USAA offers loans to U. S. military personnel, their spouses, and USAA customers’ kids If not, check out one of the other top lenders on our list of the 7 Best auto loans to learn more. If you are one of those people, keep reading because USAA is a reputable auto loan provider with reasonable rates.
United States Army Automobile Association was the original name of USAA when it was founded in the year 1922. 25 Army officers founded the company in order to obtain quality insurance for themselves because at the time, due to their line of work, service members were seen as a high-risk group.
These days, USAA stands for United Services Automobile Association. Now, they offer banking and insurance services to members of the armed forces and their families. USAA has a great reputation and goes above and beyond to ensure that loan applicants are informed and educated about the dos and don’ts of sound financing.
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Why Consider USAA for an Auto Loan
USAA is considered a go-to option for many service members and their families. The auto loan branch of the giant USAA enterprise has an A+ rating from the Better Business Bureau. USAA can offer you a loan at a new car dealership, a used car dealership, when buying a used car from a private seller, and can even refinance your existing car loan. That said, we found a meaningful number of reviews pointing to a lack of responsive customer service from USAA.
When we looked into USAA, the extensive list of helpful recommendations and advice the company provided for its members really stood out to us. We found these consumer warnings/advice on the USAA site:
In order to prevent those applying for a car loan from making a mistake, USAA appears to be going to great lengths. And who else suggests that you shop around?.
Find out more about the common errors to avoid when applying for an auto loan.
How To Apply for a USAA Auto Loan
According to USAA, you can apply for a loan and get approval using just your phone while physically present in the financing department of a car dealer. However, it advises that you go against the grain and apply in advance. In this way, USAA claims that if your car dealer makes a loan offer, you can use it to haggle for an even lower rate.
The exact steps to apply for a USAA auto loan are as follows:
What Credit Score Do I Need To Qualify for a USAA Loan?
What your credit score must be in order to be approved for a loan is not specified by USAA. Assume it is in the high 500’s to low 600’s. According to USAA, your rates and terms will be influenced by your credit score. This is true with every auto loan out there.
USAA Auto Loan Details
USAA advertises new car loan rates as low as 1. 99% APR. There are terms available up to 84 months, but over 60 months is generally not a good idea. Automatic payment discounts are offered. Additionally, USAA provides a period of up to 60 days without payments.
Rates for USAA’s used car loans start at 2 percent. Up to 72-month terms at 79% APR (see preceding warning)
Read more on Average Auto Loan Rates here.
Pros and Cons of a USAA Auto Loan
USAA Auto Loan Reviews
The evaluations of USAA auto loans caught our attention. On BBB the overall review score averages to 1. 235 stars out of five. Pretty low. However, there are some positive ones.
“They have always done the right thing by me,” one USAA member wrote. even when it wasnt in USAA best interest. I have long advocated hoping the other driver has USAA insurance in the event of an accident. “I’ve had USAA insurance, including home and auto, for over 20 years with no issues,” another person wrote. Last accident = forgiveness. They were very courteous and not problems at all. ”.
Not all the reviews are so positive, but when we carefully read the 1-star reviews, we noticed a common theme in many of them. The person who was upset wasn’t a USAA policyholder but was upset after getting into an accident with one. Many others came from long-time USAA members with multiple policies who made the decision to vent after ten or more years. Here is one of that type:
Why did you stay with USAA for ten years, then? “If THIS is how USAA treats military families, then they must change their slogan! MINUS 2-STARS! I have been a member of USAA for over ten years, and have had nothing but horrible experiences with them!”
We would be shocked to discover how many individuals take the time to look for a website where they can post a favorable review of a car loan. Contrary to many goods and services, it can be challenging to form an opinion regarding an auto loan.
Find out more about the best auto loans available here.
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FAQ
What is a good interest rate on a 72 month car loan?
The average 72-month auto loan rate is almost 0. Interest rates are 3% higher than the typical 36-month loan for new cars. For new cars, loans with shorter terms have lower interest rates. Loan termAverage interest rate60-month used car loan4. 17% APR72-month used car loan4. 07% APR.
What is USAA’s APR?
USAA advertises new car loan rates as low as 1. 99% APR. There are terms available up to 84 months, but over 60 months is generally not a good idea. Automatic payment discounts are offered. Additionally, USAA provides a period of up to 60 days without payments.
Is USAA a good place to get a car loan?
For service members and their eligible family members who can qualify for the lender’s best rates, USAA might be a good option for auto loans. It might also be a wise choice if you want flexible loan terms or want to take your time car shopping.
Is 3% a good auto loan rate?
Finding a good auto loan interest rate can be challenging because it largely depends on the applicant. That said, yes, 3. For the majority of car loan borrowers, 5% is a good interest rate. Generally, individuals with fair to excellent credit scores can find interest rates between 3% and 4%. 5% on 36-month car loans.