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There are thousands of banks, credit unions and finance companies that are willing and eager to finance an auto purchase for consumers with good credit. These loans come with interest, monthly payments and in some cases, administrative or loan origination fees. If a borrower has less than perfect credit, it can be difficult to get a traditional loan to finance an automobile purchase. Even individuals with good credit may wish to avoid taking a loan from a bank or finance company, especially if they plan to purchase a home in the next one to two years. There are several non-traditional methods to finance a car loan and avoid a trip to the bank or a hit on the borrower's credit record.

Peer-to-Peer Lending

One way to avoid a credit check and a hard inquiry on a borrower's credit report is to take advantage of peer-to-peer borrowing opportunities. To utilize these services, a potential borrower sets up a profile on one of the websites that facilitates these loans. Once this is complete, they fill out a loan application. The application is then sent out to lenders who use the site to match a borrower with a lender that can best help them with their financing needs. Once a borrower and lender are matched, a loan agreement is signed and the money is deposited into the borrower's bank account. As with a loan from a bank, credit union or finance company, these loans are required to be paid back in monthly installments. Interest on peer-to-peer loans is generally higher than on traditional loans, but these loans are easier to get for those who have bad credit or no credit.

Internet Lenders

Sometimes it is easier to procure a loan from an online-only lender; many of these lenders do not put a hard inquiry on a borrower's credit report. These lenders cater to borrowers with minimal credit or less-than-perfect credit. Loans are easy to obtain and can be deposited into a borrower's bank account within three days. The only drawback to this type of loan is that the interest rates may be higher than those charged by banks, and borrower's must agree to use direct debit from a bank account for loan repayment.

Non-Bank Loans

Several major corporations have entered the money lending business. Borrowers must visit a local branch, but can have funds in about an hour. These loans are easier to get than a traditional loan from a bank or credit union; however, they typically also come with a higher interest rate than traditional loans.

However, if you're buying a car from a local dealership, such as Western Avenue Nissan, it may not be a bad idea to look into their auto financing just to be aware of your options.