What Chase auto loans are and who offers them
Chase auto loans are car financing products offered by Chase Bank, one of the largest banks in the United States. Chase provides both new and used car loans through its retail banking branches and online platform. The bank works with dealerships across the country, so you may encounter Chase financing as an option when you're shopping for a vehicle.
Chase is a division of JPMorgan Chase & Co., which also owns other financial products you may recognize. When you finance a car through Chase, the bank lends you money to buy the vehicle, and you repay that loan over a set period with interest. The car itself serves as collateral, meaning Chase can repossess it if you stop making payments.
Key Takeaways
- Chase offers auto loans for both new and used vehicles, with terms typically ranging from 24 to 84 months depending on the vehicle age and your creditworthiness.
- Your interest rate depends on your credit score, down payment, loan term, and the vehicle's age — people with higher credit scores generally receive lower rates.
- You can check current Chase auto loan rates online or through a Chase branch without affecting your credit score if you use their rate-checking tool.
- Chase requires comprehensive and collision insurance on financed vehicles, and the bank must be listed as the lienholder on your insurance policy.
- You can make payments online through Chase's website or mobile app, set up automatic payments, or pay at a Chase branch or ATM.
Interest rates and what affects your rate
Chase auto loan rates vary based on several factors specific to your situation and the vehicle you're buying. Your credit score is the biggest factor — borrowers with scores above 750 typically receive the lowest rates, while those with scores below 620 may face higher rates or have difficulty getting approved. The interest rate also depends on how much money you put down, how long you want to take to repay the loan, and whether the car is new or used.
Newer vehicles usually may have access to for lower rates than used ones because they're worth more and depreciate more slowly. A 24-month loan will have a different rate than an 84-month loan on the same vehicle. Chase publishes current rate ranges on its website, but your actual rate won't be set until you complete an process and the bank reviews your full financial picture.
You can check Chase's current rates without submitting a formal process. The bank offers a rate-checking tool that gives you an estimate based on general information about your credit and the vehicle. This type of inquiry doesn't lower your credit score, unlike a hard credit pull that happens during the actual process process.
The process and approval process
You can start a Chase auto loan through several routes: at a Chase branch in person, on Chase's website, or through a dealership that partners with Chase. If you're buying from a dealership, the dealer's finance office often handles the paperwork and submits your information to Chase on your behalf. If you're buying from a private seller or want to shop for rates before visiting a dealership, you can explore directly through Chase.
The process asks for standard financial information: your income, employment history, existing debts, and details about the vehicle you want to finance (the vehicle identification number, or VIN, is required). Chase will pull your credit report as part of the approval decision. Most applications receive a decision within a few business days, though some may take longer if Chase needs additional information from you.
Approval isn't may provide based on income alone. Chase looks at your debt-to-income ratio — how much you already owe compared to what you earn — and your payment history on past loans and credit cards. If you're denied, Chase will provide a reason, and you can ask about reapplying with a co-signer or a larger down payment.
Down payments, loan terms, and monthly payments
Chase doesn't set a minimum down payment, but putting more money down lowers the amount you need to borrow and typically results in a better interest rate. A down payment of 10 to 20 percent is common, though some borrowers put down less and others put down more. The larger your down payment, the lower your monthly payment will be and the less interest you'll pay over the life of the loan.
Loan terms at Chase range from 24 months to 84 months (seven years), depending on the vehicle's age and your credit profile. Shorter terms mean higher monthly payments but less total interest paid. Longer terms spread the cost across more months, lowering your payment but increasing the total interest you pay. For example, a $25,000 loan at 5 percent interest costs less in total interest over 36 months than over 72 months, but your monthly payment is higher.
Your monthly payment is calculated based on the loan amount, interest rate, and term length. Chase provides payment estimates on its website before you explore, so you can see what different scenarios would cost. Once you're approved, your first payment is typically due 30 days after the loan closes.
Insurance requirements and the lien
Chase requires you to carry comprehensive and collision insurance on any vehicle you finance through them. This is different from the liability insurance required by your state — comprehensive and collision cover damage to your own car from accidents, weather, theft, or vandalism. You must maintain this insurance for the entire loan term, and Chase must be listed as the lienholder on your policy.
A lien is a legal claim Chase has on the vehicle until you pay off the loan. The lienholder designation means Chase receives notice if your insurance lapses, and the bank can purchase insurance on your behalf if you let it lapse — a costly option called force-placed insurance. You'll receive the vehicle's title once the loan is fully repaid and the lien is released.
You can choose your own insurance company as long as it meets Chase's coverage requirements. Shop around for rates, as insurance costs vary significantly between providers. Some insurers offer discounts if you bundle auto insurance with home or renters insurance.
Making payments and managing your loan
Chase offers multiple ways to make your monthly payment. You can pay online through your Chase bank account, use the Chase mobile app, set up automatic payments from your checking account, mail a check, or pay in person at a Chase branch or ATM. Automatic payments may support you never miss a due date, and some lenders offer a small interest rate discount if you enroll in autopay.
Your payment is due on the same date each month. If you pay late, Chase will charge a late fee — the amount varies but is typically $25 to $35 for the first late payment. Paying 30 days or more late can damage your credit score and may trigger a call from Chase's collections department. If you're struggling to make a payment, contact Chase before the due date to discuss options.
You can pay off your loan early without penalty at Chase. Paying extra toward principal each month or making a lump-sum payment reduces the total interest you'll pay and shortens the loan term. Some borrowers make biweekly payments instead of monthly payments, which results in one extra payment per year and saves interest over time.
Refinancing and early payoff options
If your credit score improves after you take out a Chase auto loan, you may be able to refinance with a lower interest rate. Refinancing means taking out a new loan to pay off the existing one, ideally at better terms. You can refinance with Chase or shop around at other banks and credit unions. The savings depend on how much lower your new rate is and how much of the original loan remains.
Refinancing makes most sense if you have at least two years of payments remaining and your new rate would be at least 1 to 2 percentage points lower than your current rate. You'll pay closing costs on the new loan, so the interest savings need to outweigh those costs. Use an online calculator to compare scenarios before deciding.
If you want to pay off your loan early without refinancing, contact Chase to request a payoff quote. This shows exactly how much you owe on a specific date, accounting for interest through that date. Once you pay the payoff amount, the lien is released and the vehicle is yours free and clear.
Frequently Asked Questions
What credit score do I need to get a Chase auto loan?
Chase doesn't publish a minimum credit score requirement, but the bank typically works with borrowers across a range of credit profiles. People with scores above 700 have the best chance of approval and the lowest rates. Those with scores below 620 may face higher rates or need a co-signer or larger down payment.
Can I get a Chase auto loan if I'm buying from a private seller instead of a dealership?
Yes. You can explore directly through Chase's website or at a branch. You'll need the vehicle's VIN, a bill of sale or purchase agreement, and proof of insurance. Chase will fund the loan once everything is approved, and you'll receive the funds to complete the purchase.
What happens if I miss a payment on my Chase auto loan?
Chase will charge a late fee and report the missed payment to credit bureaus, which damages your credit score. If you're 30 or more days late, Chase may contact you about the delinquency. If payments remain unpaid for several months, Chase can repossess the vehicle. Contact Chase when ready if you can't make a payment to discuss options.
Does Chase offer special programs for first-time car buyers?
Chase doesn't advertise a dedicated first-time buyer program, but the bank does work with borrowers of all experience levels. Having a co-signer with good credit or putting down a larger down payment can improve your chances of approval if you have limited credit history.
Can I transfer my Chase auto loan to another person?
Chase auto loans are not typically transferable. If you want to remove yourself from the loan, the other person would need to refinance the vehicle in their own name with Chase or another lender. The original loan would be paid off with the new loan proceeds.