Millions of people applied for auto loans through Ally in 2021. Should you?
This year is full of financial surprises. For example, the unusually hot housing market shows little sign of cooling. And as the global pandemic continues to rage, there is a shortage of new and used cars caused by a shortage of microchips.
Despite the mini financial shock waves, Ally auto loans are having a record year, making decisions on nearly 7 million loan applications according to their income reports. As of mid-year, Ally reported more than $ 4 billion in adjusted net income. Ally has long been known for its personal loans, but strong demand for new vehicles has put its auto loans in the spotlight.
What is driving this surge in Ally’s business and should you consider applying for a car loan from the growing company? Here, we take a look at the good, bad, and ugly features of Ally auto loans.
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Ally has grown so quickly using artificial intelligence software to verify borrower documents and data in real time. This software allows Ally to confirm the identity, employment, income and other details of the applicant in a short time – and it allows the lender to quickly notify applicants of the decision.
Ally offers fixed rate auto loans from $ 1,000 to $ 300,000, with terms of 12 to 84 months. While Ally does not commit to a specific minimum credit score, anecdotes indicate that a minimum score of 620 is generally required.
Here are the most attractive loan features that Ally offers:
- Borrowers can incorporate the cost of wheelchair lifts and other mobility aids into their new vehicle.
- The company finances the cost of installing the right-hand drive capability.
- It is possible to get an interest free loan on 0% TAP OEM promotions due to the number of auto manufacturers Ally works with.
- Ally will refinance the vehicle loan for up to 10 years.
Few companies are all good or bad, and Ally is no exception. Here are some of the less attractive features of Ally auto loans:
- Ally auto loans are only available at specific dealerships.
- Ally is an online bank, so it does not offer in-person banking services. This may not bother everyone, but it is a key consideration for those who prefer personal service.
- Ally Auto Loans cannot be used to pay for vehicles over 10 years old or with more than 120,000 miles on the clock.
- It is difficult to pay off an Ally car loan early because the lender does not accept principal payments only.
- For those looking for a low credit auto loan, other lenders may offer more competitive rates.
The ugly one
While reviews should be taken with caution (usually the most dissatisfied customers take the time to write reviews), online reviews for Ally auto loans are pretty harsh. The largest number of complaints relate to customer service. In addition to unwarranted late fees and payment confusion, poor communication from Ally customer service is a frequent topic of discussion.
Nonetheless, when you are evaluating the shop for a car loan, keep Ally in mind. Their loan flexibility and ease of application may be right for you.
Apply for Ally auto financing
If you’re used to calling your local bank for a car loan or looking online for the lender with the lowest rates, applying for a loan through Ally will be a little different. This is how it’s done:
- Apply to multiple lenders to compare offers and choose the best option.
- Use the ally’s dealer locator tool to find a dealer.
- Gather the documents you will need to apply, including photo ID, proof of income, and banking information.
- Go to a dealership and, if you find a car you like, take it for a test drive.
- Fill out a credit application at the dealership and let them search for lenders as well. Let them know you’d like to see Ally’s offer.
- Compare Ally’s offer to the offer you received before purchasing a car. If it’s better, maybe this is the best choice for you.
No lender offers a single loan product. An Ally auto loan is worth considering if the interest rate and loan term match your needs.