CarsDirect Reviews: Fares and Eligibility Overview (2023) (2023)

Find out if this convenient all-in-one buying and lending platform can bring you good interest rates

BenefitsLoans for bad or bad credit borrowersEasy loan application processWorks with car buying service

DisadvantagesCustomers say interest rates are sometimes highNo direct creditorPágina No Better Business Bureau (BBB)​​​​

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CarsDirect Rating: 6.6 stars

While we recognize that borrowers of all credit backgrounds can obtain credit through CarsDirect, it's hard to ignore the constant complaints of poor service and excessive sharing of personal information.

If you've had difficulty getting car finance elsewhere, it might be worth taking a look at CarsDirect. It seems open to borrowers who have few options. However, if you don't need that extra flexibility from the lender, you'll probably be better off with another provider.

How we rate CarsDirect

general evaluation6.6
customer experience5.1

CarsDirect is an online platform that combines the car buying process and the car loan process. The platform allows borrowers to find financing and new or used vehicles all in one place. We at Guides Auto Team wanted to know if the company offered quality service and competitive prices along with this convenience.

Our team took a close look at CarsDirect loan products, services, industry reviews and customer reviews to see how the company stacks up against leading car loan ratesEBest auto refinance rates.

Why do you trust our team?The Guias Auto Team strives to provide reliable information to help you make the best decision possible about financing your vehicle. Our researchers, writers, and editors are dedicated to researching vendors and analyzing customer feedback and insights so you can choose with confidence.

CarsDirect Reviews: Fares and Eligibility Overview (2023) (3)

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295hours of research

About CarsDirect

Founded in: 1998
headquarters: The Second, California.
BBB rating: N / D

CarsDirect has been helping people find car loans since 1998. As a credit broker and not a direct provider of auto finance, CarsDirect connects customers with financing options for a wide range of vehicles.

The company's website,, also serves as a car shopping platform. This allows buyers to research vehicles and obtain finance all in one place, creating a convenient online car buying experience. Additionally, CarsDirect lets you search for vehicles sold by local dealers based on where you qualify for a car loan.

CarsDirect car loan details

Through its network of lenders, CarsDirect offers new vehicle loans, used vehicle loans, refinance loans and lease purchase loans. However, as CarsDirect is a broker and not a direct loan provider, interest rates are not set. Instead, the company uses information about you to determine your eligibility and match you with lenders.

Factors that affect car finance rates

Here is some information that CarsDirect uses to help you find credit and that lenders use to determine the car loan rates they offer you:

  • Annual income
  • credit history
  • FICO credit score
  • Country of Residence
  • Desired Loan Amount
  • Desired payment terms
  • Vehicle (if you want to trade it in or want a refinance or lease purchase loan)

CarsDirect Reviews: Fares and Eligibility Overview (2023) (6)

Who is eligible for CarsDirect car loans?

While not all finance companies offer loans to people with credit scores below 640, CarsDirect mentions several times that it offers loans for "all credit types" on its website. That meansbad credit borrowersThose who cannot get financing elsewhere may be lucky enough to get loans through CarsDirect.

The company even says it can find loans for people with no credit history or even a previous bankruptcy. This makes CarsDirect an option for a wider range of borrowers than other providers.

CarsDirect application process

Many companies advertise an easy loan process, but CarsDirect seems to deliver. Borrowers can start the application process in less than 60 seconds, according to the company. While not all apps take less than a minute, it's still an efficient system.

Before you start, here is the information you need:

  • Personal information (name, email address, residential address, CPF, telephone number)
  • deposit amount
  • Employment and income information
  • Residence status (rented/own)
  • Monthly apartment payment (rent/mortgage)
  • Vehicle data for exchanges or refinancing (year of construction, mileage, make, model, pledge)

How to apply for a loan with CarsDirect

Once you have your information ready, you can start the loan application process. There are just a few simple steps.

  1. Complete and submit the application: Applying for a CarsDirect loan only takes a few minutes. It doesn't commit you to anything, so it's safe to use for price comparisons. However, lenders can use a loan application to take a closer look at your finances, impacting your credit score.
  2. consider your options: A CarsDirect representative will contact you within 24 hours with options. Compare these options carefully and look beyond the APR. Find out what prepayment and late payment fees may apply.
  3. choose a lender: Once you've chosen the best loan offer for you, complete the necessary paperwork to complete your loan.
  4. Find the right car: After securing financing, a car dealer considers you a cash buyer. This gives you a negotiating advantage and saves you from having to deal with the finance departments at car dealerships. With your loan, you can confidently purchase a car in your price range.

Direct car reviews

CarsDirect does not have a BBB page. While it's not entirely uncommon for an established business to not have a BBB page, it's not exactly an encouraging sign.

However, the company has a Trustpilot page. CarsDirect reviews on this site are encouraging - customers give an average score of3.8 out of 5.0 stars. While 83% of reviewers on Trustpilot rate the company as "great" or "excellent", 16% of reviewers give it a "poor" or "poor" rating, which is higher than many of the top car loan providers on our study.

Direct positive car reviews

Customers who report positive experiences with CarsDirect like to point out professional service as one of the company's greatest strengths. Credit availability is also a frequent subject of positive feedback for CarsDirect.

Negative CarsDirect reviews

Among the relatively high percentage of bad reviews for CarsDirect, one constant complaint is that people's information is leaked to other companies after it's entered on the site. Some reviewers mention receiving a high volume of calls and other communications from affiliate partners.

Our team has reached out to CarsDirect for comment on customer reviews and negative reviews, but have not received a response.

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auto loan recommendations

We don't recommend CarsDirect as a source of car finance unless you don't have many other options. However, there are lenders that our team recommends for the next car you buy or refinance. It is always a good idea to compare offers from lenders before making a decision.

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myAutoloan: most popular marketplace

Rather than being a direct loan broker or provider, myAutoloan is an auto loan marketplace where you can browse offers from competing lenders. This allows for a wide range of loan options for borrowers, including those with credit scores as low as 575. Borrowers with good credit have access to interest rates as low as 3.99% through myAutoloan.

Keep reading:myAutoloan review

Auto Approval: The Best Option for Refinancing

Auto Approval only offers refinance loans and lease purchase loans, which means you cannot use their services to purchase a new or used vehicle. However, if refinancing your current loan is your goal, auto approval should be on your short list of providers to look out for. the companiesrefinance car loanInterest rates start at 2.94%. While these interest rates are reserved for borrowers with the highest credit scores, Auto Approve offers financing options for borrowers with low credit scores.

Keep reading:Automatically approve review

common questions

Our methodology

Because consumers trust us to provide objective and accurate information, we have developed a comprehensive ranking system to formulate our ranking of the best auto finance companies. We collected data from dozens of loan originators to rank companies based on a variety of ranking factors. The end result was an overall ranking for each supplier, with companies with the most points at the top of the list.

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Here are the factors our reviews take into account:

  • Reputation (25% of the total score): Our research team considered industry expert reviews and each lender's fiscal year to generate this score.
  • Prizes (25% of total points): Auto loan providers with low APRs and high loan amounts scored the highest in this category.
  • Availability (25% of the total score): Companies that cover a variety of circumstances are more likely to meet consumer needs.
  • Customer Experience (25% of total score): This score is based on customer satisfaction and transparency ratings. We also consider the responsiveness and availability of each lender's customer service team.

*Data correct at time of publication.


Is CarsDirect a hard inquiry? ›

This is a no-obligation application. But as you continue the process you can expect a hard inquiry from lenders. Review financing options. A CarsDirect representative will then reach out within 24 hours of filling out the form with different financing options.

What credit score do you need to get a decent car? ›

What Is the Minimum Score Needed to Buy a Car? In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.

Does CarsDirect affect credit score? ›

Hard credit inquiry: Once you submit your loan application, matched lenders may perform a hard inquiry to pull your credit reports, which can push your credit scores down slightly.

Is it easy to get qualified for Carvana? ›

As long as you are 18 years or older*, make at least $4k per year, and have no active bankruptcies, you can finance your purchase through Carvana. To get started, you can fill out the financing application here. Don't worry, filling out the application will not impact your credit!

What happened to CarsDirect? ›

In 2004, the firm began to expand into other markets, and subsequently changed its name to Internet Brands in 2005. In June 2014, the company announced that it had been acquired by Kohlberg Kravis Roberts (KKR) for $1.1 Billion.

How many inquiries is too many when buying a car? ›

For many lenders, six inquiries are too many to be approved for a loan or bank card. Even if you have multiple hard inquiries on your report in a short period, you may not see negative consequences if you're shopping for a specific type of loan.

Can I get a car with 550 credit score? ›

You can still qualify for a car loan with such a score, but you may notice a higher interest rate compared to what can be normally expected. Depending on how long the loan period is, a 550 credit score will get your interest rates between 15% to 20%.

Can I get a car with a 500 credit score? ›

It's possible to get a car loan with a credit score of 500, but it'll cost you. People with credit scores of 500 or lower received an average rate of 13.97% for new-car loans and 20.67% for used-car loans in the second quarter of 2020, according to the Experian State of the Automotive Finance Market report.

What is a Tier 1 credit score? ›

Tier 1, Excellent Credit: 800 – 850. Tier 2, Great: 740 – 799. Tier 3, A Good Credit Score: 670 – 739. Tier 4, Fair: 580 – 669. Tier 5, Poor: 300 – 579.

What is the easiest car company to get financing? ›

The Easiest Auto Loans to Get Online
  1. Auto Credit Express. 4.9 /5.0 Stars. ...
  2. Auto Loan. 4.5 /5.0 Stars. ...
  3. 3.9 /5.0 Stars. ...
  4. Carvana. ...
  5. Capital One Auto Finance. ...
  6. Credit Acceptance. ...
  7. DriveTime. ...
  8. LightStream.

Can I get a car with 500 credit score with no money down? ›

Yes, a 500 credit score will still qualify you for a car loan. However, credit scores affect the types of loans you are eligible for, as well as interest rates, loan amounts, and more. If you have a credit score that needs improving, it won't stop you from getting a car loan, only the terms.

Can you be denied a car loan with good credit? ›

An auto loan application may be rejected because of your credit history or current financial situation. But by reaching out to your lender and improving your finances, you can work on building an application that won't be denied in the future.

Does everyone get approved at Carvana? ›

99% of customers who apply get approved and your terms are good for 45 days. There's no impact to your credit and you can see your actual down payment and monthly payment on all vehicles in our inventory.

What is a good credit score to buy a car with no down payment? ›

Generally speaking, banks require a minimum credit score of 600 to give an auto loan without any down payment. However, you CAN buy a car with a score of 400 or a score of 850. There are a lot of variables that weigh into determining your loan eligibility and interest rates available.

How does Carvana verify income? ›

You can upload your 2 most recent, consecutive pay stubs for your proof of income or address verification. We may also look at pay stubs as part of your employment verification. Some customers may be required to upload additional income documents when placing an order.

Should I buy a car now or wait until 2023? ›

Our analysts tell us that new car shoppers are better off waiting for discounts to kick in in the second half of 2023. Falling used car prices make it a good time to buy used. Even as new car prices begin to drop, they remain elevated.

Will cars be cheaper in 2023? ›

In the U.S., the Manheim Used Vehicle Value Index — which measures the prices dealerships pay for used cars at auctions — hit a high of 257.7 in January 2022 and has since fallen to 222.5 in January 2023. Overall, J.P. Morgan Research predicts used car prices will decline by roughly 10% in 2023.

Who is CarsDirect owned by? ›

CarsDirect is an automotive property of Internet Brands, which owns and operates the largest network of car buying and financing resources in North America, including the Car Connection, Motor Authority, Green Car Reports, and Auto Credit Express.

How do dealerships remove hard inquiries? ›

If you find an unauthorized or inaccurate hard inquiry, you can file a dispute letter and request that the bureau remove it from your report. The consumer credit bureaus must investigate dispute requests unless they determine your dispute is frivolous.

Can you remove hard inquiries from car dealership? ›

Deleting credit inquiries is a straightforward process. The only inquiries authorized on your credit report are those who can claim “permissible purpose”. You gave permissible purpose when you signed the credit application with the car dealership.

How do I get rid of hard inquiries in 24 hours? ›

To get an inquiry removed within 24 hours, you need to physically call the companies that placed the inquiries on the telephone and demand their removal. This is all done over the phone, swiftly and without ever creating a letter or buying a stamp.

Can I buy a car with a 549 credit score? ›

Car Loans with a 549 Credit Score

People with credit scores below 540 receive less than 7% of all auto loans. As a result, your odds of getting approved for a decent car loan are slim.

Can I buy a car with a 479 credit score? ›

There's no specific minimum credit score required to qualify for a car loan. Still, if you have poor credit, it could be difficult to get approved for a car loan. Even with the best auto loans for poor credit, watch out for high interest rates, which can make it very expensive to borrow money.

Can I finance a car with a 450 credit score? ›

Getting an auto loan with a credit score of between 400 and 450 is more possible than you may think. These are installment loans, and since the vehicle is used as collateral to secure the loan if you default on the payments, the lender has a good chance of getting your car or your money.

What APR is too high for a car? ›

Bad: 300-629. Fair: 630-689. Good: 690-719. Excellent: 720-850.

How much is a 40k car payment? ›

If you take a car loan of $40000 at an interest rate of 4.12% for a loan term of 72 months, then using an auto loan calculator, you can find that your monthly payment should be $628. When the loan term changes to 60 months, the monthly payment on a $40000 car loan will be $738.83.

What raises credit score? ›

Then, review each report to see what's helping or hurting your score. Factors that contribute to a higher credit score include a history of on-time payments, low balances on your credit cards, a mix of different credit card and loan accounts, older credit accounts, and minimal inquiries for new credit.

What is a Tier 7 credit score? ›

Tier 7: A very poor score of 580 to 609 means you “have significant credit issues or have only very recently established credit.” Tier 8: An extremely poor score of 579 or below means you “have an extremely poor credit history or I have no credit history at all.”

What is a normal first credit limit? ›

Average credit limits

Because many consumers apply for store cards as their first credit card, your first credit limit is generally going to be on the low end. Though Equifax notes these retail cards averaging between $2,000 to $2,500, credit limits can be much less than that — in some cases below $1,000.

What is a Tier 5 credit score? ›

“Tier 5 credit refers to people who have a credit score between 580 and 619. These scores are generally perceived as the second-highest risk to lenders. To offset this risk, lenders charge you a higher interest rate.

Is it better to finance a car through the dealership or bank? ›

The primary benefit of going directly to your bank or credit union is that you will likely receive lower interest rates. Dealers tend to have higher interest rates, because dealers add a markup to the interest rate when they connect you with a lender.

What is the smartest way to finance a car? ›

How to finance a car the smart way
  1. Check your credit score before you go to the dealership. ...
  2. If your credit score isn't perfect, get financing quotes before you go. ...
  3. Keep the term as short as you can afford. ...
  4. Put 20% down. ...
  5. Pay for sales tax, fees, and “extras” with cash. ...
  6. Don't fall for the gap insurance speech.
Oct 26, 2022

Is it better to finance a car from the dealership or to get a loan from the bank? ›

In the end, bank car loans may be a better choice for drivers who have stronger finances and are looking for a broader variety of vehicle and loan options.

Can I get a car with a credit score of 510? ›

Car Loans with a 510 Credit Score

As a result, your odds of getting approved for a decent car loan are slim. You will need to compare your options carefully and consider either placing a bigger down payment or purchasing a vehicle that's less expensive.

What is the average interest rate on a car loan with a 500 credit score? ›

Average auto loan interest rates by credit score
Credit scoreAverage interest rate for new car loansAverage interest rate for used car loans
661 to 7804.9%5.47%
601 to 6607.25%9.81%
501 to 60010.11%15.86%
300 to 50012.93%19.81%
1 more row
Dec 2, 2022

How to get a car with no money and no job? ›

Getting a co-signer is one of the best ways to get an auto loan when you're unemployed. The co-signer agrees to take over your loan payments if you default on the loan. Choose a co-signer with a high credit score and good debt-to-income ratio to improve your chances of being approved for an auto loan.

Why would I be refused credit if my credit score is excellent? ›

If there's concern that the account you're applying for, combined with your existing financial commitments, will strain you, they may decline the application. Having a high Credit Score may not be enough to be accepted if the potential lender finds your affordability too low.

Why am I being denied a loan with good credit? ›

The most common reasons for rejection include a low credit score or bad credit history, a high debt-to-income ratio, unstable employment history, too low of income for the desired loan amount, or missing important information or paperwork within your application.

Why am I not eligible for a loan with good credit score? ›

Lenders like to see evidence that you've successfully repaid credit before. If you haven't used credit before, or if you're new to the country, there might not be enough data for lenders to approve you. You have late or missed payments, defaults, or county court judgments in your credit history.

Why is my down payment so high on Carvana? ›

Your down payment is based on the results of your Carvana Financing application which looks at your credit history, yearly income, and the price of the vehicle. Some options to lower your down payment include: Trading in a vehicle that you could apply to your purchase.

Which is better CarMax or Carvana? ›

Which Is Better: Carvana or CarMax? Carvana is a better option if you look for convenience and ease of use in your purchases and trades. On the other hand, CarMax is ideal for people who want to test drive the car beforehand and who do not mind going to their nearest CarMax location to do it.

Is it better to use Carvana or dealership? ›

The Verdict: Car Dealerships are Still Superior

As you can see, car dealers offer shoppers more benefits than online stores like Carvana, Vroom, Shift and even Carmax. They allow you to drive home the same day, take test drives before committing to buying, and emphasize customer service.

What can I get with a 600 credit score? ›

Credit cards you can get with a 600 credit score
  • Upgrade Cash Rewards Visa®: Fair to good (580–740) ...
  • Capital One QuicksilverOne Cash Rewards Credit Card: Fair to good (580-740) ...
  • Mission Lane Cash Back Visa Credit Card: Fair to good (580-740) ...
  • Capital One Platinum Credit Card: Fair to good (580-740)
Jan 5, 2023

What FICO score do car dealers use? ›

Most car dealerships use the FICO Score 8 scale to determine your eligibility for a loan. The FICO score is the most widely used because it is considered to be the most accurate assessment of your credit standing. It takes the scores of all three major credit bureaus to create a FICO score.

Can I get a car with a 650 credit score? ›

Even though a 650 credit score isn't that great, it is enough for you to secure a car loan, albeit with a relatively high interest rate. Remember that you can improve your credit history and refinance with another bank at a lower interest rate down the line.

What does your credit score have to be for Carvana? ›

Carvana has no minimum credit score or credit history requirements and says it extends credit to customers with a broad range of credit profiles. This includes car buyers with bad credit — typically FICO scores below 630 — who may have trouble getting loans from traditional dealerships and lenders.

Does carmax ask for proof of income? ›

To complete your transaction, you may be required to provide any or all of the following: Valid driver's license. Proof of insurance (required for all vehicle sales) Proof of income.

Is Carvana in financial trouble? ›

After a number of years of massive vehicle sales growth and thus revenues, Carvana hit a wall in 2022. The massive Adesa acquisition added a lot of debt and more expenses, but management eventually realized it couldn't continue on its then current path.

Is the credit check at car dealership is hard inquiry? ›

Soft Pull Inquiries

When a car dealership offers pre-approval for a bad credit auto loan, then they will be making a soft pull on your credit score. This means getting pre-approved for credit does not affect your credit score.

Is CarsDirect a good way to buy a car? ›

Is CarsDirect legit? CarsDirect is a good way to shop for a new or used car, especially if you have poor credit. It's a convenient hub that connects you to lenders and dealers. However, it's up to you to research the lender and seller you're working with before you commit.

Is a car loan pre approval a hard inquiry? ›

While yes, getting pre-approved for an auto loan does involve a “hard credit inquiry”, the impact on your credit score is minor. At most, the inquiry might knock your score down by a little bit, it's not a major hit and it's only temporary.

Is Carvana a soft or hard inquiry? ›

After you find the Carvana car you want to buy and schedule your delivery or pickup, Carvana will check your credit, which generates a hard credit inquiry and could impact your credit scores. Only then will you know whether you're approved for a loan and the terms you're approved for, too.

Should I let a car dealership run my credit? ›

It's a good idea to check your credit score before going car shopping to make sure there are no mistakes on the report. Resist early requests from the salesman to run your credit. Only allow the dealership to get your credit application when you are sure you want to buy a car.

How many times can a dealership run your credit? ›

When a consumer seeks financing through an auto dealership, the financing may be done by the dealership itself or by a third-party lender. If the dealership is, itself, the lender, a credit application permits the dealership to pull a consumer's credit one time.

Should you tell a car salesman your credit score? ›

Don't allow the dealership to pull a credit report on you. Once the dealership knows your credit score it can affect negotiations for the car you're interested in buying. It's better to tell the salesperson that all you're interested in is getting the best price for the vehicle.

Which website gives you the most money for your car? ›

10 Best Places To Sell Your Car
  1. Best Options. Online offer: Yes. ...
  2. Peddle: Good for Junk Cars. Online offer: Yes. ...
  3. Carvana: Most Convenient. Online offer: Yes. ...
  4. CarMax: Top Value. Online offer: Yes, requires in-person finalization. ...
  5. CarGurus: Strong Platform. ...
  6. Vroom: Easy Process. ...
  7. 7. Facebook Marketplace. ...
  8. eBay Motors.
Feb 16, 2023

What is the best online site to buy a car? ›

Best Used-Car Websites For Online Car Shopping
  • Best online reputation: Kelley Blue Book.
  • Best for consumer reviews:
  • Best for deals on used cars:
  • Best for variety: Autolist.
  • Best selection of inspected used vehicles:
  • Best for shopping around: CarGurus.
May 31, 2022

Can you be denied a car loan after pre-approval? ›

Can a car loan be denied after approval? Though rare, it is possible to believe you are fully approved and learn later that your car loan was denied after purchase. The good news is that car loan denials after approval are indeed very rare, and the reason they happen at all is tied to the fine print of a contract.

Is it better to get an auto loan from your bank or the dealership? ›

Banks are more likely to offer low interest rates on an auto loan and can be a good option if you need a larger loan.

Do multiple auto loan inquiries count as one? ›

If you're shopping for a new auto or mortgage loan or a new utility provider, the multiple inquiries are generally counted as one inquiry for a given period of time. The period of time may vary depending on the credit scoring model used, but it's typically from 14 to 45 days.


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