What Westlake Financial Does
Westlake Financial Services is a lender that finances used cars, primarily for buyers with lower credit scores or limited credit history. The company buys loans from dealerships — you finance the car through the dealership, and Westlake purchases that loan afterward. You then make payments to Westlake instead of the dealership.
Westlake operates nationwide and handles millions of auto loans. The company is owned by Berkshire Hathaway and is regulated by the Consumer Financial Protection Bureau, which means your loan agreement and payment terms must follow federal lending rules.
Unlike a bank or credit union where you explore directly, Westlake loans originate at the dealership where you buy the car. The dealership arranges the financing, Westlake funds it, and you become Westlake's customer from that point forward.
Key Takeaways
- Westlake finances used cars through dealerships, not directly — you arrange the loan at the dealership, and Westlake purchases it after the sale closes.
- Interest rates and loan terms depend on your credit score, income, and down payment, and vary by dealership and the specific vehicle.
- You can make payments online, by phone, by mail, or in person at a Westlake office, and the company offers payment deferment or modification if you face hardship.
- If you fall behind on payments, Westlake can repossess the vehicle, but federal law requires notice and a chance to catch up before that happens.
- You can pay off the loan early without penalty, and Westlake will provide a payoff quote if you want to refinance with another lender.
How the Loan Process Works at the Dealership
When you buy a used car at a dealership that works with Westlake, the dealership's finance manager will present loan options. You choose a term (typically 36 to 72 months), a down payment amount, and agree to an interest rate. The dealership then submits your information to Westlake for funding approval.
Westlake reviews your credit report, income verification, and employment history. The company may request recent pay stubs, bank statements, or proof of residence. This review usually takes one to three business days. Once approved, Westlake funds the loan, the dealership releases the car to you, and you receive loan documents by mail or email.
Your first payment is typically due 30 to 45 days after the sale closes. Westlake will specify the exact due date in your loan agreement. The dealership should give you a copy of all signed documents before you leave the lot — keep these for your records.
Interest Rates and Loan Terms
Westlake's interest rates vary based on your credit score, the vehicle's age and mileage, the size of your down payment, and the loan term you choose. Borrowers with credit scores below 620 typically see rates between 12% and 21%, though rates can be higher or lower depending on the factors above. Borrowers with scores above 700 may receive rates in the 6% to 12% range.
Loan terms range from 36 to 72 months. A shorter term (36 to 48 months) means higher monthly payments but less total interest paid. A longer term (60 to 72 months) lowers your monthly payment but increases the total amount you pay in interest over the life of the loan.
The dealership negotiates the rate with Westlake on your behalf, so rates can differ between dealerships even for the same borrower. Always ask the dealership for the interest rate and total amount financed before signing — this information appears on your loan agreement.
Making Payments and Managing Your Account
Westlake offers multiple payment methods. You can pay online through the Westlake website or mobile app, by phone at 1-866-934-2693, by automatic bank draft (ACH), by mail, or in person at a Westlake office. Setting up automatic payments ensures you never miss a due date and can help you avoid late fees.
Your monthly payment includes principal (the amount borrowed), interest, and sometimes a loan fee. Some Westlake loans include a GPS tracking device and payment monitoring system, which the company may use to locate the vehicle if payments are missed. This is disclosed in your loan agreement.
If you face temporary hardship — job loss, medical emergency, or reduced income — contact Westlake before your payment is due. The company can offer payment deferment (skipping one or two months, with those payments added to the end of the loan) or loan modification (restructuring the remaining payments). These options are not automatic and require you to request them.
What Happens If You Fall Behind on Payments
If a payment is 10 days late, Westlake typically charges a late fee (usually $15 to $25, depending on your loan agreement). If a payment is 30 days late, the late payment appears on your credit report and damages your credit score. Westlake will contact you by phone, email, or mail to request payment.
If you miss two or more consecutive payments (usually 60 days or more), Westlake can repossess the vehicle. However, federal law requires the company to send you written notice before repossession and give you a reasonable opportunity to bring the account current. Some states require additional notice or waiting periods.
If repossession occurs, Westlake sells the vehicle at auction. If the sale price is less than what you owe, you are responsible for the difference (called a deficiency). You can dispute a repossession or deficiency in court, and some states limit how much a lender can recover. Contact a local legal aid organization if you cannot afford an attorney.
Paying Off the Loan Early or Refinancing
You can pay off your Westlake loan at any time without penalty. There is no prepayment fee, and paying extra toward principal reduces the total interest you pay and shortens the loan term. Contact Westlake for a payoff quote, which shows the exact amount needed to close the loan on a specific date.
If you want to refinance with another lender (a bank, credit union, or online lender), Westlake will provide your payoff amount to the new lender. The new lender pays Westlake directly, and you begin making payments to the new lender instead. Refinancing can lower your interest rate if your credit score has improved since you bought the car.
Before refinancing, compare offers from at least three lenders. A lower rate saves money, but also consider the new loan term — extending the term lowers your payment but increases total interest paid. Use an auto loan calculator to compare the total cost of each option.
Disputing Charges or Reporting Problems
If you believe Westlake charged you incorrectly, applied a payment to the wrong account, or violated lending laws, you can file a complaint. Start by contacting Westlake's customer service at 1-866-934-2693 or through the website. Explain the issue in writing and keep copies of all correspondence.
If Westlake does not resolve the issue, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints and can require lenders to correct errors or provide refunds. You can also report problems to your state's attorney general or banking regulator.
If you believe Westlake violated fair lending laws (for example, charging you a higher rate based on race or gender), contact the Consumer Financial Protection Bureau or the Department of Justice's Civil Rights Division. These agencies investigate discrimination complaints and can pursue legal action against lenders.
Frequently Asked Questions
Can I get a Westlake loan if I have bad credit?
Yes. Westlake specializes in financing borrowers with credit scores below 620 and those with limited credit history. However, lower credit scores result in higher interest rates. You will need proof of income and a down payment (typically $500 to $2,000 or more) to be considered.
What if I want to return the car after I buy it?
Once you sign the loan agreement and take possession of the car, the sale is final. You cannot return it to cancel the loan. If the car has a serious defect, you may have rights under your state's lemon law or consumer protection laws, but this requires proving the defect existed at the time of sale. Consult a local attorney for guidance.
Does Westlake report my payments to credit bureaus?
Yes. Westlake reports your payment history to Equifax, Experian, and TransUnion. On-time payments build your credit score, while late payments damage it. After you pay off the loan, the account remains on your credit report for seven years as a closed account in good standing, which can help your credit profile.
Can Westlake raise my interest rate after I buy the car?
No. Your interest rate is fixed for the entire loan term and cannot be changed by Westlake. The rate you agree to at the dealership is the rate you pay for the life of the loan, unless you refinance with a different lender.
What if the car breaks down and I cannot afford the repair?
Westlake does not cover repairs — you are responsible for maintenance and repairs once you own the car. If the car is still under the manufacturer's warranty, warranty repairs are covered. If not, you pay for repairs out of pocket. Some dealerships offer extended warranties at the time of purchase, which may cover certain repairs.