Websites offering used car loans are very convenient. It is an easy way for people to obtain a loan for their vehicle purchase quickly and usually, hassle free. However, it is extremely important not to let yourself get caught up with the quickness and ease of the process. This could land you right in the middle of a scam. Some traps in the car loan industry can wind up costing you a small fortune, in addition to the loan itself.
Quick High Interest Car Loans
High interest rates and quickie loans go hand in hand. This is the most common trap for a quick, easy, no questions asked online car loan. Lenders will offer to finance your loan without looking at your credit score or asking for any other financial documentation. You might not even have to verify your income or your residency. They will lend you money without knowing any of your financial history. This might sound great upfront, but in exchange for this convenience, you will be paying astronomical interest rates. You could well end up paying more than double what your car is worth.
Unbearable Loan Terms
You might find that easy online loans leave very little wiggle room. You either agree to the lenders terms or you don’t get the loan. These terms might not seem too bad at first, especially if you desperately want that loan! But, after a while, these terms can become unbearable. Say your hours get cut or you lose you job altogether, you won’t be able to make your payments. This company is unlikely to let you renegotiate your terms. You will be stuck with high interest rates and high monthly payments with