Gone are the days where you have to walk into a dealership or bank branch to get a car loan. Like many other big lenders, Chase now offers direct auto loans online. You can also refinance your current auto loan with Chase, giving you the opportunity to get a lower interest rate.
Read on to learn more about the Chase auto loan program and determine if it’s the right fit for you.
Chase traces its roots all the way back to 1877 when John Thompson formed Chase National Bank. Since then, the bank has gone through countless mergers and acquisitions. Chase has more than 5,100 branches nationwide and operates in more than 100 countries. It is currently the largest bank in the U.S. by total assets, meaning it has the leverage to offer competitive auto loan rates.
Chase Auto Loans
If you’re in the market for a new car, you don’t need to go to the dealership to get a loan. In fact, having a loan approval in hand when you enter the dealership could give you an advantage when it comes to negotiating a better rate.
Chase’s online direct auto loan can provide you with that leverage.
The lender even has a car-buying service that helps you find the car you’re looking for. They state that it can save new car buyers an average of $3,086.
To use Chase’s car-buying service, follow these three steps:
1) Click here to visit the Chase auto website.
2) Once you’re there, click “Find a car.”
3) Search new cars by selecting the make and entering your zip code. Search used cars by selecting your desired maximum distance to the dealer from your zip code. Press “Go” to see the results.
Dan Jones, a financial analyst from Kansas City, Missouri, used this service when buying his car. He says, “The process was smooth. It gave me a bird’s eye view of what was available in the area and the pricing. Knowledge is power.”
If you’re not looking for a new car, Chase might still be able to help. Its refinance program can help you get a lower interest rate than what you’re currently paying.
With either program, you can borrow between $7,500 and $100,000 with terms between 12 and 84 months.
Chase Auto Loans: Interest Rates and Fees
Like all auto lenders, you won’t know exactly which interest rate you’re going to get until you apply and get approved. However, Chase can give you a ballpark figure based on several factors.
You’ll enter basic information about you and the car, and chase will give you estimated monthly payments and rates for three different loan terms.
To access the Chase auto loan calculator, follow these four steps:
1) Click here to visit the Chase auto loan website.
2) Once you’re there, click the middle option for “Finance a car.”
3) Scroll down the page until you see this:
4) Enter your information and click “Get Info.” You can do this as many times as you’d like to compare multiple cars and loan options.
To get the most up-to-date interest rates, use that tool or check out SuperMoney’s Chase review page.
Interest rate discounts
One thing to note is that Chase offers a 0.50% interest rate discount if you’re an existing Chase customer and you enroll in automatic payments. If you only qualify for one of those, you can still get a 0.25% interest rate discount.
To get a loan, Chase doesn’t charge an application fee. And in most states, it doesn’t have an origination fee, either. The two exceptions are Ohio and Indiana.
Like all major auto lenders, there’s also no prepayment fee if you choose to pay off your car loan early.
What are Chase’s eligibility criteria?
There are a few restrictions when it comes to the car you’re looking to finance:
- The car must not be older than five years or have more than 75,000 miles.
- The car cannot have been sold for scrap or declared a total loss by an insurance company.
- You cannot use the car for commercial purposes, including a rideshare service.
As for you, Chase requires that you have at least a fair credit score, which ranges from 600 to 649. There aren’t any public income requirements, but you generally need to be employed at least part-time to get an auto loan.
Chase Auto Loans: How to Apply
1) To start the application process, click here to visit Chase’s auto loan website.
2) You have the option to find a car, finance a car, or refinance a loan. For the sake of simplicity, future steps will refer to the process of financing a new car purchase. This begins by clicking “Finance a car.”
3) Select “Finance a new or used car.” This will take you to the auto loan application.
4) The application process will start by letting you know what you’ll need to complete your application. You’ll also be asked if you’re applying with a co-applicant and if you’re an existing Chase customer.
5) If you’re a Chase customer already, you can log in, and your information will be filled out for you. Otherwise, you’ll need to share your personal information.
6) Enter information about your employment and income.
7) Enter information about the car you want to buy. Based on what you enter, it will list the manufacturer’s suggested retail price (MSRP).
8) Select your dealer.
9) Share how much you want to borrow, including your down payment and whether or not you’re trading in another car. Also, choose your desired term.
10) Review Chase’s terms and conditions, your application information, and submit. If the lender approves your application, they will send the approval information directly to the dealer so that you can continue the conversation there.
FAQ on Chase Auto Finance
What do you need to qualify for Chase Auto Finance?
Applicants with a credit score of at least 650 and up to 850 are eligible for Chase Auto Finance.
Can you pay off Chase auto loan early?
You can pay off your loan whenever you are ready to and there is no pre-payment penalty for doing so. Chase does not charge pre-payment fees even if your contract lists a fee.
What are current Chase auto loan rates?
Auto loans from Chase range from 48 to 72 months and interest rates can vary by state, but APRs can be as low as 4.24%. Chase can loan $4,000 – $600,000 and provides APR discounts up to 0.50% for Chase checking account customers.
Will Chase refinance my auto loan?
You may be able to lower your monthly loan payment or reduce your APR. However, if you choose a loan term that is no longer than the term left on your existing auto loan, you will pay interest over a longer period of time, and the overall cost of your loan may be higher.
Should you get an auto loan from Chase?
Chase has competitive interest rates on its auto loans. However, as an online direct lender, there’s one big problem: There’s no way to get a pre-approval, which gives you an initial rate offer based on a soft credit check.
Some other online auto lenders, like Capital One, will let you see if you pre-qualify without hurting your credit.
Jones wasn’t bothered by this, though. “I’m a Chase customer, so I automatically got half a percent knocked off my loan,” he says. “And with my work, I just don’t have the time to do all the extra research to see if there’s a lower rate out there. I’m happy with what I got.”
Before you apply with Chase, check out other top auto financing lenders to see if you can get a better interest rate.
You can also use SuperMoney’s auto loan tool to get pre-qualified with several lenders at once. The more you shop around, the higher your chances are of getting the best deal available to you.
Ben Luthi is a personal finance writer and a credit cards expert who loves helping consumers and business owners make better financial decisions. His work has been featured in Time, MarketWatch, Yahoo! Finance, U.S. News & World Report, CNBC, Success Magazine, USA Today, The Huffington Post and many more.