CarsDirect Review: Our take – While CarsDirect offers loans even with poor credit, no credit, and even prior bankruptcies, the company’s poor reputation and limited vehicle inventory (when financing with poor credit) are major red flags. We recommend starting with our list of the best auto loans before proceeding with CarsDirect.
Auto Loans
- Available to borrowers with poor or no credit history
- Prior bankruptcies accepted
- Extensive network of dealerships and lenders
- No transparency about rates, fees, or loan amounts and terms
- Only available if purchasing car through CarsDirect
- Vehicle inventory highly limited if financing with poor or no credit
- Low customer reviews, citing questionable business practices
| Rates (ARP) | Not disclosed |
| Loan amounts | Not disclosed |
| Repayment terms | Not disclosed |
| Credit requirements | Accepts bad credit, no credit, and bankruptcies |
Our CarsDirect auto loan review
CarsDirect aims to simplify the car-buying process, serving as a broker between car dealerships and buyers. On the surface, it seems great. Rather than researching, comparing, and test-driving vehicles across several car dealerships, you can visit CarsDirect online to quickly find local dealerships with cars that meet your needs and budget. And if needed, CarsDirect can help coordinate financing.
However, given the high level of customer complaints, often for unauthorized credit checks, poor customer service, and questionable distribution of personal information, using this platform is a gamble. Most drivers should consider another route.
The main exception: borrowers who can’t get financing elsewhere. No matter your credit history, even if you have bankruptcies, CarsDirect can help you easily find legitimate dealership financing options. This can be a difficult task if you attempt to find the best car loans for bad credit on your own.
Rates, terms, and more
One of the biggest problems with using CarsDirect for financing is there is no transparency about rates, loan terms, or loan amounts until after you’ve agreed to a hard credit inquiry, which impacts your credit score.
This makes sense, given the concept: CarsDirect isn’t a lender, but merely a broker between you and dealership finance departments. Until you submit to a credit check, there’s no way of knowing which dealerships will be willing to work with you.
Is CarsDirect legit?
CarsDirect is a legitimate broker website that helps drivers purchase new and used vehicles, as well as get financing if needed. The company has been in business since 1998 and is headquartered in El Segundo, California.
However, CarsDirect is not accredited with the Better Business Bureau (BBB) and maintains a 1.8-star (out of 5) rating on Trustpilot. Reading through customer reviews, particularly the 1-star reviews (which account for 20% of CarsDirect’s total ratings), reveals key CarsDirect complaints, such as:
- Multiple (and seemingly unauthorized) credit checks: Many customers reported that CarsDirect allowed dealerships to run credit checks on them without their permission (or, more likely, without the customers realizing they were giving dealerships such permission). Some customers received multiple credit checks on an ongoing basis, which further damaged their credit scores.
- No communication: Some other customers reported that after hard inquiries that affected their credit scores, they never received any follow-up from CarsDirect or the dealers.
- Third-party contact: Many customers reported being contacted by dealerships nonstop after entering their info, even if they weren’t a good fit for their needs. A few customers alleged that CarsDirect sold their information to non-dealer businesses, as evidenced by relentless spam calls and emails from random businesses after they applied.
- Bait-and-switch: Multiple customers said they were lured by the promise of being shown the best deals on the CarsDirect website after entering their info; instead, they weren’t shown any deals and received constant phone calls from dealers. Others claimed that dealers wouldn’t honor the prices advertised on the CarsDirect website.
- Issues after purchase: Some customers also reported undisclosed mechanical issues with used vehicles. While this is a risk whenever you buy a used vehicle, these customers also alleged that CarsDirect wasn’t cooperative in resolving the issues.
How does CarsDirect financing work?
CarsDirect acts as a referral source for participating dealerships. Dealers pay a fee to be listed on the CarsDirect website, so when you conduct your search for a new or used car, only dealerships that have paid to be listed will appear in the search results.
The search functionality is nice. You can search by make and model, body style, and price. The last category is helpful if you know you have a firm budget you need to stay within.
How to get an auto loan through CarsDirect
You can only get financing through CarsDirect if you purchase a vehicle from its network. You’ll submit a form with basic information and agree to allow lenders to perform a hard credit check. In theory, a CarsDirect representative will then reach out within 24 hours and walk you through options.
There’s a catch, though: When you select a financing offer, you’re committing to that dealership. That means you’re limited to that dealer’s inventory, rather than the massive network of dealers available through the CarsDirect platform. For many, this defeats the purpose: CarsDirect is about finding the very best deal on the right car, rather than just browsing one dealer’s inventory.
Will I pay fees?
CarsDirect doesn’t charge any fees for using its service or for applying for a loan. However, the vehicle prices shown on the CarsDirect website aren’t the final price you’ll pay with the dealer. According to CarsDirect, these fees may not be included in the advertised price:
- Taxes
- Title
- License
- Tire/battery disposal
- Finance fees
- License/registration
- Documentation fees
If you’re having the vehicle delivered to you, you’ll also need to pay a destination and handling charge.
Who’s eligible for CarsDirect?
The main reason to get an auto loan through CarsDirect is that essentially everyone can get approved. CarsDirect works with a vast network of dealership lenders to ensure you can get vehicle financing even if you have:
- Poor credit
- No credit history
- Prior bankruptcies
How to repay CarsDirect auto loans
Because CarsDirect auto loans aren’t actually through CarsDirect, you’ll work with the dealership finance department you select to set up and repay your auto loan. This means each auto loan may work a little differently.
Can you refinance with CarsDirect?
While CarsDirect has some educational resources about refinancing, it doesn’t offer refinancing itself. When you follow the prompts for a vehicle refinance, the CarsDirect website will take you to another site (Auto Credit Express), though the refinance request form retains CarsDirect branding.
CarsDirect vs. Auto Credit Express
Though CarsDirect and Auto Credit Express are owned by the same parent company, Internet Brands, they are completely different services. CarsDirect only offers financing if you purchase a vehicle through the platform; Auto Credit Express pairs applicants with lenders without requiring an auto sale.
While neither lender discloses its rates, terms, and loan amounts, there is one important data point we can use to compare CarsDirect vs. Auto Credit Express: customer reviews. The table below demonstrates current Trustpilot ratings for each company.
| CarsDirect | 1.8/5 |
| Auto Credit Express | 4.5/5 |
A refinance through Auto Credit Express is well worth your consideration, but compare it against some of the other best auto loan refinances for bad credit before making a decision.
Pros and cons
Pros
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Available to borrowers with poor or no credit history
Drivers who have poor credit or limited credit history struggle to get approved for a car loan with most lenders, but CarsDirect can match such borrowers with dealership lenders willing to work with them.
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Prior bankruptcies accepted
Even more helpful, CarsDirect won’t turn you away if you’ve had prior bankruptcies. Just anticipate paying a much higher rate on your loan if approved.
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Extensive network of dealerships and lenders
CarsDirect makes it easy to search for the right car from a nationwide network of dealerships that can also offer financing.
Cons
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No transparency about rates, fees, or loan amounts and terms
You won’t have any idea what your auto loan might look like until you agree to a hard credit inquiry. Many other lenders allow you to get prequalified without affecting your credit score, and some also post important details about rates, fees, and terms online before you enter any personal information.
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Only available if purchasing through CarsDirect
You can’t apply for financing through CarsDirect unless you’re actually purchasing a vehicle through the platform.
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Vehicle inventory highly limited if financing with poor or no credit
CarsDirect will connect you with a dealer lender willing to work with your credit profile, but that means you’ll only be able to select vehicles from that dealer’s inventory rather than browse the entire CarsDirect inventory.
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Low customer reviews, citing questionable business practices
The low Trustpilot rating and lack of BBB accreditation are cause for concern. And while you should take negative reviews with a grain of salt, CarsDirect has received many that call out shady business practices.
CarsDirect alternatives for car loans
See how CarsDirect stacks up against other auto loans for bad credit.
CarsDirect vs. Autopay
Autopay is our top choice for car loans with bad credit. You can get prequalified online in just a few minutes. While you won’t pay a fee to apply, expect a hard pull on your credit report, which will have a minor impact on your credit score.
Our favorite part of Autopay is that there are no payments for 45 days. If you’re on a tight budget and have strained your finances to come up with a down payment for a car, this grace period can be exactly what you need.
CarsDirect vs. CarMax
Like CarsDirect, CarMax financing is only available if you purchase a vehicle from CarMax. Also like CarsDirect, CarMax can match you with its network of lenders to find you the best deal. However, the lender selection doesn’t affect vehicle selection; the financing can come after you’ve chosen your preferred CarMax vehicle. Plus, CarMax also offers its own in-house financing (CarMax Auto Finance).
CarMax is more transparent about some components of its loans, including the APR and loan terms.
Worth noting: Though CarMax can “accommodate most credit profiles,” getting approved through CarMax isn’t as easy as it is with CarsDirect.
How we rated CarsDirect
We designed LendEDU’s editorial rating system to help readers find companies that offer the best auto loans. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and transparent online information about benefits and terms.
We compared CarsDirect to several student loan lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.
Article sources
At LendEDU, our writers and editors rely on primary sources, such as government data and websites, industry reports and whitepapers, and interviews with experts and company representatives. We also reference reputable company websites and research from established publishers. This approach allows us to produce content that is accurate, unbiased, and supported by reliable evidence. Read more about our editorial standards.
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About our contributors
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Written by Timothy Moore, CFEI®Timothy Moore is a Certified Financial Education Instructor (CFEI®) specializing in bank accounts, student loans, taxes, and insurance. His passion is helping readers navigate life on a tight budget.
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Edited by Kristen Barrett, MATKristen Barrett is a managing editor at LendEDU. She lives in Cincinnati, Ohio, with her wife and their three senior rescue dogs. She has edited and written personal finance content since 2015.