Buying a used car today can be expensive, with the average used car selling for about $14,500 today. So, there are not many of us that can write a check for the full value when it comes to buying a vehicle. That is why it pays to do your research and carefully consider your financing options. Automotive loans come in many shapes and sizes, and may last well beyond five years, and slight differences can make a big difference. For example, a 1% difference on a $10,000 auto loan for five years will cost you an extra $500. Whether you are applying for a good credit used auto loan or a bad credit used auto loan, it pays to do your research.

Generally speaking, there are two types of automotive lenders. Direct Lenders are financial services companies, like a bank or a credit union. They actually have the money to lend you for your vehicle and have their own underwriting standards. They may be local, like a credit union, or they may be national. Indirect Lenders are agents or brokers, companies who make a commission by placing your loan with a qualified direct lending institution. Many indirect automotive lenders have an Internet business model where you submit the application online and they contact lenders with your completed application. There are important advantages to both, and both are valuable resources when you are looking for your loan. The important thing to know before you begin submitting applications is whether you are working with a direct or indirect lending source. That will save you time, confusion, and possibly costs as you begin the process of securing your loan for your used car or truck.

There are certain advantages in using a specialty automotive lender. Even if you find a general lender to finance your used car purchase, you may still want to look into a specialty lender for a few reasons. Using a specialty automotive lender may speed up the process of getting a loan, and you may get a lower interest rate because they understand the true value of your purchase. With a specialty automotive lender, you may qualify for longer-term loans as well. Typical auto loans are three to five years, but you may be able to find a lender that has more extended terms.

Below are established automotive lenders, lenders who specialize in both good credit loans and bad credit loans. We have categorized them into Direct and Indirect automotive lenders for ease of reference.

Direct Automotive Lenders

Indirect Automotive Lenders