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|High loan amounts||May be tough to be approved with poor credit|
|Repayment terms from 12 months to 84 months||Requires a new application or phone call if you switch dealers while car shopping|
|Car-buying service through TrueCar||Interest-rate discounts are limited|
What you need to know about Chase auto loans
Chase is part of J.P. Morgan Chase & Co., which is the largest bank by assets in the U.S. according to the Federal Reserve. If you’re considering an auto loan from Chase, here are some things to think about before you start the application process.
Flexible loan options
Chase auto loans range from $4,000 to $600,000 with repayment terms that range from 12 months to 84 months. You can apply for a loan to purchase a new or used car or to refinance an existing loan.
Depending on what you need, you have plenty of options to work with. The auto-loan interest rates that Chase offers are competitive compared to other lenders.
Car-buying service with TrueCar
If you don’t like negotiating or just want some extra leverage when you do, the Chase Car Buying Service, which is powered by TrueCar, may help you save money.
The service allows you to search for the car you want and see recent sale prices and prices for current inventory in your area. With TrueCar, you can download a certificate showing the price for the car you want, and you can use the certificate at the dealership for extra negotiating power.
Chase says that between July 1, 2018, and Sept. 30, 2018, customers who purchased a new car from a certified dealer saved an average of $3,235 off MSRP by using the car-buying service.
Limitations on where you can buy a car
To finance a new or used car with Chase, you must buy the car from a dealer in Chase’s network. Use the bank’s dealer locator tool to find out if your preferred dealer is included.
If you’re still shopping around, you may want to hold off on applying. If you get approved for a loan and then switch dealers before you purchase, you’ll need to fill out a new application or contact Chase, which can be a hassle.
A closer look at Chase auto loans
Here are some other details about Chase’s auto loans that you might want to know before you apply.
- Good credit could help: Chase doesn’t say what kind of credit is required, but the loan application asks you to indicate your credit level from “excellent” to “fair.” And, according to its annual report, Chase typically offers auto loans to “prime” customers.
- Purchase-rate discounts: If you’re buying a new or used car, Chase offers a 0.25% interest-rate discount if you’re a Chase Private Client. To qualify as a Chase Private Client, you’ll need to have an average daily balance of $250,000 or more in qualifying personal, business and investment accounts.
- Refinance-rate discounts: If you’re refinancing an auto loan and have a Chase personal checking account, you’ll get a 0.25% rate discount if your payments are automatically deducted from your account. That’s in addition to a 0.25% rate discount for Chase Private Clients.
- No down payment needed: Chase doesn’t require a down payment. But putting money down will reduce how much you need to finance and can potentially lower your monthly payment and total interest charges.
- Limited fees: Chase doesn’t charge an application fee. Note that if you buy a car from a dealer in Indiana or Ohio, there’s an origination fee of $195 that will be included in your annual percentage rate, or APR.
Is a Chase auto loan right for you?
A Chase auto loan may be a good choice if you’re refinancing as an existing Chase customer or you’re a Chase Private Client. In those cases, you can take advantage of the lender’s interest-rate discounts. Chase’s car-buying service can be useful if you want help zeroing in on the right price without haggling with the salesperson.
Note that TrueCar allows you to do something similar on its own website for free, so you don’t have to be married to Chase to use this service.
If you want to work with a dealer that’s not listed in Chase’s network or you want to get an offer that’s valid regardless of which dealer you ultimately choose, Chase might not be a good fit. As with any auto lender, it’s a good idea to shop around before you apply to make sure you get the features you want.
How to apply for an auto loan from Chase
You can apply for a Chase auto loan online, over the phone or at a local Chase branch. Take the following steps to apply online.
1. Click the “Apply Now” button on the auto loans page. If you’re already a Chase customer, the bank can prefill part of the application for you.
2. Decide whether you want to apply alone or with a co-applicant.
3. Provide your personal information, including your address, phone number, employment and income information.
4. Enter the car you want to buy and the dealership selling it, as well as your desired loan amount and repayment term.
5. Depending on the loan type and your credit situation, you may be asked for additional information.
6. A credit decision usually takes as little as two or three hours but could stretch to as much as three business days.
7. Chase will run a hard inquiry to check your credit reports, which can affect your credit scores.
Alternatives to consider
If you’re on the fence about a Chase auto loan, compare its terms and features with other lenders to help you decide.
- Capital One auto loan: If you want to see if you prequalify, check out Capital One, which will conduct a soft credit inquiry first. Read our Capital One Auto Finance review to learn more.
- Bank of America auto loan: If you’re looking to buy a car from a private party or buy out a lease, Bank of America might be able to help you do it. For more info, read our Bank of America auto loan review.