Inside Story: Online Car Loan Sites

Everything on this page is explained in greater depth elsewhere on this site, but here's the take-away points in one easy-to-read summary.

• Almost every online car loan site is designed to get you to a local dealership. That's not a conspiracy, that's the way 80 percent of all U.S. car loans are structured.

• The bad credit auto loan industry will generally be doing you a favor but there are some seedy players in this business and that's why it's vital that you deal with a reputable company. Some of those "Everybody Rides!" outfits will cost you thousands more than working through us.

• The Internet has changed the auto industry forever because all the old tricks have been exposed. Armed with some knowledge, the playing field is a lot more level for the car buyer than it used to be. By lining up the financing first online, you will be treated better at the dealership (as opposed to the "ups" who just drive in and get stuck with whichever salesman isn't busy).

• And finally, the dirty little secret of the
entire industry. It used to be that
getting a bad credit auto loan was
a major hassle. But nowadays, with
auto sales in a deep slump, dealers
need every customer they can
get.

Secondly -- and here's the real inside
scoop -- bad credit customers wind
up being very loyal, very grateful for
getting approved, and are more
likely to be repeat customers.
Every repeat customer saves a
dealership $500 in marketing
costs per car.