2024 Ally Bank Auto Loan Review
Ally Bank auto loans at a glance
Ally Bank auto loans work a little differently than most other banks.
If you want to refinance an auto loan from another lender, Ally Bank can help. You can prequalify for refinancing online and see a preview of your Ally auto loan rates. But if you want to take out a loan for a new or used vehicle, you’ll need to visit a dealership that offers Ally Bank loans. Here are a few things to know about getting an auto loan with Ally Bank:
- You must visit a dealer for most loans: Unless you’re refinancing your car loan, you’ll have to visit a dealer to apply for an Ally Bank auto loan.
- Scores as low as 520 can qualify for loans: You can get approved for an Ally loan for a new or used vehicle at a dealership with FICO scores as low as 520.
- There are no loans for private purchases: Ally Bank doesn’t offer auto loans for purchases made through private parties.
- Terms vary by loan type: The minimum loan amount and the length of repayment on your loan will depend on the type of loan you want from Ally.
- Best for refinancing: You may have trouble finding a dealer who offers Ally Bank auto loans for car buying, but you can get prequalified and apply for an Ally Bank refinance loan online.
Ally Bank pros and cons
Ally Bank auto loans are available to borrowers with low credit scores, but unless you want a refinance loan, you’ll have to visit a dealership to apply.
| Pros | Cons |
|---|---|
|
|
Finding an Ally Bank loan to buy a car can be difficult. While the bank’s credit score requirement is low, you’ll have to locate a dealership in your area that offers Ally loans, and then visit the dealer to apply in person. On top of the inconvenience, you may have to pay dealer fees for the financing.
Ally Bank can be a better choice if you’re looking to refinance. While the bank doesn’t disclose their interest rates up front, you can prequalify for an auto refinance loan online and decide if the terms are right for you.
A closer look at Ally Bank auto loans
Ally is an online bank that offers loans for new and used vehicles, leasing and refinancing, plus auto insurance policies.
The process of getting an Ally Bank auto loan is a little different from applying for a car loan with other banks. To apply, you’ll have to visit a dealership that offers Ally financing. You can, however, get a refinance loan by applying directly through Ally’s website.
Whatever type of financing you choose, one upside is that you won’t have to pay application or document fees to the bank. At the same time, Ally doesn’t disclose interest rates, so there’s a chance the APR could be high.
Additionally, Ally Bank customers don’t seem very satisfied. The bank has 1.06 out of 5 stars with the Better Business Bureau (BBB) and 1.2 out of 5 stars on TrustPilot, with many customers mentioning trouble making payments and problems with customer service.
Dealer financing
You can visit Ally’s website to locate a dealer in your area that offers Ally auto financing. Unfortunately, that means you won’t have an idea of what you qualify for until you apply in person.
The dealer will determine if you qualify for a loan based on a review of your credit, income and other details, which means requirements vary by location. Here are a few features to note:
- For a repayment term of up to 75 months, the minimum loan amount is $5,000.
- For a repayment term of 76 to 84 months, the minimum loan amount is $20,000.
- FICO scores as low as 520 are accepted.
Keep in mind that a longer payment term will lower your monthly payment amount on any loan, but it will also increase your overall interest charges.
Auto refinancing
It’s much easier to get a refinance loan through Ally Bank than it is to get a loan for car buying. With refinancing, you can prequalify and see some of the loan details online, without impacting your credit. Here are a few other features to consider:
- Loan amounts range from $7,500 to $99,999.
- You’ll need a minimum FICO score of 620.
- Payment terms are 36 to 75 months.
- You need to earn at least $2,000 a month.
- Co-applicants are accepted.
- Ally does not refinance its own loans.
- Refinancing is not available in Nevada, Vermont or the District of Columbia.
How to get an auto loan with Ally Bank
To take out an Ally Bank loan for a new or used car or a lease, you’ll have to locate and visit a dealer that offers Ally auto financing. You can find a list of dealers here.
For Ally’s auto refinancing, you can prequalify and apply for a loan online by following these steps:
- Provide your VIN and plate number.
- Provide your contact and income information and details about your current loan.
- Choose a prequalification offer.
- Submit a full loan application.
- Sign your loan agreement.
The entire process of applying and getting a loan decision for refinancing should take a few days or less.
How Ally Bank auto loans compare
When compared to other lenders, the main drawback of Ally Bank auto loans is that you may have to go through a dealership. If you choose a competitor like PenFed Credit Union or Bank of America instead, you can apply for any of their auto loans online. Plus, PenFed offers prequalification.
A drawback of many credit unions like PenFed is that you must become a credit union member before you can apply. On top of that, neither PenFed nor Bank of America discloses their minimum credit score requirements.
| Ally Bank | PenFed Credit Union | Bank of America | |
|---|---|---|---|
| Starting APR | Not disclosed | 5.24% | 6.14% |
| Loan terms | Up to 84 months | 36 to 84 months | 48 to 72 months |
| Loan amounts | $5,000 and up | Up to $150,000 | $7,500 and up |
| Minimum credit score | 520 | Not disclosed | Not disclosed |
Read our full reviews to learn if a PenFed auto loan or Bank of America auto loan is a good fit for you.
Is an Ally Bank auto loan right for you?
Unless you’re refinancing, you will probably want to shop around for your auto loan elsewhere. Most banks and credit unions accept auto loan applications online, and many have preapproval tools that show you what you’re eligible for without impacting your credit.
If you’re open to arranging financing at the dealership, an Ally Bank loan could be a good option. That’s especially true for buyers with poor credit since Ally accepts FICO scores as low as 520. Just make sure you review the interest rate before signing.
Frequently asked questions
You can qualify for an Ally Bank auto loan with credit scores as low as 520, but for an Ally Bank refinance, you’ll need a minimum of 620.
Ally Bank auto loans are available for car buyers with bad credit. The bank accepts FICO scores as low as 520.
Ally Bank can be a good option for auto loan refinancing since you can get preapproved online and see which Ally auto loan rates you qualify for. But for new or used cars or for leasing, Ally loans are only available through dealerships. So you’ll be better off comparing prequalification offers from other lenders, like your bank or credit union.