Valley Bank vs. Wells Fargo: Which offers better auto loans?
Key takeaways
- Valley Bank offers better rate discounts for its borrowers than Wells Fargo does.
- Of the two, Wells Fargo has a wider service footprint with its nationwide coverage.
- Loan applicants and borrowers can receive help either online or at one of Valley Bank’s in-person branches.
- Wells Fargo borrowers must visit a dealership to apply for an auto loan.
The key to getting the best auto loan is to compare several loan options. Valley Bank and Wells Fargo are two bank-backed loan options suitable for borrowers who hold accounts with them or prefer in-person support.
Both lenders share minimal information about their auto loans. However, Valley Bank offers better rate discounts, while Wells Fargo stands out for its coverage.
Valley Bank vs. Wells Fargo at a glance
Neither Valley Bank nor Wells Fargo shares many details about their auto loans, but here’s what we know.
| Valley Bank | Wells Fargo | |
|---|---|---|
| Bankrate score | 3.2 | 3.2 |
| Better for | Rate discounts | Largest service area |
| Loans offered | New, used | New, used |
| Loan amounts | Not specified | Varies by dealership |
| APRs | From 7.30% | Varies by dealership |
| Loan term lengths | 12-84 months | Not specified |
| Fees | Late fee | None |
| Minimum credit score | Not specified | Not specified |
| State footprint | 4 states | 50 states |
| Time to funding | As soon as the same day | Instant upon approval, paid to dealership |
| Autopay discount? | Yes, 0.25% | No |
Valley Bank auto loans
Better for rate discounts
Bankrate’s view
Valley Bank has the most to offer in terms of rate discounts. If you want the most opportunities to save, Valley Bank wins over Wells Fargo.
Valley Bank customers can save on car loans by setting up autopay. An additional 0.25 percent discount is available to anyone purchasing a hybrid or electric vehicle. Many lenders offer an autopay discount, but an electric or hybrid vehicle discount is a unique way to save more.
Pros
- Fast funding
- Autopay discount
- In-person and online service
Cons
- Limited availability
- Minimal product information online
- Unclear qualification requirements
Wells Fargo auto loans
Better for its large service area
Bankrate’s view
Wells Fargo far exceeds Valley Bank in the areas it services. Valley Bank only offers car loans in four states. Wells Fargo, on the other hand, offers car loans in all 50 states. However, its auto loans are only offered through dealerships, not online.
If you live in Alabama, Florida, New Jersey or New York, Valley Bank is a great option for auto loans. If you don’t live in these states, Wells Fargo is your only option of the two — but there are many other great auto lenders out there to consider ahead of applying.
Pros
- Nationwide coverage
- Minimal fees
- Fast funding
Cons
- Loans only through dealers
- Minimal information online
- No prequalification
How to choose between Valley Bank and Wells Fargo
It can be difficult to determine which lender is best without knowing their loan terms or details about credit requirements. Valley Bank is better for rate discounts, while Wells Fargo has wider availability.
APR range
Valley Bank offers auto loans for both new and used vehicles. With some of the best auto loan rates currently starting at just above 5 percent, Valley Bank’s starting rate of 7.30 percent is midrange.
Wells Fargo administers its own car loans, but you must apply through the dealer. Because of this, as with Valley Bank, you won’t be able to prequalify for your auto loan.
Minimum credit score
Neither Valley Bank nor Wells Fargo disclose its credit requirements online. However, a company rep told Bankrate that Valley Bank doesn’t have a specific minimum credit score. Since auto loans are handled at the dealership, Wells Fargo doesn’t provide details, including credit scores, on its website.
Overall, though, neither lender offers many more details about loan qualification requirements or loan terms on their websites. You can contact the banks’ customer service team online, over the phone or in person at one of their branches to find out more.
Repayment terms
Valley Bank is the only of the two that discloses its loan terms, which range between 12 and 84 months. This is a wide range and can be helpful to those who plan to secure a longer-term loan.
Similar to the lack of information available on credit score requirements, Wells Fargo does not present loan terms. This is because the specific loan terms and interest rates vary by dealership, so getting the details upfront is difficult. If Wells Fargo services the auto loan, you will make payments to Wells Fargo and use its tools to manage your account.
Time to receive funds
Both banks tie in this area. Valley Bank customers approved for an auto loan can expect funds as soon as the same day. Similarly, Wells Fargo borrowers can drive away with their new vehicle the day their loan is approved, as funds are paid directly to the dealership.
Fees
Wells Fargo touts enforcing no fees, though dealerships may have additional fees that you should prepare for. Valley Bank has a late fee for borrowers, but this is avoidable by paying on time and in full each month.
The bottom line: Which lender is better?
Shopping around with multiple lenders is always a good idea. Both of these lenders share limited information about their loans. We recommend comparing other auto loan rates to ensure you find the right fit for your needs.
