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Chase Auto Loans Review
With over 4,900 branches and 16,000 ATMs, JP Morgan Chase, headquartered in New York City, is one of the oldest and largest banks in the United States. If you’re looking to finance the purchase of a new or used car, a Chase auto loan might be the answer.
Chase Bank services the retail sector with checking accounts, credit cards, home mortgages and investment products and offers auto loans in all 50 states. While its best rates are for applicants with good to excellent credit, Chase does provide financing to buyers with all types of credit.
You can apply to Chase for a loan to buy a new or used car, refinance an existing loan or obtain a loan to purchase a vehicle at the end of a lease.
Chase at a glance
|Lender||APR Range||Min. Loan||Max. Loan||Terms||Key Benefit|
|Chase Bank||4.33% – 15%||$4,000||$600,000||12 – 72 months||Competitive rates and online shopping|
What we like about it
Chase Bank makes it easy to shop for a car and get the financing for it all online. Using its website, customers can quickly find their new set of wheels and securing the funds for it, while checking interest rates. Once applied, customers can expect a decision on approval the same day, but there are cases where a more detailed review occurs, delaying decisions by a couple of days. Furthermore, Chase does not require a down payment for any of its car loan financing options.
If your finances change, Chase allows you to change the due date of your loan payment twice over the life of the loan, which gives a lot of flexibility when life throws unexpected curveballs at you.
Things to consider
Chase only offers loans for cars purchased through its participating dealers. Private sales are excluded. However, Chase has an extensive nationwide network of dealers, and a search for a specific model of car will usually turn up several hundred choices.
Interest rates at Chase may not always be the lowest in the market, so it pays to shop around with other lenders.
If you change your mind about the car you want to buy from a selected dealer after making an application, you will have to go online and submit a new application. This can become a frustrating experience if you’re considering several cars.
Chase does not finance commercial vehicles, motorcycles, recreation vehicles or boats. They also do not finance vehicles used for taxis, limousines, ride shares, Uber or Lyft. Loans for business vehicles must be negotiated with the manager of a local Chase branch.
Several consumer reviews report difficulties dealing with the bank’s customer service representatives on administrative issues.
Chase auto loans
Chase offers car loans at rates as low as 4.33% for applicants with excellent credit. Buyers with “prime” credit scores will see rates between 4.83% and 6.44%, while “subprime” borrowers will get offers of 11% and above. If you have bad credit, you may want to consider other auto lenders.
Although the Chase website isn’t specific, “excellent credit” generally means a credit score between 781 and 850, according to Experian. Lenders consider “prime” as a score in the range of 661 to 780 and anything below 660 as “subprime.”
Chase has a convenient loan calculator where you can enter the data for the car you want to buy and get estimates of interest rates and monthly payments. All you have to do is select whether the car is new or used, the estimated price, its year and make, your state of residence and your credit status.
While Chase does not require a down payment for its loans, you may want to consider making some down payment to lower your monthly payments and reduce your total financing costs. Most other lenders require a down payment. After approval, Chase will notify your selected dealer and send them the loan details. Offers are valid for 30 days. If you already have a checking account with Chase before making an application, you qualify for a discount of 0.25% off the loan rate and another discount of 0.25% if you agree to automatic payment deductions.
Chase auto refinancing
If your credit score has improved, and you’re stuck with a high-interest car loan, refinancing could be a fiscally viable option. Or if you feel for whatever reason you didn’t receive the best rate at the date of purchase, Chase may be able to reduce your monthly payments by refinancing your loan at a lower rate or extending your existing repayment terms.
Chase offers a low starting rate of 4.44% for refinancing loans of 48 months for customers with excellent credit.
Chase private seller loans
Chase does not offer private seller loans, but U.S. Bank does. Through U.S. Bank, customers can have cash in-hand to bargain for better prices with private sellers. Depending on the age of the car, however, expect differing interest rates. For example, cars 7 to 9 years old have a higher interest rate when buying from a private seller.
Chase used car loans
Chase has a partnership with TrueCar to find the used car that you want. TrueCar searches the inventory of Chase’s participating dealers to find the exact specifications of the used car you are looking for.
Cars cannot be more than 10 years old and must have less than 120,000 miles on the odometer. The length of repayment for used car loans may be reduced for older cars, in some cases no more than 24 months for the oldest cars.
After selecting a used car, Chase will provide customers with a savings certificate to present to the dealership.