How One Company is Changing Car Buying
The unreasonably long process of car buying makes it unsurprising that most Americans hate going to the car dealership.
According to a recent 2016 Harris Poll, 87 percent of Americans dislike something about car shopping at dealerships. In fact, 24 percent said they would rather have a root canal than get into a car negotiation. Yikes. A 2015 study by Autotrader found nearly three-fourths of consumers, 72 percent, want to complete the auto credit application and financing paperwork online.
And yet, many Americans still make their car purchase—and do their financing—at a dealership.
The FOMO effect – “Fear of Missing Out”
“Changing consumer behavior is difficult,” says Dimitar Alexandrov, VP of Product Management for Autos at LendingTree. “Even with online car financing available, some customers fear that not being there to go through the awful haggling process means they could miss out on a good deal.”
But what if they get the good financing deal first? That’s where LendingTree comes in. Shopping around often requires searching multiple lender sites and trying to get a personalized offer from each one. Most rates you see online or on ads are marketed rates based on assumptions, not necessarily what you will likely get. “We want to show people that car buying really can be a much simpler process by moving the financing portion online and making it easy to get multiple personalized quotes at once,” Alexandrov said.
How LendingTree Works
Instead of waiting for the finance manager at a dealership, LendingTree offers a way for you to get pre-approved financing online. LendingTree is a marketplace of lenders, which means you’re not limited to preferred lenders used by dealerships. This also eliminates added interest a dealership may try to add on to financing, because you got your offer directly from a lender, not a middleman. LendingTree helps car buyers save money.
Online pre-approval also saves a ton of time. Your credit is already checked and you know exactly what you’re approved for, and at what rate—no hidden surprises regarding your credit at the dealership! You can also avoid the intense dealership sales pressure and upsells. The lenders you find via LendingTree just want to fund you, not sell you paint protection.
Since its inception, LendingTree has helped over 60 million customers save money. The company is actually one of the original dot-coms that started alongside online shopping giants such as EBay and Amazon. LendingTree offers rate comparisons for financing like how familiar sites such as Kayak or Priceline do for hotel and travel today. LendingTree has been around for over 20 years and started by originally providing rate and payment comparisons for mortgage and home financing. LendingTree has since diversified its loan shopping marketplace, which now includes comparison shopping of auto loans along with many other financial products.
Driving like a cash buyer
“Our formula has always been simple,” explains Alexandrov. “When consumers are ready to get financing they fill out one simple online form which we send to up to five lenders that match their credit profile. In minutes, they get personalized offers, not generic rate quotes. The consumer then picks the offer that best matches their needs, and works with the lender directly.”
Once you’re pre-approved, your lender sends you a blank check or coupon valid for up to the amount you’re pre-approved for. You’re basically transformed into a “cash buyer.” Once you negotiate your pricing with the dealer, you just fill in the check with your final sales price. The power is your hand now, not the dealer’s.
Don’t miss the chance to save time and money on your next vehicle purchase. Compare quotes at LendingTree and avoid being nickeled and dimed at a dealership. Car buying shouldn’t be worse than a root canal.
Remember, follow these easy steps when using LendingTree
- Apply online with the easy-to-use form.
- Compare and review your offers.
- Choose the lender you want.
- Save money.