Auto Finance

In the U.S., auto finance is big business.

Total auto financing topped $500 billion in 2004 and was roughly split between new car financing and used car financing. Not surprisingly given a market of this size, the average consumer has a range of automobile finance options including:

• Auto manufacturers. Called "captive" auto finance companies these companies specialize in car loans and car leases. As you might expect, they do the bulk of their business in new cars.

• Banks. Bank of America Auto Finance, Capital One Auto Finance, Chase Auto Finance, HSBC Auto Finance and Wells Fargo Auto Finance are all large auto lenders representing about 10% of the market. These lenders commonly lend to the higher credit tiers (A, A-, B+, etc.). If you have good credit or have an existing banking relationship, you may qualify for low auto loan interest rates. If you don't meet their auto financing criteria, there are other alternatives. The good news is that you can get access to some of these banks through one SmartCarCredit auto finance application!

• Credit Unions. There are over 5,000 credit unions in the U.S. so chances are there's one in your neighborhood. Historically credit unions provided auto finance only to their members. Many now have open membership AND are expanding to lower credit tiers including bad credit auto finance. Here again SmartCarCredit can help as many credit unions have joined the CreditSmarts network.

• Auto Finance Companies. These non-bank lenders are commonly called acceptance corporations. While they deal in lower volumes than the big boys, they willingly finance autos for lower credit tier customers. Credit Acceptance Corporation and North American Acceptance Corporation are two of many auto finance companies. Auto finance companies have increasingly been offering online auto loans.

• Car Dealers. Most car dealers have a number of auto lenders they work with. The 250+ dealers who have joined the CreditSmarts network have access to over 20 lenders including banks, credit unions and auto finance companies. This allows them to submit your SmartCarCredit application to lenders that have demonstrated a history of funding applications such as yours. Click here to read more about the costs and benefits of dealer financing.

Get started on the road to great auto finance rates today with SmartCarCredit. Just complete the easy auto loan application. We'll handle it from there matching you with lenders or dealers in your area!

Related Links

• Concerned about your credit? Read about bad credit car financing.

• Want to learn more about online auto finance? Read about online auto loans.

• Know how much you can afford. Calculate your payment and loan amount.

• Ready to get started? Get auto loan quotes.

Disclosure: We developed the content for SmartCarCredit™ while working with automotive industry clients. We hope you find it helpful in making informed decisions. While we believe the information to be accurate, we do not guarantee its accuracy.