Financing Your Next Car with CrowdFunding

CFB News Desk, Buying a car is an expensive purchase, be it a new or a used one, and financing it is very difficult, with many people having trouble to get approved for an auto loan due to bad credit or insufficient income to service the loan. That’s why a lot of people are turning to alternative ways for getting the funds for their next car purchase, with crowdfunding as one of the most popular options that have emerged lately. Crowdfunding is the process of raising funds for all sorts of purposes by asking people over the Internet to give their financial contributions. For a while now, it has been used to raise money for medical procedures, for funding start-up companies, art projects, charity, and even mortgages, but entered the automotive finance market only recently.   car_bmw_rim_236192 Crowdfunding has become a great resource for people to finance their cars, as it basically excludes banks, creditunions, and other financial institutions, that are nothing more than middlemen, which means no credit reports, no proofs for your occupation and sources of income, and no interest rates.When it comes to crowdfunding cars, it’s a pretty straightforward process, that allows you to start an account on a website that connects investors and people looking for financial contributions, and try and collect the money you need for car purchase. The crowdfunding website, for its part, charges a fee – that is usually somewhere around 10 percent – to the funds raised.Raising money this way is particularly convenient for teenage drivers or students, who don’t have a steady income and can’t get a car loan from a bank or a credit union. Using a crowdfunding platform, you can easily collect $2,000 or $3,000 and get yourself a decent used car, by asking people from an online community to donate $20-$30 each, which is a pretty reasonable amount to ask from a complete stranger. In many cases, parents promise tomatch the amount raised in an effort to motivate them to try and finance their cars on their own.A couple of car makers have recognized the great potential crowdfunding has in terms of attracting younger consumers, with Chrysler introducing the Dodge Dart Registry, allowing you to customize a Dodge Dart and choose the type of engine, rims, or other parts you want the car to be fitted with, and allow friends and family to buy those parts for you. Another example – and a much more successful one – of a car company using crowdfunding to expand its customer base is Hyundai’s partnership with, a crowdfunding platform, allowing consumers to try and collect contributions for a down payment on one of their models and matching those contributions dollar for dollar, up to $500. Hyundai sold 1,600 cars with this project, which proves that car makers can lure Millennials with this type of innovative and a very convenient car finance option.

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AZCentral.comTiny companies lure investors under Arizona crowdfunding lawAZCentral.comInvestors who make bets under the state's one-year-old crowdfunding law certainly have the potential to get in on the ground floor, but they must be patient and might not receive any returns. Th [...]

BloombergCouples Desperate For Children Turn to Crowdfunding FertilityBloombergCrowdfunding has become a popular mechanism for many couples who can't afford the high costs of IVF, or adoption and surrogacy. “It's not an easy thing to share publicly,” says Crystal Barrett, 33 [...]

WTTV CBS4IndyCrowdfunding effort to save Dorothy's iconic ruby red slippers from 'Wizard of Oz' raises $300000WTTV CBS4IndyThe Smithsonian has launched a campaign on Kickstarter aimed at raising $300,000 to preserve the ruby red slippers worn by Judy Garland in the belo [...]

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Mountain XpressFaces in the crowd: WNC crowdfunding initatives | Mountain XpressMountain XpressEach week, Xpress highlights notable WNC crowdsourcing initiatives that may inspire readers to become new faces in the crowd. This week features a feature ...and more » [...]

MarketWatchWhy a crowdfunding site is giving out $10000 scholarshipsMarketWatchCrowdfunding site GoFundMe announced Thursday that it will award $10,000 to 10 students with pages on their site that fundraise for education. The award is part of a contest the site held throughout Septemb [...]

Android Authority (blog)Crowdfunding project of the week: Remix IO is an Android 4K set-top ...Android Authority (blog)The 'Crowdfunding project of the week' series is where we highlight some of the hottest campaigns from sites like Kickstarter and Indiegogo. There's pl [...]

Huffington PostReal Estate Crowdfunding's Pathway of ChangeHuffington Post“Crowdfunding is just the Internet,” stated Attorney Mark Roderick as he opened last month's RealCap Chicago. RealCap is an annual conference that joins crowdfunding leaders and innovators to propel th [...]

WestwordProgressive-Rock Band Marillion Pioneered CrowdfundingWestwordThat was the beginning of crowdfunding for us — and for every band, really.” When it came time for the recording and release of the followup to the 1999 record, Kelly and the band realized that one of [...]

BBC NewsNHS trust 'relies' on crowdfunding to equip wardBBC NewsAn NHS trust has launched a crowdfunding appeal to buy equipment for a new hospital unit because "it cannot get started without donations". The Royal National Orthopaedic Hospital (RNOH) in Stanmore, n [...]

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