Online Savings on Used Auto Financing

Independent financing for used vehicle purchase may involve a few restrictions, but if you shop the right providers, the savings will be well worth the effort.


This page:

  • Explains how online financing can help you save money

  • Lists some of the restrictions that apply to used car loans

  • Helps you find the right lender for your needs

Get the lowest auto financing rates: Get Pre-Approved at RoadLoans whether you are buying a new or used car, or even if you are buying from an individual. Whatever your choice, you will save thousands. RoadLoans offers the lowest rates in the country, for people with fair or better credit ratings. If you have poor or no credit, click here to apply for special financing.

The benefits of direct financing

Whether you plan on buying your vehicle from a big dealership or from your neighbor, an independent (not obtained through a dealer) used car loan will not only help cut costs, but it simply can't be beat for convenience and buying power.

These advantages are considerable when you buy your vehicle from a dealership. (So considerable that consumer advocates always recommend securing your loan from an independent source - not the dealer.)

That's because walking into a dealership with a guaranteed loan in your hand gives you bargaining power and flexibility, because you're basically shopping with cash in your hand.

You also avoid mixing up vehicle price with financing costs (a common dealer strategy).

And, if the dealership can offer a better rate (a rare event!), all the better, because your loan comes with no commitment.


While your potential savings are greatest if you plan on buying from a dealership, getting your person-to-person loan via the internet can still be a big advantage.

You'll have instant bargaining power (and the ability to buy fast), plus the discount rates and low overhead of online financing will cut your costs over traditional bank financing.

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Yes, there really is no better a way to secure a super-low rate. Take a couple of minutes and get pre-qualified with RoadLoans, a premium lender which offers the lowest rates in the country, that vary only depending on your credit rating.

Common restrictions that apply to online loans

Unfortunately, the world of used vehicle isn't all peaches and cream. While a used car is generally a better deal than a new one, the same isn't true of used auto financing.

Because these types of loans aren't as profitable for lenders (they're usually smaller), and involve more risk (the same risk you assume by buying used), they're generally going to involve more restrictions and higher rates than new vehicle loans.

Like what? Well, credit restrictions for starters. Lenders who offer very low-rate loans need to see these investments protected. So providers of person-to-person loans will require a strong credit rating.

The standards for dealership used car loans aren't as strict, but interest rates will be high for poor credit borrowers. Read our guide to poor credit auto loans if you have a weak credit history.


Loan size is another factor. Used car loans generally need to fall in a certain dollar range in order to qualify for the low rates offered by direct online lenders. Online lenders won't fund very small loans, as it is simply a waste of their time.

Shopping online for financing

The best advice we can give when it comes to used car financing is this: secure your loan before you shop, no matter if you're buying from a dealer or your brother-in-law. You'll have both bargaining power and the ability to act swiftly, on your side.


Our second-best advice: get a quote from an online lender. It's fast and free, and they have the lowest rates on used car loans.

We like Capital One, the nation's leader in online auto financing. Their used car loan rates are low and they offer financing for every type of purchase (franchised dealer, independent dealer, third-party seller).

Read more about how RoadLoans work, or get pre-approved right now. It's only a one-page application!

Related info:

If you're buying from an independent third party and want more help, read our guide to person-to-person financing.

If you want help choosing the features of your loan package, read our guide to designing your loan, or crunch some numbers with our calculator.

We also have a brief guide to used car buying, to help you find the best deal on your actual car.



Next: learn more about new car financing.

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