Chase Bank Auto Loans
JPMorgan Chase Bank, which does business simply as “Chase Bank,” is a national bank based in Manhattan, New York City. JPMorgan Chase officially formed when Chase Manhattan Bank merged with J.P. Morgan & Company in 2000, but Chase Bank got its start when Chase National Bank was formed in 1877.
Chase has over 5,100 branches worldwide and operates in more than 100 countries. The company offers consumer banking services, including retail banking services, mortgage lending, credit cards and auto loans. Chase auto loan rates are comparable in the industry, but are not the best out there — but Chase makes up for this in a proprietary car-buying service and high loan limits.
How Chase Bank auto loans stack up
- High loan limits
- 0.25% rate discount on refinancing available
- Loan management tools
- Must purchase the car from Chase dealer network
- Refinancing only available to customers with excellent credit
- Does not directly pay former lender in refinancing
|New Car APR||Used Car APR||Refi APR||Loan Amount||Terms|
|Starts at 4.11%||Starts at 4.51%*||Starts at 4.44%||$5,000 – $600,000||12 – 72 months|
*based on a $17,000 loan for a 2016 Hyundai and an excellent credit profile
What’s interesting about Chase Bank auto loans
If you’re shopping for a new car, Chase Bank comes with some impressive perks. Its online tools make managing your loan easy. Once you qualify for a loan, you can log into your account to manage payments or even set up automatic payments.
If you already have a qualifying checking account with Chase and you’re looking to refinance your auto loan, you can receive a rate discount of 0.25%, which is significant. Chase offers loan repayment terms of up to 72 months and qualifying customers can borrow up to $600,000 to buy a vehicle.
Things to consider
Chase will only finance vehicles that are purchased within its dealer network. This means it won’t provide a loan for a private sale. If you change your mind about the car you want during your purchase, you’ll also have to re-apply for a loan.
The 0.25% rate discount is impressive, but it only applies to a very specific type of customer: someone who has a qualifying checking account with Chase Bank and an excellent credit score.
Chase auto loan rates are competitive compared to other lenders. But if you don’t have an excellent credit score, you might be stuck with a rate that’s higher than average.
Chase Bank auto loans
Chase is a decent option for everyday banking thanks to its large branch and ATM network. Its auto loans are also comparable to other lenders in the industry, but Chase is much more generous to consumers who have good credit. With an excellent profile, borrowers can secure a loan with an APR as low at 4.11% on a 72-month term for a new car loan. These rates vary by state, credit profile and amount borrowed, but using Chase’s auto loan calculator can help borrowers.
Some borrowers might be turned away by the fact that they have to buy a car within Chase’s dealer network. Nonetheless, if you find that a dealer near you is part of the network, you’ll have plenty of tools at your fingertips to manage your auto loan and ensure you make payments on time if you go with Chase. You can even manage and keep track of your car’s repairs through Chase, although this feature is still in beta.
To get started, just go to the “Dealer Locator” page of the Chase website and type in your zip code. This will bring up a list of dealers near you that are also within the Chase network. You can then shop for cars directly through that dealer.
To apply for a loan from Chase, just go to the auto loan page of its website and click on the “Apply now” button. This will take you to a secure site where you’ll be prompted to provide Chase Bank with your personal information.
Chase Bank auto loan refinancing
Chase’s auto loan rates for refinancing start at 4.44% for a 48-month loan term, 4.54% for a 60-month loan term, and 4.79% for a 72-month loan term. Chase provides users with an auto refinance calculator to help them determine whether a refinance is a good option. Other terms and conditions based on the age and mileage of your vehicle may also affect your refinancing process with Chase. However, unlike the car loan calculator, there is no option to select your estimated credit rating.
As with the auto loan option, you can apply for refinancing simply by clicking the “Apply now” button.
Chase Bank vs. Bank of America
Unlike Chase, Bank of American provides financing even if you want to purchase a car from a private seller. Bank of America’s loan rates are slightly lower than Chase’s, and it has online tools that are comparable to the ones Chase offers.
Bank of America is more likely to require a down payment, whereas there is no down payment required for a Chase auto loan. The smallest amount Bank of America will loan to a car buyer is $7,500 compared to Chase’s smallest loan amount, $4,000.
Chase Bank vs. Wells Fargo
While Chase Bank takes a very hands-on approach to auto lending, Wells Fargo is hands-off. Instead of requiring you to purchase through a dealership network, Wells Fargo will deposit your loan into your bank account, so you can use it to buy from a dealer or private seller of your choosing.
This might appeal to some car buyers, but if you’d rather work with online tools that help you find the best deal on a car in your area, then Chase will be a better option.
Chase Bank vs. LightStream
LightStream provides auto loans among many other types of financing. Its auto loan rates are slightly higher than Chase Bank’s as of this writing, but borrowers with good credit can secure a competitive rate.
The biggest draw to LightStream is that you can get a response to your application quickly. It even offers same-day funding in some instances. LightStream also has no restrictions on the type of vehicle you can finance.
The one drawback to LightStream is that checking your rate will result in a hard credit pull, which can affect your credit score. LightStream also tends to prefer borrowers with an excellent credit history, meaning it’ll be difficult to qualify if you have problems in your credit history.
The final word
If you already have a Chase checking account and you need to refinance an auto loan, you may qualify for a discounted rate. This makes it a great option for existing Chase customers.
Other borrowers may be able to find better rates elsewhere, and you may prefer to go with a different lender if you don’t want to buy a car from a dealership in the Chase network. Nonetheless, Chase is a good option for auto loans if you have decent credit and you want comprehensive online tools to help you initiate and manage your loan.