The Internet has been a boon to car shoppers, offering an arsenal of information to arm you in the battle to find the right vehicle at a fair price. There are plenty of online auto-loan sites, but don't expect to find the best deal there. You're likelier to get a lower rate from the automaker's captive finance company. Credit unions and some banks may cut you a better deal, too.
Credit unions can be very competitive.
High rates of rejection. Ore. Rejection rates for online loans are high because most of the people applying for them have lousy credit, he says. As a result, the online companies loan rates are higher than those of many traditional lenders. To get a loan, you file an application electronically, and if you are approved you receive your loan in the form of a check you can write to a dealership up to a maximum amount. Dealerships, which can profit handsomely from their own financing, may balk at such a payment.