Reports indicate 40 percent of consumers who recently bought a car or truck used the Internet to help them shop – up from 25 percent a year ago.
Now consumers are also financing their cars on the Web. Here are some frequently asked questions about Internet auto-financing and their answers:
How do I compare and calculate monthly payments when I am auto-finance shopping?
Thanks to the Internet, this kind of information is just a mouse click away. Some services allow you to compare interest rates nationwide, so you know if you’re getting a good deal. Also, look for a site that provides calculators to work out how much your monthly payments will be.
If I finance a used car, how do I find out about its history and how much it is worth?
CarFax’s “Lemon Check” allows you to enter the car’s VIN number (Vehicle Identification Number) and then tells you how many previous owners it has had; if it has ever been totaled or sold for salvage; or if there are any recalls on the car-from this you can work out how much the vehicle is worth. You can access the “Lemon Check” on www.giggo.com.
How do I know a financing site is secure?
Look for a site that uses the international SSL security standard, which “encrypts” personal information so no one on the Internet can understand it. Also, find a site that tells you what they do with your information once they have it on file.
What’s the difference between being pre-approved for a loan and being sent a check?
Some online financing sites only offer pre-approval-which means when you go to the dealer, you still have to go through the application procedure. Other sites actually send you a check for an approved dollar amount on a car, which means you walk into the dealer like a cash buyer.
– North American Precis Syndicate
