Auto Approve vs. Ally: Which offers better auto loans?
Key takeaways
- Auto Approve is best for fair credit borrowers who want personalized support throughout the refinancing or lease buyout process.
- Ally is best if your income is limited or if you want a firm idea of loan amounts and terms you potentially qualify for.
- It is important to compare rates, loan amounts and eligibility guidelines before applying to get the best possible loan for your needs.
Auto Approve and Ally promise the convenience of refinancing your auto loan online. Neither lender has any physical branch locations. Instead, both offer refinancing and lease buyout products for those comfortable navigating financing on the web.
However, while Ally is a direct lender, Auto Approve is a loan marketplace that matches you with its partner lenders. Consider Auto Approve for a streamlined online lending experience and Ally for prequalification.
Auto Approve vs. Ally at a glance
Auto Approve is suited for those who require additional support, and Ally can be great if you want to work with a direct lender. Brush up on how to get the best deal and compare multiple loan options before signing off.
| Auto Approve | Ally | |
|---|---|---|
| Bankrate score | 3.9/5 | 4.0/5 |
| Better for |
|
|
| Loans offered | Refinancing, lease buyout | Dealer financing, refinancing, lease buyout |
| Loan amounts | $5,000–$85,000 | Not Specified |
| APRs | 5.29%-24.99% | Not Specified |
| Loan term lengths | 12–84 months | 36 to 75 months |
| Fees | Varies by lender | Not specified |
| Minimum credit score | 620 | Not Specified |
| State footprint | 50 states | 46 states |
| Time to funding | Varies by lender | Several days to a few weeks |
| Autopay discount? | Varies by lender | No |
| Refinancing restrictions |
|
|
Auto Approve auto loans
Auto Approve
-
Auto Approve is an online lending marketplace that serves borrowers across all 50 states. It’s a one-stop shop where you can find the offers, choose a lender, and complete the lending process on a single platform. Some network lenders accept credit scores as low as 620, making Auto Approve a strong option for borrowers with fair credit. Those with bad credit may have better luck applying with a co-borrower.
Ally auto loans
Ally
-
Ally helps borrowers refinance their current loan or purchase their leased car, all from the convenience of its website. Like Auto Approve, it offers refinancing and lease buyouts, even if you have limited take-home pay. You can also get a car loan through a dealer offering Ally auto financing, though not much information is disclosed about this option.
How to choose between Auto Approve and Ally
When it comes to Auto Approve and Ally, there are more similarities than differences. Both come with the perk of applying online and have the same products. The application process is fairly straightforward for both.
Auto Approve stands out for its customized support, while Ally is the best fit for borrowers who require a bad credit auto loan.
APR range
Auto Approve offers a competitive starting APR of just 6.24 percent to well-qualified borrowers. According to Experian, this is slightly below the average new vehicle rate in the first quarter, 6.73 percent.
On the other hand, Ally does not disclose expected rates. It does encourage prequalification, which can help borrowers get a firm grasp of their potential APR before signing off on the loan.
Minimum credit score
You’ll need a score of 620 or higher to qualify for an auto loan with most lenders in Auto Approve’s network. Ally does not specify a minimum credit score, so you’ll need to get prequalified to know if it’s high enough to potentially secure financing.
That said, Ally does provide other eligibility criteria. Borrowers must earn at least $2,000 per month, be 18 years of age and have a satisfactory credit score and debt-to-income ratio.
Repayment terms
Auto Approve features flexible terms spanning 12 to 84 months. This is ideal for borrowers who want more affordable monthly payments or save on interest. Ally gives you up to 75 months to repay your auto loan, but the minimum term is 36 months.
Ally also has a generous financial hardship program that allows borrowers to extend their loans, which in turn will lower the monthly payment. However, you’ll pay more interest over time.
Loan amount
With Auto Approve, borrowers can access up to $85,000 through one of its partner lenders. This makes it an attractive option for those who intend to purchase a new, more expensive vehicle. Ally does not disclose its minimum or maximum loan amounts.
Fees
Auto Approve does not charge application fees, but it’s not uncommon for lenders in its partner network to tack on other costs to the loan principal. You won’t find a fee schedule for auto financing on Ally’s website.
The bottom line: Which lender is better?
Auto Approve is suited for those who require additional support, and Ally can be great if you want to work with a direct lender or if your income is on the lower end. It may be a good move to request a quote from Auto Approve and get prequalified with Ally before moving forward. That way, you can compare both options to gauge which is right for you.
Compare more lenders before applying
Ultimately, neither lender offers the lowest rates on the market, so if your credit score is good to excellent, you may save the most with another option.
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