Getting online auto financing has become very popular in the past few years. According to a recent survey by Forrester Research, online shoppers are expected to spend $15.9 billion on autos and auto parts in 2006. The study also notes that, 22 percent of offline sales are influenced by the Web.

Direct Financing

Getting auto financing directly from a bank, credit union or other lending institution online is known as direct financing. Consumer advocates recommend direct financing because it allows you to negotiate the cost of your financing separately from the price of your vehicle. Another advantage of getting your financing first is knowing how much you have to spend before you start shopping. And, being pre-approved will keep you out of a dealers high pressure finance department.

You can pre-qualify for an auto loan almost instantly. Online applications take only a short time to complete and your answer is quick in coming. It is easy and convenient and can be done anytime from the comfort of your home. The online loan process is completely secure thanks to modern browser technology and electronic encryption.

The Internet is not only the place to get auto financing; its also a great place to find auto buying advice, shopping guides, and the safety records on any vehicle. If you are buying new, you can learn about any manufacturers rebates that might apply. If you are buying used, you can get a specific vehicles history from a site like CarFax.com. You can also purchase an Extended Service Contract or Guaranteed Auto Protection (GAP) insurance, if you want the extra peace of mind.

Online Security

The Federal Trade Commission offers the following advice to ensure that online financial transactions are secure and that your personal information is safeguarded:

Use a secure browsersoftware that encrypts or scrambles the purchase information you sendto help guard the security of your information as it is transmitted to a website. Be sure your browser has the most up-to-date encryption capabilities by using the latest version available from the manufacturer.

Check the sites privacy policy before you provide any personal financial information to a website. In particular, determine how the information will be used or shared with others. Also check the sites statements about the security provided for your information.

Keep your personal information private. Dont disclose your personal information - your address, telephone number, Social Security number, bank account number or e-mail address - unless you know whos collecting the information, why theyre collecting it and how theyll use it.

Give payment information only to businesses you know and trust, and only when and where it is appropriate - like an order form. Never give your password to anyone online, even your Internet service provider.

Keep records of your online transactions and check your e-mail for contacts by merchants with whom youre doing business. Review your monthly credit card and bank statements for any errors or unauthorized purchases promptly and thoroughly.

Its important to choose a lender with a reputation for fair dealings and competitive rates. One such company offering free auto financing quotes online is www.autoloansinseconds.com. Even if you have bad credit, they will work to get you the best rate possible for your unique situation. Their no obligation quote is free.

If a new auto is in your future, start the shopping process online. The time and money you save will make you glad you did.