Shift auto loan alternatives: Try these online shopping platforms

Shift, the online car-buying platform, filed for Chapter 11 bankruptcy and ceased operations in October 2023. You must shop elsewhere if you are looking for a direct-to-consumer auto retailer.

Alternatives to Shift auto loans

While Shift did not finance directly, it worked with a network of lenders to match buyers with auto loans. Consider these online alternatives offering the same no-haggle, online shopping and financing experience.

Carvana auto loans

Rating: 4.1 stars out of 5

4.1

Learn more in our Bankrate review

• Bankrate's view

  Carvana is a one-stop shop that simplifies the car buying process and claims to make loans accessible to borrowers from varying credit backgrounds. Also, like Shift offered, it features a seven-day money-back guarantee and coverage options to help protect your investment. Its loan terms range from 12 to 72 months, or 78 for borrowers with high enough credit. You can avoid delivery fees by picking up your vehicle from a Carvana car vending machine instead of having it delivered to your home — though only 39 exist, primarily in large cities.

• Pros and cons

  

  Pros

  • Flexible credit acceptance.
  • Customer support is available via chat or text.
  • Free limited-time warranty.

  

  Cons

  • Required down payment for purchase.
  • Undisclosed APR ranges.
  • Only a limited vehicle inventory is available.

CarMax auto loans

Rating: 4 stars out of 5

4

Learn more in our Bankrate review

• Bankrate's view

  CarMax is a convenient online shopping platform that also has brick-and-mortar locations. The seller has over 230 locations nationwide, making it a strong option for those who want online shopping’s convenience without skipping a test drive. CarMax partners, which include Capital One, Chase and Westlake Financial, offer loans for those with bad credit.

• Pros and cons

  

  Pros

  • Offers bad credit loans.
  • Financing decisions happen fast.
  • Convenient to use.

  

  Cons

  • Limited vehicle inventory.
  • Unavailable in nine states.
  • Can’t negotiate terms.

CarsDirect auto loans

Rating: 3.5 stars out of 5

3.5

Learn more in our Bankrate review

• Bankrate's view

  CarsDirect is another strong contender for those who are looking to shop and secure financing online. As with Vroom, shoppers can explore the online shopping platform to find the vehicle best suited for their needs. One standout feature CarsDirect offers is the ability to prequalify without impacting your credit score.

• Pros and cons

  

  Pros

  • Educational resources online to help guide you through refinancing.
  • Extensive lender network fit for a range of credit backgrounds.
  • Auto loan prequalification is available.

  

  Cons

  • Undisclosed rates and terms.
  • Unsavory customer service reviews.
  • No direct financing is available.

Why did Shift declare bankruptcy?

The online business declared bankruptcy after it could not secure additional funding amid tumbling revenue. The filing happened in early October. The company listed $240 million in liabilities and $110 million in assets with the U.S. Bankruptcy Court for the Northern District of California. Shift has also shuttered its two California dealerships.

FAQs

• What if I was in the process of purchasing a car with Shift?

  If you were in the middle of purchasing with Shift, your transaction and payment have been canceled.

• What happens to my existing loan if I bought a car through Shift?

  Your vehicle is financed through an outside source, one of Shift’s partners, so you can continue paying off your loan as usual.