Auto Loan

Millions of people applied for auto loans through Ally in 2021. Should you?

Millions of people applied for auto loans through Ally in 2021. Should you?

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Ally auto loans are having a record year. Should you consider them for your next car loan?

This year is full of financial surprises. For example, the exceptionally warm housing market shows little sign of cooling. And as the global pandemic continues to rage, there is a shortage of new and used cars caused by a shortage of microchips.

Despite the mini financial shockwaves, Ally Auto Loans is having a banner year, making decisions on nearly 7 million loan applications based on their earnings reports. Midway through the year, Ally reported over $4 billion in adjusted net revenue. Ally has long been known for its personal loans, but strong demand for new vehicles has put its auto loans in the spotlight.

What is driving Ally’s business surge and should you consider applying for a car loan from the growing company? Here we take a look at the good, bad, and ugly features of Ally’s auto loans.


One of the ways Ally has grown so quickly is by using artificial intelligence software to verify documents and borrower data in real time. This software allows Ally to confirm an applicant’s identity, employment, income and other details in no time – and it allows the lender to quickly notify applicants of the decision.

Ally offers fixed rate auto loans from $1,000 to $300,000, with terms from 12 to 84 months. Although Ally does not commit to a specific minimum credit score, anecdotes indicate that a minimum score of 620 is generally required.

Here are the most attractive loan features offered by Ally:

  • Borrowers can build the cost of wheelchair lifts and other mobility aids into their new vehicle.
  • The company funds the cost of installing the right-hand drive capability.
  • It is possible to get an interest free loan on 0% APR promotions from manufacturers due to the number of car manufacturers that Ally works with.
  • Ally will refinance the loan on the vehicles for up to 10 years.

The bad

Few companies are all good or all bad, and Ally is no exception. Here are some of the less attractive features of Ally auto loans:

  • Ally car loans are only available at specific dealerships.
  • Ally is an online bank, so it does not offer in-person banking services. This may not bother everyone, but it’s a key consideration for those who prefer personalized service.
  • Ally Auto Loans cannot be used to pay for vehicles over 10 years old or with over 120,000 miles on the odometer.
  • It’s hard to pay off an Ally car loan early because the lender doesn’t accept principal-only payments.
  • For those looking for a car loan for low credit, other lenders may offer more competitive rates.

The ugly one

While reviews should be taken with a grain of salt (usually the most unhappy customers take the time to write reviews), online reviews for Ally auto loans are pretty harsh. The largest number of complaints relate to customer service. In addition to unwarranted late fees and payment confusion, poor communication from Ally customer service is a frequent topic of discussion.

Nonetheless, when evaluating a store for an auto loan, keep Ally in mind. Their loan flexibility and ease of application may be right for you.

Apply for Ally Auto Finance

If you’re used to calling your local bank for a car loan or checking online for the lender with the lowest rates, applying for a loan through Ally will be a little different. Here’s how it’s done:

  • Apply to several lenders to compare offers and choose the best option.
  • Use Ally’s dealer finder to find a dealer.
  • Gather the documents you’ll need to apply, including photo ID, proof of income, and banking information.
  • Visit a dealership and, if you find a car you like, take it for a test drive.
  • Fill out a credit application at the dealership and let them research lenders as well. Let them know you’d like to see Ally’s offer.
  • Compare Ally’s offer to the offer you received before you bought your car. If it’s better, it may be the best choice for you.

No lender offers a single loan product. An Ally auto loan is worth considering if the interest rate and term of the loan matches your needs.

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