How Technology is Changing The Way People Acquire Financing For Cars in Canada
Technology has made today’s consumers more savvy and informed than ever. For most of us, hunting for insights on fashion, entertainment, or even where to eat, begins online.
Now, this also looks to be the future for auto lenders and vehicle financing. Increasingly, Canadian auto buyers are using online tools in their searches, not just for shopping or research purposes but to apply for and obtain vehicle financing. It’s a paradigm shift in how we think about vehicle financing and the future of auto loans in Canada.
The Evolution of Auto Lending
These days, most buyers begin their search for a new vehicle online, not at the dealership. There are many websites and portals offering vital information on every vehicle on the market. Consumer safety reports and industry performance sites give buyers access to practical inside information on the latest models, while crowdsourced reviews let buyers rate and share experiences with retailers and auto lenders, whether positive or negative.
While face-to-face sales still remain the dominant retail model, prominent customer surveys suggest buyers are increasingly open to new ways of vehicle shopping.
This trend toward technological innovation is also changing how we think about auto financing and loans. Today’s tech-savvy buyers desire convenience and immediacy in a way the traditional sales models can’t provide.
Now, almost every step can be accomplished online, from comparison shopping to approvals. With quick and simple online applications, consumers can avoid the pressure and headaches of the old dealer showroom experience. Pre-approval on a vehicle loan can be obtained online in a matter of minutes, without any extensive paperwork or even a credit check. By the time buyers finally step onto a dealer lot, much of the work is already done.
Even the big auto manufacturers are getting in the tech game. Ford is rolling out a platform, designed by financial technology company, AutoFi, to let consumers browse an online network of lenders. These advances aim to streamline the financing process and allow buyers to explore a much vaster array of financing options.
Technology Drives Alternative Financing
This shift is also fueling demand for alternative financing models. With consumers getting smarter about their borrowing habits, they’re looking beyond the usual financial institutions and lenders to make the most out of what they can afford.
For those prospective vehicle buyers who are burdened with bad credit, online financing alternatives are a game changer. These days, it’s quick and inexpensive to check your credit score online, which helps you better know in advance how you appear to potential lenders. More information means a better understanding of the multitude of borrowing options that are available, even for subprime borrowers with poor credit scores. And, when those usual lenders don’t come through, buyers enjoy an abundance of possibilities for bad credit car loans.
LendingArch is using online technology to reimagine the traditional auto financing model. As the nation’s leading car loan search platform, LendingArch has matched hundreds of thousands of Canadian consumers with the loan, credit, and debt relief services they need. We specialize in quickly connecting buyers to reputable lenders ready to help them buy the car, truck, or other vehicle of their desires—even with less-than-sparkling credit.
Finding auto financing with LendingArch is a matter of providing basic information via a simple online form. Buyers can receive customized listings of the best dealers for their needs, all without a credit check that could potentially affect their score. To further support clients in their search, our website offers detailed, informative guides to help buyers understand all aspects of car loans toward finding fair, sensible financing options.
We’re always developing more ways of simplifying the process. For example, LendingArch utilizes a loan search widget tool that allows consumers to apply for all kinds of services. Our financing partners can access our database directly from their own website or mobile application. That means consumers, and particularly those with bad credit can receive practical guidance for alternative financing that works for their budgets.
The advent of online technology has created a whole new way of thinking about online loans and vehicle financing. To keep pace with these changes, dealers and lenders have to embrace these shifts.
At LendingArch, we see these innovations as opening worlds of possibilities. We believe that when it comes to auto financing, information is power. Better informed buyers make for more satisfied clients—and, ultimately, happier drivers. Let us show you how technology can work for all your vehicle financing needs.
This article was contributed by LendingArch, our mission is to help Canadians find the best rates and see how they can save money.