Carputty: 2023 auto loan review

Carputty auto loans are best for frequent buyers 

Unlike traditional auto loan lenders, Carputty has a tool available to borrowers that allows you 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 set of wheels frequently. Along with this, the line of credit approach encourages borrowers to manage multiple cars all on one payment.

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. 

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 and two-plus years of strong credit history. 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, AR, AZ, CO, CT, DC, FL, GA, HI, IA, ID, IL, KS, KY, MA, MD, ME, MI, MN, MO, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, SC, SD, TN, TX, VA, 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.
• 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 versus 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 versus PenFed

Credit union PenFed boasts a lower APR 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. 

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 $200,000 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 APR. Carputty’s website doesn’t reveal a range of potential rates to customers. You’ll have to apply for preapproval to learn available rates.
• Confusing repayment terms. Your balance has a 36-month repayment terms, but there are options to extend it by a set amount or repay it early.
• Vehicle restrictions. Financed cars must have less than 85,000 miles and not be older than 8 years from the date you request the Advance to purchase it. 

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 $200,000. 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 36-month term. At month 20, you have the option to continue your current repayment schedule, refinance for a further 24 months (extending the total repayment term) or pay off the loan early.

New and used auto loans  

• Amounts: $10,000-$150,000/car
• Terms: See above
• APR: Not specified

The high maximum loan amount 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: Not specified

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: Not specified

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

How to apply for a loan with Carputty 

You can apply for an auto loan directly on the Carputty site with approval likely in minutes. Through only one application you will be provided access to a flexible line of credit that can be used at any point. 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 into the Carputty dashboard.

Features and additional perks

The V3 valuation tool pioneered by Carputty helps to predict when the best time to buy or sell your vehicle is, 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 enforces a 1 percent charge 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

Methodology

Bankrate considers 18 data points when selecting top auto loans. Acceptance criteria, whether rates and fees are available and APR range all influence lender scores. These scores are broken up into four categories.

• Availability: Loan amounts, repayment options, dealership requirements and state availability all contribute to this category.
• Affordability: This section houses APR ranges, acceptance criteria, fees and discounts. 
• Customer experience: How long you have to shop, customer service availability, whether there’s an app and autopay availability are accounted for in this section.
• Transparency: This category accounts for the availability of fees and rates along with whether prequalification is available.

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.