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Ally Bank auto loans: The most important stuff you need to know

Ally Bank auto loan
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An Ally Bank auto loan can be your best choice if you want multiple loan options for a wide variety of vehicle types with easy payment choices, including automatic payments and online account management. But these loans are only available through the car dealerships that partner with Ally, so you are limited to those locations.

Important info to know about Ally Bank auto loans

If you’re thinking of getting a car loan at Ally Bank, here are some features that stand out.

Flexible loan options

Flexibility is a huge plus for Ally Bank loans, which offer multiple term loans for a wide range of budgets. So, whether you intend to buy a vehicle or rent one, there are several options.

Specialty-vehicle financing

Flexible loan options also include the ability to include vehicle design financing for accessibility needs, such as wheelchair lifts and right-hand drive capabilities.

Must finance through dealership

Unlike many other companies, Ally Bank does not allow you to apply for a loan directly from them. Instead, to know the interest rates, loan terms and qualification, you need to do it through a partner dealership.

A closer look at Ally Bank auto loans

Before applying for a loan, it is important to consider the details of an auto loan and shop around. Here are some key things to know about Ally Bank:

  • Financing options are available for new vehicles and for certified used cars or used vehicles up to 10 model years and which have no more than 120,000 miles at the start of the loan.
  • You can select monthly or one-time payment options from a checking or savings account.
  • There is a free Ally Auto Mobile Pay app, available on iOS and Android devices.
  • There is no payment of principal only. This means that the extra payments go towards any outstanding fees or finance charges first and then are applied to future payments.
  • You can check your payment status, balance, and statements at any time by going online or using your mobile device.
  • >>> You might also like: Bank of America Auto Loans: You need to see this!

Check if Ally Bank’s auto loan suits you?

If you are one of those people who prefer to finance through the dealership, the Ally Bank auto loan can be a good option. Choices include leasing loan and purchasing loan options.

Sure, it’s best to shop around by comparing interest rates across a variety of financial institutions. Keep in mind that if you’re interested in buying a vehicle that’s over 10 years old or has more than 120,000 miles, you won’t be able to apply for a loan. via Ally.

Finally, if you want to be able to pay off your automatic purchase more quickly by making additional payments to the loan principal, Ally is not a good option, as it does not allow payments for principal only.

How to apply for an Ally Bank auto loan

The information on how to apply for a car loan from Ally Bank is limited because, as we have already mentioned, you have to go to a partner dealer to apply directly and the requirements can vary from dealer to dealer.

But first, if you want you can start by visiting Ally’s website to identify partner dealers. So you can go to one of them to look for a car you might want to buy or rent.

At this point, the next step at the dealership will likely be a credit review. Buying rates under certain circumstances can have little impact, but multiple credit applications in a short period of time can potentially damage your credit, always keep that in mind.

If you are approved, carefully review Ally’s offer and any other offers you are comparing before you decide to sign.

>>> More options here: USAA Auto Loan complete guide for Costs, Options and Tips

Consider the alternatives

If you are looking for a pre-qualification experience, which might give you an estimate of what your rates and terms might be without a hard credit application, an Ally Bank car loan may not be for you. This is because Ally Bank won’t give you an idea of what your interest rates or loan terms might be until you’ve actually applied at a partner dealership.

If you’re unsure whether an Ally Bank auto loan is right for you, consider an alternative, like Capital One auto finance.

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