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Regions Auto Loan Review

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Regions Financial Corp. is headquartered in Birmingham, Ala., but serves nearly the entire South and Midwest with Regions branches in 15 states. The bank offers a range of loans, including new and used auto loans as well as auto refinancing.

The best auto loan rates will go to existing Regions customers with excellent credit, but anyone may apply. With competitive rates and an easy online loan application process, Regions auto loans are worth considering when buying or refinancing a vehicle. You just need to make sure you compare rates and terms to get the overall best deal possible from whichever lender you choose.

Regions: At a glance

If you’re considering an auto loan through Regions Financial Corporation, it’s important to pay attention to APR, terms and any restrictions for either you, the borrower, or the vehicle you wish to finance:

  • Auto loan APRs range from 4.05% to 12.03% as of March 26, 2019. The lowest rate is for Regions checking customers who use automatic debit to pay their car loan and have a substantial credit history. Regions will also take into account customers’ loan-to-value ratio, the loan term and amount, and vehicle characteristics.
  • New or used cars or light trucks that are no more than seven years old and have fewer than 90,000 miles are eligible.
  • Loan amounts range between $5,000 and $100,000.

How to apply for financing with Regions

There are three ways to apply for a Regions auto loan:

  • Visit a branch. Regions has about 1,500 branches across 15 states: Alabama, Arkansas, Florida, Georgia, Indiana, Illinois, Iowa, Kentucky, Louisiana, Mississippi, Missouri, North Carolina, South Carolina, Tennessee and Texas. You must live in one of these states to be eligible for a loan — use Region’s online locator tool to find a branch near you.
  • Over the phone. The customer service number for Regions is 800-734-4667 and the telephone number for auto loan application questions is 888-462-7627. This toll free line for questions on auto loan applications is open Monday through Friday from 7 a.m. to 7 p.m. CT and Saturday from 8 a.m. to 12 p.m. CT.
  • Online. The application takes just a few minutes to complete. You should be aware that applying involves a hard credit pull, which could affect your credit.

To apply, you will need to provide some basic information including:

  • Your full name and address
  • Your contact details including phone and email
  • Your date of birth
  • Your Social Security number
  • The amount you wish to borrow
  • Your income

Regions also has a link on its auto loan website to help you find a vehicle. This link connects you to online car-buying firm TrueCar, which Regions has partnered with and provides the ability to search for both new and used vehicles in your area.

You do not have to find a vehicle through TrueCar to be eligible for a Regions auto loan — you can buy a car from any dealer or private seller as long as the vehicle meets the requirements set by Regions for vehicle age, mileage and loan-to-value ratio.

The fine print

  • Regions charges a loan processing fee when financing a new or used vehicle. There’s no fee to refinance an existing vehicle loan.
  • Regions allows borrowers to take out more than the car is worth, as you can borrow up to 130% of the car’s value ratio. Unfortunately, this is risky because it means you have negative equity or are “underwater” on your car loan and owe more than the car is worth.

Because Regions charges a loan processing fee, it does make the purchase of a new or used vehicle more expensive. You will find out your fee after you submit an application. It may be worth it, however, if you’re able to secure a low APR. With rates as low as 4.05%*, that is comparable or slightly higher than other rates we’ve seen but perhaps not as good as what a credit union may be able to offer, assuming you meet its membership requirements.

In order to receive the autopay discount, you must have monthly auto loan payments debited automatically from a Regions checking account. This account must be open at the time you apply for your auto loan, and you have to keep using auto-debit from your Regions account for the life of your loan. This means if you don’t already do your banking with Regions, you would need to open a new checking account with the bank in order to become eligible for the autopay discount.

Unless you are under the age of 25 and qualify for LifeGreen Checking for Students, every Regions checking account carries a monthly fee. This fee could be waived for some accounts if you make a sufficient number of CheckCard or credit card purchases; use direct deposit; or maintain at least a $1,500 minimum balance.

Pros and cons of financing through Regions

Regions offers a wide variety of auto loans at competitive rates. But it’s difficult to know at what terms — you could use Regions’ auto loan calculator to see potential loan details.

Highlights of Regions auto loans

  • Online application
  • Competitive rates: The APR range of 4.05% to 12.03%* is on par with other auto loan lenders.
  • No fee to refinance an auto loan
  • Lenient loan-to-value ratio: You may be able to borrow more than the car is worth. This kind of negative equity is risky because you probably wouldn’t be able to sell your car for enough to pay off the loan. However, if you’re already in this situation and able to refinance to a lower rate with Regions, this could be a good financial move. Read more about how to get out of an upside down car loan.
  • Flexible loan amounts: You have flexibility in how much you can borrow, with loan amounts ranging from as low as $5,000 to as much as $100,000.
  • Complimentary GAP insurance: If you refinance online, you may qualify for complimentary GAP, or Guaranteed Asset Protection, which helps pay off what you owe on the car if it is totaled. It may not cover everything, however — Regions’ terms and conditions say GAP waives some or all of the difference between what your insurer pays and what’s due.

Lowlights of Regions auto loans

  • Best rates go to existing customers: You can only qualify for an autopay discount if you make automatic payments from a Regions checking account. Every Regions checking account, with the exception of the LifeGreen Checking for Students, carries a monthly fee. There are some instances when the fee may be waived.
  • Upfront loan processing fee for new and used auto loans.
  • Lack of transparency: Other lenders give tables showing exact rates and terms, but  Regions only gives a range of rates. You may be able to get an idea of what rates and terms you may receive by using its calculator.
  • Low mileage limits: Regions caps mileage at 90,000 while other lenders offer up to 120,000.
  • Customer service complaints: In 2016, Regions settled for $52.4 million with the Department of Justice, which accused it of failure to comply with mortgage regulations.

Every potential auto lender is going to have its own pros and cons to consider. That’s what makes shopping around for a loan so important — you may find lower rates with another bank, credit union or online lender. You don’t want to pay a higher APR than necessary or settle for unfavorable terms because you accepted the first loan you were approved for, so get quotes from multiple lenders. An easy way to do that is to fill out a single online form at LendingTree where you may be able to receive up to five auto loan offers from lenders based on your creditworthiness.

The bottom line: Who is Regions best for?

Regions offers auto loan refinancing with little-to-no fees. Here’s a closer look at who may benefit and who may not from taking out a Regions auto loan.

You may be a good fit for a Regions auto loan if you:

  • Are already a Regions Bank customer and can qualify for autopay discounts.
  • Are interested in refinancing an existing auto loan. Refinance customers get waived fees and the possibility of complimentary GAP insurance.

You may not be a good fit for a Regions auto loan if you:

  • Live outside one of the 15 states Region services. Regions serves the South and Midwest.
  • Want to buy a used car with more than 90,000 miles — other lenders have higher mileage caps.
  • Have poor credit. Though Regions doesn’t specify minimum credit requirements on its website, it says the best rates will go to those with excellent credit and a significant credit history.

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