Types Of Auto Finance

Types Of Auto Finance

What is Direct and Indirect Finance of an Auto Loan?

We understand. Auto loans can be confusing. One of the things that seems to confuse some of our Phoenix customers is the whole debate over direct vs. indirect finance. What is direct vs. indirect finance? Indirect finance occurs when a third party brokers a loan for you. Our Finance Department is here to help. So, we’ll explain below the advantages of direct finance, as well as the advantages of indirect finance.

What is Direct & Indirect Finance?

So, what is direct and indirect finance, exactly? Direct financing occurs when you borrow money directly from another person or, for example, from a Glendale area bank to buy a car. In either case, you would be getting financing directly from the lender. On the other hand, indirect finance occurs when you go through a dealership for financing. In this case, the dealer applies for loans on your behalf.

Direct vs Indirect Finance – Benefits of Direct Financing

Direct financing gives you more control of your loan. Here are some of the advantages of direct financing:

  • More flexibility. You can apply for as many loans as you want, before or after you pick out a car.
  • More control. You know exactly which lender you’re dealing with when you opt for direct financing.

Indirect financing opens up a multitude of possibilities that just aren’t available with indirect financing. Here are some of the advantages of indirect financing.

  • Access to more lenders. Your dealer generally has access to more lenders than you do, which puts them in a better position to find the best terms for you.
  • More convenient. Instead of going to every bank in the greater Glendale area to find the best interest rate, you can let your dealer apply to multiple lenders quickly.
  • Less time. Direct financing takes longer than letting your dealer do it for you.

Talk to the Friendly Finance Managers at Rocky’s Auto Credit

Our Finance Team will be happy to sit down with you and walk you through your options. We make the loan process easy. You can even apply for financing online. We’re a short drive away from Tempe, and we’re also just a phone call away. So, drop by or contact us today!

What is Direct Car Finance?

Are you a Arizona driver who has low credit? If so, consider researching “guaranteed car financing near me” and then contact us at Rocky’s Auto Credit in Mesa, Phoenix, or Glendale! What is direct car finance? Simply put, it allows you to buy here and pay here at the dealership, but we will go into further detail below. If you’re looking for one of the direct car finance dealers in the Phoenix area, then look to our finance department. Learn more about direct car finance below.

How Does Direct Car Finance Work?

You most likely found yourself on this page after searching, “guaranteed car financing near me.” Well, we have a guide for a basic understanding of direct car finance! Typically, direct car finance dealers offer in-house finance opportunities. This loan allows many Tempe drivers who have very little credit history to finance a vehicle. In-house direct finance dealers will deep dive into your current income to determine if you meet the minimum income requirements.

With little credit, heading to one of the direct car finance dealers in the area is a great option. Here’s the basic requirements to fulfill:

  • Minimum income of $1,500 to $2,000 a month before taxes (most dealers require this amount, but it varies by the dealership)
  • Down payment (usually around $1,000 or 10% of the car’s selling price)
  • Recent pay stub
  • Proof of residency (utility bill)
  • List of personal references

In-House Direct Car Finance Dealers

If you’re approved, direct car finance can help build your credit as long as your payments are paid on time each month. This is helpful if you ever want to apply for finance in the future on a new vehicle. When you get guaranteed car finance, make sure the guaranteed car finance dealer reports all payments to major credit bureaus. Once approved for guaranteed car finance, you’re able to build up your credit and pay off your car in a reasonable amount of time. This is perfect for first time car-buyers who don’t have much credit or experience in making large purchases.

Explore Direct Car Financing Near Phoenix

Ready to head into a Direct car finance dealer today? We’re here for you, explore our inventory.


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We offer used cars for sale to people that are credit impaired, have low income, or no credit at all. Our loan application process is quick, free, and completely secure with no obligation!


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