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Navy Federal
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If you’ve been looking out for great refinancing deals for your car loan and wondering, “Does Ally refinance auto loans?” - well, this review is for you! Ally auto refinance is an accessible option for borrowers with poor-to-fair credit scores who want quick refinancing and a 100% online application process.
Ally Bank refinances existing car loans through Ally Clearlane, a part of the larger Ally Financial Inc. The advantage of choosing Ally Bank Auto Refinance is that is focussed only on auto loan refinancing or refinancing for lease buyouts – no auto purchase loans. That means you get a clutter-free application process from dedicated refinance experts.
The Way.com Refinance team has studied all the features and offerings in this Ally auto refinance review. The following breakdown will help you decide whether to choose Ally for refinancing or if you should look elsewhere for other offers!
Auto Refinancing is the process of taking out a new auto loan with more favorable interest rates, loan terms, and other conditions. You may choose to refinance due to a variety of reasons – an increase in your credit score, to lower your monthly payments, or to add co-signers to the loan.
The biggest advantage of Ally Refinance auto loans is that you can pre-qualify using a soft credit check and compare offers from different lenders associated with Ally. However, the minimum interest rates are on the higher side and can hurt those with poor credit.
| Benefits | Drawbacks |
|---|---|
| Low minimum credit score of 520 | The minimum Ally Bank auto refinance rates start at 3.74%, which is much higher than the industry average of 2.5%. |
| Uses a soft credit pull to check if borrowers pre-qualify for offers | Longer funding time of 2-3 days |
| No origination or prepayment fees | Not available in Nevada, Vermont, and Washington D.C. |
| Low minimum loan amount of $5000 | Have vehicle restrictions like mileage and age of vehicles |
| Also refinances loan amounts as high as $100,000 | Minimum refinance loan term is 36 months – not suitable for borrowers who want smaller loan terms |
| Allows co-borrowing and co-signing | Poor BBB Score |
| Allows refinancing for lease buyouts | Cash-out refinancing is not offered |
| Offers hardship plans and bi-weekly payments for borrowers with poor credit | |
| Allows you to compare different offers and rates before deciding |
*As of January 2022
Ally Bank auto refinance rates are a good bet for customers who:
Though some features may vary based on the lender, most of the basic details covered by the Ally Auto refinance process are as given below.
Before applying for Ally refinance auto loans, check the table below to see if you meet all the requirements.
| Criteria | Description |
|---|---|
| Minimum Age | 18 and above |
| Ally Credit Score Range | 520 and above |
| Minimum Annual Income | $24,000 |
| Loan Payoff amount | $5000 - $100,000 |
| Bankruptcy related restrictions | None |
| Immigration Status |
U.S. Citizen U.S. Permanent Resident |
| Documents Required for verification |
Recent pay stubs Income proof Driver's license Proof of citizenship or residence permit |
*As of January 2022
Ally auto refinance has a 100% online application process. For starters, just head to the website and enter your basic details like VIN, personal info, etc. This will initiate a soft credit inquiry in just minutes, and will let you know what type of refinancing you qualify for. You don’t need to enter your social security number (SSN) for this.
Before applying for pre-approval, make sure you meet the basic age, employment, and payment history criteria. Ally Bank will refinance auto loans after 6 months of the current loan has been completed.
Choose the Ally refinance auto loan offer that gives you favorable interest rates and loan terms and then submit an application for lender approval. Remember that you are not guaranteed to get the same rates after the hard credit inquiry. If you’ve entered all your details truthfully, there won’t be a great difference between the pre-qualified and final offer.
Your Ally refinance auto loan offer will be processed immediately, as long as you provide the necessary documents. Once accepted, you will get funding within the next 2-3 days.
We’d recommend choosing Ally auto refinance if you:
However, the company does seem to be struggling with its BBB rating on the back of several customer complaints. The lack of auto payment discounts can also put off some customers, along with the high interest rates. We’d recommend checking Ally Auto Refinance to see if you get any offers you like – if not, you can always shop around other firms.
The auto refinance rates published here are based on the results of comparative research done by Way.com’s data team. We've used a mix of public and internal data to analyze refinance rates across thousands of lenders, credit scores, vehicle types, and all U.S. ZIP codes
The rates shown here are based on a national average of our findings, and may typically vary for each individual depending on your personal financial position and the US state you are in.
However, you can quickly determine where you stand by going through our Auto Refinance form. In just a few steps, find out how much you can save with way.com!
You can get in touch with customer support at Ally Bank by calling 855-636-2559.
Yes, Ally Auto refinance allows you to automate your monthly payments. However, it does not offer any discounts for choosing auto pay.
Yes, Ally Bank offers different hardship plans for borrowers who cannot afford monthly payments. You can also choose bi-weekly payments if your income is irregular.
Yes, Ally Auto offers Guaranteed Asset Protection (GAP) insurance to cover costs due to factory warranty lapse. These costs can be rolled into the refinancing offer.
No, Ally does not charge origination fees for processing your refinance application.