Your search for the best car financing options in Michigan is not complete without considering the following options: Banks and Credit Unions Banks and credit unions often have the most affordable auto loans, and they offer flexible terms. Some will even offer no down payment loans or loans for bad credit. However, some banks and credit unions will not provide loans to borrowers with low credit scores. Dealerships offer some of the best auto loan rates, but they tend to be more expensive than other options. Online Lenders: Online lenders favor borrowers with low credit scores or bad credit. They may not offer the same loan terms as traditional lenders, but they offer competitive interest rates and lower loan default rates. Bad Credit Loans: If you don’t have a credit score, consider using a secured, bad credit loan instead. Secured loans are loans that require collateral, such as a home or car. Since the loan is backed by collateral, lenders feel more comfortable lending to you despite the bad credit score. Personal Loans: You can opt for personal loans if you fall under low- to moderate-income individuals and families. Personal loans do not need collateral.