More Information About Ally
A FEW THINGS YOU SHOULD KNOW
Ally Financial Inc. is a leading digital financial services company, NMLS ID 3015. Ally Bank, the company’s direct banking subsidiary, offers an array of deposit, personal lending and mortgage products and services. Ally Bank is a Member FDIC and Equal Housing Lender , NMLS ID 181005. Credit products and any applicable Mortgage credit and collateral are subject to approval and additional terms and conditions apply. Programs, rates and terms and conditions are subject to change at any time without notice.
Ally Servicing LLC, NMLS ID 212403 is a subsidiary of Ally Financial Inc.
Options involve risk and are not suitable for all investors. Review the Characteristics and Risks of Standardized Options brochure before you begin trading options. Options investors may lose the entire amount of their investment or more in a relatively short period of time.
Trading on margin involves risk. You can lose more funds than you deposit in a margin account. Please review for more information regarding margin trading.
Securities products and services are offered through Ally Invest Securities LLC, member FINRA/ SIPC. You can find background on Ally Invest Securities at FINRAs BrokerCheck. View Security Disclosures
Advisory products and services are offered through Ally Invest Advisors, Inc. an SEC registered investment advisor. View all Advisory disclosures
Ally Mastercard® is issued by Ally Bank, Member FDIC under license from Mastercard® International.
How Do Auto Loans Work
Getting a car can feel a lot like going to a circus for the main act, a car appears in your driveway and money disappears from your wallet.
With an auto loan, you agree to repay a lender over a set term, typically three to six years, in exchange for them paying a dealership so that you can get a car. You generally pay more than what you borrowed, which equates to profit for the lender. How much more you pay largely depends on your credit score.
Do I Need To Become A Member Before Applying
You must be a DCU member to finalize and fund a vehicle loan, but you can submit your loan application before finalizing membership. If you are not yet a DCU member, you will receive information about how to apply to become a member after you receive your loan decision.
For more information about membership eligibility, visit our membership eligibility page.
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What Information Will I Need To Apply
To apply for an auto loan, you will need the following information:
- Whether the vehicle is new or used
- The estimated loan amount
- The desired term of the loan
- Your personal information , if requested
- Physical and mailing address
- Personal identification
- Co-applicant information
To finalize and fund your auto loan, you will need to do the following:
- Become a DCU member, if not already a member
- Submit copy of the purchase & sale agreement
- Submit verification of income, if requested
- Submit any additional requested documents
- Finalize funding details
- Sign the Note & Loan Agreement
Tips For Getting The Best Financing
- Know your credit score this plays a key role in the interest rate you’ll pay for your loan. A high credit score can help you get a low interest rate on your loan and save you money.
- Pick your payment how much can you realistically afford to spend each month without straining your budget?
- It’s important to remember that your monthly costs will include more than the car payment you make to your lender. Calculate your total Cost to Own using pencil and paper or one of the many online calculators available. Your total Cost to Own should include your car payment, insurance, maintenance and gas. You should also factor in yearly registration renewal and miscellaneous items.
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Lease Buyout Explained: Should You Buy Your Leased Car
When the end of an auto lease period comes up, it’s not always a given that you need to trade your wheels in for something new. While there are advantages to trading in your car, there may be benefits to buying your leased car.
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How Do I Apply For An Auto Loan
After signing in to your account via online banking or the mobile app, you can apply for your auto loan in just a few minutes. There’s no fee to apply, and most decisions are instant. In cases where applications require a more detailed review, we’ll send you an email and/or a text. You can also apply over the phone at or at your local branch.
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What Is Loan To Value
Loan to value is the ratio that compares the amount of a loan against the value of the vehicle. Typically, lenders have a maximum LTV threshold in place which determines how much of a loan they are willing to finance for a vehicle based on its value. The LTV threshold is based on a number of factors, including creditworthiness, vehicle age, mileage and term of the loan. At DCU, qualified borrowers could finance up to 130% of the purchase price or book value, whichever is lower.
Understand How To Close The Deal
Theres still a lot of paperwork to go over and sign. Before you drive away, make sure the paperwork matches the deal you think you are getting and that everyone has signed all the documents.
Have other auto loan questions?
You can search for answersto our most frequently asked auto loan questions.
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How Is My Rate Determined
Rates are determined by your personal credit history, loan term, account relationship, and payment method. Members may be eligible for a 0.50% discount by maintaining electronic payments on the loan and Plus or Relationship benefits on your DCU checking account. Rates and terms on loans for other types of vehicles, including mobility vehicles, will differ.
How To Get A Car Loan
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Steps
» MORE:Learn the basics of how car loans work
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Review The Dealers Loan Offer
Once youve taken a test drive and have found a car that meets your needs, you may still have a shot at an even better interest rate from the dealer.
Carmakers set up their own banks exclusively for auto purchases through dealerships, and they sometimes offer below-market interest rates. Once the finance manager finds out youre preapproved for a set rate, hell likely try to beat that rate to get your business. Theres no harm in applying to see how low your interest rate can go.
And if you dont want to play that game, still be sure to tell the salesperson youre already preapproved. Tell the salesperson you are a cash buyer, so you can haggle on just the price of the car, not the monthly payment.
How Do I Apply For A Car Loan If I Have A Bad Credit History
There are some car loan providers that work specifically with poor-credit applicants. Before you begin your search, you should build up a small deposit and examine your budget to figure out how much you can reasonably afford to pay each month. Then begin to research and compare the different lenders who specialize in high-risk car loans.
Depending on how bad your credit history is, it may also be worth getting in touch with your current bank to see if it would be willing to consider your application. Make sure to contact your bank before submitting an application.
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Paying Off Your Car Loan Early: Things To Consider
Thinking of paying off your car loan? While theres the benefit of reducing your debt, take time to assess your personal financial position before making a decision. In this article, we highlight some of the important considerations to keep in mind.
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How To Accelerate The Financing Process:
- Proof of identity: A photo ID with your signature on it. Government identification or a passport are typically acceptable documents. Check with your lender or dealership to see which they prefer.
- Proof of insurance: Dealers may ask you for proof of insurance before you purchase and take out a loan on your new or used vehicle. You can contact insurance companies from the dealership when you buy your car, or get details lined up with the insurance provider before purchasing the vehicle.
- In some cases, you’ll need proof of residence: A driver’s license is typically acceptable.
- If you’re trading in another vehicle as part of your financing, you should probably have your registration papers for your current vehicle.
- In some cases you’ll need to prove that you have a steady source of income, usually through several months of pay stubs or W-2 forms. Some lenders may also call your employer for verification.
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Get Preapproved For A Loan
Once you land on a lender with terms youre comfortable with, another good step is to get preapproved for the loan. This just means that the lender has given you a quote for the loan, which typically includes the loan amount up to a certain dollar amount. But remember a preapproval is not a guarantee. Note that when you get a preapproval letter, the lender will usually check your credit, which can result in a hard inquiry.
If youre preapproved for a loan, the lender will typically give you a preapproval letter to take with you when you go car shopping. Then when you settle on a car, you may be able to use that preapproval as a bargaining chip. Ask the dealer: Can you beat this financing? If it cant, then at least you know youve got another loan to consider.
If getting preapproved for a loan makes you leery, know this: Car loan preapproval doesnt actually mean youve signed up for the loan. You can choose to apply for the car loan or not its your choice.
Similarly, you dont have to take out a loan for the full amount your preapproved for. If you find a car youre happy with for a lower price, then by all means you can apply for a smaller loan.
Use Your Loan Offer To Set Your Budget
Your preapproval offers will state the maximum amount you can borrow, but thats not the price of the car you can buy. You should allow an additional 10% to cover taxes and fees. Use an auto loan calculator to design your loan. Put in your down payment, trade-in value of your current vehicle and lending terms to find the right monthly payment that fits in your budget.
If that payment is too much for your comfort, remember that the preapproval offer is just a limit you can borrow much less if you choose. Its far more important to be able to make your loan payments comfortably, even if the bank says you can afford more.
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What Paperwork Is Involved With The Auto Loan Process
You may be able to complete the auto loan process over the phone or online, but sometimes youll need to send documentation or bring it with you to the dealership when you purchase a vehicle. The required information varies by lender, but typical documentation required with a loan application includes paycheck stubs, proof of residence and a valid drivers license.
During the final stage of the car-buying process, you may also need to send the purchase agreement, registration, title and lease buyout instructions to the lender. Youll probably also need proof of auto insurance if you plan to drive the vehicle off the lot.
Compare Auto Loans Rates And Lenders
What to know about auto loans before you apply.
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
Auto loans are available for buying new and used cars, buying out car leases and refinancing current auto loans. But not every lender offers every kind of auto loan or serves every level of credit.
Below you can learn more about the types of auto financing available and compare lenders to find the best car loan rates. We also provide basic information about applying for an auto loan.
Auto loans are available for buying new and used cars, buying out car leases and refinancing current auto loans. But not every lender offers every kind of auto loan or serves every level of credit.
Below you can learn more about the types of auto financing available and compare lenders to find the best car loan rates. We also provide basic information about applying for an auto loan.
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More Lenders To Choose From
When you shop in-person for auto loans, you are limited to lenders in your area. When you opt for an online auto loan, you can choose from any lender in the country. Some online lenders are more willing to work with individuals with bad credit than lenders in your area. If you want more options, consider checking out the online auto loan market to see what is available for borrowers with your credit history, according to Consumer Reports.
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Clean Up Your Credit Report
Your and history will almost always serve as the primary factor for the rates that lenders will offer you. These rates will influence your out-of-pocket monthly cost and the overall cost of the loan.
Credit score requirements vary by each lender. Most lenders will offer better rates to borrowers with scores above 670. Applicants with scores above 740 can potentially benefit from the lowest rates, including 0 percent APR deals offered by the manufacturer or dealership.
But having poor credit may not prevent you from finding a lender. Many lenders are inching away from traditional acceptance criteria and focusing on additional factors, such as education or job history.
Either way, it is in your best interest to improve your credit before applying for a loan. Grab a copy of your free credit reports from AnnualCreditReport.com, highlight any areas that need improvement and dispute any errors. Also, pay special attention to your debt-to-income ratio, which compares your monthly bills to your income. Doing so may help you score a competitive rate.
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Pay Attention To Any Fees
Don’t forget to look for fees, says Consumer Reports. Some online auto lenders charge fees for their services. These fees may appear in the form of loan origination fees or prepayment penalties. Always read the fine print before filling out an application, whether this application is online or in-person.
What Type Of Information Do You Collect When I Apply For An Auto Loan
Youll need:
- contact information for applicant and co-applicant
- current housing, employment and income information for applicant and co-applicant
- trade-in information
- amount you expect to finance
- length of the loan you want
If youve already picked out the vehicle you wish to buy, well also need:
- the 17-character vehicle identification number
- the state where youll register the vehicle
- the exact mileage reading
- dealer or seller’s name
For refinance loans, we require specific vehicle information such as the VIN, exact mileage, lender contact information and payoff amount.
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Helping Drivers Reach Their Destinations Regardless Of Credit
When you finance your vehicle through Santander Consumer USA, youre in the drivers seat with our MyAccount tool, Auto Pay payment option, Learning Center or other tools and resources. We look forward to providing you a positive customer experience on your road to car ownership.
Someone you know also need auto financing? They can apply online and customize their contract terms through our RoadLoans direct-to-consumer lending program.
What Is Gap Insurance And Do I Need It
GAP insurance is optional auto insurance that helps pay off your loan in the event your vehicle is totaled or stolen and you still owe more than the depreciated value. Regular auto insurance will only cover what the vehicle is worth at the time of the loss. GAP insurance protects you when your auto loan balance exceeds your car’s current book value. DCU offers members GAP Advantage insurance through Allied Solutions. GAP Advantage can be purchased for both new and used vehicles, for a reasonable one-time cost of $300. For more information, visit the GAP Advantage Insurance page.
Other insurance options that DCU makes available to members include:
- Mechanical Breakdown Insurance An alternative to extended warranties you might purchase from a dealer. Mechanical Breakdown Insurance usually lets you go to your repair shop, whereas dealer warranties limit work to specific dealerships. Visit our Mechanical Breakdown Insurance page for more information.
- Payment Protection Insurance – Helps relieve the financial stress and worry related to making loan payments when your life takes an unexpected turn. Visit our Payment Protection Insurance page for more information about covered events and coverage amounts.
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