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Exeter Finance 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.

Exeter Finance review
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For subprime borrowers, there’s a lot of uncertainty when it’s time to get a car loan. Although borrowers with bad credit may be able to get financing for their car, they generally have to pay higher interest rates, make larger down payments or add a cosigner to get the loan they need. Those with a history of late payments, judgements, defaults or repossessions also could have a difficult time finding a lender.

Exeter Finance is one option for subprime borrowers. It works directly with franchised dealerships, so the application process starts in the finance and insurance (F&I) office. If you’re trying to decide if Exeter Finance is right for you, here’s what you need to know.

About Exeter Finance

Exeter Finance, based in Irving, Texas, is a 13-year-old company that specializes in offering subprime loans to credit-challenged customers. The company offers new and used car loans through franchised dealers to those with credit scores as low as 575.

Loans are only available through F&I departments located inside car dealerships that have a relationship with Exeter Finance; you can’t apply for a loan directly through Exeter. However, Exeter is available in participating franchised dealerships in every state in the U.S. except Hawaii.

Exeter: At a glance

If you are looking at Exeter Finance, here are some key points to keep in mind so you can better compare it against other options:

  • Loan amounts start at $6,000
  • Terms vary according to financial information and credit scores, but APRs can be as low as 5% and as high as 29%
  • Loans terms can be as long as 72 months (six years)

Exeter can finance both new and used cars, though you must go through a dealership to apply. Exeter does not refinance current car loans.

How to apply for financing

Exeter Finance provides subprime auto loans through the dealerships it works with. If a borrower has a low credit score, they may be able to get a car loan through a subprime lender like Exeter.

Subprime auto lenders require the same type of personal information to qualify an applicant as other mainstream lenders like banks and credit unions. The F&I department at the dealership typically collects the following information:

  • Legal name
  • Date of birth
  • Social Security number
  • Current and former address
  • Current and previous employers
  • Income sources
  • Total gross monthly income
  • Current debt obligations

To make the process faster, when it’s time to apply for dealer-arranged financing, be sure to bring a government-issued photo ID (like a valid driver’s license or current passport) and recent pay stubs, 1099 forms and bank statements. Here’s a full list of the documents to bring when buying a car.

Additionally, the F&I department will get the applicant’s permission to conduct a hard pull on their credit report. Depending on how many new credit accounts you’ve opened recently and your recent number of credit inquiries, a hard pull on your credit may negatively affect your FICO credit score.

It’s smart to shop around for the best interest rate when you look for an auto loan. You can do so without worrying about the impact of multiple hard pulls to your credit because the FICO credit scoring model groups credit inquiries for auto financing within a 14-day window and counts them as one.

Another option is getting pre-approved for a loan separate from the dealership, which requires the same information and documents. Shopping around for the best possible terms on an auto loan before approaching a dealership may allow you to save money by paying a lower interest rate. You may also get better terms by applying for auto loans through an online marketplace.

Borrowers who choose to get pre-approved before they go car shopping can take their pre-approval documents with them to the dealership and ask the F&I department if it’s possible to get a better deal.

The fine print

Fees associated with taking out a car loan with Exeter Finance are not listed on its website. Like other subprime lenders, Exeter Finance may charge a loan origination fee and late fees, but does not charge a prepayment penalty. Borrowers should carefully review all charges and fees with the finance specialist at the car dealership before agreeing to use Exeter Finance to get a car loan. It’s crucial to understand the interest rate on the loan and make a note of the first payment due date.

As soon as possible after receiving approval, the borrower should create an account in Exeter Finance’s MyAccount online portal. This site offers 24/7 access to the company’s customer service department and also serves as an interface where customers can make their car payment using a checking or savings account, debit card or ATM card. Exeter Finance also offers a recurring payment option, which is an especially good choice for those trying to build good credit by making on-time payments. Paying bills on time is the biggest factor used by FICO to calculate credit scores.

Pros and cons of financing through Exeter

Exeter Finance is one option of hundreds for subprime borrowers. Shopping around outside of the dealership is an important part of making sure you secure the best possible deal on financing. For instance, many banks and credit unions offer credit builder programs or are willing to relax their FICO score standards if the borrower has a longstanding relationship with the business, has a cosigner with a solid credit history or can provide a larger-than-required down payment.

To get the best possible interest rate on an auto loan with bad credit, compare car loans before making a decision. It may be easier to simply accept the terms offered by a company that has a relationship with the dealership, but even a slightly lower interest rate means borrowers save money over the life of the loan. Car shoppers with credit challenges may have more options than they realize. Even though a subprime borrower is likely to pay between three and five times the prime loan interest rate, there’s a lot of competition among lenders.

Since Exeter Finance only works with dealerships, it’s important for car shoppers to understand that many dealerships make extra money on a car sale by charging a few extra points of interest on financing — for example, Exeter Finance may charge 8% interest, but the dealership could add 2% and offer the buyer an interest rate of 10%. According to consumer advocacy organization Center for Responsible Lending, dealers add an average of 2.47%, and it could be even higher for those with lower credit scores.

Just a few interest points could add up to a large sum of money. For example, a borrower with a $20,000 loan at 10% interest with a 72-month term will pay $6,677.16 in total interest throughout the life of the loan. At 8% interest, they would pay $5,247.98 in total interest over the same time period, saving $1,429.18.

Highlights of Exeter Finance’s auto loans

  • Credit-challenged borrowers with FICO scores as low as 575 may be able to get financing.
  • It is available through car dealerships in 49 states and Washington, D.C.
  • APR can start as low as 5%.
  • There is no prepayment penalty for paying off the loan early, which could save money on interest.
  • The interest accrual method is simple interest, which means borrowers only pay interest on the principal of the loan.
  • For those who can and will make every payment on time, financing a vehicle with this company helps build a good credit history, as they report to all three credit bureaus each month.
  • Participating in a free financial counseling program through the Exeter Finance website earns borrowers six free months of credit monitoring.

Lowlights of Exeter Finance’s auto loans

  • The information available on the company’s website does not disclose terms, interest rates or fees.
  • New and used car loans are not available outside of a dealership.
  • Refinancing an existing loan is not an option through Exeter Finance at this time.
  • If a borrower extends the term of their loan, they’ll also have to extend their GAP insurance, which could be expensive. GAP insurance does not automatically extend past the original term of the loan.
  • While Exeter Finance’s legal department posts thorough replies to customer complaints left on the Better Business Bureau (BBB) website, there are a total of 111 complaints in the past 12 months and 330 over the past three years. With 31 consumer reviews, the company has an average of less than 1.5 stars out of 5.
  • The company recently settled lawsuits in Delaware and Massachusetts where they were accused of facilitating unfair loans to subprime borrowers who did not have the ability to repay the debt.

The bottom line: Who is Exeter Finance’s auto loan best for?

Subprime borrowers who don’t want to get financing on their own through a credit union, bank or online lender may end up using Exeter Finance through the dealership where they buy their car. They may find it convenient to allow the F&I department of the dealership to handle the application process on their behalf. (Note that refinancing is not available through Exeter Finance if that’s what you’re looking for.)

If you have a higher FICO credit score, you should shop around for a better deal to avoid the higher interest rates typically associated with subprime loans like those offered by Exeter Finance. Additionally, if the dealership offers loan terms that stretch the limits of the borrower’s budget, it’s smart to look around for better interest rates and possibly reconsider the purchase.

The rates and fees mentioned in this article are 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.

Rachel Morey
Rachel Morey |

Rachel Morey is a writer at MagnifyMoney. You can email Rachel here

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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
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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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