A car is an expensive purchase, so many people consider buying it on a loan. There are various types of loans, such as bank loans and dealer loans, but there is also the option of online bank car loans.

 

In this article, we will explain the appeal of online banks, how to organize the process from the preliminary screening to the formal screening, and tips on choosing a loan. We will also introduce recommended websites for finding a car for those who are taking out a car loan online, so please use this as a reference.

table of contents

1. Here’s what’s great about online bank car loans

2. How to get a car loan from an online bank [in the case of a preliminary screening]

3. How to get a car loan from an online bank [in the case of formal screening]

4. Tips for choosing an online bank car loan

5. Leave your online car search to Nextage!

6. Summary

Here’s what’s great about online bank car loans

First of all, compared to regular bank-based car loans or dealer-based car loans, online bank car loans have their own unique advantages.

 

So, let’s take a look at the benefits and features of online bank car loans.

 

It’s easy to pass the examination

Even if you are interested in using traditional bank-affiliated car loans because of their low interest rates, the screening criteria are stricter, so the number of people who can use them tends to be limited.

 

However, with online bank car loans, you can apply even if you are a part-timer or casual worker, as long as your income is stable. Conventional bank car loans state “full-time employee” in the terms of use column, so in this respect, online banks have an advantage over general bank car loans in terms of ease of use.

 

The fees are low and it’s a good deal

If you use a car loan from a dealer as mentioned above, not only will the owner become the “dealer” or “credit company,” but interest rates and fees tend to be higher.

 

Therefore, if you want to keep the fees and maintenance costs associated with car loans low, we recommend car loans from online banks, which have no or low fees. Regular bank car loans incur labor costs and store maintenance costs, but online banks, which do not have physical stores, do not incur any of these costs.

 

Easy procedure without visiting the store

Compared to car loans from dealerships that can be used after choosing a car model, general bank car loans are convenient to use at any time. However, since you need to go during the opening hours of the counter, it may be difficult to use them as you wish.

 

On the other hand, the biggest advantage of online bank car loans is that not only do you not have to go to a branch, but you can apply at any time of the year. The process can be completed by mail and online, making it easy to use even for busy people.

How to get a car loan from an online bank [in the case of provisional screening]

Some people may be interested in applying for a car loan from an online bank because of the advantages of “it’s easy to pass the screening,” “fees are low,” and “you don’t have to visit a branch and can use it anytime.” The screening process consists of two stages: a provisional screening and a formal screening.

 

Here we will explain the preliminary screening process when taking out a car loan from an online bank.

 

Apply for a provisional examination

When you go to the online bank’s car loan page from each bank’s personal car loan page, there is a button that says “Apply for preliminary screening,” so fill in the necessary information accurately on the next page.

 

At the stage of provisional screening, not only is it free and no documents are required, but it can also be used even before deciding on a car, but in some cases, an annual income of 1.5 million yen or more may be required. However, the terms of use vary depending on the online bank, so it is a good idea to check in advance.

 

Receive the results of the provisional screening

The results of the preliminary screening may take 3 to 5 days, or may arrive within a few hours to 2 business days. Notifications tend to arrive by email, phone, or mail, but in some cases you can check the results by logging in to your My Page, so try using this.

 

Also, in case you need to cancel the loan because the approved amount at the time of the provisional screening is less than the amount you wish to pay, it is a good idea to check whether cancellation is possible. There may also be an expiration date for the provisional screening, so be sure to read the notes of the lender.

How to get a car loan through an online bank [in the case of formal screening]

It may take about two weeks from the preliminary screening to the loan, so if you get the preliminary screening early, you can shorten the time until you can use the loan. However, in addition to submitting the necessary documents, the formal screening also involves receiving the results of the formal screening and the procedures that follow.

 

Here we will explain the formal screening process when applying for a car loan from an online bank.

 

Submit the required documents

After passing the provisional screening, prepare the necessary documents before the formal screening. For example, prepare your driver’s license or other identification documents, previous year’s income certificate such as tax withholding slip or official certificate, health insurance card, and the estimate and contract for the car you want to purchase.

 

However, the required documents may differ depending on whether you are taking out a new loan or refinancing an existing loan, and additional documents may be required, so be sure to check the website carefully. There are also a variety of ways to submit documents, from visiting a branch to faxing or even via smartphone, so we recommend checking the website carefully.

 

Receive the results of the formal review

If there are no problems with the required documents, you can wait for the results of the formal screening. It depends on the online bank you use. Check the results by email, etc.

 

However, please be aware that your employer may be contacted in the form of an “employment verification.” If you are unable to obtain this employment verification, depending on the screening process, you may not be able to receive the loan, so if you have any concerns, we recommend that you check with the dedicated customer center.

 

Complete the procedure and get the loan

If you pass the formal screening, you will finally move on to the contract procedure. If you can proceed online, you will need to sign the contract and register your transfer details. In some cases, you will need to enter your details three business days before the desired transfer date, so it is important to do this early.

 

There is also a risk that the loan will be ruined if the “estimated capital amount” is mistakenly withdrawn. To ensure that you can receive the loan on the day, be sure to check the website of the online bank you are using carefully and proceed with the procedure.

Tips for choosing an online bank car loan

Car loans from online banks are becoming more common, but what criteria should you use when choosing one? For example, it is recommended to compare points such as whether you can save on costs such as interest rates and fees, whether there are sufficient consultation services, and whether you can repay at an ATM.

 

Here are some tips for choosing an online bank car loan.

 

Are the interest rates and fees high?

Paying attention to interest rates and fees when choosing a car loan can lead to cost savings. Compared to city and regional banks, online banks often offer higher interest rates for car loans. Even if an online bank offers a low interest rate, the conditions are often strict, and the interest rate also varies depending on whether a fixed or variable interest rate is applied.

 

In addition, one advantage of online bank car loans is that they keep administrative fees and other such fees low, but they are not completely fee-free, so it is a good idea to conduct simulations and check the details before using the service.

 

Is there a consultation system in place?

With a regular bank car loan, you can immediately consult at the counter if you have any questions, but with online banks, there are no physical branches, so it is important to have someone to consult with. Some online banks have multiple contact points such as email and chat in addition to phone, so if you are using a car loan for the first time, you should also pay attention to this point.

 

Even when applying for a car loan, there are two screening processes and required documents, so it is important to choose the service you want to use based on your needs.

 

Can I make payments at an ATM?

Depending on which online bank you use, in most cases there are repayment methods other than direct debit from a specified account. For example, if there is an affiliated ATM nearby, repayment via ATM may be very convenient.

 

When choosing a car loan from an online bank, if you can’t decide after comparing interest rates, fees, consultation systems, etc., it is recommended that you compare whether there are multiple repayment methods and what kind of repayments are possible.

Leave your online car search to Nextage!

In addition to traditional car loans from general banks and dealerships, car loans can now be completed through online banks, making them easy to use even for those who are short on time. You can also save time by searching for a car to actually take out a loan for online.

 

Here we will explain the features of Nextage, which is recommended for searching for cars online.

 

You can search for used cars with detailed search

First of all, for those who think that choosing a used car is difficult because there are so many to choose from, we recommend Nextage’s detailed search function.

 

Manufacturer

・Vehicle type

·grade

・Year model

– Mileage

·color

 

Specifically, you can select multiple conditions like those above. You can also specify “new car/remaining vehicle inspection date” and “price range”, and there are also plenty of functions to narrow down and sort by equipment. It also supports free word searches, so it’s recommended for those who want to easily search for used cars online.

 

Can be picked up at your nearest store

Nextage has over 200 stores nationwide (as of May 2022), so you can search through the inventory available nationwide and order the car model you want even if it’s not available nearby.

 

We can order everything from compact cars to imported cars and even cars that are not listed, but there may be some vehicles that we cannot accommodate, so if you find a car that interests you, please feel free to contact us.

summary

The advantages of online bank car loans are that they are easy to pass the screening process, the fees are low, and above all, you don’t need to visit a branch. The preliminary and formal screening procedures vary depending on the online bank you use, so be sure to check the website of each bank.

 

If you are also searching for a car online, we recommend using Nextage, which allows you to search for detailed inventory. In addition to the year and mileage, you can also search for cars that fit your budget by specifying the price range. There are also models that can be ordered from all over the country, so first try searching for the model you are interested in on the Nextage website.