Regions Auto Loan Review

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Updated on Friday, May 31, 2019

Regions Auto Loan Review
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Regions Financial Corp. offers banking and lending services to customers within 15 states in the South and Midwest. Started in 1873 and headquartered in Alabama, Regions has become a widely recognized provider of banking, mortgage and other services, and has even made its way onto the S&P 500. Amongst other services, it offers auto loans and auto refinancing to those who live within its service area. This is a bank that’s been around for quite some time, and does offer those traditional branches and locations that some find helpful.

Regions at a glance

Regions offers financing for both new and used vehicles, including private-party auto loans, which allow you to buy used from a private seller instead of a dealership. In addition to consumer financing, Regions offers auto loans for small businesses and commercial uses. Additionally, it offers loans for recreational vehicles such as travel trailers and campers, as well as motorcycles and boats.

Regions does have requirements on the types of vehicles it finances. Here are some key requirements, fees and rates:

  • What vehicles will it finance? Regions finances vehicles up to seven years old and with as many as 90,000 miles.
  • Credit score requirements: Though Regions does not list a minimum credit score on its website, it loans more money to people with good credit, 720 or higher.
  • Loan amount: Regions offers loans between $5,000 and $100,000.
  • Interest rates: APRs may be as low as 4.05% and as high as 12.96%, including a discount of 0.25% when you make automatic payments with a Regions checking account.
  • Fees: While Regions doesn’t charge a fee for refinancing, fees do apply to new loans. However, Regions has not provided MagnifyMoney with exact figures for those fees.

Of course, Regions isn’t your only option for financing your car. When it comes to getting the best possible auto loan, it always pays to shop around. Compare rates from multiple lenders so that you’re well informed about the rates and terms available to you. There’s more to loans than the monthly payment — consider things like interest rates, how many months you’ll have the loan, fees and the overall cost to borrow.

How to apply for financing

To apply for an auto loan with Regions, you can either visit a branch or apply by phone by calling 888-462-7627. It also offers an online application though you will need to visit a branch in order to complete a phone or online application. You will also need:

  • Proof of income. Regions defines this as two years of tax returns or W-2s, as well as two recent paycheck stubs.
  • Personal information like your address, name and date of birth.
  • Identification documents to complete the application, such as a driver’s license.
  • Vehicle information on the car you’re interested in purchasing. Information like the make, model, year, VIN (vehicle identification number), purchase price and the mileage if it’s a used vehicle.

Regions offers customer support services through email and phone, so help is available to answer any questions you have while working on the application. With about 1,500 brick-and-mortar locations across the South and Midwest, you can also go speak with someone face-to-face.

The fine print

When it comes to getting a new auto loan from Regions, there are a few things to consider. Let’s break down the fine print:

  • Fees: Regions does charge a fee for new auto loans. However, if you’re looking to refinance a vehicle, Regions waives its fee.
  • Interest rates include an autopay discount: Regions advertises rates between 4.05% to 12.96%. However, if you don’t already have or aren’t planning to open a Regions checking account, your rate will be higher. It’s worth noting that every Regions checking account carries a fee, with the exception of its student checking account.
  • Hard credit pull: Applying involves a hard credit pull, which could affect your credit. However, if you do all of your loan shopping within 14 days, multiple inquiries shouldn’t impact your credit score any more than one — all of the inquiries you make will show up as a single inquiry. It’s always a good idea to know what offers are available to you, so you’ll want to check with two or three lenders to see what’s out there.

Highlights of Regions auto loans

Regions offers competitive rates on a variety of auto loans, but it’s difficult to know at what terms. Other lenders give tables showing rates at which terms, but Regions only lists a range of rates.

Highlights of Regions auto loans:

  • Benefits for borrowers who already have an account with Regions. Perks like the autopay discount mentioned earlier make it easy for current account holders to apply for an auto loan.
  • The convenience of brick-and-mortar locations. Online lenders don’t offer this perk, so if that makes you feel more secure in borrowing, you’ll have that advantage.
  • Refinancing is available. Regions not only offers refinancing, it waives its loan fees and may offer complimentary GAP insurance, which has its own set of pros and cons. You may also be able to complete a refinance application online without having to make a trip to a branch.
  • Convenient applications. There are many ways to fill out the application, including an online application. However, you may have to visit a branch in order to complete it.

Lowlights of Regions auto loans

  • Best for good credit. Regions tends to loan to those with good or better credit scores. And for those who do have great credit, you may find lower rates elsewhere, including a local credit union.
  • Low mileage limits. You’re limited on vehicle choices, those seven years or newer and with 90,000 miles or less.
  • High loan to value ratio: Regions will allow you to borrow up to 130% of the car’s value, both a good and a bad thing. While it can give you extra cash to cover registration, licensing and other upfront costs, it can also make your loan value higher than your car’s value, which may put you “underwater” on your car loan.
  • Limited geography. Regions only works with borrowers in certain Southern and Midwestern states. Those states include: Alabama, Arkansas, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas.

The bottom line: Who is Regions Auto Loan best for?

Regions is well-established in the banking industry; you might already have a relationship or other accounts with Regions if you live in its service area.

Regions is ultimately best for:

  • Those with good credit: The lowest rates will go to those with the best credit.
  • Those who already have accounts there: If you already have an account with Regions or are considering opening one, it may be convenient to have multiple bills such as a home mortgage and auto loan in one place. However, those who don’t have a Regions account or those with excellent credit might find better rates with local credit unions.
  • Those living in its geographic range: To get a loan with Regions, you’ll need to live in one of the states it serves.

The rates and fees mentioned in this article are accurate as of the date of publishing.