What Wells Fargo auto loans cover and how they work
Wells Fargo offers auto loans for new and used vehicles through its auto finance division. You borrow a set amount, make monthly payments over a term (typically 36 to 84 months), and the vehicle serves as collateral. Wells Fargo funds the loan directly to the dealer or seller, not to you.
The bank sets your interest rate based on your credit score, income, employment history, and the vehicle's age and value. A stronger credit profile typically means a lower rate. Wells Fargo also requires a down payment, though the amount varies by your creditworthiness and the vehicle price.
Once approved, you own the vehicle when ready but cannot sell it or refinance it elsewhere until the loan is paid off, because Wells Fargo holds the title as security. You must carry comprehensive and collision insurance on the vehicle for the life of the loan.
Key Takeaways
- Wells Fargo auto loans are available for new and used vehicles, with terms ranging from 36 to 84 months depending on the vehicle and your situation.
- Your interest rate depends on your credit score, income, and employment history, so rates vary widely from person to person.
- You will need a down payment, proof of income, a valid driver's license, and proof of insurance before the loan closes.
- Wells Fargo holds the vehicle title until you pay off the loan, and you cannot refinance or sell the vehicle without their permission.
- Monthly payments can be made online, by phone, by mail, or through automatic bank transfer from a Wells Fargo or non-Wells Fargo account.
How to get a Wells Fargo auto loan
You can start the process online at wellsfargo.com/auto, by phone at 1-800-869-3557, or in person at a Wells Fargo branch. Online is fastest if you already know which vehicle you want to buy. You will need your Social Security number, driver's license, proof of income (recent pay stubs or tax returns), and employment information.
Wells Fargo will run a hard credit inquiry, which temporarily lowers your credit score by a few points. This inquiry stays on your report for about two years but stops affecting your score after roughly three months. If you are shopping around with multiple lenders, do all your applications within 14 days so the inquiries count as a single search.
Once you are pre-approved, you have a rate quote and loan amount. You can then shop for a vehicle within that budget. When you find one, the dealer or private seller provides the vehicle details to Wells Fargo, and the bank finalizes the loan. The entire process from process to funding typically takes three to five business days if all documents are in order.
What documents you need before explore
Gather these items before you start: a valid government-issued photo ID (driver's license or passport), your Social Security number, recent pay stubs (usually the last two months) or tax returns if self-employed, and your employment information including employer name and phone number. If you are currently unemployed or recently changed jobs, have an explanation ready.
You will also need proof of residence, such as a utility bill or lease agreement dated within the last 60 days. If you are buying from a dealer, they handle most of the paperwork. If you are buying from a private seller, you will need the vehicle's title, registration, and a bill of sale.
Have your insurance information ready before closing. Wells Fargo requires proof that you have comprehensive and collision coverage in place before they fund the loan. If you do not yet have insurance, contact an agent and get a quote or binder before your loan closing date.
Interest rates and how they are set
Wells Fargo does not publish a single interest rate for auto loans. Instead, rates vary based on your credit score, the vehicle's age, the loan term you choose, and current market conditions. A borrower with a credit score above 750 might receive a rate around 4% to 6%, while someone with a score between 650 and 700 might see 8% to 12%. These are examples only; your actual rate depends on Wells Fargo's current pricing.
Longer loan terms (60 to 84 months) typically carry higher rates than shorter terms (36 to 48 months) because the bank takes on more risk over time. Used vehicles also usually have higher rates than new ones. You can ask Wells Fargo for your rate before committing, and you have the right to shop with other lenders if the rate does not meet your needs.
Your rate is locked in once you sign the loan agreement. If you refinance later with a different lender, you may be able to find a lower rate if your credit has improved or market rates have dropped, but Wells Fargo's original rate does not change.
Making payments and managing your loan online
Wells Fargo offers several ways to pay: online through your Wells Fargo account, by phone at 1-800-869-3557, by mail to the address on your statement, or through automatic monthly transfers from any bank account. Setting up automatic payments ensures you never miss a due date and can lower your interest rate slightly on some loans.
Log into your Wells Fargo account to view your loan balance, remaining term, next payment due date, and payoff amount. You can make extra payments toward principal at any time without penalty. Paying extra reduces the total interest you pay and shortens the loan term.
If you fall behind on payments, contact Wells Fargo when ready. Missing one payment triggers a late fee and may damage your credit. Missing multiple payments can lead to vehicle repossession. Wells Fargo may offer a deferment (skipping a payment) or loan modification if you are experiencing hardship, but you must ask before you miss a payment.
Refinancing or paying off your Wells Fargo auto loan early
You can pay off your loan at any time without penalty. Contact Wells Fargo for a payoff quote, which includes the remaining balance plus any accrued interest through your payoff date. Paying in full ends the loan and releases the title to you.
Refinancing means taking out a new loan with a different lender to pay off the Wells Fargo loan. This makes sense if your credit score has improved significantly and you can find a lower rate elsewhere, or if market rates have dropped. You will need to go through the process process with the new lender, and they will pay off Wells Fargo directly. The new lender then holds the title until their loan is paid off.
Wells Fargo does not refinance its own loans, so if you want a lower rate, you must refinance with another bank or credit union. Compare offers from at least two or three lenders before deciding, because refinancing involves a new credit inquiry and closing costs that may offset the savings from a lower rate.
What happens if you want to sell or trade in the vehicle
If you want to sell the vehicle before the loan is paid off, you must pay off the loan first. Get a payoff quote from Wells Fargo, which tells you exactly how much you owe on a specific date. When you sell the vehicle, use the sale proceeds to pay Wells Fargo, and they will release the title to the buyer.
If the sale price is less than what you owe, you are "upside down" on the loan and must pay the difference out of pocket. For example, if you owe $15,000 but the vehicle sells for $12,000, you owe Wells Fargo $3,000. If the sale price is more than you owe, you keep the difference.
Trading in at a dealership is simpler. The dealer handles the payoff with Wells Fargo and applies the trade-in value toward your new vehicle purchase. If you are upside down, the dealer may roll the negative equity into your new loan, meaning you will owe more on the new vehicle than it is worth.
Frequently Asked Questions
Can I get a Wells Fargo auto loan with bad credit?
Wells Fargo considers borrowers with credit scores as low as 600, though rates will be higher and you may need a larger down payment. Some credit unions and online lenders specialize in bad-credit auto loans and may offer better terms. Compare offers from multiple lenders before choosing.
What is the difference between pre-approval and final approval?
Pre-approval is a rate quote based on your credit and income, valid for a set period (usually 30 days). Final approval happens after you choose a specific vehicle and Wells Fargo verifies the vehicle details. Final approval locks in your rate and loan amount.
Do I have to use Wells Fargo insurance, or can I use any insurance company?
You can use any insurance company, as long as the policy meets Wells Fargo's requirements: comprehensive and collision coverage with Wells Fargo listed as the lienholder. Shop around for the best rate; Wells Fargo does not require you to buy from them.
What happens if I miss a payment?
A missed payment triggers a late fee and is reported to credit bureaus, damaging your credit score. After 120 days of missed payments, Wells Fargo can repossess the vehicle. Contact them when ready if you cannot pay; they may offer a deferment or modification to help you catch up.
Can I pay off my loan early without a penalty?
Yes. Wells Fargo auto loans have no prepayment penalty, so you can pay extra toward principal or pay off the entire loan at any time. Paying early saves you interest and shortens your loan term.