U.S. Bank vs. PNC Bank: Which offers better auto loans?
Key takeaways
- U.S. Bank is best for existing customers who want to purchase or refinance a more expensive vehicle.
- PNC Bank is likely a better fit for borrowers who prefer both in-person and online support and require fast funding.
- Both lenders feature similar loan amounts and terms, so consider other factors, like fees and incentives, when choosing the best fit.
Offering the benefits of large, established brick-and-mortar lending institutions, both U.S. Bank and PNC Bank offer vehicle financing, refinancing and lease buyouts. These publicly traded lenders both rank in the Fortune 500.
With more than 2,000 branch locations across the United States and annual revenue in the billions, industry giant U.S. Bank offers an impressive range of loan amounts and repayment terms.
PNC, established over 170 years ago, balances traditional service through its 2,600-plus branch locations with a range of mobile banking apps that cater to customers virtually. For customers seeking balanced customer service both in person and online, PNC offers strength in both areas.
U.S. Bank vs. PNC Bank at a glance
These lenders offer similar interest rates but differing incentives that make each an attractive option for borrowers depending on their qualifications and priorities.
| U.S. Bank | PNC Bank | |
|---|---|---|
| Bankrate score | 3.8 | 3.8 |
| Better for |
|
|
| Loans offered | New and used vehicle loans, refinancing, lease buyouts | New vehicle loans, used vehicle loans (dealer or private party), refinancing, lease buyouts |
| Loan amounts | $5,000–$100,000 | $7,500–$100,000 |
| APRs | Starting at 6.71% | Not Specified |
| Loan term lengths | 12–60 months | 12–72 months |
| Fees | Prepayment penalty if you close your account within one year (1% of original loan, minimum of $50 and maximum of $100). | No prepayment penalty |
| Minimum credit score | Not Specified | Not Specified |
| State footprint | All states (refi and lease buyout available in 26 states) | 29 states |
| Time to funding | Not specified | As soon as 1 business day |
| Autopay discount? | Yes, 0.5% | Yes, 0.25% |
| Refinancing requirements |
|
|
U.S. Bank auto loans
U.S. Bank
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Whether you are looking to finance your teenage driver’s first used car or a luxury vehicle for yourself, U.S. Bank offers auto loans and auto loan refinancing to suit a variety of needs. Plus, customers who already use U.S. Bank have an attractive incentive on auto loans: a 0.5 percent annual percentage rate (APR) discount for those who set up autopay from a U.S. Bank checking account. However, eligibility criteria for these loans are more restrictive than auto financing through many other lenders.
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Pros
- Online preapproval available without providing specific vehicle information.
- Wide range of loan amounts and term lengths.
- Interest rate discount of 0.2 percent for U.S. Bank account holders.
Cons
- Best rates reserved for existing customers.
- Requires credit score of at least 800 to qualify for lowest rates.
- Prepayment penalty assessed for early payoff.
PNC Bank auto loans
PNC Bank
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PNC’s Total Auto feature through TrueCar helps simplify the shopping and lending experience. Still, you have the option to visit a physical branch and speak with a loan officer if you have additional questions before applying. You can also begin the lending process in person if you feel more comfortable with this approach.
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Pros
- Autopay discount available to PNC checking account holders.
- PNC Total Auto program lets borrowers shop and secure financing in one place.
- Borrowers can receive a check overnight to shop at qualifying dealerships.
Cons
- Online prequalification not offered in all states.
- Branch visits required for private party borrowers.
- Undisclosed credit and income requirements.
How to choose between U.S. Bank and PNC Bank
In short, U.S. Bank offers a wider range of loan amounts, with lower minimums and higher maximums. Consumers who feel that in-person service and cutting-edge online tools are equally important to their auto loan experience may appreciate PNC’s strength in both arenas.
APR range
PNC Bank does not disclose details on expected interest rates. But you’ll likely need excellent credit to qualify for PNC’s best rates, along with a PNC account you can use to enable autopay for the 0.25 percent rate discount.
U.S. Bank, on the other hand, has a minimum rate of 7.31 percent for new and used vehicles, with a slightly higher rate for refinancing. While this falls above the average rate, according to Experian, of 6.73 percent, rate discounts can help offset this cost.
Minimum credit score
Neither lender discloses the minimum credit scores required for loan acceptance. That said, the most competitive loan terms are generally reserved for creditworthy borrowers.
Repayment terms
Both U.S. Bank and PNC Bank offer identical loan term lengths, ranging from 12 to 72 months. However, U.S. Bank borrowers must select a loan term of 60 months or less to secure the advertised rate.
For borrowers shopping for a refinancing loan who plan to extend their loan terms past the 6-year mark, consider comparing other refinancing rates.
Loan amount
With an advertised upper limit of $100,000, U.S. Bank may be the best fit for auto loan shoppers who are looking to finance more expensive vehicles. Though PNC provides loans of up to $100,000, borrowers seeking more than $75,000 in financing can’t participate in the Check Ready program and must apply through a separate process.
Fees
You won’t pay an origination fee with either lender. However, U.S. Bank assesses a prepayment penalty of 1 percent of the original loan amount, capped at $100.
The bottom line: Which lender is better?
The best auto loan depends on your unique needs as an auto loan borrower. Consider U.S. Bank if you’re an existing customer or if you’re looking to purchase or refinance a luxury vehicle. But if you prefer in-person support or need to secure financing in a pinch, PNC Bank could be the better choice.
Compare more lenders before applying
When considering auto loans from through U.S. Bank and PNC, it is important to also compare other auto loan lenders, including those that operate exclusively online. Though traditional banks offer their own unique benefits — including in-person customer service — alternative lenders may offer lower interest rates or more flexible repayment terms.
