Consumers Pay Almost 200% More Than Necessary on Auto Loan Rates
MoneyAisle.com Saves Consumers Over $1,200 a Year on Average
BURLINGTON, Mass., March 7, 2011 /PRNewswire/ -- Auto finance is one of the largest lending markets in the U.S., second only to mortgages. Auto loans and leases make up about $850 billion in American debt, more than the credit card industry. Even student loans are only about half the size of auto finance.[1]
MoneyAisle.com is the first fully-automated online auction marketplace for consumers to get among the lowest rates on auto loans and refinancing, helping borrowers across the full spectrum of credit scores. Owning a car is often a necessity and borrowers who need cars the most often get hit the hardest in rates due to their credit scores. MoneyAisle.com can help them cut down rates by two-thirds or even more. Too many borrowers are paying markups that are about 200% from what MoneyAisle.com's network of banks and credit unions can offer. Consumers could save hundreds and even thousands of dollars a year by finding better auto loan rates online.
FICO | Yahoo! | MoneyAisle | Difference | Markup from | |
740 - 850 | 6.26% | 4.02% | 2.24% | 156% | |
700-739 | 7.97% | 4.17% | 3.80% | 191% | |
660 - 699 | 9.86% | 5.28% | 4.58% | 187% | |
620 - 659 | 13.33% | 7.76% | 5.57% | 172% | |
580 - 619 | 18.47% | 11.14% | 7.33% | 166% | |
<580 | 18.82% | 13.89% | 4.93% | 135% | |
Rates based on most popular loan term, 60 months. | |||||
MoneyAisle.com user fill out 7 simple fields of non-personal information, and instantly receive bids for auto loans rates from a growing network of banks and credit unions – currently over 160 – that compete for auto loans. Consumers watch as lenders bid in real time for their business. The entire process takes less than a minute. No private information is required to get offers, and there is no need to fill out multi-page applications at several financial institutions to compare rates. More than 4 million auctions have been run in the past year. The service is free for consumers and yields substantial savings.
Currently, more than 79% of auto financing happens through indirect channels like the dealer, who serves as an intermediary.[1] MoneyAisle.com allows consumers to connect to direct channels like credit unions and banks.
By using MoneyAisle.com, the average consumer saves $1,243 a year on a refinance on an average amount of refinancing a $16,097 loan.
As auto lending increases over the coming year to borrowers across the credit spectrum, including those with subprime credit scores, consumers would do well to look at connecting directly with lenders through MoneyAisle.com.
1. Cambridge Winters, "Auto Race to the Bottom," November 16, 2009
2. The national rates are sourced from Yahoo! a used car loan. The numbers are accurate as of March 4, 2011 http://autos.yahoo.com/car-finance/
About MoneyAisle
MoneyAisle is the next-generation e-commerce auction marketplace that provides consumers with great rates on auto refinancing, auto loans, CDs and high-yield savings accounts while helping them rapidly attract new customers. MoneyAisle's methodology is simple: banks and credit unions competitively bid for every customer in live auctions. This patented technology creates a safe, transparent platform for consumers to secure great deals on financial services and products. Unlike other "seller centric" online auction marketplaces, MoneyAisle empowers consumers by providing free on-demand live auctions.
About neoSaej, Corp.
neoSaej is a leading developer of online auction marketplaces focused on utilizing the advantages of the Web to empower consumers. MoneyAisle, neoSaej's first marketplace, provides consumers with great rates on auto refinancing, auto loans, CDs and high-yield savings accounts.
SOURCE MoneyAisle
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