Given the expense of cars, especially brand new models, it’s often necessary to get a car loan to cover the costs. Here, we’ll discuss how these loans work.
Rocket Mortgage, one of the largest mortgage lenders in America, is best known for its online mortgage services. But you may be wondering – does Rocket Mortgage also offer car loans? With the introduction of Rocket Auto in 2021, the answer is now yes! Rocket Mortgage has expanded into the auto lending space through its new car buying and financing platform.
In this article, we’ll take a closer look at whether Rocket Mortgage provides auto loans, their new Rocket Auto service, and alternative lenders to consider for auto financing.
Does Rocket Mortgage Offer Car Loans?
Rocket Mortgage itself does not directly issue car loans However, in 2021 the company launched Rocket Auto, an online car buying service that partners with dealerships and lenders to offer auto financing
So while Rocket Mortgage does not fund auto loans, their Rocket Auto platform can now help connect customers with lenders to get approved for a car loan.
Introducing Rocket Auto
Rocket Auto aims to provide an end-to-end online car buying experience, from vehicle search to purchase to financing:
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Vehicle Search – Rocket Auto helps you find and compare vehicles across dealership inventories that match your search criteria.
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Purchase Facilitation – They negotiate discounts with dealers and facilitate the purchase on your behalf.
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Financing – Rocket Auto connects you with lenders to secure auto financing and a monthly payment.
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Delivery – Once purchased, they can schedule no-contact delivery of your vehicle right to your door.
While still a new platform, Rocket Auto brings Rocket Mortgage’s digital purchase experience to the auto market.
Rocket Auto Car Loan Process
If you want to finance your vehicle purchase through Rocket Auto, their loan process includes:
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Pre-qualification – They provide initial rates and loan offers from lending partners.
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Application – You complete a loan application providing income, employment and credit info.
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Approval – Rocket Auto lending partners officially approve and finalize your auto loan.
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Sign loan documents – DocuSign makes it easy to esign your final car loan paperwork.
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Take delivery – Your car arrives at your home once the loan is finalized and down payment made.
Rocket Auto aims to provide a seamless auto financing experience fully online.
Rocket Auto Car Loan Rates and Terms
While specific rates depend on your credit profile, here are some example Rocket Auto car loan terms:
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Loan amounts from $5,000 up to $100,000
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Loan terms from 36 to 72 months
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Interest rates from 3% to 18%
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No prepayment penalties
Rocket Auto partners with national lenders like Chase and Santander to offer competitive auto financing rates. They work to find you the best loan terms based on your credit score and financial situation.
Rocket Auto Car Loan Eligibility
To qualify for a Rocket Auto car loan, you’ll generally need:
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Minimum credit score of 550
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Monthly income of at least $1,800
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At least 1 year of employment history
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Valid driver’s license
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No recent bankruptcies or repossessions
Rocket Auto’s lending partners offer car loans to borrowers across a range of credit profiles. They work with subprime lenders to help find financing options if you have past credit challenges.
Pros of a Rocket Auto Car Loan
Some benefits of financing your car through Rocket Auto include:
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Online process – Apply and buy your vehicle completely online
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Wide lender network – Access to national banks, credit unions and specialty lenders
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Rate shopping – They compare options to find you the best rate
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Soft credit checks – Pre-qualifying doesn’t impact your credit score
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Fast approvals – Can provide fast lending decisions and funding
Cons to Consider
A few potential downsides of Rocket Auto to keep in mind:
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Limited lender options – More lenders than getting your own loan, but fewer than going to a bank
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Not available in all states – Currently limited to certain states
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No direct lender – They are just a loan facilitator, not the direct lender
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Charges may apply – Depends on the lender, but most have origination fees
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New service – Rocket Auto still building out its services and processes
While Rocket Auto aims to streamline the auto financing process, make sure you understand all loan terms and options before borrowing.
Alternative Lenders for Car Loans
If you want to explore other car loan providers beyond Rocket Auto, here are a few top options:
Banks – Large banks like Chase, Bank of America and Wells Fargo offer competitive auto loan rates and have local branches.
Credit unions – Non-profit credit unions can offer lower interest rates and personalized service.
Online lenders – Companies like LightStream, LendingTree and Carvana provide easy online loan applications.
Dealership financing – The dealership themselves may offer manufacturer financing promotions.
Getting rate quotes from multiple sources can help you find the best possible car loan rate for your situation.
The Bottom Line
While Rocket Mortgage itself is not an auto lender, their new Rocket Auto platform provides an end-to-end online car buying experience, including connecting customers with lenders for car loan financing. Through partnerships with national banks, credit unions and other lending institutions, Rocket Auto can help approved borrowers get competitive auto loan rates fully online. However, they are just one option to consider when shopping for the best car loan. Comparing quotes from banks, credit unions, online lenders and other providers can ensure you get the ideal auto financing.
Components Of A Car Loan
A car loan consists of multiple parts, including the following.
Most lenders won’t lend enough for the full cost of the vehicle. Instead, you’ll usually need to make a down payment. In most cases, a 20% down payment is recommended.
The loan term is the length of time you’ll have to pay off the loan. On average, car loans range between 36 to 84 months. The loan amount plus total interest is divided up among the number of months to give you your monthly payment.
Your annual percentage rate, or APR, is the interest rate on the loan. The higher the interest, the more you’ll end up paying for the vehicle.
Interest rates may be fixed, staying the same for the life of the loan, or variable, fluctuating with the market, but typically start at a lower rate.
In addition to the basic parts of a car loan, you might also have additional costs and factors, including:
- Minor costs and fees, such as title transfer
- GAP insurance, which covers the difference between your current loan balance and your car’s actual value if an accident occurs
- Extended warranties
- Additional services
Many of these components are dependent on your lender, so it may be worth shopping around to find a good deal.
Improving your credit score
If you have less than average credit, it may be valuable to review your credit report. If you find any flaws, contact the credit bureau about it to get them corrected.
Also, making other payments—such as rent, mortgage, and credit card payments—when they’re due can improve your credit over time.
Does a Car Payment Affect Getting a Mortgage?
Can I refinance my car loan through rocket auto?
6. Can I refinance my existing auto loan through Rocket Auto.com? No, not at this time. Rocket Auto is focused on helping you find a vehicle and working with the dealer on your behalf to make car buying easier. 7.
How do I get a Rocket Mortgage?
You can obtain a **Rocket Mortgage** through the following steps: 1.**Online Application**: – Visit the **Rocket Mortgage website** or use the **Rocket Mortgage app**. – Create an account if you
Does Rocket Mortgage offer mortgage insurance?
The program also covers private mortgage insurance (PMI) at no cost. Rocket Mortgage’s Visa Signature Card offers a generous 5 percent back on all purchases, up to the limit, with the catch that the rewards are worth full value only if you ultimately get your home loan from Rocket Mortgage.
Can I do business in person with Rocket Mortgage®?
You cannot do business in person with Rocket Mortgage®. It is a strictly online process. Live humans are available to assist, but you won’t be able to talk face to face. If you don’t qualify for an FHA or VA loan, you’ll probably need to come up with a down payment.