How To Finance A Car Shipment
Car sales in the United States are on the rise with numbers reaching their peak in December 2016. The rise is attributed to the confidence Americans have in their economy and government. As the sales rise, so do auto loans taken out by residents to finance purchase and shipment of vehicles. The amount of debt being racked up by vehicle owners can be frightening when planning to import a car. However, having the right knowledge on how to finance a car shipment can help you avoid unnecessary debt. Here are some ways to fund your car shipment without breaking the bank.
Majority of auto shipping companies allow their customers to make payments as they prefer. They usually require a deposit to be made before any work begins, with the balance paid later. If you prefer paying cash, you will need to find a shipping company that accepts cash in bulk as the first payment. It is also important to make payments in two or three installments to ensure that the shipment is done satisfactorily. Even so, cash payments are risky and cannot earn you points to be redeemed later on.
Payment for car shipment using credit cards is quite common in the US. Many people find its use much safer and beneficial in the long run. Processing payments using credit cards is easier as it can be done online. Most transportation companies accept payments using these cards for both local and international shipping. In some cases, they may ask for a cash deposit for initial payment and allow credit card payment after vehicle delivery. Nevertheless, it is advisable to confirm whether a shipping company permits payment by card before booking with them.
Approaching your bank for a loan is a common thought when thinking of how to finance a car shipment. Most banks are willing to give loans to individuals and businesses as long as they meet their requirements. Ensure that you understand every detail pertaining to the auto loan before signing for it. The bank offers direct lending allowing you to pay the shipping company to bring in your car. Most times, the loan is paid back with interest and within an agreed timeline. To get the best lending rates, shop around in different banks before settling on the one that benefits you.
Financing by shipping companies
If asking for a loan from a financial institution is impossible, try asking your shipping company to fund you. Many shipping companies offer financing to customers that hire them to import or export their cars. The financing contract is often signed by the shipping company and vehicle owner. The owner of the car agrees to make payment for the shipment plus interest over an extended time period. In most cases, the company will have a bank or finance company as an assignee to collect payments on their behalf. Some of the advantages of this type of financing are convenience in accessing loans, various loan options, and special programs with attractive features.
Online car loans
A number of companies offer online loans to vehicle owners with a simple click of their mouse. The wide range of loans enables car owners to pay for car shipment without using their own money. Application for the loans is easy with many asking for minimum information before advancing the loan. You can also get an idea of repayment installments by using an auto loan calculator on the sites. Although car shipment loans given by online companies are easy to get, you should compare prices before making a commitments. Also, ensure that the company is genuine and their contracts have no hidden clauses.
When thinking of how to finance a car shipment, using PayPal credit may be the furthest thing from your mind. It is an ideal financing option for people that use PayPal on a regular basis. Users must accumulate enough credit in their PayPal account to receive funding from for shipment. Most times, the companies offering this credit line partner with financial institutions to offer bulk amounts to customers. Payment of the loan is done over time in installments or as a lump sum on the agreed date. For this financing option to succeed, the shipping company, the credit provider, and the customer have to work together.
If you are looking for the best financing options to bring in your vehicle, consider talking to our sales team. The team can be reached directly on phone or through e-mail, day or night.
Written By:Joe Webster
Joe Webster began his journey in the auto transport field by attending the University of Southern California (USC), where he graduated with a Bachelor of Business Marketing.
After college, he started his career in the auto transport industry from the bottom up and has done virtually every job there is to do at A-1 Auto Transport, including but not limited to: Truck Driver, Dispatch, Sales, PR, Bookkeeping, Transport Planner, Transport Manager, International Transport Manager, Brokering, Customer Service, and Marketing. Working with his mentor Tony Taylor, Joe Webster has learned the ins and outs of this industry which is largely misunderstood.
With over 30 years experience in the industry, we've been helping people ship their vehicles, motorcycles, RV's, heavy equipment, household goods and more across the country or overseas without a hitch. Ask us anything.