Carputty: 2023 auto loan review

Carputty pros and cons

Do you qualify? 

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

• Residency. You must be a resident of the following states: AK, AR, AZ, CO, CT, DC, FL, GA, IA, IL, KY, MA, ME, MI, MN, MO, NC, NE, NH, NJ, NM, NY, OH, OK, OR, PA, SC, TN, TX, UT, VA or WI.
• 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.

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 before signing off on your loan.

What we don't like

• High minimum APR. A starting APR of 7.14 percent is a bit steep. Those with excellent credit may find lower rates elsewhere.
• 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 — none of which are spelled out on Carputty’s website.

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 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.

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. 

New and used auto loans

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

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

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.

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.