may need to fax additional documents, such as pay stubs or bank statements. Sometimes you may find better rates with these lenders, so it pays to at least check out their rates.

Besides online companies, you can go to a store front with your financial records and apply. An employee will make copies for the company’s records.

Receive Your Money

Your application should only take minutes before you are approved. Your money will then be wired to your checking account if you use an online lender. Traditional payday companies will write a check to you, which you will have to cash at your bank.

Pay Back Your Loan

With online payday companies, you payment will automatically be deducted from your checking account. This payment will include the loan’s principal and finance fee. If you choose to roll over your loan for another pay period, you will have to pay the minimum finance fee.

With traditional lenders, the postdated check you wrote during the application process will be cashed. If you want to delay full payment, you will need to go to the store to make arrangements.