USAA Auto Loans from Banks At A Glance
The best choice for USAA members looking for low-interest auto loans with flexible terms.
*Rates include autopay discount
The United Services Automobile Association (USAA) provides auto loans to eligible members, including active-duty military personnel, veterans, and their families. Options for borrowing with USAA Bank include loans to purchase a brand new or used car through a dealer or private seller, and a USAA automobile refinances loan.
If you’re thinking about a USAA auto loan, it’s essential to know how the rates and terms compare to those provided by other lenders. The USAA review of auto loans like this will help you decide if it’s the right choice.
- What is HTML0? USAA auto loans function
- The pros and cons of USAA auto loans
- Do you need to be applying?
- How do I become a USAA member?
- How do I apply for financing through USAA?
- USAA vs. competitors
How do USAA auto loans function
USAA was established in 1922 by a group of 25 Army officers who came together in San Antonio, Texas, and determined to cover each other vehicles. Today the financial firm based in Texas provides insurance, banking investment, loans, and other financial services and products.
USAA credit cards and USAA auto refinance are offered to members and their families. In addition, USAA provides financing for used and new cars, boats, motorcycles, power sports, and recreation automobiles (RVs). At one point, USAA also offered a vehicle-buying service, which has since been ended.
Pros and cons of USAA car loans
USAA provides competitive financing rates for military families interested in purchasing a car or refinancing an automobile they already have. It’s not the only one targeted toward service members and their families. Navy Federal Credit Union is one example. It has a lower rate for the initial loan and a car-buying service. However, if you do not have military connections, It could be challenging to be eligible for an auto loan from either of these organizations.
| Pros | Cons |
| No hidden fees. There are no application fees and no penalty for early payment. Flexible loan term that can extend to 84 months. There is no due date for payments up to 60 days following the loan has been granted (finance charges will continue to be expected). Discount on the rate of 0.25 percent for signing up for automatic payments. This discount is included in the rates above. USAA auto loans might be ideal for people who already bank with USAA or are planning to. Bring your car along. If you’re on the move, deploying or traveling abroad, traveling abroad, your USAA auto loan will allow you to bring your vehicle with you. | The membership requirement is for a member. To apply to get a USAA auto loan or refinance. The rates for refinancing aren’t listed on the internet; instead, you’ll have to experiment with using the USAA automobile mortgage calculator to determine what rates you may be eligible for. There is no refinancing available for the existing USAA Bank loan. However, USAA can assist you in finding the best refinancing solution. There are a few branches. USAA offers only one or two face-to-face locations to talk with a representative. This isn’t a great option if you’re hoping to get the convenience of a personal loan experience. |
USAA auto review of a loan
Specific USAA auto loan borrowers have reported issues with billing. A search on the Consumer Financial Protection Bureau (CFPB)’s consumer complaints database found 30 distinct auto loan complaints filed in 2022. USAA Bank also has a 1.3-star rating (out of 1,705 reviews) on Trustpilot for all its products, not only auto loans. However, as of December 20, 2022, it is not accredited by the Better Business Bureau (BBB).
Do you need to be applying?
USAA provides competitive rates from the beginning that do not have minimum income or credit score requirements. But you’ll not be able to determine the exact rate until you make an application. USAA does not offer preapprovals for car loans, nor do they publicly announce its loan maximums. However, you might be able to get an estimate of your rate and the monthly installment through this USAA auto loan calculator.
Similar to other lenders like USAA, as with other lenders, the highest auto rate and terms with tremendous flexibility apply to those who purchase and consolidate the latest models of cars. This is an analysis of what this is by loan type at USAA.
USAA auto rate and loan conditions
Buyers of 2021 or newer cars with a 60-month or lower duration are eligible for the lowest rate. USAA used car loans start at 4.74 percent for buyers who purchase vehicles from 2015 to 2020 through an authorized dealer. The initial rate is slightly higher when you buy from the individual seller. A USAA auto loan can finance a car older than 2014, but the lender does not specify the cutoff date.
Terms of loans
The loan can be extended between 12 and 84 months, but some restrictions accompany the longer terms. For example, if you take out a loan of 15,000 dollars, you may open the loan term until 72 months. A loan term of 84 months is also available when purchasing a newer 2021 model, and you’re borrowing at least $25,000.
How do I be a USAA member?
To apply for a USAA automobile loan and USAA refinance auto loans, the first step is to be a USAA member. After that, you can sign up online, and membership extends to:
- U.S. military members and veterans, including active duty and retired servicemembers with honorable discharges and National Guard and Reserve members.
- Precommissioned officers
- Children and spouses of U.S. military members, pre-commissioned officers, veterans, and veterans
Membership with USAA is free. However, it is necessary to present proof of eligibility to join. This is usually a photo ID issued by the government ID and a military confirmation like Form DD214, discharge declaration, or a copy of your order if you’re on active duty.
How do I apply for financing through USAA?
After you’ve joined USAA, you can start the application process for an auto loan. You can apply for a new auto loan, a used auto loan, or USAA Auto refinance loans on the internet by accessing the account on your USAA account. If you’re already in the dealership, You can apply over the phone using the USAA mobile application.
You’ll need to supply some essential information to qualify for a loan, such as:
- Identity proof and proof of residency
- The amount of loan and the year of vehicle, model, and make
- Social Security number
- Income proof
To be eligible for USAA automatic refinancing, it is necessary to have these details ready before you submit your application:
- Model year of the car as well as mileage
- Payoff period of 10 days
- The annual percentage rate for loans (APR)
- Number of the loan account
- Your employer and your income
The application process takes only about a minute to complete, and once it is approved and accepted, the loan is valid for up to 45 calendar days. It allows you to look for and evaluate auto loan terms and rates from different lenders. Be aware that the best way to find the most competitive rate is to take advantage of various auto loan deals, at least before the time you go to the dealership.
USAA against. competitors
USAA isn’t the only institution you could consider when you’re a service member. Navy Federal and Pentagon Federal (PenFed Credit Union) are two other options that cater to families with military connections. Navy Federal has the lowest beginning rate and the most extended term; however, PenFed offers more flexible membership requirements and a significant discount if you take advantage of its car buying service, which is evident in its beginning rate, which is lower than.
| USAA Vs. Navy Federal vs. PenFed | |||
| USAA | Navy Federal | PenFed Credit Union | |
| Beginning price* (new) | 4.49% | 4.54% | 4.89% |
| Start price* (used) | 4.74% | 4.54% | 5.54% |
| Terms | 12-84 months | up to 96 months | For up to 72 months |
| The amount of the loan | $5,000 – $50,000 | Up to $250 | $500 – $150,000 |
*Starting prices may include discounts for autopay