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

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Malaysia Turns to Property Crowdfunding as Banks Reject Loan Applications  BloombergMalaysia's government is turning to the wealth of the masses, instead of reticent banks, to help solve a $4.8 billion property overhang. [...]

Crowdfunding firm Prodigy is broke, former exec claims in defamation lawsuit  The Real DealA former exec is suing real-estate crowdfunding platform Prodigy Network, alleging that the company's "cash difficulties" are the fault of CEO Rodrigo Niño. [...]

Fundopolis partners with AlphaPoint to bring blockchain tech to equity crowdfunding  Yahoo FinanceBoston and New York. 15th May 2019 – Fundopolis, an equity crowdfunding portal built to support the entire funding lifecycle, and AlphaPoint, a provider of ... [...]

FTC sues 'iBackPack' founder for deceiving crowdfunding backers  EngadgetAfter a months-long investigation into the practices of the crowdfunding campaign for iBackPack, the Federal Trade Commission announced today that it will sue ... [...]

This crowdfunding firm just picked the carcass of RealtyShares  The Real DealThe remnants of RealtyShares — the now-defunct crowdfunding platform — have been scooped up by another real estate firm. New York-based iintoo acquired ... [...]

Affordable ways to make a stand-out crowdfunding campaign  economiaEquity crowdfunding is now a leading form of alternative finance. However, its growth and popularity has led equity crowdfunding platforms, such as Crowdcube ... [...]

John Zorn's Rebound From PledgeMusic's Implosion  NPRJohn Zorn, the prolific and brilliantly iconoclastic composer, realized a dream of sorts last year when he released The Book Beriah — a box set of 11 new albums ... [...]

Build crowdfunding momentum by first building trust  Knoxville News SentinelThese small business owners learned firsthand how to succeed with crowdfunding. Their lessons can give your own crowdfunding a boost. [...]

Lavender Country Has Launched a Crowdfunding Campaign to Release the Follow Up to the “First Gay Country Album”  Willamette WeekIn 1973, Patrick Haggerty wrote what's since been dubbed "the first gay country album." Forty years later, the Washington-born activist is on [...]

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