CarsDirect: 2023 auto loan review (2023)

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.

CarsDirect vs. Auto Credit Express

Auto Credit Express also caters to credit-challenged borrowers. Prospective car buyers can use the platform to find their best loan option through its network of special finance lenders. If approved for financing, Auto Credit Express will connect you with one of its 4,428 dealership partners to find the perfect vehicle. New and used vehicles are available, and you have the option to buy or lease your next ride. Unlike CarsDirect, Auto Credit Express discloses its range of available loan amounts: $5,000 to $45,000.

CarsDirect vs. Vroom

Vroom is another online platform you can use to find your next vehicle. But instead of connecting you with a dealer to seal the deal, Vroom features its own inventory of vehicles for sale. The entire buying process is handled online, and the vehicle you select is delivered to you. If you choose to finance through Vroom, the vehicle registration process will also be handled for you. Plus, you’ll get a seven-day return window and complimentary limited warranty of up to 6,000 miles or 90 days, whichever comes sooner. For the full comparison, check out our CarsDirect vs. Vroom breakdown.

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 upfront 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 trusted lenders in the 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. It doesn't, however, list its business hours on the website.

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. 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.

Rebecca Betterton is a writer for Bankrate who has been reporting on auto loans since 2021. Through her writing, Rebecca aims to provide clarity and accessibility to the automotive loans industry as the cost to finance new and used vehicles continues to climb due to steep inflation.