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 Motozuma.com, 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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HEADLINE NEWS

Crowdfunding deadline for community kitchen nears  The Daily TelegramADRIAN — The organizers of a community makerspace kitchen project have raised $35000 toward the $50000 goal of receiving matching funds from the ... [...]

Crowdfunding guide helps districts develop safe, effective practices  Education DiveChiefs for Change has released a new guide to help schools and districts use crowdfunding effectively, safely, and equitably, and to develop policies concerning ... [...]

Crowdfunding underway to re-purpose part of Bailey Park into dog-friendly area  WWMT-TVA crowdfunding initiative to raise a goal of $30000 is underway in Battle Creek in an effort to re-purpose a portion of Bailey Park into a new dog park, according ... [...]

Great Idea But No Capital? How To Launch A Business Through Crowdfunding  ForbesNoëlle Santos launched a viral crowdfunding campaign to open The Lit. Bar, a wine bar/bookstore in the Bronx. She shares her advice for crowdfunding a ... [...]

School Districts Are Banning Teachers From Using DonorsChoose  Education WeekAs teacher-led crowdfunding grows ever more popular, school leaders are starting to voice concerns. [...]

Insurance Giant AXA XL Launches Security Token and Crowdfunding Insurance Service  CointelegraphNews. Insurance giant AXA XL and insurance technology startup Assurely have jointly launched a new insurance product covering equity crowdfunding and ... [...]

MP to tap crowdfunding to finance campaign  The HinduN.K. Premachandran, the UDF candidate and sitting MP of Kollam, is all set to launch a crowdfunding drive to finance his election campaign.The facility to ... [...]

Currently Crowdfunding: A Smart Teapot, a Home Cheesemaker, and More  Core77.comNavigating the world of crowdfunding can be overwhelming, to put it lightly. Which projects are worth backing? Where's the filter to weed out the hundreds of ... [...]

Local businesses try crowdfunding to help expand, recover  The Register-GuardWhen Kevin Barrett fell from a ladder while constructing his distillery in Springfield, breaking six ribs, shattering his clavicle and puncturing his lung, it was his ... [...]

Healing Teddies seeks public embrace in crowdfunding campaign  The Jerusalem PostOnly weeks before her death, Ilana gave her mother a teddy bear, unaware of what this small gift would lead to. [...]

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