At a glance
- Availability
- Affordability
- Customer Experience
- Transparency
About USAA
-
Loan amount
$5,000 and up
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Min. credit score
Not specified
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APR from
4.74% for new cars
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Funds available in
Not specified
USAA auto loans: 2024 review
Published 2024-08-29 06:00:00
Written by
Edited by
USAA is best for military and veteran car financing
USAA focuses on car loans that meet the needs of military families, with competitive APRs, customized payment options and flexible repayment terms. Special features include allowances for a vehicle to travel with a family overseas or loans for vehicles specially designed to meet the needs of disabled veterans.
USAA offers rates on new cars among the lowest of the lenders we reviewed. The 84-month term gives borrowers a low payment option to help manage expenses during transitional periods.
Types of car loans that USAA offers
| New/used car loans | Traditional refinancing | Cash-out refinancing | Lease buyout | |
|---|---|---|---|---|
| APR | From 4.74% new From 5.69% used | Not specified | Not specified | Not specified |
| Loan amounts | From $5,000 | From $5,000 | From $5,000 | Starting at $5,000 |
| Loan terms | 36-84 months | Not specified | Not specified | Not specified |
New/used car loans
USAA members can get an auto loan rate as low as 4.74 percent for a 36-month term for a new car. The vehicle must be 2023 or newer, and the rate includes a discount for automatic payment enrollment. For military families that need a lower payment, the term can be extended out as long as 84 months.
Used car rates are slightly higher but are below 6 percent for a three-year term. Your vehicle must be a model between 2017 and 2022 to be eligible. You also have the 84-month term option and the same 0.25 percent discount for autopay.
Refinance loans
You can refinance a non-USAA loan by using the online link on the lender’s website. Auto owners with a USAA loan must contact an 800 number to start the process.
Lease buyout loans
USAA’s website doesn’t provide much information about its lease buyout program. However, you can get information about it by calling the 800 number provided.
Where USAA stands out
- Competitive rates and terms: USAA members who own cars may qualify for some of the lowest APRs and flexible repayment terms of Bankrate-reviewed auto lenders.
- Multiple types of loans: You can choose everything from a new car dealer purchase to the refinance of your current car loan. Used car rates are competitive, and USAA even offers an older car loan option if you need to stick to a lower price to fit your budget.
- Fully online experience: Borrowers can apply, set up their loan and even sign final documents online. This can make life much easier for families trying to buy a car with a deployed military family member.
Where USAA falls short
- No prequalification option: The online application process requires a hard inquiry, which could cause a slight temporary dip in your scores.
- Membership required: You won't be eligible for USAA's auto loans unless you’re a military service member or related to one.
- Approval standards not published: The lender's website doesn’t provide any information about requirements for loan approval.
USAA customer resources
Customer support
USAA doesn’t list regular auto loan phone support contact hours on its website. There is a virtual chat option for general questions, but it appears most digital communications with a live representative are handled through the lender’s mobile app.
Digital experience
USAA's mobile app on the App Store scores 4.8 out of 5 stars with over 1.8 million reviews. Members consistently cite the quality of service when handling a variety of banking products, including loans. Negative feedback varied from complaints about tracking payment due date change requests to dissatisfaction with specific products.
How this lender compares
USAA vs. M&T Bank
USAA’s starting rates for vehicles are significantly lower than M&T Bank, which could mean a much lower monthly payment. USAA also offers loans throughout the U.S., while you’ll need to live one of the 13 states M&T Bank does business in.
If you need money for an inexpensive form of transportation, M&T Bank offers loan amounts as small as $2,000, compared to USAA’s $5,000 minimum. You can also reach an M&T Bank representative by phone 24/7, compared to USAA’s virtual-only mobile app communication system.
USAA vs. Navy Federal
USAA offers some payment flexibility that Navy Federal doesn’t, giving you the choice of monthly, twice a month or bi-weekly payment that aligns with your paycheck schedule. USAA also offers special benefits for cars that need to be delivered overseas that Navy Federal doesn’t offer.
Navy Federal offers lower APRs and more flexible terms than USAA, with terms as short as 12 or as long as 96 months — compared to 36 months and 84 months USAA offers. You also have 24/7 phone access to a Navy Federal representative, rather than waiting on a digital response from USAA’s mobile app.
Do you qualify for a USAA auto loan?
To qualify for a USAA loan, you’ll need to meet its general membership requirements and provide the following information:
- Information about your current employment and income.
- Proof of your income, such as a pay stub.
- Current address information.
- Authorization for USAA to run your credit.
How to get a USAA auto loan
- Apply for membership: If you're not already a member, you will need to apply for USAA membership in order to get an auto loan with the bank.
- Provide details: Give your income, employment and addresses for the past two years. Agree to have your credit checked.
- Review terms: USAA will provide you with approval based on the details you provided. If your vehicle is acceptable, the process will vary depending on what type of vehicle you’re buying.
How Bankrate rates USAA
| Overall score | 4.2 | |
|---|---|---|
| Availability | 4.4 | Easy online access with a highly rated mobile app and a variety of loan types to choose from including lease buyouts and refinancing. |
| Affordability | 4.3 | Competitive rates are disclosed for new, used and older cars. |
| Customer experience | 5 | Solid access with payment flexibility to fit different earnings schedules and a highly rated app to track account status and manage payments. |
| Transparency | 3.0 | No prequalification, but some rates, fees and terms are available on the website. |
Methodology
Bankrate's trusted auto loans industry expertise
48
years in business
37
lenders reviewed
18
loan features weighed
666
data points collected
The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
What customers think
What people across the web are saying about USAA
The bulk of the reviews on Trustpilot were regarding negative experiences with its car insurance product. The average Trustpilot score is 1.3 stars out of 5, and many reviewers were long-time customers who expressed frustration with the level of service they’ve received in recent years.
One customer said:
"Absolutely the worst bank and worst customer service. They’re completely lost in the loan department. If you need to talk to someone on the phone, be prepared to be passed around, lost and hung up on multiple times."
— Trustpilot User
Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate. Please see the issuer’s website for updated terms and conditions.
Community USAA scores
AUTO LOAN
USAA
Dive into community reviews below and see what others think about USAA.
4.5
24
ratings
In July 2024, Bankrate collaborated with a third-party vendor to survey 1.3K loan borrowers nationwide. Bankrate and our vendor collected and summarized borrower responses to five questions on a 5-point scale, three yes/no questions, as well as open-ended reviews of their loan experience. Responses are unedited and have not been reviewed or approved by the associated lender.
Score breakdown
5 stars
58%
4 stars
33%
3 stars
8%
2 stars
0%
1 star
0%
Score by category
Overall rating
4.5
/ 5
Fees & closing costs
3.7
/ 5
Funding time
4.4
/ 5
Customer service
4.4
/ 5
Application process
4.2
/ 5
Online portal or mobile app
3.3
/ 5
In July 2024, Bankrate collaborated with a third-party vendor to survey 1.3K loan borrowers nationwide. Bankrate and our vendor collected and summarized borrower responses to five questions on a 5-point scale, three yes/no questions, as well as open-ended reviews of their loan experience. Responses are based on individual borrower’s product details, and therefore cannot be verified for accuracy. User ratings are unedited and have not been reviewed or approved by the associated lenders, nor do these ratings reflect Bankrate’s own expert review of these loan products.
Community Reviews
See what users like you are saying about USAA.
Anonymous Borrower
August 20, 2024
Describe why you selected this lender
They seemed like a good choice
Loan purpose
Used car loan
Score by category
Fees & closing costs
4
/ 5
Funding time
5
/ 5
Online portal or mobile app
4
/ 5
Customer service
4
/ 5
Application process
5
/ 5
Key Questions
Would you recommend this lender to a friend or family?
Yes
Was the lender responsive/professional?
Yes
Did this loan meet your financial needs?
Yes
Anonymous Borrower
August 20, 2024
Describe your experience with the application process
USAA has great rates and helpful for military veterans!
Loan purpose
New car loan
Score by category
Fees & closing costs
5
/ 5
Funding time
5
/ 5
Online portal or mobile app
NA
/ 5
Customer service
4
/ 5
Application process
5
/ 5
Key Questions
Would you recommend this lender to a friend or family?
Yes
Was the lender responsive/professional?
Yes
Did this loan meet your financial needs?
Yes
Loan purpose
Score by category
Key Questions
We wanna know what you think about USAA
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Written by
Denny Ceizyk
Senior writer, Loans
Denny Ceizyk joined the Bankrate Loans team as a Senior Writer in 2023, providing 30 years of insight from his experience in loan sales and as a personal finance writer to help consumers navigate the lending landscape on their financial journeys.
