Chase Bank Car Loan Rates: Review

Chase Bank offers excellent services to finance the purchase of both new and used cars. A Chase loan is a great option for borrowers who are buying a vehicle from a dealer within the Chase network—there are more than 10,000 dealers spread across all 50 states. However, one downside is that Chase doesn't exactly lay out all the eligibility requirements, rates, and terms of car financing options.

Keep reading for our full Chase auto loan review, where we’ll break down the loan amounts and terms, prequalification tool, Chase auto finance rates, and more.

Chase Auto Loan Offerings

Chase Bank specializes in a variety of financial services, including auto loans for purchasing vehicles. The terms of car loans vary widely—in general, they can range from $4,000 to $600,000 for new and used cars that are less than 10 years old.

It’s important to note that, according to Chase’s policy, financing does not cover purchases from private sellers. However, the good news is that Chase’s network includes thousands of dealers, giving you a wide range of places to shop around for a car.

Chase auto loan interest rates and other credit terms that you can expect depend on your credit history and your score, the loan amount and term, the size of the down payment, and other factors.

Let’s dive into the main types of Chase auto loans and their interest rates.

New Car Purchase

When it comes to buying a new car through Chase financing, the loan terms apply to cars that are no more than two years old. So, in 2024, Chase’s new car rates apply only to vehicles of the current year, as well as 2023 or 2022 models.

If you have an excellent credit score, you can count on Chase new car loan rates to start at 3.5%. However, the company hasn’t disclosed the maximum rate limits. The good news is that no down payment is required, and loan terms can stretch out from one to seven years.

Used Car Purchase

Chase Bank also offers used car financing, with a large network of sellers to choose from. To qualify for a loan, the car must be no more than 10 years old. Chase Bank used car loan rates and credit terms are very flexible—you won’t need a down payment, and you can repay the loan over a period of one to seven years.

Lease Buyout

Chase also offers a lease buyout program for those who want to take over their leased vehicles from partner automakers. Under this financing program, you can either buy a car directly or turn it into a loan product.

How to Apply for a Chase Auto Loan

While Chase Bank keeps some of its credit requirements under wraps, what is clear is that the basic criteria for auto loans include credit score, credit history, and income. First and foremost, potential applicants must be over 18 years old and have a good credit score. While Chase doesn’t make minimum credit score requirements public, the calculator makes it clear that a score above 620 will boost your chances of being approved. And as for minimum credit history and minimum income, Chase doesn’t publish any requirements for the borrowers.

A Chase auto loan is the best solution for borrowers considering buying a car from Chase partner centers. To figure out if a Chase auto loan is right for you, you can prequalify. Overall, Chase financing is a great option for customers looking for a car loan with no application fees or prepayment penalties, and for those with a Chase Private Client account—these customers can look forward to receiving the best Chase car loan interest rates.

So, how to get an auto loan with Chase? Here is our step-by-step guide:

1. Go through the prequalification process. Chase prequalification is your chance to learn everything you need to know before officially applying for a car loan. You can review Chase auto loans rates and other terms to see if a Chase car loan is the best option for you. You can prescreen without meeting strict requirements, and what’s more, the prequalification process will not affect your credit score.
2. Explore options for purchasing a car with Chase. You can check out the Chase dealer network and choose which car you want to buy and where to purchase it. This is an important step because your chances of approval depend largely not only on the brand and model of the vehicle but also on the dealership where you buy it.
3. Submit an application. Now, you just need to fill out an application, providing information about the car you’re purchasing and the dealer you’ve chosen. Completing the application takes only a few minutes, and the process is quite straightforward.
4. Wait for a financing decision. In most cases, Chase loan approvals are made the same day, usually within two to three hours. You’ll receive the decision regarding your loan approval via the email address you provided. An important note: once approved, Chase auto interest rates are “frozen” for one month.
5. Buy a car and sign the loan documents. The car-buying process involves the dealer acting as the original lender. This means you must visit the location where you purchase the car and complete the loan agreement. Keep in mind that if you change your car choice during the final stages, you’ll need to update your application and be prepared for changes in the Chase auto loan rate, terms, and, ultimately, approval decisions.

What to Do in Case of Refusal

The first thing you should do if your application is not approved is to find out the reason for the refusal. To do this, contact the lender, and then choose an action plan depending on the reason for the car loan denial.

• Review your documentation and application for errors. If you didn’t provide all the required documents, or they have errors, find out if you can correct them and reapply for a car loan.
• Improve your credit score and other approval criteria. A common reason for rejection is a poor credit rating, bad credit history, or low income. To increase your chances when you reapply, improve your eligibility criteria. You can boost your credit score and use the Chase prequalification calculator to find out if you meet the requirements to qualify for a car loan successfully.
• Buy a cheaper car. If you were considering buying an expensive vehicle and were turned down for credit, choose a more affordable option and apply for a smaller loan amount.
• Consider offers from other lenders. If Chase declined your application, compare other alternatives. Consider those lenders that openly publish all the requirements for potential borrowers ??in detail—this will help you assess your chances in advance and find your best option. Also, note that some financial institutions may offer auto financing to borrowers even with a low credit score. However, expect higher credit interests and less favorable terms compared to Chase Bank car loan rates.

Chase Auto Loan Pros & Cons

Chase auto loan stands as a great option for both new and used vehicle purchases, as well as lease buyouts. Before applying, check your credit history, calculate your monthly payment amount, gather all the necessary documents, and use the Chase prequalification tool to assess your chances of approval.

Chase offers 100% financing with no down payment and early repayment options. One potential drawback to Chase auto financing is a lack of transparency regarding the terms and requirements for potential borrowers, which may lead to difficulties in the loan application process. In some cases, it may be wise to explore offers from other lenders.