Overview of USAA Auto Loans
USAA provides loans to U.S. military members, veterans, and their families for financing:
- New car purchases
- Used car purchases
- Auto refinancing
- Lease buyouts
Key details on USAA auto loans:
- Loan amounts from $5,000 up to $500,000
- Terms from 1 to 7 years (12 to 84 months)
- Fixed APRs starting at 5.69% with autopay discount
- Funding in as little as 1 day
As USAA lending requires membership eligibility, loan terms and pricing tend to beat public bank options. But you must have military affiliations to qualify for an account.
Biggest Pros of USAA Auto Loans
Here are some of the best perks USAA auto financing offers:
0.25% Rate Discount for Autopay
Opting into automated payments from your USAA account scores a 0.25% APR reduction.
Waived Fees Across the Board
$0 charges for application, origination, or prepaying your loan early. Lots of lenders still charge fees.
45 Day Loan Offer Lock Period
Compare rates and shop without worrying rates will change before buying a car.
Deposits Within 1 Business Day
Funds from approved loans deposit incredibly fast, unlike competitors with longer wait times.
Potential Cons to Consider
That said, couple limitations to note as well:
Restricted Membership Eligibility
You or a direct family member must have military ties to establish an account.
No Prequalification Offers
Each application causes a hard credit check due to lack of soft check preapprovals.
Light Details on Refinancing
Very limited public info released on what USAA refi rates or terms entail.
How USAA Compares to Other Top Military Lenders
USAA competes directly with other military-focused banks like Navy Federal Credit Union. How do they stack up?
Compared to Navy Federal:
- Navy Federal offers terms up to 96 months (8 years)
- But USAA provides a 25-50 basis point lower starting APR
Compared to M&T Bank:
- M&T Bank has a lower $2,000 minimum loan amount
- But USAA offers a dedicated service focus on military families
For most service members, USAA strikes the right balance of competitive pricing with specialized member support.
What We Like About USAA Auto Loans
USAA deserves praise for these helpful auto loan features:
Preferred Military Borrower Rates
As a member, you get access to low rates unavailable from public lending sources.
Quick 24/7 Mobile Account Access
Manage your financing fully via USAA’s highly-rated mobile applications.
Smooth Digital Application Process
Moving from preapproval to funding happens almost entirely online start to finish.
Aid With Overseas Military Transfers
Unique support helps those needing to bring vehicles to overseas military bases.
Extended 0% Financing Offers
Periodic promotions let buyers delay interest charges for over a year on purchases.
What We Don’t Like About USAA Auto Loans
Couple aspects that could still use improvement include:
No Phone Number Listed Online
Contacting USAA lending divisions takes some digging compared to other lenders.
Vague On Refinancing Details
Little public info helps borrowers determine if refinancing with USAA makes sense before applying.
USAA’s Auto Loan Eligibility and Qualifications
To qualify for USAA lending products, you must first meet membership requirements, such as by:
- Being an active military member
- Being a veteran who previously served
- Having a parent or spouse that served
Outside of membership, exact approval guidelines are unpublished publicly. But based on customer reports, you typically need:
- FICO credit scores of 670+
- Low debt-to-income ratios
- Steady verifiable income
Strong or average credit is likely required in most cases unless you have premium USAA member longevity.
READ ALSO: Overview of Navy Federal Auto Loans
Types of Auto Loans Offered by USAA
USAA finances the following auto needs for eligible members:
New Car Purchases
- Loan amounts from $5,000 to $500,000
- Terms from 1 year (12 months) up to 7 years (84 months)
Used Car Purchases
- Loan amounts from $5,000 to $500,000
- Terms from 1 year (12 months) up to 7 years (84 months)
Refinancing Existing Auto Loans
- Specific loan amounts, terms, or rates undisclosed
- Must call USAA lending center for information
Financing Lease Buyouts
- Allows keeping your leased car permanently
- Requires phoning USAA representative for further details
So whether purchasing or currently leasing, USAA has flexible financing options to transfer ownership of your vehicle once eligible.
Interest Rates Offered for USAA Auto Loans
As an eligible USAA member, you can secure these low fixed interest rates:
New Cars
- Fixed APRs starting at 5.69% with autopay discount
Used Cars
- Fixed APRs starting at 6.04% with autopay discount
Refinancing Rates
- Minimum or maximum refi rates not publicly disclosed
So while not the rock bottom rates others may advertise, USAA compensates for slightly higher rates by waiving all loan fees.
How to Apply for an Auto Loan with USAA
Below outlines the straightforward process of getting a USAA auto loan:
- Check You Meet USAA Eligibility
- Apply Online Answering Basic Questions
- Enter Key Financial Information
- Accept Instant Digital Loan Decision
- Review Terms & Sign Completed Documents
- USAA Deposits Funds Within 1 Day
You can buy your car anytime during the 45-day rate lock period before approved offers expire.
Fees, Penalties, and Fine Print to Know
Unlike some competitors, USAA does not charge members any recurring loan fees for:
- Loan applications
- Origination or underwriting
- Paying down principal early
But penalties for late payments still apply when due dates get missed, as with any financier. Avoid harming your credit standing by paying late.
Contacting USAA for Support
USAA member service reps are reachable for auto loan support or questions:
Phone Support
- Call 800-531-8722 weekdays 9am – 5pm CT
Online Chat
- Chat with reps weekdays 9am – 5pm CT
Secure Messaging
- Send loan questions or documents 24/7
Phone and chat provide the quickest responses from knowledgeable USAA staff.
To Recap: Who Are USAA Auto Loans Best For?
To summarize, USAA car financing makes the most sense for:
Active Military Service Members
Preferential discounted pricing combined with overseas deployment support.
Veterans and Retired Armed Forces
Maintain financial convenience through USAA with tailored products for veterans.
Military Spouses & Children
Access unique rewards and deals reserved for military family circles only.
Thanks to restricted membership requirements, USAA pricing and servicing outpaces public banks. So when affordable military ties exist, USAA auto loans provide nice value during purchases.
Frequently Asked Questions About USAA Auto Loans
Below find answers to some common questions regarding USAA auto lending products.
What credit score is needed for the best USAA auto loan rates?
While minimums are not publicly disclosed, based on customer data we estimate your FICO credit score needs to sit around 670+ for the lowest published USAA interest rates. The higher, the better.
How fast is funding after an approved USAA auto loan?
Thanks to modern direct deposit capabilities, most approved USAA borrowers see funds in their checking account within 1 business day. Rarely do transfers take longer than 72 hours at most.
Does USAA allow non-military members to qualify for car loans?
Unfortunately no. To open any USAA financial account and access lending options requires you, an immediate family member, or spouse be active/retired military or meet other armed forces eligibility.
Can I buy a car from any dealer with USAA financing?
Yes, approved USAA auto loans place no restrictions around what dealership you make a purchase from. You also can finance a private party sale once the seller provides their bank account information. Just note the 45-day rate lock period.
More About USAA the Company’s History & Mission
Founded nearly a century ago in 1922, USAA stands for United Services Automobile Association. Its home offices now reside in San Antonio, Texas.
True to its origins from a group of 25 army officers unable to secure affordable auto insurance, USAA retains a laser focus on the financial needs of military personnel and their families. Members enjoy access to highly competitive banking, investing, retirement, and of course lending solutions tailored specifically with service members in mind.
Today over 13 million members strong, the USAA team continues expanding ways to support military through all stages — whether active, separated, or retired. Unique products assist PCS relocations, overseas deployments, VA loans, survivor benefits, and much more. So for those who serve, connecting with USAA auto financing checks many boxes.
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