2024 Ally Bank Auto Loan Review

Ally Bank auto loans at a glance

	New auto loans	Used auto loans	Refinance auto loans
Starting APR	Not specified	Not specified	8.59%
Loan terms	Up to 84 months	Up to 84 months	Up to 72 months
Loan amounts	Not specified	Not specified	$7,500 to $99,999

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. Ally works with more than 23,000 dealers nationwide.
• 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.

You don’t have to have perfect credit to get an Ally auto loan, but you’ll have to buy your car from a partner dealership. Once you’re there, you will apply for the loan in person.

However, you can prequalify online if you’re looking to refinance your existing auto loan. Prequalifying can help you see how likely it is that Ally will approve you, and at what rate.

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.

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. Note that Ally accepts scores as low as 520 for new and used auto loans.

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.
• You can choose a repayment term of up to 72 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:

1. Provide your VIN and plate number.
2. Provide your contact and income information and details about your current loan.
3. Choose a prequalification offer.
4. Submit a full loan application.
5. 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.

Please note that the information in the table below pertains to new auto loans only.

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.