CarsDirect

Author: Kaitlyn Short

Since 1998, CarsDirect has been connecting borrowers to loans for purchasing or refinancing new or used vehicles. CarsDirect offers a no-hassle, 60-second car loan application process. CarsDirect is one of the few lenders we reviewed that has loan options for those with bad credit or a history of bankruptcy. This can be very beneficial for potential customers who have been turned down by other auto loan providers.

Top Ranked Companies

#1 America First chevron_right

6.1 Overall Score

4.7

star star star star star_half

(137)

View Profile View Profile

#2 Mountain America chevron_right

5.8 Overall Score

4.6

star star star star star_half

(73)

View Profile View Profile

#3 Capital One Auto Financing chevron_right

5.4 Overall Score

4.4

star star star star star_half

(58)

View Profile View Profile

thumb_up

The Good

• Bad credit options
• Financial tools
• Educational resources

Options for Poor Credit

Out of all the lenders we reviewed, CarsDirect is one of only two who offer options for those who don't have an excellent credit or financial history. The CarsDirect website specifies that they offer financing for individuals with bad credit, no credit, or past bankruptcies so that they can start showing a regular, on-time payment history.

Financial Tools

CarsDirect offers several online resources for individuals interested in applying for an auto loan. There is a loan calculator for clients to gain an idea of how much they could potentially spend on a new or used car based on their current financial needs. For customers hoping to refinance a vehicle, CarsDirect lets users apply for a free quote to find out what their car is currently valued at. There is an FAQ section that answers general questions and a section called "Car Loan Advice You Can Trust," which offers information on topics like auto loan providers, getting a loan, refinancing and more.

thumb_down

The Bad

• Not a lender
• No APR information

Not a Lender

CarsDirect is not a lender or loan servicer. Borrowers who apply for loans with CarsDirect will be matched to one of CarsDirect's partner lenders (called "dealer partners" on the website). This could create some confusion for borrowers because they will be passed on to the lender once they have completed and been approved for a loan through CarsDirect.

No APR Information

Since CarsDirect is not a direct servicer, there is no APR information listed on the site. APR will be determined by the "dealer partner" that a borrower is matched to, and the APR will be based on factors like income, credit score, term, and requested loan amount. CarsDirect also lacks any term information, fees, mileage limits, or possible loan amounts as those will all be discussed with the "dealer partner".

gavel

The Bottom Line

Although CarsDirect does not lend or service loans directly, the website offers advice and resources to help borrowers understand car financing and refinancing. In addition, CarsDirect is one of only two car loan companies we reviewed that offers options for those with bad credit or past bankruptcies. If you have poor credit, CarsDirect may be a tool to help a customer find an auto loan that fits their needs. However, we do not recommend using CarsDirect if your credit is good, and would suggest working directly with a lender.