KeyBank Auto Loan Review

KeyBank offers attractive APRs on auto loans, refinancing and other types of vehicle financing. However, loans are only available to residents of 15 U.S. states and other restrictions apply as well. If you are already a customer at KeyBank, a combination of a relationship discount and convenient digital banking options could make a KeyBank auto loan a good choice for you.

• How KeyBank car loans work
• The fine print
• How to apply for a KeyBank auto loan
• Is auto financing through KeyBank worth it?
• Who is a KeyBank auto loan best for?

How KeyBank car loans work

Headquartered in Cleveland, Ohio, KeyBank auto loans are available to residents of Alaska, Colorado, Connecticut, Idaho, Indiana, Massachusetts, Maine, Michigan, New York, Ohio, Oregon, Pennsylvania, Utah, Vermont or Washington.

KeyBank finances purchases on new and used cars, motorcycles, boats and recreational vehicles at rates that are fairly competitive compared to other banks and credit unions. Rates and terms are the same whether you’re buying or refinancing or buying from a dealership or private seller, but the best offers do include a 0.25% rate discount for autopay from a KeyBank checking or savings account. Rates and terms may also vary by location.

KeyBank auto loan rates and terms: At a glance

• APRs starting at 3.59%
• Loan amounts starting at $5,000 for every type of vehicle
• Terms between 12 and 72 months

Rates, as we mentioned earlier, are competitive, but the lowest rates are available when you borrow higher loan amounts, $25,000+, at the shortest term possible, 36 months or less. Maximum APRs and loan amounts aren’t disclosed on the KeyBank website, so you might not know your exact interest rate or how much you may borrow until you apply. Again, rates vary by location — on the bank’s website, we saw different rates for ZIP code 10001 for New York City versus 44114 for KeyBank’s Cleveland headquarters. Of course, additional factors, including your credit, determine the rate you may receive.

Other lenders may offer lower rates or more substantial relationship discounts, so it’s important to shop around for the best offer. Here’s a closer look at KeyBank’s offerings for cars and other types of vehicles:

The fine print

We’ve already mentioned details to watch out for: maximum APRs for car loans and maximum loan amounts across all types of vehicles aren’t disclosed on the KeyBank website. But here a few more points to keep in mind:

• Terms are limited to certain loan amounts. For example, if you want a 72-month loan, you must borrow at least $20,000 for a new car and $25,000 for a used car. If you planned to buy a less expensive vehicle, say, in the $5,000 to $9,999 range, the maximum term is 48 months.
• Key Bank auto loans have no origination fee, but there is a $125 origination fee for motorcycle loans, boats and RVs.
• Paying off any loan in 18 months or less will cost you a $150 prepayment penalty.
• Co-applicants are allowed.

How to apply for a KeyBank auto loan

You can apply for a loan online or at one of 1,100 KeyBank branches. Submitting an application online takes about 10 minutes. Here are the steps to follow:

1. Visit the website for the type of vehicle you wish to purchase and select it.
2. Click “apply now.”
3. Enter your zip code.
4. If you’re not a current customer, choose “New to KeyBank?”
5. Enter your personal information, employment and contact information as requested.

You’ll be required to submit your Social Security number and you may also be asked to provide your tax return or other financial statements and give KeyBank authorization to pull your credit information.

If you wish to take advantage of the 0.25% relationship discount, you’ll also have to set up a deposit to a KeyBank checking or savings account.

Is auto financing through KeyBank worth it?

KeyBank auto loans are attractive because they offer APRs on par or even lower than some other lenders. You’ll have to open a checking or savings account in order to get its relationship discount, but KeyBank offers accounts with no minimum balance or monthly fees plus digital convenience to customers who do so. You can make and receive payments for free through Zelle, and you’ll have access to HelloWallet, an online tool that can help you improve your financial wellness, get your banking account fees waived and earn more interest on your accounts. You may also link your auto loan to HelloWallet.

But there are downsides, too. Some details related to borrowing are unclear. KeyBank doesn’t publish its credit requirements or clarify how long it takes to get approved. You’ll also face a prepayment penalty of $150 if you elect to pay off your loan within the first 18 months.

It’s always a good idea to compare KeyBank’s rates with what another bank, credit union or online lender may offer. You could fill out a single online application at LendingTree and receive up to five loan offers from lenders, depending on your creditworthiness.

In the meantime, here are some other benefits and drawbacks to consider:

Pros of KeyBank auto loans

• Competitive rates
• No origination fee
• No restrictions on the type of car you can purchase, including age and mileage of the vehicle.

Cons of KeyBank auto loans

• Not available everywhere
• Prepayment penalty if you pay off your loan within the first 18 months
• The lowest rates may not be available depending on your loan amount and repayment term.

Who is a KeyBank auto loan best for?

KeyBank auto loans are best for someone who is already a bank customer or who would like to become one. Interested borrowers within its 15-state region may want to look at its wide selection of loans, especially if you’re considering a more expensive boat or recreational vehicle. KeyBank has lower rates for RVs than we’ve seen from some competitors. This is assuming your credit is strong — credit restrictions are unclear on KeyBank’s website, so applicants with poor credit may also find that loans are unavailable or more expensive than rates you could find elsewhere.