USAA Insurance Company was founded in 1922 in San Antonio by a group of 25 United States army officers. A USAA auto loan is financing for members of the military and their families.
However, according to our review, USAA has over 12.4 million members at the end of 2017. Insurance, banking, credit card, loans, mortgage, investment, and refinance are among the many services providing by USAA.
In this review, I am going to explain everything you should know about USAA auto loans and step by step guide about how to apply for a USAA auto loan.
What is USAA Auto Loans?
USAA has a variety of financial services to military members and their families. You can utilize this to purchase a vehicle through their car buying service to get the very best deal. Or otherwise, you can use this to go to a private seller or dealership by yourself.
USAA auto loans are versatile with large amounts of loans. Nevertheless, USAA will decide the buyer’s interest according to the buyer’s loan amount, credit profile, and type of car they use. Also, if you buy a vehicle using USAA’s car buying service, then USAA will provide their car buying service discount.
What Types of Auto Loans USAA Offers?
There are 3 types of auto insurance loans offers by USAA. Loans begin at $5,000 for terms up to 60 months (5 years) on all auto loans. For 6 years (72 months), auto loans minimum begin at $ 15,000 and 25,000$ for 7 years (84 months) loans.
- Used auto loans
- New auto loans
- Auto loan refinancing
Used Auto Loans
Used auto loan rates begin as low as 3.59% APR (Annual Percentage Rate) if you join autopay. And if you use USAA insurance companies’ car buying service, you will get a discount.
New Auto Loans
New auto loan rates begin as low as 3.04% APR. Autos pay 0.25% and discount of 0.5 for car buying service.
Auto Loan Refinancing
Refinance, if you sign up for autopay, auto loan rates start as low as 3.54% APR.
What Makes USAA Auto Loans Different From Others?
We “Stanlyinform” team think that USAA auto loans are beneficial as they do not have originating charges or hidden penalty fees. Their rates are very encouraging and broader than the average range of loan terms. However, USAA gives customers 45 days to remain prequalified. Usually, lenders permit only 30 days to stay prequalified.
Therefore, customers may defer their repayments for 60 days after taking out a loan. Additionally, USAA has a unique financial offer (Inclusive financing) for vehicles designed to accommodate people with special needs. Also, you can apply for auto loans online and also calling to customer care, even you will prequalify in a matter of minutes.
What Are USAA Auto Loan Requirements?
- Only U.S citizen is eligible to apply.
- Green card holders and permanent residents are also eligible to apply.
- Need credit score between 560 and 850.
- Minimum age to eligible is 18. (Depends on according to states minimum)
- Want to be a military member or their family members.
- USAA membership.
- Need recent pay stubs.
- Driver’s license.
- Proof of citizenship.
How to Apply For a Loan from USAA?
The best way to apply an auto loan from USAA is through online. You can sign the application online and print the loan check within a matter of minutes. I have included a USAA auto loan online process here.
Step By Step Guide
- Go online and go to USAA official website.
- In the main menu, click products then Select Auto Loans from the main menu.
- Select “How much do I qualify for?” option.
- Login to USAA member account, or if you are a new create an account.
- After USAA approves membership, click continue.
- Follow instructions to complete the application.
Finally, you will see the qualified auto loan rates when USAA approves your service member connection.
Note- Try to read terms and conditions, repayment terms, monthly payments, and your APR very carefully before deciding to sign your offer.
USAA Auto Loan PROS
- Borrowers can stay Prequalified for 45 days.
- No hidden costs.
- No penalties for prepayment.
- There is no prepayment fee.
- No application charges.
- Have Vehicle protection.
- Borrowers can hold repayment for 60 days.
- A car buying service is available.
- Inclusive financing. (Special financing program)
- Can finance for a vehicle for the long term. (Up to 84 months)
- It can apply online.
USAA Auto Loan CONS
- All the services are only available to people with a military connection.
- Probably high total loan costs.
- Poor Customer reviews for USAA, especially online reviews.
- Interest capitalization.
USAA Auto Loan Conclusion and Summary
USAA is a financial supplier that provides the lowest auto loan rates available when comparing to other financial suppliers. Mr. Wayne Peacock is the current CEO of the company. He confirmed that they don’t have hidden fees to mislead their clients. The application of the loan is online-based. Therefore, it is effortless and easy to access. USAA considers borrowers with poor, fair, good, and excellent credit is eligible for the auto loan.
According to our review, USAA customer service is excellent. They treat their customers with respect and maintain a positive professional attitude towards clients at all the time. Not only that, but also they responding promptly to customer phone calls and inquiries.
USAA car buying service helps streamline the method of buying an automobile. Without stress, customers can browse vehicles from the comfort of their house and can get entry to lower prices automatically. Additionally, USAA will refund the difference if they discover a higher deal after making their purchases.
However, let’s see the USAA negatives. As mentioned earlier, everyone not eligible for their services. At least the client or their family members needs a connection with a military to qualify as a USAA member. If you qualified as a USAA member, then I strongly recommend select USAA as your lender. Because if you choose them, you are going to enjoy the advantages mainly designed to assist the financial needs of members of the military and their families.
FAQ on USAA Auto Loans
What is the maximum auto loan term USAA provides?
USAA has auto loan terms ranging from 12 months to 84 months. So, having long terms allow USAA members to take more substantial auto loan amount along with having an affordable monthly payment. But, longer terms mean interest you will pay for a loan will increase.
Does USAA supply private party auto loans?
The answer is yes. You can buy a vehicle from a private party using your USAA used car loan. Nevertheless, you are not going to qualify a discount rate of 0.5, which comes with utilizing their car buying service.
Can I pay my USAA auto loan using a credit card?
Yes, you can pay your USAA auto loan with a credit card, by phone, and even online.
Does USAA auto loan charge a late payment?
Yes, there is a penalty fee for USAA auto loan late payments.
Does the USAA insurance company provide auto loans?
Yes, USAA offers auto loans with low rates. But, you should have a USAA membership which only available to military members and their families.
Can I pay off my entire USAA auto loan early?
Yes, of course, you can pay your entire USAA auto loans early. There are no charges for prepayment fees. Therefore, you can save your cash by paying your entire mortgage first.
What is the USAA auto loan estimated funding time?
Usually, USAA will approve an auto loan application within one hour. Therefore, within one working day, they fund the estimated auto loan.
What is the maximum amount USAA offers for auto loans?
It usually depends according to the type of vehicle, vehicle age, and it’s model. But, USAA auto loan amounts start at $5,000, and it will go up to $3,000,000.
How much is the USAA auto loan late fee?
Both late payment fee and returned payment fee is $25 for the first time inside 6 billing period. But, otherwise, both late a returned payment fee will be $35.
Does USAA charge an origination fee for auto loans?
The origination fee is the fee charged by the lender for processing a new auto loan application. Generally, In United states originating payment is a percentage between 0.5% and 1% of the total loan.
How do you pay off your USAA auto loan?
The easiest way of paying your auto loan is signing up for autopay, and if you choose that, then you will have a discount of 0.25% on interest. You can also deposit a check with USAA mobile app.