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Auto Loan, Reviews

The Best Auto Loans: 2019 New & Used Car Loan Rates

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

The best auto loan for you depends on your priorities, but two common goals are to get the most competitive rate and the lowest monthly payment. That’s why longer-term loans are so popular right now, with more people stretching out new and used car loans over 60 months or more. Despite that, new and used car payments hit an all-time high in 2017, meaning that people are spending more than ever on their vehicle purchases. That’s why MagnifyMoney has compiled a list of the best auto loans in 2019. We know that with rising rates, you need as much help as you can get finding the best rates to secure the vehicle you want and need.

Overview of the best auto loans in 2019

Company name

Best for

Loan types offered

 

LendingTree

Comparison shopping auto loan rates - LendingTree is not a lender.

New, used, refinance, lease-buyout

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

LightStream

Car buyers with good or excellent credit

New, used, refinance, lease-buyout

APPLY NOW Secured

on Lightstream’s secure website

Capital One

Car buyers with fair or poor credit

New, used, refinance

SEE OFFERS Secured

on LendingTree’s secure website

Carvana Auto Loan

Buying a used car online

Used

SEE OFFERS Secured

on LendingTree’s secure website

How we picked the best auto loan rates

Using information from LendingTree, we compiled auto loan data over a six month period spanning across 22 auto lenders. We analyzed the loan data by applicant credit tier, and whether the loans were to purchase a used or new car to determine 1) the lenders consumers chose most often, and 2) the lowest average APR offered by the lender.

A closer look at the best new and used auto loans

Start with LendingTree

With LendingTree, you can fill out one short online form, and there are dozens of lenders ready to compete for your business. Upon completing the form, you can see real interest rates and approval information instantly. Some auto lenders will do a hard pull on your credit and this is common with auto lending. It’s important to remember, multiple hard pulls will only count as one pull, so the best strategy is to have all your hard pulls done at one time.

LendingTree
APR

As low as
3.99%

Terms

24 To 84

months

Fees

Varies

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

LendingTree is our parent company. LendingTree is unique in that they allow you to compare multiple, auto loan offers within minutes. Everything is done online. LendingTree is not a lender, but their service connects you with up to five offers from auto loan lenders based on your creditworthiness.

 

Where people with good credit (680+) get the lowest rates

LightStream

LightStream is the online consumer lending division of SunTrust Bank. LightStream seeks to make the online lending process easy, so you may apply, be approved, sign your loan agreement and receive your funds all through your computer or mobile device — no papers to fill out or sign.

Why we chose Lightstream
Out of the lenders compared, borrowers with good and excellent credit were most likely to choose a loan with LightStream and receive the lowest APR. You can read our full LightStream review here.

New auto loan product details

  • APR: See table below
  • Terms offered: 24 – 84months
  • Loan amounts: $5,000 - $100,000

Lightstream New Auto Loan APRs

Loan Amount

Loan Term (months) *

24 - 36

37 - 48

49 - 60

61 - 72

73 - 84

$5,000 to $9,999

5.24% - 6.79%

5.84% - 7.39%

6.29% - 7.84%

6.59% - 8.14%

6.79% - 8.34%

$10,000 to $24,999

3.99% - 5.99%

4.44% - 6.24%

4.69% - 6.49%

4.94% - 6.74%

5.14% - 6.94%

$25,000 to $49,999

4.44% - 5.99%

4.69% - 6.24%

4.94% - 6.49%

5.19% - 6.74%

5.39% - 6.94%

$50,000 to $100,000

4.44% - 5.99%

4.69% - 6.24%

4.94% - 6.49%

5.14% - 6.69%

5.29% - 6.84%

As of 7/01/19. Includes a 0.50 point discount for autopay. Exact rates depend on your credit profile.

Used auto loan product details

  • APR: See table below.
  • Terms offered: 24 – 72 months
  • Loan Amounts: $5,000 - $100,000

LightStream Used Auto Loan APRs

Loan Amount

Loan Term (months) *

24 - 36

37 - 48

49 - 60

61 - 72

73 - 84

$5,000 to $9,999

5.24% - 6.79%

5.84% - 7.39%

6.29% - 7.84%

6.59% - 8.14%

6.79% - 8.34%

$10,000 to $24,999

3.99% - 5.99%

4.44% - 6.24%

4.69% - 6.49%

4.94% - 6.74%

5.14% - 6.94%

$25,000 to $49,999

4.44% - 5.99%

4.69% - 6.24%

4.94% - 6.49%

5.19% - 6.74%

5.39% - 6.94%

$50,000 to $100,000

4.44% - 5.99%

4.69% - 6.24%

4.94% - 6.49%

5.14% - 6.49%

5.29% - 6.84%

As of 7/01/19. Includes a 0.50 point discount for autopay. Exact rates are dependent on your credit profile and for purchases made from dealer. 

What we like

  • Fixed rate, simple interest fully amortizing installment loans. This means you won’t pay interest on your interest, and if you follow the payment schedule, your loan will be fully paid off at the end of the term.
  • No fees or prepayment penalties
  • No restrictions on the vehicles year, make, model or mileage
  • If you’re not 100% satisfied, Lightstream will pay you $100 (conditions apply)

Where it may fall short

  • Loans may not be used for a cash-out refinance
  • Secured loans may not be used for commercial vehicles
  • Vehicle must be classified as automobile, sport-utility vehicle (SUV), light-duty truck, passenger or conversion van
  • No phone support for customer service. Everything is handled by email

How to apply
Before you apply, keep in mind that you’ll need to:

  • Have good credit
  • Have sufficient income and assets
  • Agree to electronic records and signatures

Applying is done entirely online. You’ll provide:

  • Personal information. Name, address, phone, Social Security number, driver’s license, etc.
  • Employment information. Employer name and address, income and other financial assets
  • Loan information. Loan purpose, loan amount and term
  • Security information. Create a username and password
LightStream

APPLY NOW Secured

on Lightstream’s secure website

Where people with fair (620-679) & bad credit (500-619) get the lowest rates

Capital One Auto Finance

Capital One is a Fortune 500 company and a trusted name in banking and other financial services. In the fourth quarter of 2017, Capital One originated $6.215 billion worth of auto loans, making it one of the top five U.S. banks offering auto loans.

Why we chose Capital One
The most borrowers with fair and bad credit chose a loan with Capital One, and it came in second in terms of lowest average APR.

New auto loan product details

  • APR: See table below
  • Terms offered: 36 – 72 months
  • Loan Amounts: $7,500 - $40,000

Capital One new auto loan APRs

Credit

Loan Term (months) *

36

48

60

72

Rebuilding

7.45%

7.99%

7.99%

10.97%

Average

4.76%

5.16%

5.16%

6.42%

Excellent

3.99%

3.99%

3.99%

3.99%

As of 7/01/19

Used auto loan product details

  • APR: See table below
  • Terms offered: 36 – 72 months
  • Loan Amounts: $7,500 - $40,000

Capital One used auto loan APRs

Credit

Loan Term (months) *

36

48

60

72

Rebuilding

11.11%

12.55%

12.55%

13.98%

Average

5.90%

7.36%

7.36%

8.95%

Excellent

4.53%

4.54%

4.54%

5.30%

As of 7/01/19

What we like

  • Easy to pre-qualify online without a hard inquiry on your credit
  • Minimum monthly income required is $1,500 or $1,800, depending on your credit
  • 12,000 auto dealers work with Capital One

Where it may fall short

  • The best rates require excellent credit with 20% down on the vehicle
  • Vehicles must be 2006 or newer
  • Vehicles must have less than 120,000 miles
  • Dealers may charge additional fees, including document fees, dealer preparation fees and delivery charges
  • Maximum loan amount may not cover the cost of the vehicle you desire

How to apply
Apply using Capital One’s Auto Navigator. Enter your personal information including your Social Security number to get pre-qualified for an auto loan without affecting your credit. Then take your financing certificate to the dealership to shop for cars and make a selection. Once you’ve selected a vehicle, the dealer will have you fill out a credit application and you’ll finalize the paperwork for your vehicle purchase with the dealer.

Capital One

SEE OFFERS Secured

on LendingTree’s secure website

Carvana

Carvana specializes in helping you shop for a car online. It uses things such as 360-degree photos, free vehicle history reports, details and specs, ratings and reviews to provide you with the maximum amount of information.

Why we chose them
We looked at the three used auto lenders chosen most often in each credit tier, and Carvana was the only lender in the top three in every tier. That’s why we chose Carvana, even though other lenders offered lower average APRs on used auto loans.

Product details – Used auto loans only

  • APR: APR depends on credit history, vehicle type and down payment.
  • Terms offered: Up to 72 months.
  • Minimum loan amount: None
  • Maximum loan amount: Any amount, as long as it’s a vehicle listed on the Carvana website.

What we like

  • High level of detail on vehicles makes online shopping easy
  • Online application personalizes your shopping experience and doesn’t require a hard pull on your credit
  • You can return the vehicle within seven days and get your money back (Make sure you’re familiar with the limits on this policy before you buy)
  • All vehicles are certified with a 150-point inspection

Where it may fall short

  • Only available for used vehicles
  • Carvana is a car dealership, and you must select a vehicle through their website

Online experience
Carvana provides a lot of information about each vehicle. You won’t have to visit other sites to find specs or read reviews

When you fill out the online application, you’ll see a breakdown of your monthly payment, minimum required down payment and your APR, making your shopping experience truly personalized.
How to apply
You may get pre-qualified with Carvana without a hard pull on your credit by filling out the online application. After you complete it, you may start shopping for a used vehicle, and your payment, down payment and APR will be displayed for each vehicle. Keep in mind, with Carvana, you must purchase a vehicle in their inventory.

Carvana

SEE OFFERS Secured

on LendingTree’s secure website

Understanding the auto loans process

How do auto loans work?

For the lenders we detailed above, you may apply for a loan online and receive personalized loan rates without a hard pull to your credit. So while you don’t see rate tables on certain lender websites, don’t be discouraged. If you’re serious, just fill out an application to see what you may qualify for.

Once you’ve completed the initial application, you’ll be able to shop for a vehicle knowing which type of financing you’ll likely qualify for.

Once you’ve selected a vehicle, you’ll need to submit a full application for the loan. This can be done online or with a dealer, if you’re working with one. Once again, most lenders are streamlining this process online, so for the lenders we discussed on this page, you may upload your documents using a computer or mobile device.

Once you’ve purchased the vehicle and completed your loan documents, you’ll just need to make payments. Making payments has moved online as well, and many lenders offer apps to help you manage your payments and loan information using your mobile device.

Tips when shopping for car loans

Here are some tips to help you avoid common mistakes and shop confidently for a car loan.

  • Set a budget. Everyone says it, but it’s not always easy to do. If you aren’t keeping a budget, here’s how to start in four easy steps.
  • Know how much you can afford. MagnifyMoney suggests you keep your total car expense less than 10% of your monthly budget. This is part of the 20/4/10 rule, which also says you should put down at least 20% and choose a maximum loan term of four years.
  • Save for a down payment. The amount of your down payment is likely to affect the interest rate you receive when financing your vehicle. So saving for a larger payment will help save you money and putting more down will lower your monthly payment, too.
  • Check your credit. You’re entitled to a free copy of your credit report from each of the three major credit bureaus every 12 months, and it’s easy to get your free credit score from a variety of sources.
  • Consider a co-signer. If your credit score is low or you have a limited credit history that needs improvement, having a co-signer with good credit on your auto loan could significantly lower your interest rate.
  • Shop around. It’s smart to get multiple rate quotes, so you may compare loans.
  • Get pre-approved. Shopping for a vehicle doesn’t make a lot of sense if you don’t know how much money you’ll have to work with. Shoppers have many options for getting auto loan quotes without a hard inquiry on their credit, but if you’re serious about buying a car, doing all your loan shopping in a short period of time will minimize the potential impact on your credit score, if loan applications result in a hard pull.
  • Talk to local credit unions. While banks and online auto loan companies offer easy-to-use online tools, don’t forget to talk to your local credit union to see if it has a more competitive rate.
  • Beware of extra fees. Keep in mind you’ll need to pay state taxes and title fees. In addition, dealers may charge fees, including document fees, dealer preparation fees and delivery charges. These fees will affect your APR if you finance them into your loan.
  • Check your paperwork. Everyone makes mistakes. When you get the final copy of your auto loan, check to make sure you got everything you were promised and there are no extra fees.

How to apply for an auto loan

From choosing the right car to getting approved for financing, this article will walk you through the complete online car buying process.

When you apply for an auto loan, it will help to have your documentation ready. This will include proof of identity, proof of income, credit and banking history and proof of residence. If you’ve selected a vehicle, you also want that information, including VIN, mileage, year, make and model.

While many online lenders advertise the loan process as being quick, be prepared for roadblocks. Sometimes a lender may request additional information or take time to verify information, and that may delay the process.

Be proactive! Once you’ve started the auto loan process, the lender will walk you through what’s needed. But that doesn’t mean you have to wait for your lender to get back to you. If the loan process has stalled, make a call or send an email to your lender asking what’s needed. In many cases, you’ll have an online login that will allow you to see your loan status, or take the next step online.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Ralph Miller
Ralph Miller |

Ralph Miller is a writer at MagnifyMoney. You can email Ralph here

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Auto Loan

How Much Does a Tesla Cost?

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Tesla Roadster
Tesla

Teslas are the newest, spiffiest electric vehicles on the block. The first models were priced as luxury vehicles, but Elon Musk promised to make an EV affordable for most Americans by rolling out the Model 3 at an advertised price below $35,000. There is more to the price, however, as we’ll explain.

Musk’s fancier models will cost you a pretty penny — up to $250,000 — along with Tesla’s upgrades. Availability and price depend on the model and the trim you choose. For the whole picture, keep reading.

How much does each new Tesla model cost?

In order of price, Tesla offers five consumer car models: 3, S, X, Y and the upcoming second-generation Roadster, which you can reserve now. It speaks to company founder Elon Musk’s sense of humor that if you put the first models in the order they were produced you get “S3XY.”

*It’s important to note that the advertised prices don’t include a $1,200 destination and document fee, and they do include a $1,875 federal tax incentive and an estimated savings in gas over six years. Neither price includes taxes or registration fees.

What about the tax credit?

Time ran out on the full $7,500 federal tax credit that was available to the first 200,000 new Tesla owners. Customers who have their Teslas delivered from July 1 to Dec, 31, 2019 get a fourth of the tax credit amount, $1,875.  In 2020, there is no scheduled tax credit.

The good news? There are state tax credits you may be able to use for your new Tesla. The following states and Washington D.C. offer incentives like tax credits, tax exemptions and reduced rates for EV charging: Arizona, California, Connecticut, Colorado, Delaware, Hawaii, Louisiana, Maryland, Massachusetts, Nevada, New Jersey, New York and Pennsylvania.

How much does a Model 3 cost?

The Model 3 is Tesla’s least expensive car. You may be able to drive away in one for a minimum of $41,100. If that amount surprises you, then you know the Model 3 is often highlighted as costing less than $35,000. So why the discrepancy?

The quoted $33,725 price tag is after estimated savings, including the $1,875 tax credit and the fuel savings you would have over six years if you owned a gasoline-powered car. Add those back in and you get to the sticker price of $39,900. Then, tack on Tesla’s standard $1,200 delivery and document fee to get a price of $41,100, not including tax and registration fees.

How much does a Model S cost?

The sticker price for the Standard Range AWD of a Model S is $75,000. For a greater driving range by about 76 miles, the Long Range AWD trim comes in at a $85,000 sticker price. And for a greater performance, the Performance AWD goes from zero to 60 in 2.5 seconds, a 64% faster acceleration for $11,000 more than the Long Range AWD.

How much does a Model X cost?

While models 3 and S are sedans, the Model X is an SUV crossover with optional third-row seating. The lowest trim, the Standard Range AWD, has an $81,000 sticker price. The next trim up, the Long Range AWD has a sticker price of $91,000 and will get you 58 miles more in driving range. The top trim Performance AWD for $102,000 will get you from zero to 60 mph in 2.9 seconds, instead of 4.7 seconds that the Long Range AWD achieves.

How much does a Model Y cost?

A smaller crossover than Model X, Model Y doesn’t have a Standard Range option. Its least expensive trim is the Long Range at a price of $48,000. The Long Range AWD is $52,000 and the Performance AWD is $61,000.

How much does a Tesla Roadster cost?

The most expensive Tesla model is the second-generation Roadster. A Founders Series Roadster is $250,000; although you could get a base Roadster for $200,000. Given the $50,000 price difference between the Founders Series Roadster and the base Roadster, which is enough to buy a whole other Tesla, the Founders Series Roadster has got to offer something special — and it does. You can go from zero to 60 in 1.9 seconds and from zero to 100 in 4.2 seconds, which is pretty dang quick acceleration.

Can you negotiate?

Most car brands let you negotiate on prices. We even wrote about how to negotiate a car price. With Tesla, however, there is no price negotiation. James Wolf, a senior engineer at LendingTree, the parent company of MagnifyMoney, bought his Model 3 in October 2018. He explained, “There is no negotiation when it comes to the price, only your options [can] adjust the price.”

There are no back-and-forth, tit for tat price negotiations on a new Tesla. The price is the price, take it or leave it. The only negotiation on a new Tesla is the one you may have with yourself and your budget: there are plenty of drool-worthy option upgrades, the cheapest of which adds a cool $1,000 to the price tag. More on that later.

Tesla fees and options

As with any car purchase, there will be unavoidable fees and some enticing options you could add to the vehicle. Both will increase the final price.

Can you avoid the destination and document fees?
No. Of the $1,200 fee, $1,000 is the delivery fee, which is charged in the U.S. and Canada regardless of delivery method or location, even if you pick it up hot from the factory floor. Why? It’s government-mandated. The delivery fee, also known as the destination charge, has to be separate from the MSRP and clearly disclosed. The remaining $200 is the document fee.

How much do options cost?
The least expensive upgrade is getting a black and white interior in a Model 3, rather than the all black. The most expensive is adding autopilot after you buy the car for $7,000, instead of ordering it for $5,000 when you get the car new.

**For Models S and X the interior options of Black and White, and Cream are available for purchase on the two lower trims only. The Black and White option is available for no up-charge on the top trim, but the Cream is not available on the top trim.

How much is tax?

Property tax. Vehicle property tax depends on your state and your county or city of residence. It varies pretty wildly, so check your state’s Department of Motor Vehicles website for more information.

Sales tax. If you’re lucky enough to live in state without sales tax (Alaska, Delaware, Montana, Oregon, New Hampshire), you may not have to pay taxes on the car’s purchase.

For the rest of the country, state sales tax applies. You may also have local sales taxes to contend with. The highest average combined state and local sales tax rate is in Tennessee at 9.46% as of July 2018. The lowest is Alaska at 1.43%. And the average in California is 8.55%.

Is tax included in the final amount I pay for the Tesla? If you live in a state where Tesla has a sales license, the applicable taxes you’ll have to pay will be included in your total. If you live in a state where Tesla does not have a sales license, taxes will not be included in the total, but you will have to pay them when you register the car in your state.

Do I have to pay California sales tax? If you pick the car up in California and you live in a different state where Tesla does not have a sales license, Tesla, by law, has to charge California sales tax. For further information on this, see a tax professional or talk to a Tesla representative.

Where does Tesla have a sales license? Tesla has a sales license to directly sell vehicles in about half of U.S. states. Different states have different automotive sales laws. You could see a thread on the Tesla Motors Club website with a map on Tesla sales licensure.

Financing a Tesla

If you’re not paying cash, you may be able to get a loan through Tesla or another lender. It does not hurt your credit to apply to multiple lenders any more than it does to apply to one lender, as long as you do so within a 14-day window. It’s always good idea to shop around for a car loan just as you would for the car itself — only talking to one lender is one of the common mistakes people make when they need an auto loan.

Tesla financing and leasing. Once you create a Tesla account, which you may do here, you can submit a credit application online and hear back from Tesla within 48 hours. Tesla financing is only available in these states: California, Colorado, Florida, Georgia, Hawaii, Illinois, Indiana, Maryland, Massachusetts, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Tennessee, Virginia and Washington.

Financing with your own lender. If you have your own lender, you’ll need to provide the name of the lender, the exact dollar amount of the loan and the lender’s address and phone number to Tesla. In turn, the lender will want the VIN, which you can find in your Tesla account.

How much does a used Tesla cost?

Despite it being a relatively new car company, there are used Teslas available for sale. Some models are almost 10 years old, as the first generation Roadster came out in 2008. It’s these older models that are the least expensive Teslas you’ll find, priced in the upper $30,000 range. Tesla itself offers used models that passed a rigorous inspection and come with a warranty. You can also find used Teslas for sale off third-party car buying sites, such as AutoTempest and CarGurus.

Because they are used, you won’t have to pay the $1,000 destination fee, which only applies to new cars; unless, of course, you’re getting the car shipped to you specially. If you buy the car from a dealership rather than a private person, you will still face all of the typical dealer fees. And no matter how you buy the car, you’ll need to pay the appropriate taxes.

The bottom line

The least expensive new Tesla will cost you $41,100 before taxes and before any available tax credits. You can’t negotiate on the price of a Tesla, but you can pick and choose options that suit you. If you’d like to see what else is out there without leaving your couch, you could look at the best online car buying sites for 2018.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Jenn Jones
Jenn Jones |

Jenn Jones is a writer at MagnifyMoney. You can email Jenn at [email protected]

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Auto Loan

Ally Bank Auto Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

First Investors Financial Services auto loans
Getty Images

Ally Bank is one of the most popular online banks, thanks to its sky-high deposit rates. But it is more than a place to keep your money. The bank also offers loans, including auto financing, though most car buyers will only be able to apply through a dealership. Are Ally’s lending terms as impressive as its deposit accounts? This review will cover all the key details along with how to apply with Ally Bank.

About Ally Bank

Ally Financial Inc. is one of the largest automotive lenders in the country. Even though its bank is only 10 years old, its history in auto financing goes back a century thanks to its General Motors Acceptance Corp. roots. GMAC was the financing arm of General Motors from the early 1900s leading up to the financial crisis. In 2009, it switched from an industrial loan company into a bank holding company and changed its name to Ally. To this day, General Motors and Fiat Chrysler dealers make up a little more than half of Ally’s auto finance business.

Ally offers loans and leases for both new and used vehicles. However, you don’t apply with Ally directly for auto financing. Instead, you need to visit a local dealership that works with Ally and apply through them.

You can apply for a loan through Clearlane, a subsidiary of Ally. Clearlane does not actually set up auto financing itself but generates offers from lenders from which you can choose. Through Clearlane, you can refinance an existing auto loan or set up a lease buyout if you’re interested in buying a vehicle you’re currently leasing. However, Clearlane doesn’t offer new loans or leases.

Ally Bank auto financing: At a glance

  • APRs: Not listed on either website since rates depend on the dealer or the marketplace lender.
  • Terms available: Up to 75 months for Ally retail loans. For Clearlane, terms depend on which lender you qualify with.
  • Amounts financed: Not listed
  • Minimum credit score required: Not listed, though Ally notes it has products for both prime and non-prime applicants. The average FICO Score is 689, squarely in “good” credit territory.

Neither Ally Bank nor Clearlane offer many specifics online about their auto loans. Your actual loan terms will depend on the dealership you apply for Ally or the lenders who make you an offer through the Clearlane marketplace.

How Ally Bank auto financing works

To apply for Ally auto financing, you first need to find a participating dealership. On the Ally website, you can enter your location and the type of car you’d like to buy/lease, then Ally will give you the names and addresses of nearby dealers that offer its products. You can then decide on the vehicle you’d like to buy and apply for your loan/lease.

The exact application process and requirements will depend on the dealer but expect to submit the typical documents for an auto loan, including:

  • Proof of identity: Driver’s license, a state ID or passport
  • Proof of income: Pay stub or W-2 form
  • Proof of residence: A recent bill, bank statement, mortgage/lease statement or other addressed mail
  • Banking and credit history: The dealer could ask about your current financial situation, including what kind of debt you owe and how much you have in savings and investments.

As part of the application, the dealer could pull up your credit report through a hard inquiry. Since the dealership is setting up your financing, there is no guarantee that it will recommend an Ally loan, especially if the dealer finds a better option.

Ally even suggests that you shop around before visiting a dealership as it acknowledges the benefit of comparing multiple lenders ahead of time.

How Clearlane auto financing works

With Clearlane, you start the application either online or by calling one of its representatives. They’ll first ask whether you want to refinance your existing loan or to buy your leased vehicle.

From there, the preapproval application will ask for the details about your existing vehicle (type and mileage), the amount you’d like to borrow, your contact information, income and whether you own or rent your home.

With this basic information, Clearlane will research lenders willing to make you an offer. You do not need to submit your Social Security number, which means Clearlane will not do a hard pull on your credit during this preapproval process.

If you receive an offer that you like, you can formally apply with the actual lender and it will pull your credit. The lender will also ask for the loan documents like proof of income, address and identity. The actual requirements will depend on the lender.

Ally Bank auto financing products

Traditional retail financing – For regular auto loans, Ally offers financing for both new and used vehicles as well as certified pre-owned vehicles that are up to 10 model years old and have no more than 120,000 miles. Ally’s loans also offer specialty vehicle financing to help cover special needs like wheelchair lifts and right-hand drive capability.

SmartLease® – Ally also offers leasing for both new and used vehicles but only certain types of used vehicles from a list of approved models found here.

Clearlane auto financing products

Clearlane refinance – Under the refinance program, you could replace your existing car loan with a new one that potentially has a lower APR and monthly payment. According to Clearlane, its average monthly payment savings for refinance customers is $107/month.

Clearlane lease buyout – With the lease buyout program, you replace your vehicle lease with an auto loan so you can eventually own the vehicle outright.

Clearlane publishes little information about its auto financing products, as it is a marketplace. Vehicle restrictions, terms, payment option and interest rate will all depend on the lender with which you’re matched.

What we like about Ally Bank auto loans

  • Marketplace system lets you pick the best offer: With Clearlane, it uses your application to track down offers from a list of lenders nationwide — you can pick the one you like best.
  • Convenient mobile access: Ally has developed a mobile app that you can use to schedule loan payments, track how much you still owe and check your FICO credit score, free.
  • No hard pull for Clearlane: You can receive initial loans offers through Clearlane without a hard pull of your credit report, which knocks points off your score. You only need to go through a hard pull if you accept an offer from a lender.

What we don’t like about Ally Bank auto loans

  • Few specifics available online – Both Ally and Clearlane have bare-bones websites that do not cover many details about their loans. You essentially need to apply to learn what you can receive.
  • Terms determined by the lender/dealership: The actual terms of your auto financing will depend on what you qualify for with the dealer or lender.
  • No face-to-face support: While Ally offers phone and online customer service, you can’t get help face-to-face.
  • No specialty vehicle financing: Ally Bank only offers regular auto loans. They don’t provide financing for motorcycles or RVs.

Who Ally Bank auto financing is best for

You may encounter an offer from Ally, especially if you buy your next car through General Motors or Fiat Chrysler Automobiles. You may seek out a loan directly through Clearlane if you’re interested in refinancing your current auto loan or buying a car you’re leasing.

With Ally, you need to apply for financing through one of its approved dealerships where the dealer may end up recommending another lender if the terms seem better. This can put you at a negotiating disadvantage — it’s always a good idea to walk into the dealership with your own preapproved auto loan. If the dealer can beat with an Ally loan or other offer, great, you’ll know you’re getting the best deal.

While Clearlane lets you compare offers, it only works for refinancing existing loans and lease buybacks.

Alternatives to Ally Bank

To research your options even further, you could compare Ally’s rates with those from other lenders offering new and used auto loans. Some of the lowest rates can be found at credit unions, and membership might be easier than you think

There are also several other high-quality auto refinance marketplaces besides Clearlane. If you’ve got an existing auto loan and want better terms, rateGenius is another marketplace that focuses only on loan refinances.

LendingTree, AUTOPAY and iLendingDIRECT are three companies where you can apply online and receive preapproval on quotes for auto loans and loan refinancing. (Note: LendingTree is the parent company of MagnifyMoney.) Whichever marketplace you use, collecting more quotes ahead of time now will help you qualify for better terms on your future auto financing.

The information in this article is accurate as of the date of publishing. 

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

David Rodeck
David Rodeck |

David Rodeck is a writer at MagnifyMoney. You can email David here

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