USAA was founded in 1922 by 25 army officers who couldn’t find a company that would ensure their vehicles. So they agreed to insure each other. The small business they started has now grown into an institution with millions of customers that offers a broad range of financial products to members of the military and their families. Auto loans are one of many products USAA offers to its members.
USAA offers auto loans with rates as low as 2.49% APR (with automatic payments). There are no application fees, prepayment penalties or hidden costs, and borrowers can get a decision in as little as 5 minutes. USAA consistently receives the highest customer service ratings. However, it is only available to people who are members of the armed forces or their families.
USAA offers three types of auto loans: new car loans, used car loans, and refinance loans.
Borrowers can apply online or by calling a USAA representative. USAA considers applicants with all types of credit, although only the lowest rates are only available to applicants with excellent credit (740+).
Applying online only takes 5 minutes, and most borrowers get an instant loan decision. Borrowers can sign their documents online and print their loan check instantly. Another option is to send the car dealer the check using USAA’s smartphone app.
- USAA offers lower rates for loans on new cars (brand new to 2-year old vehicles) and vehicles bought using USAA’s car buying service.
- There are no origination fees, prepayment penalties or other hidden fees.
- Loan terms range from 12 to 84 months. Available loan amounts are dependent on the value of the vehicle.
Rates vary depending on a borrower’s credit profile, loan amount, loan term, and type of car. Rates can change at any moment, but currently USAA has rates:
- As low as 2.49% APR for loans on new vehicles with USAA’s Car Buying Service Discount. The lowest rate without USAA’s Car Buying Discount is 2.99% APR.
- As low as 3.49% APR (2.99% APR with the USAA Car Buying Service Discount) for used cars.
- As low as 2.99% APR (for 2016 or newer models) for refinances (3.49% APR for 2015 or older cars).
These rates are only available to borrowers with excellent credit.
Borrowers with poor credit (lower than 640) can qualify for rates as low as 7.74% APR.
Borrowers with fair credit (640 to 700) can qualify for rates as low as 5.60% APR.
Borrowers with good credit (700 to 740) can qualify for rates as low as 4.49% APR.
USAA doesn’t set a maximum auto loan amount. Available loan amounts vary depending on the value of the vehicle you want to buy and your credit. However, only loan amounts for $25,000 or more qualify for the longest term of 84 months.
USAA operates in all states but only accepts people (and their families) who are in the armed forces.
The application process is simple. It takes only five minutes to complete the form, and most borrowers get an immediate decision. If you are approved, you can e-sign the loan agreement and print your check instantly.
- The USAA has an A+ rating with the BBB and an A++ (Superior) rating with A.M. Best.
- It has some of the lowest rates available with any lender.
- It considers borrowers with all credit types: from poor to excellent.
- No origination fees, prepayment penalties or hidden fees.
- The only catch is USAA is only available to members of the armed forces and their families, so most people cannot benefit from its excellent rates and terms.