Who Are the Best Independent Financers to Get a Car Loan from

You do not need to use either a bank car loan or a dealer loan in order to purchase your new or used car. In fact, there are a number of independent finance companies that exist solely to provide auto loans, and they often offer the most competitive options. When you look to these alternative sources, however, you should be choosy about the person or business you will ultimately work with.

Professional Organizations

You should seek a professional, even if the person is not behind a desk in a suit. There are several signs you are working with a professional organization. Those qualities include:

  • Quick responses to calls, questions and inquiries
  • Ability to connect when needed
  • Forms and documentation along every step of the way
  • A familiarity with the loan business, insurance requirements and the auto industry

These are just basic indicators that you are working with someone who has done this before. If you are seeking a totally independent loan, from a family member or friend, then you will have to shift these rules. In any case, however, you should remember that a loan is a legally binding arrangement. You should treat the process of sourcing a loan with the respect and professionalism it calls for as a legitimate business transaction.

Lawfully Incorporated

You cannot sign a legal document with an organization that is not lawfully incorporated according to the statutes in your state. If you are working with only one individual, then this rule does not apply. However, if the person you are dealing with represents a business or larger group, you will need to assure the business is lawful and the person has a right to represent that business in this transaction. You can determine the status of the business you are working with by a general inquiry into your state registry. 

Positive Consumer Reviews

You should always consider the responses of other persons who have dealt with your lender prior to singing a contract with the business or person. You can find helpful information through the Better Business Bureau or Chamber of Commerce, which both track legitimate complaints about financial companies or independent financiers. Take it as a red flag if your potential lender is not known by other persons in the industry, such as your auto dealer. Of course, there is a chance you are getting your loan from a very small organization. If this is the case, you will want a lawyer to review all documents.

Physical Location

Finally, you should not sign a loan contract with a lender who does not have a physical location. Today, many independent car lenders operate mostly as Internet businesses. They provide a number of small loans across state borders, and they may even have deals with your car salesman, especially at a used car lot. There is nothing wrong with electing an Internet company. Nonetheless, all businesses must have a registered physical location in order to be lawfully incorporated. This means you can at least know the address of record for an independent lender, even if it is a home office.


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