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Ally auto loan refinancing: 2024 review

2024-01-01 13:59:00

At a glance

4
Rating: 4 stars out of 5

Bankrate Score

  • Availability
    Rating: 4 stars out of 5
  • Affordability
    Rating: 3.5 stars out of 5
  • Customer Experience
    Rating: 4.4 stars out of 5
  • Transparency
    Rating: 4 stars out of 5
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About Ally

  • Moneybag

    Loan amount

    Not specified

  • Credit Good

    Min. credit score

    Not specified

  • Rates

    APR from

    Not specified

  • Funds available in

    Several days to a few weeks

Best for prequalifying before refinancing

Because Ally is online only, the refinancing application process is quick and simple. The company offers a prequalification process with a soft credit check that doesn't affect a borrower's credit score. Ally’s rate previews are available fast, though the terms are somewhat limited, and you won't find many discount opportunities.

Ally pros and cons 

You could get a deal on auto loan refinancing and lease buyout loans through Ally. Still, its scope of offerings is limited, and there are other drawbacks to consider.

Green circle with a checkmark inside

Pros

  • No hard inquiry for prequalification
  • View real loan terms
  • Co-applicants permitted
Red circle with an X inside

Cons

  • Not available in all 50 states
  • Slow funding times
  • Loan details not published online
Ally is a direct lender that offers a streamlined digital auto financing experience for individuals looking to refinance their current vehicle or buy out their lease. You can apply without affecting your credit score and receive personalized options that fit your needs and budget. Plus, loans are available to select borrowers with credit challenges, and there are no application fees or down payment requirements.
 

Do you qualify? 

The qualification criteria to be eligible for vehicle financing with Ally includes:

  • Must be a U.S. citizen, permanent resident or resident.
  • Must be at least 18 years old.
  • Have a satisfactory credit score and debt-to-income ratio.
  • Earn at least $2,000 per month.
  • Purchase a noncommercial vehicle that’s less than 10 years old and hasn’t been used as a taxi or police car.
  • Vehicle cannot have unrepaired collision or comprehensive damage or be under more than one lien.
  • For refinancing, existing financing must be at least seven months old.
  • Provide proof of insurance.

Ally versus RefiJet

RefiJet, like Ally, specializes in refinancing automobile loans. RefiJet doesn't have the same backing as Ally, which is part of Ally Financial Inc. Instead, RefiJet is privately owned and operated out of Colorado. It also is not a direct lender but instead is a lending aggregator that works with a number of lenders to find the best fit for you. 

Ally versus Tresl

Like Ally, Tresl offers an online application process that provides a quick turnaround on getting loan offers. Unlike Ally, Tresl is a loan aggregator that works with a number of loan providers to compare rates and allow the borrower to find the best available terms. Because Tresl is a loan aggregator, though, it cannot guarantee any loan terms. Tresl offers prequalification, but it has limited loan products and collects lender fees depending on who you end up choosing.

What we like and what we don’t like

Here’s what makes Ally worth considering, along with some drawbacks to keep in mind. 

What we like

  • Prequalify without a hard credit check: Ally does not perform a hard inquiry when checking your approval odds.
  • View real loan terms: You can view actual monthly payments and APR options if you prequalify for financing.
  • Co-applicant permitted: You can improve your approval odds or get better financing terms by adding a co-applicant with a solid credit history and income to your application.

What we don’t like

  • Not available in all 50 states: Ally is unavailable to customers in the District of Columbia, Nevada and Vermont.
  • Slow funding times: It could take several days to a few weeks to get your loan funded.
  • Loan details not published online: Average interest rates are not published online. Potential borrowers must prequalify to view this information.

How to contact Ally

You can reach Ally by phone at 888-925-2559, fax or email. Its business hours are Monday through Friday from 8 a.m. to 11 p.m., and Saturday from 9 a.m. to 7 p.m. ET. Online chat is available on the Ally website.

Auto loan types offered 

Ally offers auto loan refinancing and lease buyout loans. 

Auto loan refinancing

  • Amounts: Not specified 
  • Terms: 36-75 months
  • APR: Not specified

Consider refinancing your vehicle through Ally to see if you qualify for a more affordable monthly payment or lower your interest rate. But you won't be able to see if lower rates are available until you prequalify. You can also refinance to update the owners listed on the title or remove a co-signer.

Lease buyout loans

  • Amounts: Not specified 
  • Terms: 36-75 months
  • APR: Not specified

Ally also makes it easy to buy out your leased vehicle. You can get preapproved in minutes without impacting your credit score, and the formal application process is simple. Select customers can also purchase added protections, like gap insurance and extended warranties, through Ally when buying out their lease.

How to apply for a loan with Ally

Ally breaks the auto financing process down into three steps. Start by visiting the website and providing some basic information to determine if you prequalify for auto loan refinancing or a lease buyout loan. If you earn at least $2,000 per month, you could get approved for a loan even if you have less-than-perfect credit.

If you are a good fit for a loan, evaluate your offers, choose the best option and submit a formal application for approval. You will need to provide the following for Ally to process your loan application:

The lender will send over your loan documents for review if your application is approved. Average interest rates and loan terms are not published online. Potential borrowers must prequalify to view this information. Unlike Ally, most direct lenders share at least some of this information upfront online. If you have any questions or concerns, you can inquire. Otherwise, you can sign the loan agreement and provide any additional information or documents the lender needs to finalize the financing arrangement.

Features and perks

Ally offers prequalification for borrowers who provide loan details by collecting some information in advance without requiring a hard credit pull. This means prequalification is provided without affecting a borrower’s credit score. 

Ally also offers financial hardship protections that allow borrowers to lower their monthly payment while extending the length of their loan. During extension periods, Ally will not charge additional late fees to borrowers. 

Fees and penalties

Ally Auto does not charge a prepayment penalty, nor does it charge a loan origination fee. Late fees may apply depending on the state you reside.

Ally FAQs 

How Bankrate rates Ally

Overall score 4
Availability 4 Ally doesn’t provide its loan amounts and has restrictions on acceptable cars — but it serves most states.
Affordability 3.5 There is some leeway in Ally's acceptance criteria, but it doesn’t provide a comprehensive list of its rates and fees.
Customer experience 4.4 A reasonable funding timeline, online access, app availability and the option to use autopay earns a higher score.
Transparency 4 Prequalification is available, but rates and fees are not.

Methodology 

The Bankrate team assessed more than 35 auto lenders to find the best. To rate lenders specializing in auto refinance loans, Bankrate considers 16 different criteria, including the loan amount, disclosed APR and acceptance criteria. Each lender receives a Bankrate score based on four categories

  • Availability: This accounts for loan amounts, vehicle restrictions and availability in each state. Lenders that serve customers nationwide with flexible loan amounts rank higher.
  • Affordability: Primarily, this section covers expected APR, acceptance criteria, discounts for autopay and the number of fees. Lenders with the lowest rates, fewer fees and most generous acceptance criteria receive higher scores.
  • Customer experience: Our team looked at how easy it is for customers to apply for and manage their loans. Criteria include online access, support availability, funding timeline, option for automatic payment and app availability.
  • Transparency: This includes prequalification and disclosure of rates and fees. We favored lenders that make it easy for customers to preview possible costs.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.