Categorized | Car Loan

Chase Auto Loan Rates: How Do They Stack Up?

Chase bank signage

According to the Federal Reserve, Chase Bank is the largest bank by assets in the United States. It's no wonder that this bank is one of the top choices for securing a car loan. Before signing any contracts, we all want to make sure we are securing the best deal. For this reason, we're diving deep into Chase auto loan rates to see if they are the best option. Below we compare Chase APRs to those of other lenders like Consumers Credit Union and LightStream to see which financial lender deserves your business.

What Are Chase Auto Loan Rates?

Chase auto loan rates are the conditions and details attached to money Chase Bank lends to people who want to buy a new car. Chase has a reputation for offering flexible loan amounts, varying repayment terms, and access to a network that could save buyers money in the long run.

Before we delve into Chase auto loan rates, let's first discuss the bank itself.

Chase Bank History

J.P. Morgan Chase Bank, N.A., is the official entity name for the operating Chase Bank branches seen throughout the United States. The bank has a long history and is well-established in the nation.

The Manhattan Company

How Chase bank rose to the monumental status it now holds begins with a bank called The Bank of The Manhattan Company, which was established in New York City in 1799. The Manhattan Company was an early American bank established by Aaron Burr, the third Vice President under President Thomas Jefferson.

From 1799 onward, The Manhattan Company existed as a sole entity until it merged with Chase National Bank in 1955.

Chase National Bank

Chase National Bank formed in 1877 and primarily dealt with large-scale operations and investors as a wholesale bank while simultaneously acquiring smaller banks and trusts. In 1930 Chase National Bank cemented its power status by absorbing the Equitable Trust Company of New York. Equitable Trust Company was a financial institution for which John D. Rockefeller, Jr. was the largest stakeholder.

Chase Manhattan Bank

Once the two financial institutions merged, the names combined to create Chase Manhattan Bank. Chase Manhattan Bank continued growing and acquiring smaller banks throughout its history.

J.P. Morgan & Co.

Chase National Bank formed in 1877 and primarily dealt with large-scale operations and investors as a wholesale bank while simultaneously acquiring smaller banks and trusts. In 1930 Chase National Bank cemented its power status by absorbing the Equitable Trust Company of New York. Equitable Trust Company was a financial institution for which John D. Rockefeller, Jr. was the largest stakeholder.

J.P. Morgan Chase Bank

After the 2000 merger, J.P. Morgan Chase became the official name of the bank, although bank branches still keep the simplified Chase name and logo. Throughout the first two decades of this century, Chase Bank has acquired operations from other prominent players in the financial and lending industries, including Washington Mutual, Providian Financial, Collegiate Funding Services, and Lightyear Capital.

Chase Bank Offerings

Chase Bank s a full-scale financial institution that offers services to consumers and business clientele. For private people, Chase offers:

  • Auto loans
  • C.D.s
  • Checking accounts
  • Credit cards
  • Home equity
  • Investing
  • Saving accounts
  • Mortgages

Chase Auto Loans

According to the Chase website, over 3.8 million people use Chase Bank for vehicle financing. That's quite a number, and it makes this bank one of the biggest auto lenders in the country. With such a large client base, we want to find out why customers use Chase bank. We share what we found below.

Chase Advice and Services


Whether you are a newbie to auto loans, the process is challenging. The Chase information section helps clarify the basics of what you need to get the best financing options. This section reveals all the personal documentation required for locking loans down, finding rebates, researching dealerships and vehicles, and pre-approval details.

Chase Driver's Seat


Driver's Seat is the Chase Bank information portal that gives tips and information for everything related to buying or leasing a new or pre-owned vehicle. Driver's Seat functions like a blog to present information in a fluid and straightforward way about buying trends, budgeting, and loan term information.

We'd recommend everyone considering a new car purchase or lease to visit the Chase Driver's Seat blog before looking for cars. One article within Driver's Seat helps users determine if they are getting a good deal on a vehicle, which is useful knowledge to have before buying. The blog also discusses aftermarket products and the facts you need to know before heading to the dealership.

Talk is cheap, and there's plenty of that when people want to sell you something. Educating yourself throughout the car buying process is the best strategy for protecting your investment, and the Driver's Seat portal is a valuable learning tool.

Auto Loan Calculator


For those of us who need more information before committing to Chase auto loan rates, the bank offers a convenient Auto Loan Calculator. This tool helps users explore Chase auto loan rates risk-free.

If you have already done your research about the car you want to buy, the Auto Loan Calculator is a fantastic tool for budgeting. Loan rates are a little ambiguous on paper, but using this tool helps put repayment terms into perspective. To make the most of the calculator, you must establish which car you want to buy, including the make and production year and how much the car costs.

The Chase Auto Loan Calculator requests a few simple details about geographic location, credit score estimation, and car details before retrieving information about loan terms and monthly payments based on Chase auto loan rates.

If you are happy with the proposed auto loan terms, the Chase website offers the option to apply for an auto loan online. See below for online financing information.

Online Financing


One of the best features offered by Chase Bank is its online financing option. The bank has an online portal that helps users explore rates, payments, and estimates for financing repayment terms.

The form is specific to each user's situation and offers information for new cars, used cars, car make, and car age. The form also prompts users to enter information about credit rating and the state of residence to provide the most accurate quotes. The Chase website walks users through the pre-application process.

Once the users enter all the pertinent information, Chase approves or denies the request. If approved, borrowers have 30 days to lock in the Chase auto loan rate. Using the Chase online financing option comes with the caveat of having to buy a car from the Chase Auto Network. In-network buying eliminates any buying options from private owners, but it's fast financing. Online funding is also only applicable to vehicles ten years old or newer. After approval, borrowers need only go to the specified dealership to drive away in a new car.

Chase Auto Preferred


Although only in the beta phase at the time of writing, Chase Auto Preferred is a free concierge car buying service. This service facilitates communication between car buyers and sellers to find the best deals. Chase customers from Arizona are already eligible to connect with a dedicated dealership representative to walk them through the car buying process.

Little information exists about when Chase plans to expand Auto Preferred to other states and regions or if it will move the program beyond the beta phase.

Car Buying Options


Chase finances both new and pre-owned vehicles when purchased directly from an authorized 'in-network' dealership.

Down Payment


a man handing over money

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Down payments aren't required when using a Chase to finance an automobile purchase, but it's never a bad idea to pay cash upfront if you can. Using a loan to buy a car means paying interest on the money you borrow. The less money you borrow, the less the vehicle costs overall.

Age Restrictions


Depending on the state of residence, applicants must be 17 or 18 years old to apply for a Chase Auto Loan.

Income Requisite


Securing a Chase auto loan requires that borrowers show proof of steady income. Usually, W-2s, employment verification, and pay stubs suffice for proof of income. As with all loan applications, Chase also looks at credit history and score and debt to determine loan eligibility.

​Co-Signing


a person signing a document

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Chase Bank allows co-signing agreements for auto loans. People with no- or bad credit have improved approval chances when applying with a co-signer who has a good credit rating.

​Residency Requirements


Chase requires borrowers to be citizens or permanent residents of the U.S. to qualify for auto loans. Documentation required during the application for residency includes a valid driver's license and social security card.

Securing a Chase auto loan requires that borrowers show proof of steady income. Usually, W-2s, employment verification, and pay stubs suffice for proof of income. As with all loan applications, Chase also looks at credit history and score and debt to determine loan eligibility.


Chase Auto Loan Rates and Terms

graphic illustration representing auto loan rate

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Now that we've seen what Chase offers for service let's take an in-depth look into Chase auto loan rates, terms, amounts, and financial considerations.

Loan Amounts

Chase auto loan dollar amounts are flexible and fit many people's needs. Borrowers can request auto loan amounts ranging from $4,000 to $600,000, which covers the vast majority of vehicles on the market. Chase doesn't allow for the financing of vehicles older than ten years, so if you are in a bind, you'll have to borrow at least $4,000 for a car within this age range.


Chase Auto Loan Rates

Chase auto loan rates are based on two factors: credit score and type of car. The bank offers lower interest rates for new cars than used cars, and better credit scores always enjoy lower rates. Auto loan rates frequently fluctuate, making it difficult to pinpoint the exact rates. We list the current Chase Auto Loan Rates below.

Excellent Credit (800+)

Those with an excellent credit score receive the best Chase auto loan rates, primarily when investing in a new vehicle. Loan interest for new cars ranges from 4.33% to 4.64% and 4.57% to 4.89% when buying used.

Very Good Credit (740 to 799)

Chase offers auto loan interest rates of 4.83% to 5.09% for new cars and 5.53% to 5.89% for used cars to people with very good credit scores.

Good Credit (670 to 739)

Good credit scores bring Chase auto loan rates ranging from 6.03% to 6.44% for new cars and 7.94% to 8.64% for pre-owned.

Fair Credit (580 to 669)

Chase Bank gives rates of 10.99% to 13.44% for new car purchases and 13.31% to 16.99% for used vehicles to applicants with fair credit scores.

Poor or No Credit (under 579)

Chase Bank doesn't lend to individuals with poor, bad, or no credit.

Repayment Terms

two people reviewing a contract

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Repayment terms are equally flexible with Chase. The bank offers repayment conditions ranging from 12 to 72 calendar months (one to six years), and traditionally provides lower interest rates for longer loan terms. Although lower interest rates are cheaper on paper, a longer-term means paying more interest over time.

New cars have extended options for repayment than do pre-owned vehicles. Chase sets new car repayment terms at 48 to 72 months (four to six years), and used cars have a 36 to 72 months (three to six years) repayment schedule.

Another perk of using Chase is that the bank doesn't penalize borrowers for paying a loan off early, and they accept extra payments.

Network

When using the online pre-approval portal for a Chase auto loan, buyers must buy vehicles from a dealership within the authorized Chase Bank network. If this isn't appealing to you, Chase offers other auto loan options when applying in person.
If the network option fits your needs, you can search for dealerships in your area by entering your zip code or desired dealership preferences here.

[www.autofinance.chase.com] The website then displays all Chase Bank approved dealerships Chase Bank.

Auto Refinance Rates

Auto loan rates fluctuate with the market, but our transportation needs don't revolve around the best market rates. For those with excellent credit who've found themselves in a high-interest auto loan, Chase refinancing is an option. Chase doesn't offer auto loan refinancing for those with credit scores below 800.

Chase Bank offers auto refinancing rates based on the duration of the loan. At the time of writing this, Chase auto refinancing rates are 4.44% for 48 months, 4.54% for 60 months, and 4.79% for 72 months. Clients with a Chase checking account receive a 0.25% discount on these rates.

graphic illustration of a percentage sign

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Auto Loan Rates Range

Buying a new car is both exciting and trying because you are tasked with finding a reliable vehicle and coming up with the money to pay for it. If you are like most people, you don't have the cash on hand to pay for a new car. Even if you have the money, repaying a loan is an excellent way to enhance credit scores.

The only downside with using an auto loan for a vehicle purchase is that we end up paying more than the initial sticker price. Finding the best loan rates is one way to minimize the overall costs of the car. Chase auto loan rates for standard purchases range from 4.33% to 16.99%, depending on credit scores and the age of the vehicle. Other lenders have base interest rates ranging from 2.99% to over 99% APR, depending on the nature of the auto loan and the person applying for it.


How It Compares

From all the information we've already gathered, Chase auto loan rates look good. We appreciate that the bank offers convenience and education about the buying process, but to understand Chase auto loan rates fully, we have to compare them to others. Below we review three of Chase's top competitors in the auto lender arena. By the end, we'll learn if Chase auto loan rates are worth it.

  • Consumers Credit Union
  • LightStream
  • SpringboardAuto

Chase Auto Loan Rates


Dealership Network

The dealership network for Chase depends on where you live. Those living in rural communities will have to travel to find an in-network dealership. Overall, Chase Bank offers a robust network in all 50 states, but they are still less flexible here than competitors who all provide more buying options.

Repayment Terms

Chase's repayment terms are as flexible as possible because the bank offers a wide range of payback durations and no early repayment penalties.

Approval Rate

Anyone with decent credit can qualify to receive Chase auto loan rates, and the bank offers co-signing options for those without qualifying credit scores.

PROS

  • Amounts up to $600,000
  • Flexible repayment terms
  • Available in all 50 states
  • Educational blog for buying and leasing
  • Strong allowed dealership network
  • Long-standing bank with a good reputation

CONS

  • Minimum of a $4,000 loan
  • Few options for no or poor credit
  • Buy from in-network dealerships only with online approval

Consumers Credit Union


Consumers Credit Union is a flexible auto loan lender that offers loan amounts ranging from $250 to $500,000. Consumers Credit Union opens its client base up substantially to include those who don't want to spend a lot of money on a car.

Besides the dollar amounts lent, this financial institution offers APR rates ranging from a low 3.69% to 5.19% for excellent scores and up to 21.99% based on credit, terms, vehicle, and geographical location. Applicants need a fair credit score of 640 or better for approval and proof of $6,000 per year gross income.

Membership Fees and Policies

Consumers Credit Union charges a membership fee of $5 with an additional $5 per month for a minimum savings account balance. Auto loans are available to people in all 50 states, and the Consumers Credit Union runs a hard credit check with each application.

No vehicle age restrictions apply to the Consumers Credit Union loans, but loans for cars older than eight years have higher interest rates. This lender gives repayment terms ranging from 6 to 84 (seven years) months.

Dealership Network

Consumers Credit Union has a network called the Consumers Car Buying Service. This buying service assists buyers with finding a vehicle, but using it isn't required. After all the loan documents are complete, Consumers Credit Union sends funds to the dealership or allows borrowers to pick up cash. Not requiring in-network buying provides for greater flexibility when shopping.

Repayment Terms

Consumers Credit Union gives borrowers six to 84 months to repay auto loans, and they don't charge any early repayment fees.

Approval Rate

As an all-inclusive lender, Consumers Credit Union offers loan options for people with poor credit scores or better. Other than the hard credit check when submitting an application, this lender makes getting approved easy with online, telephone, and in-person approval methods.

PROS

  • Secured rates for up to 60 days after application approval
  • Low rates for an excellent credit score
  • Low minimum credit score
  • No vehicle age restrictions

CONS

  • Membership fees
  • Hard credit check with application
  • High rates for poor credit

LightStream


LightStream is the premier lender for borrowers who've established good or excellent credit scores. They offer low-interest rates and amounts ranging from $5,000 to $100,000 for cars purchased from a dealership or private party. LightStream is a division of SunTrust Bank and holds the philosophy that those with secure credit scores have earned a better loan experience.

Interest rates with LightStream are all fixed rate, and the actual APR varies depending on the loan amount and the loan repayment duration. LightStream auto loan rates range from 4.44% to 9.19%, and repayment terms span from 24 months (2 years) to 84 months (seven years). If you have good credit and need a loan fast, LightStream is the best option because they offer same-day financing.

If you have good to excellent credit, LightStream wants your business. To prove this, the company offers a $100 cash guarantee given if you aren't satisfied with your experience with the company after receiving the loan. They also offer to match any competitor's interest rate and knock off an additional one-tenth percent to beat it.

Dealership Network

LightStream doesn't work with a network; instead, it allows borrowers the freedom to take the cash anywhere they want to buy a car. LightStream makes a good point in stating that cash buyers have higher negotiating power than those who are operating in-network.

Repayment Terms

LightStream has slightly less flexibility for an auto loan repayment schedule. Terms for their loans begin at 24 months instead of 12 months or fewer. Most people don't expect to pay off an auto loan within 12 months, but it costs the lender a star for less flexibility.

Approval Rate

To get approved for a LightStream auto loan, you must have a stellar credit score. If this applies to you, congratulations! However, we had to deduct some stars for roughly 30% of the population that has a suboptimal credit score.

PROS

  • Buy from dealerships or private sellers
  • Low rates for good credit scores
  • High credit line
  • Same-day cash
  • Available in all 50 states

CONS

  • Low approval rates
  • High minimum loan amount
  • Online applications and communications only

Oportun


Oportun acquiredSpringBoardAuto in 2018 and has picked up many of the great features the latter offered in the auto loan arena.

Oportun is one of the most flexible lenders because it allows borrowers to buy from auto dealerships and private sellers. This lender is also lenient for credit scores; they grant loan approval for those even without a credit history. The company's website reveals that it has helped 760,000 people without FICO scores buy a car.

Auto loan amounts from Oportun start at $5,000 and go up to $30,000. The company runs a soft credit check for the pre-qualification process that doesn't impact credit scores. Oportun reports to credit bureaus to help borrowers build credit while paying off their car loans.

Dealership Network

One of the best reasons to use Oportun is because the company doesn't require in-network purchases. Instead, after approval, the company sends the funds directly to the seller through a prepaid card.

Repayment Terms

Oportun grants a reasonable time range for repaying an auto loan. Most options span from seven months to 42 months (six years). Because the company lends money at such a high rate, it's appropriate that they allow for repayment terms under the traditional 12-month period.

Approval Rate

Oportun isn't the best choice for borrowers who already have good credit because the interest rates are so high. However, it is one of the best options for those who have no credit or poor credit. Oportun approves many people who are struggling to get loans from other lenders, which can help these borrowers build credit and get on their feet.

PROS

  • Private party buying allowed
  • Can buy older cars (up to 15 years and under 150,000 miles)
  • Cosigning available
  • Helps establish credit

CONS

  • Only available in 12 states
  • High-interest rates
  • Less transparent about policies
  • Minimum $5,000 loan amount

Conclusion

We are fortunate to live in a time in history when everybody who needs a car has options to buy one. In reviewing four of the top auto loan lenders, we've realized that no two financial institutions offer the same benefits. Each lender offers something unique to the clientele it serves.

LightStream is the clear choice for borrowers with excellent credit scores because the company caters to this market. Oportun is the right choice for those who need to build or improve credit scores, but its model doesn't serve borrowers out of this bracket.

The Upshot on Chase


Chase auto loan rates find a solid middle ground in the financial lending industry because they offer a range of options to people in a variety of financial situations. Chase Bank has one thing that the other lenders do not, and that is hundreds of years of experience in U.S. financial lending. Chase proves its standing in this industry by the products and services offered to help clients.

Where Chase Bank is lacking is in the auto network department. Most lenders do not require vehicle buyers to shop in-network, as this severely limits buying options. We hope Chase Bank changes its strategy to include out-of-network dealerships and private sales.


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