Banks Aren’t the Only Place to Get Used Car Loans

If you’re searching for used car loans but don’t want to go to your local bank, you’ll be happy to know that there are other ways to finance a used car. Whether you’re visiting an online financial institution, a dealership, or even a family member for a loan, there are ways to get the money you need to pay for the used car you want. Let’s look more closely at ways to get the money other than banks.

Online Financial Institutions

Online financial institutions work well in helping to secure used car loans within minutes. Very often, you can apply for an auto loan via their website and get approved immediately. Online financial institutions are also beneficial because they’re able to offer cheaper rates than brick-and-mortar establishments due to low or no overhead. So if you don’t want to walk into your local bank for a used car loan, it’s good to consider an online financial institution for great deals and fast approval.


Some people shy away at the thought of financing a used car through a dealership. This is because dealerships have bad reputations for throwing in additional fees behind our backs. However, not all dealerships are out to cheat you; some really want you to get in a quality used car at a great price. So don’t be afraid to shop around at different dealerships, check out their financing options, and even see if there are rebates you can take advantage of. You might come out spending less than you imagined you would despite the reputations of dealerships.

Save for Your Future

A Friend / Family Member

This is definitely not the traditional route most people take when looking for used car loans. However, it’s not something to count out unless you simply don’t know someone with the means to help you out. If you know someone with thousands in the bank and seemingly nothing to do with it, you may consider drawing up a contract so that your loved one can purchase your used car for you, then you pay them back with interest. This way, the interest rate doesn’t have to be as high as one you’d find at a financial institution and you may not be penalized as harshly if you miss a payment.

Now you see that banks aren’t the only places to offer used car loans. So do some comparison shopping to find the best used car loan rate for you!

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About the Author

Stacey Bumpus

Stacey Bumpus holds both her Bachelor and Masters degrees in Communications. After spending years in corporate communications, she discovered freelancing was really her cup of tea and fell in love with finding and writing about the latest financial news. Now, providing news and tips about banking, mortgages, taxes (and even logging her own efforts to save for retirement), she's not only fulfilling her lifelong passion, but also helping others manage their finances responsibly.

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