CarsDirect: 2023 Auto loan review

CarsDirect pros and cons

Take into account both the benefits and drawbacks that CarsDirect has to offer.

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. 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

What we like

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

What we don't like

• Unsatisfactory reviews. The majority of online reviews complained of bad service and distribution of personal information.  
• Lack of rate transparency. CarsDirect does not disclose expected rates.  

How to contact CarsDirect

Auto loan types offered

New and used vehicle loans

The specific rates and terms for a new or used auto loan found through CreditDirect 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 available, the site encourages borrowers to consider refi if they are looking to lower their monthly payments or secure a lower interest rate. Along with this, CarsDirect outlines the fact that those with credit scores of 500 or better will receive the most favorable terms.  

Lease buyout

The process of lease buyout is not disclosed by CarsDirect. But it recommends that you have a credit score of 600 or higher.

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. 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 secured vehicle financing and can drive off with a new vehicle through CarsDirect’s network or shop elsewhere.

Methodology

Bankrate considers 18 data points when rating auto loan lenders. These include credit requirements, loan amount, APR ranges, shopping window along with rate and fee availability. In total, Bankrate reviewed 33 lenders and gave each a Bankrate rating, which consists of four categories:

• Availability. Loan amounts, types and repayment options are considered in this category. A wide range of financing options results in a higher score.
• Affordability. The interest rates, acceptance criteria and present fees are measured here. 
• Customer experience. This category concerns online access along with app availability and customer support hours of operation. Lenders with 24/7 support carry the highest available marks.
• Transparency. This covers the disclosure of potential fees and the ability to apply for loan prequalification.