Ally Bank Auto Loan Review for 2020

If you’re looking for an auto loan with flexibility and easy repayment options, you’ll want to consider a loan through Ally Bank. These car loans are versatile, covering accessible vehicles and commercial vehicles that many other lenders avoid. Plus, with five different payment methods and a free app to help you manage your loan, Ally Bank auto loans are designed with your convenience in mind.


Ally Bank offers many different services, including credit cards, home mortgages, and auto loans. In fact, Ally Bank has offered auto loans since 1919, and serves over 18,000 dealerships and four million customers throughout the United States.

Car loans through Ally Bank come with a number of benefits, including the option to sell back your vehicle to the bank and a balloon payment option for lower monthly payments. You can only get these loans by buying from a dealership that partners with Ally, so while there’s some limitation, these loans may still be a good fit for you.

Car Loan Application Requirements

You’ll need to apply for an Ally Bank car loan through the dealership where you’ll be buying your car. To streamline the process, make sure that you have all of the standard documents and information that auto loans require:

  • Personal information, like your mailing address, email address, and Social Security number
  • Income information, including your annual gross income and contact information for your current employer

The dealership will also need to supply information about the vehicle you’re buying, but you should decide how much you’ll want to finance and what monthly payments you can afford.

If you’re just starting the car shopping process and haven’t found a vehicle that you want to buy, Ally’s monthly car payment calculator can help. This calculator allows you to change the finance amount, APR, and loan term to see what your monthly payments will be like in different situations. This can help to give you a sense of what size and type of loan fits into your monthly budget. Then, you can focus your vehicle search on cars that you can afford.

Types of Auto Loans Available Through Ally Bank

Ally Bank offers a wide range of auto financing options:

  • New- and used-car loans for vehicles purchased through a dealership
  • Lease options with shortened financing terms
  • Specialty-vehicle financing for vehicles with accessibility features like wheelchair lifts
  • Business vehicle financing, including heavy-duty truck financing

If you’re looking to buy a vehicle, Ally Bank offers loans for new, used, and certified pre-owned cars. Vehicles must have 120,000 miles or less and be up to 10 years old.

How to Make Your Payments

Ally Bank offers many different ways for you to make your loan payments for your convenience:

  • Use Ally Auto Mobile Pay, available for iPhone and Android, to schedule payments.
  • Set up one-time or automatic recurring payments online.
  • Mail a payment by check to Ally’s processing center.
  • Make a one-time online payment with a credit card.
  • Call 1-888-925-2559 and make a payment over the phone. (A convenience fee applies.)

Fees and Rates

Ally Bank only offers loans through dealerships, so you’ll need to apply through a dealership to get information on interest rates. Ally Bank offers competitive interest rates, but keep in mind that your credit rating and the amount of money that you put down will affect both your interest rates and your monthly payments.

If you want to pay down your loan early, Ally Bank doesn’t accept principal-only payments. This means that any extra money you pay toward your loan won’t be used to bring down the principal balance. Instead, these funds will go toward fees or finance charges.

Once those fees and charges are fully paid, the extra money will be applied toward your future loan payments. This type of repayment method can slow you down if you’re trying to pay off your loan quickly, since your extra payments aren’t going directly to your balance.

Ally Bank Auto Loan Application Process

You can’t apply for a loan directly with Ally Bank, and instead need to apply through a dealership that the bank partners with. Once you apply through the dealership, you’ll receive information about interest rates and loan terms.

A dealership can help you to access several different types of auto loans, both through Ally Bank and through other providers. This is ideal because it allows you to quickly compare interest rates and loan terms to find the loan that’s best for your needs.

Special Features

Ally Bank auto loans come with a few special features that make them appealing options. With Ally Balloon Advantage, you’ll enjoy a fixed annual percentage rate, or APR. Here’s what you can expect:

  • You’ll have lower monthly payments during the term of your loan. The last payment, the “balloon payment,” will be larger.
  • The fixed APR lasts for the entire term of your 48- or 60-month loan.
  • You’ll own your vehicle, so you don’t have to worry about penalties for excess mileage or wear.

Ally Balloon Advantage isn’t available in Maryland, Nevada, New Hampshire, North Carolina, or Pennsylvania.

Ally also offers a Buyer’s Choice program which may be ideal if you anticipate wanting to sell your car in a few years. With the program, you’ll have the option of selling your car to Ally either 48 or 60 months into your loan term.

You can choose to keep your car and continue on with your loan payments, or you can sell your car without the hassle of dealing with a private sale. This program is available in all states except Nevada.

Bottom Line

An auto loan from Ally Bank might be a good fit for you if you:

  • Want to buy a car with less than 120,000 miles and that’s younger than 10 years
  • Will buy a car from a dealership that partners with Ally Bank
  • Don’t feel the need to get pre-qualified before shopping for a car
  • Don’t plan to make principal-only payments to pay down your loan

There are some disadvantages to Ally Bank auto loans, like the fact that you can’t make principal-only payments and need to apply through a dealership. However, if you plan on completing a finance application through a dealership anyway, you might find that Ally Bank loans offer some competitive rates. With perks like the Buyer’s Choice program and the Ally Balloon Advantage option, an Ally Bank car loan might end up being the best choice for you.

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