What Fifth Third Bank offers for auto loans
Fifth Third Bank is a regional bank headquartered in Cincinnati, Ohio, that offers auto loans to people buying new or used vehicles. You can borrow money through Fifth Third to purchase a car, truck, or motorcycle, and repay it over a set period with interest. The bank serves customers in the Midwest and Southeast, though you may be able to open an account online from other states depending on the product.
Fifth Third auto loans come in two main forms: loans you get before you shop (called preapproval), and loans you arrange at the dealership after you have chosen a vehicle. The terms — how much you borrow, how long you have to repay it, and what interest rate you pay — depend on your credit history, income, and the vehicle itself.
Key Takeaways
- Fifth Third offers both preapproved auto loans and loans arranged at the dealership, each with different timelines and requirements.
- Your interest rate depends mainly on your credit score, so checking your credit before you explore helps you understand what rate to expect.
- You can preapprove online or at a Fifth Third branch, and preapproval does not lock you into using that loan if you find better terms elsewhere.
- Fifth Third requires a down payment, proof of income, and a valid driver's license, though exact amounts vary based on the vehicle and your credit.
How to get preapproved for a Fifth Third auto loan
Preapproval means Fifth Third has reviewed your financial information and told you how much they will lend you and at what rate, before you pick out a car. You can start the preapproval process online at fifththird.com or by visiting a Fifth Third branch in person. Online, you will enter your personal information, income, and employment details, and the bank will pull your credit report.
The preapproval decision usually comes back within one business day. Fifth Third will give you a preapproval letter showing the loan amount, interest rate, and how long you have to use it — typically 30 to 60 days. This letter is not a binding contract; you can shop around, and if another lender offers better terms, you are free to use their loan instead.
Preapproval is useful because it tells you your budget before you walk into a dealership, and it shows the dealer that you are a serious buyer. However, the final loan terms may change slightly when you actually buy the car, because the bank will verify your employment and income again, and the specific vehicle affects the loan amount and terms.
Getting a loan at the dealership
If you do not preapprove, you can still arrange financing through Fifth Third at the dealership after you choose your vehicle. The dealer's finance manager will contact Fifth Third (or other lenders) on your behalf and present you with loan offers. This route takes longer — usually one to three hours at the dealership — because the lender needs to verify all your information and assess the specific car you are buying.
Dealership financing can sometimes offer different terms than preapproval because the dealer has more information about the vehicle's condition and value. However, you have less control over the process, and you may not see all the loan options available to you. If the dealer's offer seems high, you can ask to see the terms in writing and take time to review them before signing.
What Fifth Third needs from you to approve a loan
Fifth Third requires several documents and pieces of information before they will approve an auto loan. You will need a valid driver's license, proof of income (usually a recent pay stub or tax return), and proof of residence (a utility bill or lease agreement). If you are self-employed, Fifth Third typically asks for two years of tax returns.
You will also need to provide details about the vehicle — the make, model, year, and vehicle identification number (VIN) — so the bank can assess its value. Fifth Third uses this to decide how much of the purchase price they will finance. Most lenders, including Fifth Third, require a down payment; the amount varies but is often 10 to 20 percent of the vehicle's price, though it can be lower depending on your credit and the car's condition.
Your credit score is the single biggest factor in your interest rate. If your score is higher, you will typically receive a lower rate. Fifth Third will pull your credit report as part of the approval process, and this pull shows up on your credit report for a short time but does not significantly harm your score.
Interest rates and loan terms
Fifth Third's auto loan interest rates vary based on your credit score, the loan term (how many months you have to repay), and current market conditions. The bank does not publish a single rate; instead, rates are quoted individually after your process. Rates change frequently, so the best way to know what Fifth Third would offer you is to request a preapproval or call a branch.
Loan terms typically range from 36 to 84 months (3 to 7 years). A shorter term means higher monthly payments but less interest paid overall. A longer term spreads payments out but costs more in total interest. Fifth Third allows you to pay off the loan early without penalty, so if your financial situation improves, you can pay it down faster.
What happens after you are approved
Once Fifth Third approves your loan, you will sign the loan agreement, which spells out the monthly payment amount, interest rate, loan term, and any fees. You will also need to provide proof of auto insurance before the bank releases the money to the dealer or seller. Fifth Third requires this because the vehicle serves as collateral for the loan, and the bank needs to know it is protected.
The bank will then send the loan funds to the dealer or seller, and you will receive the vehicle. Your monthly payments begin on the date specified in your loan agreement, usually 30 days after the loan closes. You can set up automatic payments from your bank account, which many borrowers do to avoid missing a payment.
Alternatives if Fifth Third is not a fit
Fifth Third operates primarily in the Midwest and Southeast, so if you live outside those regions, you may have limited access to their products. Even if you are in their service area, other lenders — credit unions, online lenders, and other banks — may offer lower rates or more flexible terms. It is worth getting preapproval from at least one other lender to compare.
Credit unions often offer lower rates than banks, especially if you are a member. Online lenders like LendingClub, Upstart, and Lightstream serve borrowers nationwide and may approve people with lower credit scores. Your own bank may also offer auto loans. Comparing at least two or three offers before you commit helps you understand the market and make sure you are getting reasonable terms.
Frequently Asked Questions
Can I use a Fifth Third auto loan to buy a used car?
Yes. Fifth Third finances both new and used vehicles. For used cars, the vehicle typically must be no more than 10 years old, though this can vary. The older the car, the lower the loan amount Fifth Third may offer relative to its price, because older vehicles are worth less and carry more risk of breakdown.
What if my credit score is low?
Fifth Third may still approve you, but your interest rate will be higher. If your score is very low, you might not be approved at all. In that case, a credit union or a lender that specializes in bad-credit auto loans may be an option, though their rates will also be high. Building your credit before you buy can save you thousands in interest.
Can I refinance my Fifth Third auto loan later?
Yes. If your credit improves or interest rates drop, you can refinance with Fifth Third or another lender. Refinancing means taking out a new loan to pay off the old one, ideally at a lower rate. There may be fees involved, so compare the savings against the cost before you refinance.
What is the down payment requirement?
Fifth Third typically requires 10 to 20 percent of the vehicle's purchase price as a down payment, though the exact amount depends on your credit score and the vehicle. A larger down payment lowers your monthly payment and the total interest you pay. You can ask Fifth Third what down payment they require for your specific situation.
How long does the preapproval process take?
Online preapproval usually takes one business day. If you explore in person at a branch, you may get a decision the same day. The preapproval is typically good for 30 to 60 days, so you have that window to find and purchase a vehicle before you need to reapply.