What Chase Auto Loans Cover and How They Work
Chase offers auto loans for new and used vehicles through its banking network and online platform. The loan works like most auto loans: Chase lends you money to buy a car, you make monthly payments with interest, and the bank holds the title until you pay off the balance. Chase funds the loan directly to the dealership or, in some cases, to you as the borrower.
Chase auto loans are available to customers who have a Chase checking or savings account, though you do not need to be an existing customer to open one and then explore for the loan. The interest rate you receive depends on your credit score, income, employment history, and the age and value of the vehicle. Rates vary based on loan term (how many months you take to repay) and whether the vehicle is new or used.
One key difference with Chase is that you can manage your loan through Chase's online banking portal or mobile app once it closes. You can make payments, view your loan balance, and see your payment schedule all in one place alongside any other Chase accounts you hold.
Key Takeaways
- Chase auto loans require you to have or open a Chase checking or savings account, and the bank funds the loan directly to the dealership or to you.
- Your interest rate depends on your credit score, income, and the vehicle's age and value, and rates change based on loan term length and whether the car is new or used.
- You can explore online, by phone, or in person at a Chase branch, and the bank typically gives you a rate decision within one business day.
- Chase holds the title to the vehicle until you pay off the loan, and you must maintain comprehensive and collision insurance on the car for the duration of the loan.
- You can pay off the loan early without penalty, and Chase allows you to refinance with them or another lender if rates drop or your credit improves.
how the process works for a Chase Auto Loan
You can start a Chase auto loan through three routes: online at chase.com, by calling Chase Auto Loans at 1-800-935-9935, or in person at a Chase branch. Online is usually fastest if you have your documents ready.
Before you explore, gather your driver's license, Social Security number, proof of income (recent pay stubs or tax returns), proof of residence (utility bill or lease), and details about the vehicle you want to buy—including the vehicle identification number (VIN), mileage, and asking price. If you are buying from a dealership, the dealer can provide the VIN and price. If you are buying from a private seller, you will need to get those details yourself.
During the process, Chase will ask about your employment, monthly income, existing debts, and housing situation. The bank runs a hard credit inquiry, which temporarily lowers your credit score by a few points. Chase typically gives you a rate decision and loan amount within one business day. If approved, you will receive a loan offer showing the interest rate, monthly payment, loan term, and total amount financed.
Interest Rates and Monthly Payments
Chase auto loan rates vary widely based on your credit profile and the loan terms you choose. Borrowers with excellent credit (typically 740 and above) may receive rates in the 4% to 6% range for new cars, while those with fair or good credit may see rates between 6% and 10%. Used car rates are typically higher than new car rates by 1% to 3%. These are general ranges; your actual rate depends on Chase's current pricing and your individual situation.
The loan term you choose—usually 36, 48, 60, 72, or 84 months—affects both your monthly payment and total interest paid. A shorter term (36 or 48 months) means higher monthly payments but less interest overall. A longer term (72 or 84 months) spreads payments out, lowering the monthly amount but increasing the total interest you pay over the life of the loan.
You can use Chase's online calculator to estimate your monthly payment before you explore. Enter the vehicle price, your down payment, the loan term, and an estimated interest rate to see what your payment might be. Keep in mind this is an estimate; your actual rate and payment depend on Chase's approval decision.
Down Payment, Insurance, and Loan Closing
Chase does not require a minimum down payment, but putting money down lowers the amount you need to borrow and reduces your monthly payment. Most borrowers put down between 10% and 20% of the vehicle's price. If you put down less than 20%, Chase may require you to purchase gap insurance, which covers the difference between what you owe on the loan and the car's actual value if the vehicle is totaled.
You must maintain comprehensive and collision insurance on the vehicle for the entire loan term. Chase requires proof of insurance before funding the loan. Your insurance company will list Chase as the lienholder (the bank that holds the title), which is standard practice. You pay your insurance premium directly to your insurance company, not to Chase.
Once your loan is approved and you have provided proof of insurance, Chase funds the loan. If you are buying from a dealership, Chase sends the money directly to the dealer, and you sign the final paperwork at the dealership. If you are buying from a private seller, Chase may send you a check or wire the funds to your bank account, depending on the situation. You then have a set number of days (usually 10 to 14) to complete the purchase and provide Chase with proof of title transfer.
Making Payments and Managing Your Loan
Your first payment is typically due 30 days after the loan closes. You can set up automatic payments from your Chase checking account or another bank account through Chase's online portal. Automatic payments may support you never miss a due date and often may have access to you for a small interest rate discount (usually 0.25%).
You can also make one-time payments online, by phone, or by mail. If you pay more than your scheduled monthly payment, the extra amount goes toward the principal (the amount you borrowed), which reduces the total interest you pay and shortens the loan term. Chase does not charge a prepayment penalty, so you can pay off the loan early without extra fees.
Your loan account is visible in your Chase online banking dashboard. You can view your current balance, remaining payment schedule, interest paid to date, and next payment due date. If you have questions about your loan, you can contact Chase Auto Loans by phone or through the find message center in your online account.
Refinancing and Early Payoff Options
If your credit score improves or interest rates drop, you can refinance your auto loan with Chase or another lender. Refinancing means taking out a new loan to pay off the existing one, ideally at a lower interest rate. This reduces your monthly payment or shortens your loan term. Chase allows you to refinance with them as soon as your current loan is a few months old, though some lenders have longer waiting periods.
To refinance with Chase, you explore through the same process as a new auto loan. Chase evaluates your current credit and income and offers you a new rate. If the new rate is lower than your current rate, refinancing saves you money. If rates have risen or your credit has declined, refinancing may not make sense.
You can also refinance with a different lender—a credit union, another bank, or an online lender—if they offer better terms. When you refinance elsewhere, the new lender pays off your Chase loan in full, and you begin making payments to the new lender instead. There is no penalty for paying off a Chase auto loan early, whether you do so through refinancing or by paying extra each month.
What Happens If You Miss a Payment
If your payment is late by 10 days or more, Chase reports it to the credit bureaus, which damages your credit score. A single late payment can lower your score by 50 to 100 points. Chase may also charge a late fee, typically $25 to $35 depending on your loan agreement.
If you miss a payment, contact Chase when ready. Explain your situation and ask about options. Chase may allow you to defer a payment (skip one month and add it to the end of the loan) or modify your payment schedule temporarily. The sooner you reach out, the more options you may have.
If payments remain unpaid for 120 days or more, Chase can repossess the vehicle. Once repossessed, the car is sold at auction, and you are responsible for any difference between the sale price and what you still owe on the loan (called a deficiency). Repossession severely damages your credit and can take years to recover from. If you are struggling to make payments, contact Chase before you fall behind.
Frequently Asked Questions
Can I get a Chase auto loan if I have bad credit?
Chase typically works with borrowers who have fair credit or better (usually 620 and above), though approval is not may provide at lower scores. If your credit is below 620, you may be denied or offered a very high interest rate. Consider improving your credit score before explore, or explore credit unions or specialized lenders that work with lower credit scores.
Do I need to be a Chase customer to get an auto loan?
You do not need to be an existing Chase customer, but you must open a Chase checking or savings account to complete the loan process. Opening an account is free and takes a few minutes online or at a branch. Once the account is open, you can explore for the auto loan.
What is the longest loan term Chase offers?
Chase typically offers auto loan terms up to 84 months (seven years) for new vehicles and up to 72 months for used vehicles. Longer terms lower your monthly payment but increase the total interest paid. A 72-month loan on a used car, for example, may cost thousands more in interest than a 48-month loan at the same rate.
Can I add a co-signer to my Chase auto loan?
Yes, Chase allows co-signers on auto loans. A co-signer is someone (usually a family member or friend with good credit) who agrees to repay the loan if you cannot. Adding a co-signer with strong credit can help you get approved or receive a lower interest rate. Both you and the co-signer are legally responsible for the full loan amount.
What happens to my loan if I sell the car before it is paid off?
If you sell the car while you still owe money on the loan, the buyer must pay off the loan balance in full at closing. You cannot transfer the title to the new owner until Chase releases its lien (ownership claim). Work with your buyer and Chase to arrange a payoff at a title company or bank, where the sale proceeds go directly to Chase to satisfy the loan.