Auto loans through CarsDirect – Pros and cons

A great benefit of CarsDirect is the fact that you can get a loan even if your credit score is less than perfect. That being said, to even be eligible for a loan you need to be over 18, have a guaranteed income, and be a US citizen/current resident.

You don’t have to pay any membership fees to register with CarsDirect, and the whole point of being on the platform is that CarsDirect connects you with many lenders who operate through the site. This means that you are not getting a loan directly from CarsDirect, rather through lenders you find through CarsDirect.

There are many benefits to using CarsDirect, and the most obvious one is the fact that you don’t have to have a perfect credit score to score o loan. The site itself is rather easy to use and you don’t have to pay any membership fees at all.

However, CarsDirect is not perfect because it lacks transparency beforehand. Even though you can get a loan with low credit, it’s usually a loan with a high-interest rate which can worsen your credit score even further. Finally, the worst thing about CarsDirect is the incredibly annoying solicitation.

Auto loans – What are they?

An auto loan enables you to borrow a certain amount of money to buy an automobile. Auto loans come with collaterals meaning that the lender will have some form of protection if you don’t fulfill your end of the agreement in due time.

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This usually means that the lender can seize your vehicle if you are not making your payments as scheduled. An auto loan is a secure loan specifically intended for a car purchase, it’s not a personal loan that enables you to spend money on whatever your heart desires.

Another important aspect of auto loans is that they are almost always fixed to a certain period such as three or five years. When compared to leasing, an auto loan enables you to purchase the vehicle which means that you are the owner of the vehicle from the get-go, and that’s not the case with leasing if you don’t pay the remaining residual value.

Pros of getting auto loans through CarsDirect

Probably the biggest benefit of getting a loan through CarsDirect is the fact that you don’t need to have a perfect credit score to even be eligible for an auto loan. CarsDirect enables you to get a loan even if your credit score is under 580 or you went through bankruptcy or you don’t have a credit score at all.

This means that the credit score is not the only thing that interests lenders when it comes to determining your eligibility. They also focus on debt-to-income ratios and your yearly/monthly expenses which can sometimes help you get a more attractive deal.

Furthermore, AutoDirect is free for everyone which means that you will never have to pay CarsDirect for anything. Dealerships are also a part of CarsDirect, and they can sometimes offer you a better auto loan deal than the lenders themselves. Finally, CarsDirect enables you to get a loan fast.

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Cons of getting auto loans through CarsDirect

It’s no secret that many sites such as these lack transparency, and CarsDirect is not different. To find out what type of rates you are eligible for, you need to go through the whole process which can sometimes be a waste of time.

Even though CarsDirect has a large variety of lenders and dealerships, it’s still a limited network when compared to everything else that exists. This means that no matter how many lenders are available through CarsDirect, you can still get a better deal elsewhere, especially if you have a good credit score.

As previously mentioned, even someone with a bad credit score can get a loan through CarsDirect, but these types of loans can be detrimental to your credit score in the future if you are not able to fulfill them. Finally, the worst thing about getting loans through CarsDirect is the incredibly annoying solicitation.

Even after you close in on a deal you will still get lots of unexpected phone calls and emails from lenders wanting to give you a deal of a lifetime. This can be extremely annoying, so much so that it can sometimes even make the whole process seem stressful.

What about buying a used car through CarsDirect?

FAQ Section

Is applying for an auto loan through CarsDirect safe and secure?

Yes, CarsDirect is as safe as sites such as these can be. This means that they will share your data with third-party dealerships and lenders who are under the CarsDirect umbrella to offer you a deal. You are never obliged to make a deal if you don’t like it, and you don’t have to pay anything if you decline.

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However, most online reviews sites deem CarsDirect average at best. Even though most of the reviews are positive, some of them do complain about solicitation, cars in bad condition, and high initial down payments.

 What do I need to apply for an auto loan through CarsDirect?

First of all, you need proof of identity, and the best document you can use for this purpose is an ID, driver’s license, or a passport. Besides proof of identity, you also need to provide your bank/employee details and other proof of income documents such as bank statements.

You don’t have to have insurance if you want to buy a car through CarsDirect because you can get one through CarsDirect, even so, it’s better to be insured beforehand if you want the best deals possible. Finally, proof of residence is also necessary for a loan.

Do I always have to make down payments for a loan through CarsDirect?

It depends on your credit score and the type of car you are interested in. Most loans will require you to pay a certain amount of money upfront which means that you are looking at around 10% of the car’s value on average.

Sometimes it’s better to pay more money upfront because it can enable you to lower your installments further. Always be sure to ask your lenders to explain to you what difference does it make when you pay a lot of money upfront.

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    Marko Mikulic

    Why do you love writing about cars? I love writing about cars as cars are a huge personal interest of mine. I was raised in a car enthusiast community and ever since I was young, I always wanted to do car-related work.

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