KeyBank Auto Loan Review

KeyBank auto loans at a glance

KeyBank only offers auto loans in 15 states: AK, CO, CT, ID, IN, MA, ME, MI, NY, OH, OR, PA, UT, VT and WA. While KeyBank doesn’t charge an upfront administrative fee, if you have excellent credit, you may find lower rates elsewhere.

These are some of the features that stood out in our KeyBank auto loan review.

• Limited availability: KeyBank auto loans are only available in 15 states.
• High starting APR: The national average APR for a new car loan is 6.73%, but the lowest APR on a KeyBank auto loan is 7.70% (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.
• 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’ll need to apply in a KeyBank branch if you’re not already a customer. Plus, existing customers can qualify for a 0.50% relationship discount.

KeyBank pros and cons

For KeyBank auto loans, you’ll need to weigh the benefits and downsides before agreeing to a loan.

While a no-fee auto loan is appealing, KeyBank doesn’t offer competitive interest rates and doesn’t disclose its credit requirements upfront. However, it will consider credit history, ability to repay, loan to value, vehicle age, loan amount and loan term when assessing a borrower’s creditworthiness.

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. Note that if you plan to apply for a joint auto loan, you will need to apply in a KeyBank branch.

If you’re approved and are an existing bank customer, you can receive a 0.50% relationship discount and 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.

KeyBank company overview

KeyBank was founded in 1994 and is headquartered in Cleveland, Ohio. The bank is working to improve its reputation after getting its share of negative press in recent years.

Though KeyBank denies the National Community Reinvestment Coalition’s (NCRC) 2022 claims that KeyBank engaged in discriminatory lending practices, in 2024, KeyBank and the NCRC announced a joint initiative to invest in underserved and minority communities. KeyBank will give $17 million in grants, waivers and other funding as part of the agreement.

In June 2024, a KeyBank vendor agreed on a preliminary settlement to pay $6 million to KeyBank customers whose data was exposed in a breach.

KeyBank auto loan types offered

When it comes to loans, KeyBank offers lending for a variety of vehicle types, including cars, motorcycles, boats and RVs. 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.
• 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.

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 starting auto loan rates are a bit higher than the national average: 7.70% versus 6.73%, 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.