Auto Loan Companies

May 19, 2016

Until recently, the main options for car financing were banks and dealerships, but aftermarket auto loan companies have become a popular alternative.

Auto Loan Application

As the Internet continues to grab hold of all corners of commerce, traditional bank loans are beginning to feel the heat of online auto loan companies. These smaller and more flexible lenders offer a variety of loan types to borrowers ranging from those with super prime 800+ credit scores to those with subprime scores that sometimes fall even under 600. With these companies sprouting up on a yearly basis, the power has truly shifted from the banks to the borrowers.

Applying for a loan through an online company is also very convenient. Gone are the days of leafing through hundreds of pages regarding your loan and answering prying financial questions. A simple application and about five minutes of your time are often all these companies need to get you pre-approved.

CarsDirect Financing helps more credit-challenged customers find car loans than any other website in the country. The company works with a network of dealers who have access to a number of financial institutions and will shop around to find you the best deal. Just fill out a simple application and you will be on your way to receiving a car loan.

We can break down the main categories of auto loan services into five main types:

  • Car loan broker. This is someone who connects potential borrowers with potential lenders. They do not actually approve the loan; they simply bring the two parties together.
  • Car loan lender. An agent or a firm who approves or denies car loan applications is a car loan lender. They can work for a bank or credit union, or one of the many auto loan companies found online and elsewhere. They are in business to lend money for car loans.
  • Car refinance lender. This is a lender who specializes in the refinance of existing auto loans. When a borrower has an unfavorable interest rate or an unsustainable monthly payment, these companies can often offer more favorable terms if the customer’s credit rating is good enough. Car refinance is basically the process of trading in your current loan for a new loan with a better interest rate and lower monthly payment.
  • Bad-credit car loan lender. This type of lender makes loans to people whose credit is bad or non-existent. The interest rates are typically higher than for someone with good credit, but it is a necessary service to allow people to buy a car, even if their credit rating is poor.
  • Instant car loan lender. An instant car loan lender makes cash available for people to purchase a used car. The loans are smaller, the rates are high, and good credit usually isn't a requirement.

Auto Loan Companies to Consider

Armed with the proper information, begin your shopping with an estimate of what you expect to pay in interest, and how to obtain financing from a trustworthy source. Here are four lenders to begin your search for the best car loan.

  • Bank of America. While Bank of America can be seen on many intersections of most cities, you can also apply for a car loan on the company’s website. Visit the bank's Auto Loans page to read helpful information, locate rates and fill out an online application. You can also use this website to locate a Bank of America authorized dealer in your local area.
  • Capital One. Capital One may be best known for extending credit via credit cards, but this lending giant also offers car loans. Visit its Auto Finance page to find current rates for new car loans, as well as loans for used cars or refinancing options. Capital One offers a 'blank check' option, and you can search a list of dealers who readily accept this type of financing.
  • Chase. The Chase Auto Finance page offers similar information on rates and local dealer searches. On this website, you can view possible interest rates in detail for different loan types and terms, take advantage of several auto loan calculators and conveniently apply for a car loan online.
  • CarsDirect. CarsDirect not only offers access to daily updates on new and used car listings all over the country, it also gives you access to finding lender and rate comparisons to secure the best car loan possible. Search CarsDirect for one-stop and hassle free shopping for the car you want, and instant access to financing for good credit or bad credit, through their national network of lenders. Apply Now

Comparing Auto Loan Companies
You can perform online loan comparisons on sites such as Online comparisons help you find and compare a number of loans, to determine the best rate of interest offered. You can check the annual rate percentage, the term of the loan and other factors such as whether you can pay off the loan early without incurring any penalty. You can thus evaluate the entire transaction, including any rebates or discounts offered, and compare the total you would pay under each loan. These factors can help influence your selection of a loan provider.

Need a Car Loan?

It only takes a minute.

Loan approval is not guranteed and is subject to credit application and approval of the lender. Individual loan terms may vary.