Auto Approve vs. Ally: Which offers better auto loans?

Auto Approve and Ally promise the convenience of refinancing your auto loan online. Neither lender has any physical branch locations. Instead, both offer refinancing and lease buyout products for those comfortable navigating financing on the web.

However, while Ally is a direct lender, Auto Approve is a loan marketplace that matches you with its partner lenders. Consider Auto Approve for customized support and Ally if you have imperfect credit.

Auto Approve vs. Ally at a glance

Best for borrowers with fair credit

Auto Approve

Rating: 3.9 stars out of 5

3.9

Learn more in our Bankrate review

• Bankrate’s view

  Auto Approve is a Chicago-based lender that uses its online platform to match borrowers with lenders in its network. It serves borrowers across all 50 states and offers the option to refinance their current loan or purchase their leased vehicle.

  Some network lenders accept credit scores as low as 650, making Auto Approve a strong option for borrowers with fair credit. Those with bad credit may have better luck applying with a co-borrower.

• Pros and cons

  

  Pros

  • Applying with a co-borrower: Applying with a co-borrower with strong credit can dramatically benefit your terms and rates.
  • Long shopping window: Your available rate will be locked in for 30 days, giving you time to apply with other lenders and ensure you find the best rate possible.
  • Deferred payment availability: The lender offers qualified borrowers a 90-day payment deferment option. This gives your wallet a break — but interest may continue to accumulate during this period.

  

  Cons

  • No list of lenders available: You will only have access to the lenders that you are matched with.
  • Potential fees: Auto Approve doesn’t charge a fee for its services. But its partner lenders may charge varying fees.
  • Phone communication: By submitting an application, you consent to communication via phone or text from company representatives.

Best for viewing expected payments

Ally

Rating: 4 stars out of 5

4

Learn more in our Bankrate review

• Bankrate’s view

  Ally helps borrowers refinance their current loan or purchase their leased car, all from the convenience of its website. Like Auto Approve, the loan products are limited to refinancing and lease buyouts.

  Although it doesn’t provide much information on how you can qualify, Ally sets its income requirement at just $2,000 per month, which may make it a good option if you and your co-borrower have limited take-home pay.

• Pros and cons

  

  Pros

  • Automatic payments: Signing off on autopay will help you keep up with payments and ensure you stay on track.
  • Co-borrowers accepted: Like Auto Approve, Ally allows you to apply with a co-borrower to potentially improve your chance of approval.
  • Prequalification: Borrowers can prequalify for their loan and preview rates without a hard credit pull. This is especially useful because Ally doesn’t post possible rate ranges online.

  

  Cons

  • Not available in all states: Unlike the nationwide coverage Auto Approve offers, Ally does not offer lease buyout in 12 states and Washington, D.C. And it doesn’t offer refinancing in Nevada, Vermont or Washington, D.C.
  • Minimal information: Ally does not present potential fees, rates or loan amounts on its site.
  • Slow funding timeline: Funding can take up to a few weeks to become available. This could be challenging for a borrower in financial hardship.

How to choose between Auto Approve and Ally

When Auto Approve and Ally, there are more similarities than differences. Both come with the perk of applying online and have the same products. The application process is fairly straightforward for both.

Choose Auto Approve for customized support

Securing a lower interest rate through refinancing may save you money on your monthly payment.

Auto Approve matches its borrowers directly with a consultant who will present you with available loans, explain options and provide advice on what you qualify for. The lender will then work with the DMV to transfer the title from your old lender to your new one. Minimum rates are lower than industry averages, though remember this lowest rate will likely only be available to those with excellent credit.

If you are unsure what terms would better suit your monthly budget, Auto Approve’s customized support may provide insight.

Choose Ally if you have lower income

Ally does not disclose a minimum credit score but provides other eligibility criteria. Borrowers must earn at least $2,000 per month, be 18 years of age and have a satisfactory credit score and debt-to-income ratio.

Ally also has a generous financial hardship program that allows borrowers to extend their loans and thus lower the monthly payment. However, you’ll pay more interest over time).

Compare more lenders before applying

Auto Approve is suited for those who require additional support, and Ally can be great if you want to work with a direct lender. Brush up on how to get the best deal and compare multiple loan options before signing off. Neither of these lenders offers the lowest rates on the market, so if your credit score is good to excellent, you may save the most with another option.