Auto Loans - CarsDirect (2024)

FAQs

Is CarsDirect a lender? ›

CarsDirect is not a lender — it's a search hub that helps you find loans from lenders it partners with. The site's tools let you compare multiple auto loan options.

Fill out and submit your application: The loan application for CarsDirect only takes a few minutes to complete. It doesn't obligate you to anything, so it's safe to use for comparison shopping. However, lenders may use a hard credit inquiry to get a closer look at your finances, which will impact your credit score.

Most used auto loans go to borrowers with minimum credit scores of at least 675. For new auto loans, most borrowers have scores of around 730. The minimum credit score needed for a new car may be around 600, but those with excellent credit often get lower rates and lower monthly payments.

PenFed Credit Union is the best overall auto loan lender thanks to its wide selection of loan types and competitive rates, according to our research. It offers rates for used cars as low as 6.49%, and another one of our picks, OpenRoad Lending, offers rates as low as 1.99%.

Is CarsDirect legit? CarsDirect is a good way to shop for a new or used car, especially if you have poor credit. It's a convenient hub that connects you to lenders and dealers. However, it's up to you to research the lender and seller you're working with before you commit.

CarsDirect puts you in touch with dealers offering in-house financing without running a credit check. Car leasing. Rather than buy a car, you can lease one for an extended time. You may be required to put down some money upfront, but your monthly payment may be lower.

Getting preapproved for a car loan from a direct lender will aid you in negotiation, save you time and likely get you a better interest rate than you would qualify for at a dealership.

In most cases, an auto loan preapproval has the potential to impact your credit. For example, if you go through the preapproval process with the lender and submit all of your information and documentation, the application will typically result in a hard inquiry, which can temporarily impact your credit score.

Because of the high interest rates and risk of going upside down, most experts agree that a 72-month loan isn't an ideal choice. Experts recommend that borrowers take out a shorter loan. And for an optimal interest rate, a loan term fewer than 60 months is a better way to go. You can learn more about car loans here.

Can I get a car loan with a 500 credit score? ›

Yes, it is possible to get a car loan with a credit score of 500, but it can be infinitely more challenging to find a lender willing to approve the loan. A credit score of 500 is considered poor credit, and lenders will likely see you as a higher risk borrower.

In short, there is no set-in-stone credit score to get a car loan. A poor credit score is not an automatic disqualifier, but it will likely impact your ability to get a loan and a good interest rate.

Working directly with a bank to discuss financing before you head to the dealership could potentially help you save more money because it allows you to compare interest rates. Securing financing ahead of time also means there's no chance of a dealer increasing the loan rate as compensation for its part in the process.

CarsDirect is not a direct lender. Instead, it operates as an online car shopping platform and auto loan broker. You can use the website to help you find a ride and financing through one of the lenders in its partner network.

Direct Lending is a form of corporate debt provision in which lenders other than banks make loans to companies without intermediaries such as an investment bank, a broker or a private equity firm.

Direct lending is the provision of credit directly to small and middle market companies (SMEs) for growth or acquisitions. With mainstream banks reducing their supply of loans, new sources of finance have developed.

myAutoloan is a legit company to do business with online and has a great reputation matching lenders with great rates to borrowers. The BBB itself gives myAutoloan an A+ rating and accreditation which means they respond to customer complaints fast and have transparent business practices.