RoadLoans auto finance review

RoadLoans is the Internet direct-lending division of Triad Financial Corporation, a nationwide lender. They specialize in financing and servicing new and used vehicle loans for consumers with less than perfect credit. Triad Financial Corporation has over $4 billion in auto loan receivables and has been around for 15 years.

RoadLoans  finances both new and used cars and also refinance existing auto loans. They also fund purchase from private parties. They do not require a down payment. There are no prepayment penalties levied if you decide to repay the auto loan. RoadLoans does not limit you to a specific list of dealers. You can buy from any franchised dealer in your state or even from a private seller.

RoadLoans offers loans between $7500 and $100,000. In some states the minimum amount is $10,000.

They finance cars, light trucks, sport utility vehicles and passenger vans sold by franchise dealers. RoadLoans does not offer finance for some types of vehicles such as commercial vehicles, customized or conversion van. Vehicles having a salvaged title, one-ton vehicles or motorcycles are not financed either.

They do not provide financing to residents of Alaska, Hawaii, Louisiana and Tennessee.

UPDATE:  Try Auto Credit Express for car loans. You can get a no obligation quote from them and even if you have bad credit, no credit, bankruptcy, or repossession, they can get you a loan for a new or used car. They do not fund purchases from private parties, however.

Old car refinance

While RoadLoans does offer finance for the purchase of older cars, they only extend loans for the purchase of cars made in 2001 or later with less than 70,000 miles on it.

How it works

After applying online you will generally get an email from them within an hour informing you if you've been approved and giving you a quote for the auto loan. Sometimes, depending on which day of the week you're applying on, it may take them upto 24 hours to come back to you. They have a 24-7 customer care phone number, email and love chat support. You're not obligated to take up their offer after you get it. So if you're planning to buy a car and want to shop around for the best rates, it doesn't hurt to get a quote. You'll get a quote for the longest term period possible. You can opt for a shorter period if you wish. You can also prepay the loan with no penalties for prepayment.

When you get approved, you can get a check from them overnight at your doorstep. This check is valid for 30 days. You can write a check for any amount, within 30 days, from the minimum $7,5000 (Or $10,000 in some states) upto the amount you have been approved for, towards the purchase of your car. You can negotiate with any franchised dealer in your state like you would, when paying cash down because as far as the dealer is concerned you are as good as a cash buyer.

Private party purchase of vehicle

RoadLoans also funds private party purchase of vehicles. So if you have a neighbour or a friend who wants to sell his car and you want to buy it, RoadLoans may be able to finance your purchase. This is different from other lenders such as HSBC who do not fund sale by owner cars.

You can also purchase a vehicle on which there is an existing loan. This is known as a liened vehicle. The seller of the vehicle needs to be the registered owner of the vehicle. You cannot however purchase a vehicle from a spouse, domestic partner or someone who lives at the same address as you do.

RoadLoans has a tie-up with Escrow.com for transactions involving private party vehicles.

Trading-in your car.

Often car owners trade in their old car to buy another car, new or relatively newer. If you choose to trade-in your car and pick a new car you're buying, the dealer will want to be paid the difference if your new purchase has a higher value than your trade in. This is when you can fund the difference from the check which RoadLoans sends you.

Lease Buyout

RoadLoans also offers lease buyouts. If your lease period is ending soon but you may not be in a position to pay cash for the car, you can avail of a loan from roadloans and buy the car. With this loan, you can pay the remaining amount to the leasing company and then pay an installment each month to RoadLoans. A lease buyout makes sense usually because you know your car inside out and there're no shocks waiting for you like sometimes when you buy a used car and incur unexpected expenses on troubles you didn't know the car had..

If you have crossed the mileage as per the terms of your lease and have to pay for exceeding it or for damages, buying out the lease can save you penalties or lower your payment, saving you money.

Co-borrowers

You can add co-borrowers to your loan application.

Should you opt for RoadLoans?

RoadLoans only accepts loan applications via their web site and do not accept applications over the phone, by mail, fax or other means. They're especially a good option if you want to pay as small an installment as possible every month on your auto loan because they'll send you a quote for the longest term possible. You can opt for a shorter term if you want. RoadLoans can also be considered if you're buying from a private seller because most other reputed lenders such as HSBC do not fund purchases from private sellers. Besides, if you are planning to take a loan, it doesn't hurt to get quotes from multiple lenders.

This review refers to a product or service only available within the United States.