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Carputty auto loans: 2024 review

2024-01-01 13:59:00

At a glance

4.2
Rating: 4.2 stars out of 5

Bankrate Score

  • Availability
    Rating: 4.5 stars out of 5
  • Affordability
    Rating: 2.8 stars out of 5
  • Customer Experience
    Rating: 4.6 stars out of 5
  • Transparency
    Rating: 5 stars out of 5
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About Carputty

  • Moneybag

    Loan amount

    Lines from $25,000-$250,000

  • Credit Good

    Min. credit score

    680

  • Rates

    APR from

    6.83%

  • Funds available in

    As soon as the same day

Best for frequent buyers 

With Carputty’s line of credit, you can finance up to 15 vehicles at once through a single platform. Unlike traditional auto loan lenders, Carputty offers borrowers a tool to check vehicle value and either buy or sell based on trends in the car buying space. This is great for a driver who tends to swap out their wheels frequently.

Carputty pros and cons

Borrowers can finance for higher than usual amounts and benefit from fast funding. Still, the product is only available in some states. 

Green circle with a checkmark inside

Pros

  • Car buying support
  • High maximum loan amount
  • Preapproval
Red circle with an X inside

Cons

  • Unspecified maximum APR
  • Confusing repayment terms
  • Vehicle restrictions

Carputty is an online direct lender that offers a unique line of credit funding process called Flexline. With just one application, drivers can manage all of their vehicles over the entire lifetime of ownership directly through the line of credit. Carputty encourages its borrowers to manage their vehicle loans like other financial assets, allowing flexibility in when to buy or sell.

Do you qualify?

Carputty does not disclose any specific income requirements, but to apply, borrowers must be at least 18 years of age, employed and a legal resident of the United States. 

  • Credit history: Carputty wants to see a score of 680 or higher. However, its website notes that the lender considers more than just credit score when determining eligibility.
  • Residency: You must be a resident of the following states: AK, AL, AR, AZ, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, VA, VT, WI, WV, and WY.
  • Vehicle: The financed vehicle must have a model year less than eight years prior to the application and have fewer than 85,000 miles. It must also have a clean title.
  • Loan-to-value: For those purchasing used vehicles, the LTV must not exceed 110 percent (for current-year used vehicles, the value is defined as 90 percent of MSRP). For new vehicles, the LTV must not exceed 100 percent of MSRP.  

Carputty vs. Autopay

Autopay offers borrowers the ability to buy a vehicle, refinance their existing one or undergo a lease buyout. Like Carputty, Autopay boasts a seamless online application process. Autopay has a lower minimum loan amount of $2,500, great for those financing a less expensive car. When choosing between the two, consider how your credit standing will impact available rates. 

Carputty vs. Autopay

Carputty vs. PenFed

Credit union PenFed boasts a lower APR (annual percentage rate) for its members and a wide range of terms. On top of that, the option to prequalify with a PenFed loan is great when it comes to comparing rates. But Carputty carries far fewer fees than its credit union competitor. See our full PenFed vs. Carputty breakdown for more help choosing.

PenFed vs. Carputty

What we like and what we don’t like

While the Flexline program makes vehicle financing a seamless process, Carputty might not be the best lender for every driver. 

What we like

  • Car buying support. Carputty offers borrowers assistance in the car-buying process through the V3 tool, which helps buyers determine the best time to buy.
  • High maximum loan amount. Borrowers can finance for up to $150,000 per vehicle, or $250,000 total — on the higher end compared to traditional competitors.
  • Preapproval. With the option to apply for preapproval, you can have an idea of your monthly payment and rates before signing off on your loan. Plus, unlike most lenders, Carputty will preapprove your loan with only a soft credit pull (followed by a hard pull when you finalize the loan). 

What we don’t like 

  • Unspecified maximum APR. Carputty’s website cites a minimum APR that's already higher than the industry average for new vehicles and doesn't specify a maximum. You’ll have to apply for preapproval to learn available rates.
  • Confusing repayment terms. Your balance starts with a 63-month term, but there are options to extend it by a set amount or repay it early. This flexibility could be beneficial but the options are not clearly explained on the lender site. 
  • Vehicle restrictions. Financed cars must have less than 85,000 miles and not be older than 8 years when you request the advance to purchase them. Some competitors set higher limits at 100,000 miles and 10 years old.

How to contact Carputty 

Carputty provides customer support Monday through Friday via chat on its site from 8 a.m. to 6 p.m. EST or over email at help@carputty.com. Outside of the chat function, Carputty has a fairly in-depth FAQ section that outlines the application and financing process.

Auto loan types offered

Carputty offers auto loans for drivers looking to finance a new or used vehicle, refinance an existing loan or undergo a lease buyout. Lines of credit range from $25,000 to $250,000. Individual advances can range between $10,000 and $150,000 (provided you have that much credit available to you).

Repayment terms are a bit complicated. Once you’re approved for a line of credit, you have 24 months to start using it or it will close — but it remains active indefinitely if in use. Putting a balance on the LOC by funding a vehicle starts a 63-month term. At month 30, you have three options:

  • Pay down the full balance with no prepayment penalty.
  • Continue with the same rate, loan term and monthly payment.
  • Extending your Flexline using a 24, 36, 48 or 60 month term. You’ll also receive a new rate based on the reference rate SOFR, which might be higher or lower.

New and used auto loans  

  • Amounts: $10,000-$150,000/car
  • Terms: See above
  • APR: From 6.83

The high maximum Flexline limit of $250,000 makes Carputty a strong choice for those financing an expensive new vehicle or multiple vehicles at once. 

Refinance 

  • Amounts:  $10,000-$150,000/car
  • Terms: See above
  • APR: From 6.83

Refinancing your current vehicle loan can provide you with a lower monthly payment or better rates. Take advantage of a refinance calculator to determine if refinancing your loan could truly save you money.

Lease buyout

  • Amounts:  $10,000-$150,000/car
  • Terms: See above
  • APR: From 6.83

If you are interested in purchasing your leased vehicle, Carputty offers assistance and support throughout the process. A lease buyout can help you avoid steep wear and tear fees and allow you to hold onto your current vehicle. 

How to apply for a Flexline with Carputty 

You can apply for an auto loan directly on the Carputty site, with approval likely in minutes. For the initial application, you will undergo a soft credit pull and then a hard credit pull when the line of credit is finalized. The Atlanta-based lender may also perform a soft credit pull every 45 days in order to monitor your credit.

According to the site, the rate you receive will be based on your credit score, not vehicle information like year, make or model, which is a stand-out feature compared to traditional lenders. But if you have poor credit, it is wise to consider other types of lenders that use other underwriting criteria, unlike Carputty. Funding can become available as soon as the day you apply. Once accepted you will gain access to a secure dashboard where you can manage current loans or add new vehicles.

Unlike many other lenders, Carputty does not require vehicle information until after the preapproval process has been completed. At that point, you will input vehicle details such as make, model, year and license plate number.

Features and perks

The V3 valuation tool pioneered by Carputty helps predict the best time to buy or sell your vehicle, based on market data. Valuation can be run prior to loan application directly on the Carputty site. This tracks and monitors vehicle value so that anytime during ownership, you can decide to sell based on market trends. 

Fees and penalties

Carputty charges 1 percent of the financed amount when a car is added to your line of credit. If you remove a car from your line of credit you will have to pay a $250 removal fee. 

Carputty FAQs

How Bankrate rates Carputty

Overall Score 4.2
Availability 4.5 While the lender boasts a high maximum loan amount, it currently only serves 40 states and Washington, D.C.
Affordability 2.8 Carputty gets dinged for several fees, its high starting APR and not listing its max APR on its website.
Customer Experience 4.6 Carputty only offers support Monday to Friday, but they offer convenient tools for managing your payments.
Transparency 5 Ability to prequalify and fees and rates disclosure gives Carputty a perfect score.

Methodology

The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.

  • Availability: Loan amounts, repayment options, dealership requirements and state availability all contribute to this category. Lenders that serve customers nationwide with flexible loan amounts rank higher.
  • Affordability: This section houses APR ranges, acceptance criteria, fees and discounts. 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 how long you have to shop, customer service hours, whether there’s an app and autopay 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.

Written by
Rebecca Betterton
Writer, Auto Loans and Personal Loans

Rebecca Betterton, a Certified Financial Education Instructor℠, is a writer for Bankrate who has been reporting on auto loans since 2021.

Edited by Editor, Personal and Auto Loans