CarsDirect: 2024 auto loan review

Best for fair and bad credit borrowers

CarsDirect features a network of lenders that offers auto loan financing to prospective borrowers with varying credit backgrounds. So, a bad credit score isn’t necessarily a deal-breaker if you’re in the market for a car loan. You may even be approved with no credit at all, though that loan may be funded through a bad-credit dealership, which often means high rates.

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. CarsDirect also connects you to a dealership to finalize the transaction once you’ve found a vehicle. 

Do you qualify?

Due to the network structure of CarsDirect, there aren't any disclosed requirements. But they do cater to drivers with less than perfect credit. So, you could be eligible for a bad credit loan even with a past bankruptcy or other adverse credit event. On top of this CarsDirect will match you with lenders that may offer you competitive rates — with or without excellent financial history. Though, as with any lender, most competitive rates will be offered to those with strong credit.

What we like and what we don’t like

While the car buying network can be a great starting point for those beginning the buying journey, consider the downsides before signing off with CarsDirect.

What we like

• No fees: CarsDirect does not have a fee for using the service to explore loan options. However, its partner lenders may charge fees.
• Large lender network: CarsDirect works with a wide range of lenders catering to borrowers with different credit backgrounds.
• Car buying network: The site allows you to shop for your vehicle while applying for financing.  

What we don't like

• Poor customer reviews: The majority of online reviews complained of bad service and distribution of personal information.  
• Lack of transparency: CarsDirect does not disclose expected rates or terms until after you’ve matched with a lender. Some of its competitors at least disclose the minimum rate available, plus the range of available terms and loan amounts.
• Direct financing not available: As is common with loan marketplaces, loans are provided by lenders in its network. But that means the rates and fees you will find vary widely from lender to lender.

How to contact CarsDirect

CarsDirect offers online chat on its website, direct email and phone support. Its site lists its phone hours as Monday through Friday, 7 a.m. to 6 p.m. PT.

Auto loan types offered

CarsDirect offers loans for new or used vehicles and refinancing. Since CarsDirect hosts a marketplace, and is not a lender itself, the specifics of each loan vary depending on your matched lender.

New and used vehicle loans

The specific rates and terms for a new or used auto loan found through CarsDirect will vary by lender. But with the car buying process being directly integrated with the site, it can be a seamless way to find a vehicle from a local dealer while also securing vehicle financing.

Refinance

Although refinance rates and terms are not posted on CarsDirect’s website, it encourages borrowers to consider refi if they are looking to lower their monthly payments or secure a lower interest rate. CarsDirect states you’ll typically need a credit score of 500 or more to receive better rates than you currently have.

How to apply for a loan with CarsDirect

The process of searching for an auto loan through CarsDirect is simple. The site advertises a 60-second application experience and the ability to drive your next vehicle in as soon as 24 to 48 hours.

According to CarsDirect, the process is broken down into four main steps. 

1. 1. Submit the form: Fill out an online form with your personal and vehicle information. This is a no-obligation application. But as you continue the process you can expect a hard inquiry from lenders. 
   2. Review financing options: A CarsDirect representative will then reach out within 24 hours of filling out the form with different financing options. 
   3. Choose a vehicle: CarsDirect encourages borrowers to purchase their vehicle through its network — but whether it's your intended route, take time to compare your potential loan with at least three other lenders. 
   4. Finalize loan: You now have vehicle financing and can drive off with a new vehicle through CarsDirect’s network or shop elsewhere.

Features and perks 

CarsDirect offers a library of educational resources in its knowledge center. It features industry news, buying guides and a car comparison tool. You can also get prequalified for financing without impacting your credit score. 

Fees and penalties

CarsDirect does not assess a fee to use its car shopping and online loan comparison tools. However, the lender you select may assess loan origination fees, dealer fees, late payment penalties and early repayment fees. You could also be responsible for dealer fees when you purchase the vehicle. Inquire before formally applying for a loan to confirm.

Methodology

The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.

• Availability: Loan amounts, repayment options, dealership requirements and state availability all contribute to this category. Lenders that serve customers nationwide with flexible loan amounts rank higher.
• Affordability: This section houses APR ranges, acceptance criteria, fees and discounts. Lenders with the lowest rates, fewer fees and the most generous acceptance criteria receive higher scores.
• Customer experience: Our team looked at how easy it is for customers to apply for and manage their loans. Criteria include how long you have to shop, customer service hours, whether there’s an app and autopay availability.
• Transparency: This includes prequalification and disclosure of rates and fees. We favored lenders that make it easy for customers to preview possible costs.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.