Great rate and your money tomorrow
Written: Mar 06 '01
The Bottom Line
If you are willing to take some chances you will be rewarded with a great rate, fast service, and a car the next day.
|
| Full Review |
Although I admit that some of it may have been luck I had an amazingly positive experience with E-Loan.
I ran across E-Loan when researching a car on one of the car web sites. I was so preoccupied with trying to figure out which car to get that I never really thought about financing. I just assumed that that is something that gets handled at the dealership after you buy (which I later found out is not at all the best approach unless you really want to improve the dealer’s chance of ripping you off.)
I was buying my first car but now I know: you want to have your car, financing, extended warranty, and insurance stuff researched before you go into the dealership. You can walk in there with none of the above and walk out with all of them, but odds are you'll pay a lot more for not being prepared. Even when you’ve researched everything the dealer will still have the edge and the more variables they have to play with the more complicated and frustrating an experience you may need to deal with. Under pressure you will make mistakes and put a big fat commission in someone’s pocket.
I was amazed at being able to get the rate of 6.56% when my company's credit union was charging 8.25%. I decided that may be looking into financing now wasn't such a bad idea; 6.56% is basically free money as its not too hard to beat that with marginally risky investments.
The web site was professionally done and contained much useful information. I filled out an application thinking it will be weeks before I hear anything. I got a call back within an hour. They needed to clear up some information, which is understandable since my situation was a little complicated (moving to a new address, just starting a job, etc.) My loan was approved next day and I got the best rate. It took a week or so to get the information (you can have it delivered next day for $12).
Note that just because you are approved you do not have to use the loan. It expires after a month or two although you can request an extension. BTW, one of the things I liked was that you could change the term and the amount just over the phone. I did end up doing that in fact and they sent me the corrected paperwork FedEx at no charge (I don't know if that is a feature or a mistake on their part, it seems like the latter but I am not complaining.)
Now for some of the details you might want to know about the loan. The rate was the rate they quoted. No other fees. The rate applied to any term between 36 and 72 months. The amount you can write the check for is variable; you do not need to use the entire amount. Interest is bank interest: your finance charges for the entire period are added when you use the bank draft (check they send you to give to the dealer). There is no benefit for you to pay the loan off early. There is no explicit penalty for doing so either but you don't get any of your finance charge back so its like paying a higher interest rate if you pay back early. If you want simple interest you might want to talk to your credit union, but at rates this cheap I have no intention of paying back any earlier than I have to.
Once you have the bank draft you can use it in the dealership just like a check. I suggest you bring all your paperwork as the dealer might need some additional proof (mine did.) They don't expect you to come in with your own financing set, much less from an internet company. You will need to supply some identification, proof of insurance, and proof of employment. The latter is waved if you get the best credit rating although they don't tell you this on the site. This helped me out a great deal since I got the car a few weeks before I would get my first pay stub.
Also remember that although you can be approved in minutes all the data is verified and still needs to match for E-Loan to give the final OK. I had no problems though; at the dealer the process took no more than a few minutes. There are some expectations in terns of insurance; for example you must have collision with no more than $500 deductible. Not at all unreasonable, but something to keep in mind.
A side node is that if you do not finance through the dealer you will probably not be eligible for the College Grad Rebate. Just thought I’d save you a likely surprise.
I just got my first bill and it is exactly what it should be so I have little to complain about. I got one of the best rates anyone has heard of quickly and conveniently. Some of the reviews mentioned lack of attention to detail and there is nothing in the way the company conducted business that makes me doubt those reviews. Things seemed rushed and minor details overlooked. I think I was fortunate to not have any serious issues to resolve.
For me this rate was a half a point lower than the lowest vendor I found (that was an internet company too) and several points lower than I would have gotten at the dealer or a well known loan agency so I definitely feel it was worth it.
Recommended:
Yes
|
|
|
|
About the Author
Location: Sacramento, CA
Reviews written: 4
Trusted by: 0 members
|
View Information
