2023 KeyBank Auto Loan Review
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KeyBank auto loans at a glance
 | New auto loans | Used auto loans | Refinance auto loans |
|---|---|---|---|
| Starting APR | 9.85% | 9.75% | 9.75% |
| Loan terms | 12 - 72 months | 12 - 72 months | 12 - 72 months |
| Loan amounts | $5,000 - $25,000+ | $5,000 - $25,000+ | $5,000 - $25,000+ |
| See Auto Loan Rates | See Auto Loan Rates | See Refinance Rates |
KeyBank offers auto loans in 15 states.
Don’t live in one of the states where KeyBank offers loans? Don’t worry, you’re not missing out on much. Interest rates on KeyBank auto loans are much higher than the national average, and the bank doesn’t disclose credit requirements or offer loan prequalification.
If you take a look at the other terms and conditions outlined in our KeyBank auto loan review, you might decide to look elsewhere for your next car loan.
- Limited availability: KeyBank auto loans are only available in AK, CO, CT, ID, IN, MA, ME, MI, NY, OH, OR, PA, UT, VT, and WA.
- High starting APR: The national average APR for a new car loan is 6.58%, but the lowest APR on a KeyBank auto loan is 9.85% (with a 0.25% autopay discount included).
- No origination fee: Some lenders charge hundreds of dollars in auto loan origination fees, but KeyBank stands out in this area with zero fees.
- Prepayment penalty: Customers who pay off their auto loans within the first 18 months will be charged a $150 prepayment penalty, eating into the money you’ll save on interest.
- Best for KeyBank customers: Current KeyBank customers are best suited for these loans. You don’t need to have a KeyBank account in order to apply, but you can qualify for a 0.25% rate discount if you set up autopay from your KeyBank savings or checking account. Even taking the discount into consideration, you may find lower rates elsewhere.
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KeyBank pros and cons
For KeyBank auto loans, the cons seem to outweigh the pros. Even if you live in one of the 15 states where a KeyBank auto loan is available, you can likely find better terms elsewhere.
| Pros | Cons |
|---|---|
$0 origination fee. Co-applicants are allowed 0.25% rate discount available | High starting APR Only available in 15 states $150 prepayment penalty Credit requirement not disclosed |
While a no-fee auto loan is appealing, Keybank doesn’t offer competitive interest rates and doesn’t disclose its credit requirements upfront. The lender says they consider credit history, ability to repay, loan to value, vehicle age, loan amount and loan term when assessing a borrower’s creditworthiness but doesn’t offer specifics on a minimum credit score requirement.
One upside is KeyBank allows co-applicants. So, if your credit isn’t great, you can apply with a trusted friend or family member with strong credit to improve your chances of being approved.
If you’re approved and are an existing bank customer, you can receive a 0.25% rate discount by setting up autopay from a KeyBank checking or savings account. However, an autopay discount is a relatively common auto loan feature, and you can probably save a lot more by borrowing from a lender with lower starting rates.
A closer look at KeyBank auto loans
KeyBank was founded in 1994 and is headquartered in Cleveland, Ohio. The bank has had more than its fair share of negative press in recent years.
In 2022, it was ranked in last place for racial inclusion on a list of 50 of the nation’s largest mortgage lenders. According to the National Community Reinvestment Coalition (NCRC), the bank had the lowest percentage of mortgage originations to Black borrowers among the nation’s 50 largest home purchase lenders, and there were “indications that KeyBank engaged in redlining.”
In the same year, customers filed six class action lawsuits alleging that the bank failed to protect their financial information in a data breach.
When it comes to loans, KeyBank offers lending for a variety of vehicle types, including cars, motorcycles, boats and RVs, as well as private-party auto loans. But their auto loans lack the features and conveniences most customers want. Here’s a closer look at the fine print:
- A minimum FICO Score of 780 is required to qualify for the lowest auto loan rates.
- If you pay off the loan within 18 months, regardless of your reason, you’ll have to pay a $150 prepayment penalty.
- The late fee for auto loan payments is 10% of the payment amount or $30, whichever is greater. The fee is charged after the payment is 10 days late.
- Financing is not available for cars over 10 years old.
How to get a loan with KeyBank
You can apply for an auto loan on KeyBank’s website or in a bank branch. It takes less than 10 minutes to complete an online application for an auto loan. Here’s an overview of what you may need to provide:
- Tax returns and financial statements
- Social Security number or Individual Taxpayer Identification Number (ITIN)
- Driver’s license (or other government-issued ID)
- Contact information
- Employment status
- Monthly gross income amount
Once you’ve submitted the required forms and documents, it can take the bank anywhere from one day to a few weeks to process your application. If you’re approved and want the loan to be deposited directly into your KeyBank account, you can expect to receive the funds as soon as the same day.
How KeyBank auto loans compare
Unfortunately, KeyBank’s interest rates and loan features leave something to be desired. Other lenders offer lower rates, are available to more borrowers and provide comparable or better discounts. For example, Bank Of America and PNC Bank don’t charge prepayment penalties and both offer rate discounts for existing customers.
| KeyBank | Bank of America | PNC Bank | |
|---|---|---|---|
| Starting APR | 9.85% | 6.29% | 6.59% |
| Loan terms | 12 - 72 months | Up to 72 months | 12 - 72 months |
| Loan amounts | $5,000 - $25,000+ | $7,500 and up | $7,500 - $75,000+ |
| Min. credit score | Not disclosed | Not disclosed | Not disclosed |
Is a KeyBank loan right for you?
Even if you live in a state where KeyBank auto loans are available, it’s best to shop around. The bank’s auto loan rates aren’t competitive compared to the national average: 9.85% versus 6.58%, respectively. If you’re already a KeyBank customer and are looking for the convenience of getting a loan from your current lending institution, this lender may meet your needs.
Keep in mind that comparing multiple lenders can yield big savings. In fact, a 2023 LendingTree study found that prospective car buyers saved more than $5,000 in interest charges by comparing lenders and choosing the lowest APR. You can receive up to five auto loan offers from lenders by filling out a single form with LendingTree.
Frequently asked questions
KeyBank doesn’t disclose the credit score it requires for an auto loan. To qualify for this lender’s best rates, you’ll need a FICO score of 780 or higher.
The process of getting an auto loan from KeyBank is similar to other banks. You can apply for a loan online in under 10 minutes and you may need to submit proof of income or ID documents. Because KeyBank is not transparent about its auto loan eligibility requirements, it’s hard to know whether all borrowers will qualify. While bad-credit auto loans are available from some lenders, it’s unclear whether KeyBank will lend to borrowers with poor credit.
KeyBank does not have a good reputation. In 2022, the National Community Reinvestment Coalition (NCRC) ranked KeyBank last place out of 50 of the largest mortgage lenders in terms of racial inclusion, and found “indications that KeyBank engaged in redlining.”
After KeyBank experienced a data breach in 2022, its customers filed six class action lawsuits alleging the bank failed to protect their financial information.