Right now, the world revolves around technology. So much so that it has influenced and changed everything around us. Most of this has resulted in positive changes that have improved our lives. Also, it has had a great impact on almost all the major industries in the world. This includes some of the most prominent ones like finance and automobiles. As a result, the world of car loans has received a much-needed boost.
Before we try to understand how technology has improved the world of car loans, we need to take a look at the benefits that it has provided us. The primary thing that technology has granted all of us is empowerment. It has changed how consumers shop and make a decision while buying. Most importantly it has granted them the power to compare products and make the right choices.
Buying a car is not as simple as it sounds. It’s a complex process and more often than not a pretty lengthy one. Once you do choose the car you want to buy, then arises the most important question: How are you going to finance it? Many car buyers choose to take car loans to finance their car. This allows them to buy the car of their dreams without spending a lot of money right away. However, thanks to this new shift in technology, this entire process of car loan disbursement have become really easy.
Car Loans Then & Now
Just like technology has helped made buying a car easier, it has also made the process of securing car loans simpler. If you take a look at the process of procuring car loans, you will realize how difficult and long it used to be. There were two ways to go about it.
Either you could go via the car dealer and see which financial institution they had tied up with in order to provide loans to their buyers or you could select a lender on your own. For the former, there was not much choice and you would have to stick to whoever they preferred.
For the latter, you would have to take up the responsibility yourself and no one would be there to help you through the process. However, once you chose your financer, the process of loan approval itself would be more complex than the act of buying the car itself.
But now, things have changed. Car loans are not the same anymore. It is a much more of an integrated experience. Now getting a car loan and buying a car is part of the same process rather than two separate processes. This is how simple the process has now become thanks to FinTech. So, what was previously the least favorite part of the everyone’s car buying experience has now become simpler and convenient.
You can start the process of loan approval online and by the time you visit the car dealership, your loan will get approved. So, if you want to, you can get pre-approved car loans from anywhere you want even before buying the car that you want.
FinTech To The Rescue
The reason why applying for car loans have become so easy is because of FinTech companies. These companies emerged with the aim to make customer experience easier while purchasing financial services and products. In a way, these companies understood their clients no bank ever could. They realized that there were a lot of people who were not satisfied with the generalized service that the banks would provide them.
As a result, their offerings proved to be much more attractive than banks. They offered loans at lower interest rates and had relaxed regulations when it came to credit scores. This allowed a lot of people who previously could not apply for car loans to be able to buy any car they want.
In addition to all this, these companies, empowered by technology helped make the entire process faster and smoother. So, buying cars and opting for car loans became as simple as buying something from the grocery store. Then, came the point when every other person owned a smartphone. This made things even simpler as now these FinTech companies launched mobile apps. Soon, customers who wanted car loans could just apply for it on their phone. By the time they arrived at the dealership to pick up their car, they would receive approval for the loan. So, it’s no wonder that the number of cars that we see on roads has increased so much. The pace at which FinTech is expanding, this process might become even more efficient in the near future.