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Overview of USAA Bank Auto Loans Ideal for: USAA members seeking flexible terms and low-interest auto loans
Active duty military, veterans, and their families are among the eligible members who can receive auto loans from the United Services Automobile Association (USAA). Loans to purchase a new or used car from a dealer or a private seller as well as USAA auto refinance loans are available from USAA Bank.
If you’re thinking about getting a USAA car loan, it can be useful to know how the loan terms and rates stack up against those provided by other lenders. You can determine if USAA is the best lender for you by reading reviews like this one about their auto loans.
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Note from the Editor: This article’s content is solely based on the author’s opinions and suggestions. It might not have received approval from any of our network partners through reviews, commissions, or other means.
Overview of USAA Bank Auto Loans Ideal for: USAA members seeking flexible terms and low-interest auto loans
*Rates include autopay discount
Active duty military, veterans, and their families are among the eligible members who can receive auto loans from the United Services Automobile Association (USAA). Loans to purchase a new or used car from a dealer or a private seller as well as USAA auto refinance loans are available from USAA Bank.
If you’re thinking about getting a USAA car loan, it can be useful to know how the loan terms and rates stack up against those provided by other lenders. You can determine if USAA is the best lender for you by reading reviews like this one about their auto loans.
How USAA auto loans work
25 Army officers who met in San Antonio, Texas, and decided to insure each other’s cars founded USAA in 1922. The Texas-based business now provides loans, banking, insurance, investing, and other financial services.
Members and their families have access to USAA auto refinancing and car loans. For both new and used cars, as well as motorcycles, boats, powersports, and recreational vehicles (RVs), USAA provides auto financing. A car-buying service that USAA once provided has since been discontinued.
Pros and cons of USAA car loans
For military families interested in purchasing a car or refinancing one they already own, USAA offers competitive financing rates. But it’s not the only lender catering to servicemen and women; Navy Federal Credit Union, for instance, provides a car-buying service and a lower starting rate. Both organizations may make it difficult for you to be approved for an auto loan if you don’t have military connections.
| Pros | Cons |
| No hidden fees, including no application fees and no prepayment penalties.
Flexible loan terms that extend up to 84 months, with no payment due for up to 60 days after your loan is approved (finance charges will still accrue). Rate discount of 0.25 percentage points when you sign up for automatic payments. This is included in the rates shown above. USAA auto loans may be a good fit for those who already bank with USAA or plan to. Take your vehicle with you. If you’re deploying, moving or traveling overseas, your USAA car loan allows you to take your vehicle along. |
Membership is required to apply for a USAA car loan or refinance loan.
Refinancing rates aren’t spelled out online; you’ll need to play around with the USAA car loan calculator to get an idea of what rates you might qualify for. No refinancing for existing USAA Bank loans, but USAA will help you find the right refinancing option. Few branches. USAA has just a handful of financial centers where you could meet with a representative face-to-face. This won’t be a good fit if you’re hoping for an in-person borrowing experience. |
USAA auto loan reviews
Some existing USAA car loan borrowers reported problems related to billing. A search of the Consumer Financial Protection Bureau (CFPB)’s consumer complaint database turned up 30 separate auto loan complaints registered in 2022. USAA Bank also has a 1.3-star rating (out of 1,705 reviews) on Trustpilot across all of its products, not just auto loans, and as of December 2022, is not accredited with the Better Business Bureau (BBB).
USAA provides affordable starting rates without a minimum income or credit score requirement. But you won’t know your exact rate until you apply. Although USAA doesn’t publicly disclose its maximum loan rates and doesn’t provide preapprovals for auto loans, you might be able to estimate your rate and monthly payment using the USAA car loan calculator.
Like other lenders, those who purchase or refinance the most recent vehicles receive the best auto loan rates and the most accommodating terms. Let’s examine what that means specifically for USAA loans.
USAA auto loan rates and terms
The lowest rates are available to borrowers purchasing vehicles in 2021 and later with a term of 60 months or less. USAA used car loan rates start at 4. 74% of people who buy models from dealers for years 2015 to 2020 When purchasing from a private seller, the starting price is a little higher. A 2014 model year or older vehicle may be used with a USAA auto loan, but the lender doesn’t specify a cutoff year.
Loan terms range from 12 to 84 months, though there are some restrictions on the longer loan terms. You can extend the loan term to 72 months if you borrow at least $15,000. If you’re purchasing a 2021 or later model and borrowing $25,000 or more, an 84-month loan term is additionally offered.
How to become a USAA member
To apply for a USAA car loan or USAA auto loan refinance, you first need to become a USAA member. You can join online and membership is extended to:
Membership in USAA is free. You’ll need to submit proof of eligibility to enroll. This entails a valid photo ID from the government as well as military identification, such as a Form DD214, a statement of discharge, or a copy of your orders if you’re on active duty.
How to apply for financing at USAA
Once you’ve joined USAA, you can begin the process of applying for an auto loan. You can apply for a new auto loan, used auto loan or USAA auto refinance loan online by logging into your USAA account. If you’re already at the dealer, you can apply by phone via the USAA mobile app.
In order to be approved for a purchase loan, you must provide the following information:
You must have the following information on hand when applying for USAA auto refinancing:
Once approved, the application only takes a few minutes to complete, and your loan offer is valid for up to 45 days. That gives you time to look around and compare the terms and rates of auto loans from various lenders. Never forget that getting several auto loan offers, ideally prior to visiting the dealership, is the best way to get the best rate for you.
If you’re a member of the military, USAA is just one bank you might take into account for car loans. Other options for families with military ties include Navy Federal and Pentagon Federal (PenFed Credit Union). The longest terms and lowest starting rates are offered by Navy Federal, while PenFed has more lenient membership requirements and offers a significant discount if you use its car-buying service. PenFed’s starting rate is shown below.
| USAA vs. Navy Federal vs. PenFed | |||
| USAA | Navy Federal | PenFed Credit Union | |
| Starting rate* (new) | 4.49% | 4.54% | 5.24% |
| Starting rate* (used) | 4.74% | 4.54% | 6.04% |
| Terms | 12–84 months | Up to 96 months | Up to 72 months |
| Loan amounts | $5,000 – $50,000 | $250 and up | $500 – $150,000 |
*Starting rates may include autopay discount
Compare Auto Loan Offers Loan Type?
USAA provides affordable auto loan rates, but only to those who meet the requirements for membership. Membership is open to military families.
FAQ
What credit score do you need to refinance a car with USAA?
Applicants may be qualified for USAA Auto Refinance if their credit score is at least 560 but not more than 850. The eligibility age is 18 or the minimum age required by the state, whichever is higher. A minimum annual income requirement is not a requirement for USAA Auto Refinance, or it is not disclosed as a requirement.
What is a good interest rate for car refinance?
FAQs Regarding Auto Refinance Rates As of today, December 6, 2022, the typical auto refinance rate for those with Excellent credit is 3. 09% for a 36-month loan, 3. 24% for a 48-month loan, 3. 27% for a 60-month loan, and 3. 62% for a 72-month loan.
Is USAA a good bank for a car loan?
For many service members and their families, USAA is a top choice. The massive USAA company’s auto loan division has an A+ Better Business Bureau rating.
Does USAA charge a refinance fee?
Online auto refinancing available without an application fee or additional fees. We’ll walk you through paying off your existing loan.