If You're Not A Fan of Banks, Here Are Some Alternative Auto Loan Options

• Author: Chris Remington
• Posted: 2024-10-29

When it comes time to get a new vehicle, it's common for buyers to seek out a financial service to help pay for it. Few people have enough money on hand to purchase a car outright or even if they do, they may prefer taking out a loan for other reasons.

However, not all auto loan providers are the same. It's common for buyers to seek out loans at dealerships, banks, and credit unions, but these options might be ideal or appropriate for everyone.

Fortunately, there are a large number of alternatives out there, if you know where to look.

Here are some potential choices worth checking out:

LendingTree

LendingTree is a pretty good all-purpose online marketplace that offers loans for a variety of purposes, including personal loans, home purchases, debt consolidation, and post-secondary education.

In addition, though, the service presents you with numerous potential auto loan options, including refinancing, if necessary.

The way LendingTree works is that you input relevant financial information, such as how much money you have for a down payment, how much you need for a loan, your credit score, and your employment situation, which will then be used to connect you with third-party lenders.

Based on your financial situation and what you're looking to buy, you'll get a laundry list of potential loan options.

Auto Credit Express

If you have a low credit score, then getting a loan can definitely be a challenge no matter what. That being said, there are lenders out there that specialize in offering subprime loans at satisfactory rates. One such place you can look is Auto Credit Express.

Unlike many subprime loan providers, Auto Credit Express isn't really underhanded as it has an A+ rating with the Better Business Bureau and has a 20-year established reputation.

Applying for an auto loan is relatively simple, with applications for most people only taking a couple minutes. Interest rates aren't particularly bad either; some can be very high, but some can be much more reasonable at 3, 4, or 5%.

SoFi

A relatively new loan service in the financial world, SoFi is a highly reliable tool that offers a wide array of loan contracts, including ones for new vehicles.

It's very much possible to get your hands on thousands of dollars for a new car, but unlike many other providers, the requirements for gaining access to SoFi services are quite stringent, with a high, steady income and exceptional credit score being a must.
Assuming that you qualify, you can easily get car loans at very good rates, which rival those of many other institutions, so it's worth considering.

Capital One Auto Navigator

Although Capital One is best known for its highly popular credit card, it also offers other forms of loans, specifically auto financing.

Auto Navigator is somewhat unique in that it's largely "full-service," meaning that you can find a specific car at a specific interest rate and monthly payment, with all financing options revealed up-front.

To utilize the service, you need to "pre-qualify" in which Capital One takes into account your financial history to determine whether you can pay back your loans effectively.

Once you qualify, you can easily adjust what your ideal loan conditions are, with options for old vehicle trade-ins and specific down payment amounts being available.

RoadLoans

RoadLoans is a direct auto lender with a somewhat unique loaning model; it's highly flexible, potentially netting you some favorable loan conditions and cash back options, but timing is everything.

You can apply for a car loan within a specific range of conditions (type of car, down payment, loan term, etc.) and if approved, you have about a month to find a dealer willing to accept the conditions of the loan for the car you want.

These loans can take into account trade-ins using your old car and RoadLoans does offer some refinancing options which can save you lots of money.

Finding The Right Service

There are a lot of common go-to places people go for loans, but there's a lot of reasons they're not the best choice for a lot of borrowers, which is why a large number of alternatives have popped up over the years.

If you're interested in such an alternative, rest assured there are choices available no matter your credit history or financial position.