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U.S. Bank is the 7th largest bank in the United States. It offers banking, trusts, mortgage, investment, and payment services. Beyond just serving individuals, the bank also provides its services to government entities, businesses, and other financial institutions. It should come to no surprise that US Bank also has a branch to serve vehicle loans which are called US Bank auto loans.
In this in-depth review, we are going to take a look at the company’s auto loans for individuals. You’ll discover the costs, requirements, how to apply, and our analysis of the offerings.
US Bank Auto Loan Overview
US Bank provides financing for new and used cars. It also offers to refinance for existing car loans. Loans are available in amounts from $3,000 up to $100,000. Further, some borrowers can finance up to 115% LTV without making a down payment.
The costs to borrow from US Bank for an automobile include interest and fees.
First, the bank charges an origination fee on auto loans. The cost depends on your state’s regulations and ranges from $50 to $125, or up to 1% of the loan amount.
Additionally, an early closure fee applies if you close the loan account within one year of opening it. The cost is 1% of the loan amount, with a minimum of $50 and a maximum of $100.
US bank auto interest rate depends on your credit history along with your loan-to-value ratio, loan amount, loan term, and the specifications on the vehicle you are financing.
The best rates on a new car loan are available for loans that meet the following criteria:
- Loan term of three years
- Loan amounts of $10,000 or more
- 100% LTV or less
You must meet the following requirements to qualify for the best rates on used cars:
- Mileage must be under 100,000
- The vehicle must be six years old or younger
You can use the US Bank auto loan calculator to get a better idea of what your payments will be.
Wondering how you can save? US Bank offers the following discounts on your interest rate:
- 50% off for having a US Bank checking account with autopay set up
- 50% off for purchasing an EPA-Certified SmartWay vehicle (Green Auto Loan Rate Discount)
The Green Auto Loan Rate Discount Program aims to encourage more people to opt for clean, fuel-efficient cars. Doing so will help you save money on gas and reduce the negative impact your car will have on the environment.
While some lenders restrict discounts to only new cars, US Bank offers the discount on all EPA-certified SmartWay cars and light trucks that are six years old or younger.
To apply for a US Bank car loan, you will need:
- To be a legal resident of the U.S.
- Be at least 18 years old
- A social security number
- A driver’s license, Military ID, or State ID
- The year, make, and model of vehicle
- The estimated value of the vehicle you want to buy
- Employer’s name and address
- Annual gross income before deductions
- Pay off amount (when refinancing)
- Lienholder name (when refinancing)
To be approved, you will also have to meet US Bank’s underwriting criteria regarding your credit and financial histories. If you don’t yet know which car you want to buy, the bank offers pre-approval as well.
US Bank Auto Loan Pre-Approval
US Bank auto loan pre-approval can be helpful in the process of shopping for a car. You can find out how much you qualify to borrow without providing the details of the vehicle you want to buy. The application is online, and you can usually get a decision within minutes. Note that the process includes a credit check.
Once you are pre-approved for a certain amount, you can then shop with that number in mind. The pre-approval is good for 30 days. When you find a car and want to make the purchase, you will go into a US Bank branch nearest you to complete the transaction.
On the other hand, if you know which car you want to buy, here’s how to apply.
Apply with US Bank Auto Loans
To apply for a US Bank auto loan, you can call 800-473-6372, visit a branch, or follow these steps online.
Visit the auto loan page of the US Bank website. Click “Apply Now” on the loan type you want: “New,” “Used,” or “Refinance.”
Enter your name, address, and contact information.
Share how much you pay for housing and what your annual income is.
Provide information about your employment.
Enter your birth date and social security number.
Share your banking activity.
Specify whether it will be an individual or joint account.
Provide details on the vehicle.
Enter details about the loan you want.
US Bank Auto Loan Review and Summary
Is US Bank the best option for your next auto loan? Well, that depends. On the one hand, it offers competitive interest rates, high loan amounts, great discounts, secure online applications, and low-cost fees. Further, if your credit is right, you may not even need to pay for a down payment.
However, on the other hand, US Bank hasn’t performed particularly well in the past when it comes to customer service and satisfaction. Being such a large bank, customers tend to report feeling undervalued in their interactions.
Mike Arman, an auto loan expert with 20 years of experience, says, “US Bank seems to want a LOT of information to get a car loan, almost a mini-mortgage. Most lenders are quite happy with a credit report and a FICO score.”
He adds, “I’m also quite unimpressed with 115% LTV on a rapidly DEPRECIATING asset. You’ll be underwater the instant you sign on the dotted line with a regular car loan; with 115% LTV, you’ll need a diving bell. This means you are going to have this car for a LONG time before you are even above water, so you better be happy with what you get; you won’t have a lot of options.”
For him, he says it’s a no-go because “there’s no local branch where I live, the car I want is more than six years old, I don’t want ANY more banking entanglements, and I was able to beat their rate quite thoroughly through a local credit union. And no origination fee, either.”
Who should (and shouldn’t) apply for US Bank Auto Loans
However, if you don’t mind working with a large bank, US Bank may be able to offer you a good deal. Also, If you are willing to open a bank account with the company and are planning on purchasing a car that qualifies for the green discount, you can save 1% off your interest rate.
To learn more about US Bank auto loans, read real user reviews, or apply, click here.