Chase Auto Loan: In-Depth Review
If you’re like most people, your car is an essential tool you use to get to work, run errands and live your life. While the car buying process can be exciting, it can also be extremely stressful, especially when you are financing your car with an auto loan.
There are a lot of things to consider when choosing a car but choosing the right lender is just as important and involves its own set of variables. At the end of the day, you not only want the best car but the best deal on the car, too.
In this review, we’re going to look specifically at what Chase Bank has to offer in terms of auto loans. In addition to financing auto loans and auto loan refinancing, Chase also offers a unique program, the “Car Buying Service” with TrueCar.
Who is Chase?
Chase Bank is owned by JP Morgan Chase with a history dating back to 1799. In its long tenure, Chase has become one of the largest banks in the country, offering a variety of options when it comes to financing your car purchase.
Chase auto loans are also one of the most popular, with over 3.7 million auto loan customers. In a 2017 report by Nasdaq, Chase Bank tied with Ally in financing nearly 6% of all auto loans in the country. They have extensive experience helping customers finance their car purchase, through their auto loans as well as through special financing relationships with several car dealerships, such as Mazda, Subaru and Jaguar.
What can the Chase auto loan offer?
When looking at getting an auto loan, you have to consider the rate offered, loan term and the amount you’re financing. While you must determine the amount you can afford to borrow, the rate and term options are offered by the bank, which is why it’s important you shop around to find the best deal.
As one of the main players in the auto loan industry, it’s not surprising that Chase is competitive in all these areas. When it comes to auto financing, Chase not only offers competitive rates but in certain cases, special financing relationships with certain car brands, as well as rate discounts. Additionally, Chase offers a car buying service through TrueCar that can help you find the right car at a fair price.
Chase Bank offers terms from 48 to 72 months. Other banks may offer shorter or longer loan terms for 36 to 84 months. However, the loan terms offered through Chase auto loans are in line with the average loan term most buyers choose. According to the CFPB in 2017, 72 months was the most common auto loan term.
Ideally, you should get the lowest auto loan term possible. The less time you spend repaying a loan, the less money you’ll have to pay in interest charges.
Special financing relationships
Chase Bank has special financing relationships with a number of brands including, Mazda, Subaru, Jaguar, Land Rover and Maserati. That means they may have special offers, such as a 0.0% APR or cashback offer if you purchase one of these car models using a Chase auto loan, and can secure financing directly with the dealer franchise.
Chase car buying service
Additionally, Chase offers a car buying service through TrueCar, which helps make sure you are getting a fair price and a discount off of the Manufacturer Suggested Retail Price, also known as the MSRP. Though keep in mind, as the title explains, the MSRP is just a suggestion and dealers set their own pricing.
The program shows you what others are paying in the area for the new car you want. After choosing a dealer, you can receive a certificate of TrueCar Guaranteed savings off the MSRP or a discount off of the list price that the dealer is contractually obligated to honor.
So if you are struggling with the idea of negotiating, the car buying service could help you make sure you’re getting a good deal on your car, before you even get to the dealership.
A closer look at the Chase auto loan
- Chase’s car buying service with TrueCar is something that makes it stand out. It helps you in getting a good deal on your car and then walks you through financing. This saves you both money and time. There is no fee to use the service, however, you should note that getting the savings certificate does not reserve the car for you at the dealer. This means the car you want may not be available when you head to the dealership. For used cars, the Chase car buying service helps you view the used cars available in your area from certified dealers.
- Rate discounts. Chase offers current customers up to a 0.5% rate discount. Chase customers with a personal checking account can qualify for a 0.25% rate discount. They can then qualify for an additional 0.25% rate discount when they enroll in autopay.
- Special financing relationships. Chase’s relationship with specific dealers can help you get the best of both worlds by financing with a bank while also taking advantage of special offers that could save you money.
- Must stick with a specific dealer after applying. Once approved, many banks will allow you to shop at a variety of dealers, however, this is not the case at Chase. One of the drawbacks of financing with a Chase auto loan is during the application process, you must provide the location of the specific dealer where you plan to buy the car. If you want to change dealers, you would need to reapply for the loan.
- Must shop within Chase’s network of dealers. To apply for a Chase auto loan, you must work with one of the dealers in their network. This means you can’t shop just anywhere. That being said, they have an extremely wide network so you’re likely to find what you need with Chase.
How to apply
Here are the basic steps you will need to to take to apply for and buy a car using a Chase auto loan:
- Establish your budget and how much car you can afford including your down payment, and your preferred loan term
- Determine the car you want to buy
- Determine the dealer you want to buy from, including their location
- Gather your personal and income documentation needed for the application
- Using the information gathered, apply online or at a local branch
- Find out in as few as two to three hours or up to three business days, if you’re approved
- Head to the dealer to buy your car
Establish your budget
When looking at your budget and determining how much car you can afford, don’t just look at the monthly payment. Make sure you are taking into consideration the cost of insurance, maintenance and fees. We recommend following the 4/20/10 rule when you’re setting a car budget.
Additionally, while a down payment is not required, the more you can afford to put down, the less you will have to finance.
Once you know how much car you can afford, it’s time to decide on the car you want to buy.
Determine the car you want to buy and where you want to buy it from
Before applying, you will need to know the car you want to buy. While the exact amount you need to borrow may vary based on different trims or add-ons, the more accurate you can be, the better.
Keeping your budget in mind, you need to decide what kind of car and features are important to you. Some things you’ll want to consider are the size you’re looking for and what you need to use it for. If you’re commuting in a big city, a sedan may best suit your needs. If you live somewhere that often gets inclement weather, a car with four-wheel drive may be something you want to consider.
Don’t be afraid to go try out your car of interest. Remember you don’t have to buy the car just because you took it for a test-drive.
After you’ve figured out the car you want, it’s time to gather your documents and actually apply for the loan.
Documents you’ll need to submit your application
To apply you’ll need to provide:
- Personal information (address, phone number, Social Security number etc.)
- Employment and income information
- Proof of residence
- The loan amount you want to borrow based on the car you want to buy
- The dealer that you plan to buy the car from
- Your preferred loan term
Apply online or at a local branch
Once you’ve gathered all your information, you can apply online or at a local branch. A loan decision may take just a few hours or up to three business days. When you apply online, you ’ll be able to check the status of your application using the application ID that is emailed to you at the time of your application.
You can also use the application ID to complete your application if you were unable to finish it in one sitting. Once approved, the decision and the rate offered are good for 30 days. It will also inform you of what documents you will need to take to the dealer.
Head to the dealer
Figuring out the financing of your car purchase before you go to the dealer helps you know what you can afford and can provide you with negotiating power when finalizing the details of your car purchase. When you go to the dealer you will want to make sure you bring the documents mentioned in the email or the email itself, so the dealer can find your loan documents with Chase in their system. You’ll also need to bring proof of insurance and a valid driver’s license.
Lastly, you’ll need to bring your method of down payment. You may want to call the dealer ahead of time to see what types of payment they accept, such as a debit card, or cashier’s check.
The fine print
While there is no application fee when financing a car purchase through Chase, you should understand that other fees may apply. For example, if you finance through a dealer in Ohio or Indiana, then your APR will include an origination fee of $195.
Additionally, if you are using Chase’s car buying service, the estimated price does not include the cost of applicable taxes, documentation fees or title and licensing fees.
Finally, while Chase provides lots of tools to help you find the right car and see what rate you might qualify for, they are not very transparent in terms of the lowest rates offered.
Refinancing with Chase
Chase Bank’s refinancing options are similar to their auto loan rates and terms. With Chase auto refinance loans, rates are as low as 4.14% for Chase customers, and 4.64% for non-customers. Just as with the Chase auto loan, the loan terms offered on refinancing are 48 to 72 months.
Just as you would with the Chase auto loan, you’d need to provide personal information, employment and income information and your preferred loan term to apply. Additionally, you need to provide the amount you wish to refinance and the vehicle information, including current mileage.
Once approved, you will either need to complete your refinance by going to a local branch or receive the loan closing documents through the mail. Chase handles paying off your previous loan on the car.
Chase Bank offers some great options when it comes to purchasing a car, with competitive rates and a comprehensive car buying service. However, you should never rely solely on a single bank when making a big purchase. Shopping around and comparing other rates and values for your car will help you understand if what Chase offers is a good deal for your car purchase.