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Mick Ronson AutoLoans.com San Diego California 800-609-1716 |
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Auto Loans has published an article on its site explaining the new loan offered by Ally Financial and detailing the potential drawbacks of using a vehicle-buyback-type loan.
Online PR News – 21-November-2011 –AutoLoans.com, a top website for no-cost estimates on independent car financing, has published a blog in response to Ally Financial’s recent offering of a new type of auto loan in five states. The article enumerates the possible consequences of accepting the loan, including excessively restrictive terms and higher interest rates.
Earlier this month, Ally Financial announced that it would provide consumers in certain states with a loan it calls “Buyer’s Choice.” The loan enables borrowers to sell their car back to the financing corporation, formerly GMAC, after 48 months for a price that will satisfy the outstanding balance of the loan.
“There’s no question that Ally’s new Buyer’s Choice option is attractive to borrowers on its face. It seems to magically cure a problem every car buyer fears the second he drives off the lot—depreciation. Undoubtedly, a number of buyers will flock to Ally to finance their vehicles, but as our blog points out, the Buyer’s Choice loan, although appealing, is not necessarily the best deal out there for them,” explained Damon Williams, spokesman for Auto Loans.
In the article, Auto Loans points out that a Buyer’s Choice loan is only available for consumers who wish to purchase a Chrysler or General Motors vehicle in Texas, Illinois, New York, California, or Florida. The loan, the blog says, also confines consumers to financing at the dealership when independent financing may be a more cost-effective option.
“Auto Loans prides itself on connecting our users not necessarily with our partners’ loans, but rather the best loans available. Even though Ally’s offer may seem irresistible at first blush, independent financing, or the type of financing our lenders provide, is far cheaper and more flexible in the overwhelming majority of cases. That is the message we hope to communicate with this latest article,” said Mr. Williams.
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