For some people work is like drug and they'll travel even hundreds of miles everyday to get their daily dose. It also becomes a necessity for them to maintain luxuriant lifestyles. Such drivers who travel long distances to work everyday amount to almost 14% of the US worker population and are popularly known as stretch commuters. So when they reach back home after a long day's work and hundred miles drive, the last thing on their mind is looking for an auto loan to replace their old worn-out car.
So, the easiest and handy approach most of them take is approaching their local bank to avail bank auto loans. Let's throw some light on what makes most of them reach out to their banks for their auto loan needs and what holds back the remaining few.
Benefits of Availing Bank Auto Loans
1. Convenience of transaction: A lot of people maintain the same checking account with one bank for a number of years. Hence, they find it easier to transact with the same account for their auto loan needs and if the bank already has an auto loan offer available for them, they lap it up quite readily.
2. Better cooperation compared to other lending institutions: Banking institutions feel safest dealing with the people they know. If you've had an account with a bank for a long time, in all likelihood you'll have a pre-approved loan ready for your use. Banks are very forthcoming in helping their long-time customers with any queries related to such auto loans and deal with them on a priority basis.
3. Your bank knows you personally: An individual would very often turn to his/her closest friends for suggestions regarding financial matters. It is this type of friendship that many banks are efficient in building with their clients. Hence, people find it more convenient approaching their local bankers than scouting for unknown auto loan providers for their loan requirements.
A few Drawbacks of Bank Auto Loans
1. You may not get the best deal: Auto loans are a specialized sector and a banking institution, despite its healthy finances, may note be able to provide you interest rates better than the credit unions.
2. No option for people with bad credit ratings: Banks are normally reluctant to deal with people with poor credit history. While a multitude of lending institutions are providing bad credit loans with open arms, the banking institutions usually adopt a conservative approach.
3. All your eggs in one basket: It is never wise to have all your financial dealings with just one institution. In the event of any unfortunate incident with the bank's financial health, your entire investment portfolio can come crashing.
Although the free time available with stretch commuters may be extremely precious for them, but if you have a strong desire for best deals on your auto loans, you just cannot rely on your local bank alone. There is plethora of auto loan providers out there, inviting you with open arms, with the best possible interest rates in the market. Don't skip them only to regret later. You can even go online and generate auto loan rates, products and terms & conditions with only a few mouse clicks. Trust us that the effort will be worth it.
