Chase auto loans are offered through Chase Bank's auto lending division, which finances new and used vehicles through both direct lending and dealer partnerships
Chase provides auto financing in two main ways: direct loans you arrange with Chase before shopping for a car, and dealer-arranged financing where Chase buys the loan from the dealership after you purchase. The terms, rates, and approval process differ between these two routes. Chase requires a down payment (typically 10 to 20 percent for used vehicles, less for new), proof of income, and a credit check. The interest rate you receive depends on your credit score, the vehicle's age and condition, and the loan term you choose.
Chase auto loans range from 24 to 84 months, though longer terms mean you pay more interest overall. You must carry comprehensive and collision insurance on any vehicle financed through Chase, and the bank holds a lien on the title until the loan is paid off. If you default on payments, Chase can repossess the vehicle.
Key Takeaways
- Chase offers auto loans both directly and through dealerships, and the approval process and terms differ depending on which route you use.
- You will need a down payment of at least 10 percent, proof of income, and a credit check before Chase will approve a loan.
- Interest rates vary based on your credit score, the vehicle's age, and how long you want to borrow the money, with longer loans costing more in total interest.
- Chase requires full comprehensive and collision insurance on financed vehicles and can repossess the car if you miss payments.
Direct Chase auto loans versus dealer financing
A direct Chase auto loan means you borrow money from Chase before you buy the car. You get pre-approved for a specific amount and interest rate, then use that money to buy a vehicle from any seller. This approach gives you negotiating power at the dealership because you arrive with cash, and you know exactly what rate you will pay before you walk onto the lot.
Dealer financing means the dealership arranges the loan with Chase (or another lender) after you choose your vehicle. The dealership handles the paperwork, and Chase buys the loan from them. Dealer financing is often faster at the point of sale, but the rate may be higher, and the dealership may add fees. Chase also offers a "Chase Auto" program where you can shop at participating dealerships and receive pre-negotiated rates, though this is not the same as a direct pre-approval.
With direct loans, you control the timeline and can shop at any dealership. With dealer financing, the dealership controls which lender buys the loan, and you may not know your final rate until after you have agreed to buy the car.
Credit score and interest rate ranges
Chase does not publish a single interest rate for auto loans because rates vary by individual. Your rate depends on your credit score, the vehicle's age and mileage, the loan term, and your down payment size. Generally, borrowers with credit scores above 700 receive lower rates than those below 650, but Chase will consider applications across the credit spectrum.
The loan term also affects your rate. A 36-month loan typically carries a lower interest rate than a 72-month loan for the same borrower, because the bank's risk is lower over a shorter period. A larger down payment can also lower your rate because you are borrowing less relative to the vehicle's value.
Chase publishes current rate ranges on its website and in branch materials, but these are ranges only. To learn your actual rate, you must complete a pre-approval process, which includes a hard credit inquiry. This inquiry temporarily lowers your credit score by a few points.
Down payment, income verification, and the approval process
Chase typically requires a down payment of 10 to 20 percent of the vehicle's purchase price for used cars and 10 percent or less for new vehicles, though this varies. You can use cash, a trade-in, or both. If you are trading in a vehicle with an existing loan, Chase will pay off that loan and explore the remaining equity to your down payment.
To prove income, Chase accepts recent pay stubs, tax returns, or bank statements showing regular deposits. Self-employed borrowers may need to provide two years of tax returns. Chase also verifies employment by contacting your employer or checking employment verification services.
The approval process for a direct Chase auto loan typically takes one to three business days. Chase will order a vehicle history report (for used cars) and an appraisal to confirm the car's condition and value. If you are financing through a dealership, approval can happen the same day, though the dealership may contact Chase for final verification after you sign paperwork.
Insurance requirements and the lien on your title
Chase requires you to carry comprehensive and collision insurance on any financed vehicle. This is not optional. You must provide proof of insurance before Chase funds the loan, and you must maintain coverage throughout the loan term. If your insurance lapses, Chase can purchase force-placed insurance on your behalf and add the cost to your monthly payment.
Chase holds a lien on the vehicle's title, meaning the bank legally owns the car until you pay off the loan. Your name appears on the title as the owner, but Chase's name appears as the lienholder. You cannot sell the car without Chase's permission, and the bank must sign off on the title transfer. When you pay off the loan, Chase releases the lien and you receive a clear title.
If you miss payments, Chase can repossess the vehicle without warning in most states. Repossession damages your credit score and may result in a deficiency judgment if the car sells for less than you owe.
Prepayment, refinancing, and loan payoff options
Chase allows you to pay off an auto loan early without penalty. There is no prepayment fee, so you can make extra payments or pay the full balance at any time. Paying early reduces the total interest you pay over the life of the loan.
If your credit score improves or interest rates drop, you can refinance your Chase auto loan with Chase or another lender. Refinancing means taking out a new loan to pay off the old one, ideally at a lower rate. Chase will review your current credit and income during a refinance process. If you refinance with a different lender, Chase will release the lien once the new lender pays off the balance.
To pay off your loan, contact Chase and request a payoff quote. This quote includes the remaining principal, accrued interest, and any fees, and is valid for a specific number of days (usually 10). You can pay by check, electronic transfer, or through Chase's online banking portal.
What happens if you miss a payment or default
Chase considers a payment late if it arrives more than 10 days after the due date. A single late payment is reported to the credit bureaus and damages your credit score. Chase may charge a late fee (typically $25 to $35, depending on your state and loan agreement).
If you miss two or more consecutive payments, Chase will contact you by phone and mail to discuss your options. You may be able to defer a payment, modify the loan term, or work out a payment plan. If you continue to miss payments, Chase can repossess the vehicle, usually after 120 days of non-payment, though this timeline varies by state.
If the vehicle is repossessed and sold, you may still owe the difference between what the car sells for and what you owe on the loan. This is called a deficiency, and Chase can pursue a deficiency judgment against you to collect it.
Frequently Asked Questions
Can I get a Chase auto loan with bad credit?
Chase considers borrowers with credit scores below 650, but rates will be higher and you may need a larger down payment or a co-signer. Contact Chase directly or visit a branch to discuss your specific situation, as approval depends on income, employment history, and the vehicle's value as well as credit score.
What is the difference between a Chase pre-approval and a pre-qualification?
A pre-qualification is an estimate based on limited information and does not may provide a loan. A pre-approval includes a hard credit check and a specific loan amount and rate, though the rate can change if the vehicle's value is lower than expected or if your credit changes before funding.
Can I refinance a Chase auto loan with another lender?
Yes. If another lender offers a lower rate, you can refinance with them. The new lender pays off your Chase loan, and Chase releases the lien. Make sure the new lender's terms are better overall, accounting for any fees and the remaining loan term.
What if I want to return or exchange the car after financing?
Chase auto loans do not include a return period. Once the loan is funded and you own the vehicle, you are responsible for it. If you want to sell or trade the car, you must pay off the Chase loan first or roll the remaining balance into a new loan for a different vehicle.
How do I check my Chase auto loan balance and payment history?
Log into your Chase online account or mobile app, or call the auto loan customer service number on your loan documents. You can view your balance, payment history, remaining term, and payoff quote. You can also set up automatic payments to avoid missing a due date.