If you’ve chosen the option of borrowing from a lender, you might be wondering, “Can I apply for a car loan online?” The good news is, applying for a car loan online can be easily done as a quick and straightforward process.
If you have done your research, found a car you like, and have a good credit history then simply follow the steps outlined in this article to begin your online car loan approval process.
How do online car loans work?
An online car loan is simply a car loan you apply for online. A car loan is a type of personal loan that you can use to finance a new car. It allows you to borrow a certain amount of money from a financial lender in order to purchase a new vehicle.
Car loans may be offered by financial institutions such as banks, car dealerships, or through alternative lenders. You will find that you can easily apply for a car loan through an online lender since these types of financial providers typically offer faster, more flexible loan solutions.
Online car loans essentially cut out the ‘middle man’ (traditional brick & mortar banks/lenders) to allow you to borrow funds directly from investors. These investors can be either individuals or corporations.
An online car loan through an online lender is often quicker and more convenient, offering competitive interest rates and the ability to apply online whenever, wherever.
While applying for a car loan online is a simple process, most lenders require you to meet certain eligibility criteria prior to being approved. To be eligible for a Plenti car loan, you must:
- Be 21 years or older
- Be an Australian citizen or permanent resident
- Earn over $25,000 per year and be able to demonstrate you have a regular source of income
- Have a good credit history
If you’re considering an online car loan for your next vehicle purchase, it pays to check your credit score first. Your credit score will influence the interest rate of your car loan, so the better your credit, the lower your interest rate.
Can I apply for a car loan online with bad credit?
Applying for a car loan online may be possible even if you have a bad credit history. Ultimately, it will be up to your chosen lender whether you can still qualify for a car loan if you have poor credit.
Plenti will consider an online car loan application if you are self-employed or can demonstrate a significant recovery from a bad credit history.
However, it’s best to ensure that you have a good credit score prior to applying for a car loan. Good credit scores of 600 and above tend to welcome lower interest rates between 5% to 10%. Whereas, credit scores of 0 to 509 tend to attract higher interest rates of between 10% and 20%. So, the higher your credit score and the newer the vehicle that you wish to purchase, the better your interest rate will be.
How do I apply for a car loan online?
If you have obtained a copy of your credit rating and can demonstrate good credit history, compared car loans, and have chosen the vehicle you want to purchase, then you can start the online loan application process.
Applying for an online car loan with Plenti is easy. You can complete every step online – all you need is an internet connection and your proof of identity documents handy.
- The first step in applying for a car loan online with Plenti is to request a quote. This quote will generate your personalised interest rate and allow you to adjust your loan amount to calculate repayments across different loan terms. We offer flexible loan terms from 3, 5 or 7 years.
- Once you have selected your preferred loan option, you can start the pre-approval process. This step in the online loan application process allows us
- Once pre-approved, you can start shopping for your new car with confidence. During this stage, you will have the option to obtain comprehensive car insurance and complete the settlement process.
- Once we’ve reviewed your application, we will let you know the outcome within 1-2 business days. Upon approval, your funds will be deposited into your nominated bank account the next business day.
By applying for an online car loan, you can save both time and money. The entire application process can be done online from start to finish and completed in no time.
An online car loan allows you to compare rates and fees and choose the best interest rate on offer. If you have a good credit history, you’ll be rewarded with lower rates and an affordable car loan that is tailored to you, allowing you to drive off in your new car in no time.