From Ally Bank, a prominent online banking institution, comes Clearlane, a national finance network that matches auto borrowers with a variety of loan products. Clearlane isn’t a direct lender, so you can find offers from multiple financial institutions and compare the loan terms.
Network partners include national, regional, and local finance providers, helping people across the country meet their auto financing needs. Clearlane’s online process makes it quick and easy to get pre-qualified, so you can shop for a vehicle knowing what kind of financing to expect. You can also refinance an existing car loan through Clearlane’s partner network, or complete a lease buyout.
Learn more about Clearlane’s loan matching process and how to get started today.
Car Loan Application Requirements
Clearlane doesn’t list any specific application requirements since it works with a diverse range of lenders. However, there are five factors considered by Clearlane’s lender network when determining both your approval and your rates and fees. They are your:
- Credit profile
- Debt-to-income ratio
Like any other loan, your credit score impacts your interest rate and loan term. Collateral refers to the amount of down payment you have to put down; generally, the higher down payment you make, the better loan terms you’ll receive because you’re financially vested in the loan. The state you live in also may affect how high of an interest rate you can be charged.
When refinancing, the amount of equity you already have in the car also impacts your application. Finally, for all auto loans, your debt-to-income ratio determines how much you can borrow based on your monthly earnings compared to your monthly debt obligations.
Types of Auto Loans Available
There are three distinct types of car loans available through Clearlane: refinance, lease buyout, and purchase. Find out what to expect for each loan type when working with Clearlane.
According to Clearlane, their customers boast an average monthly savings of $112 when they refinance through this loan broker.
So how does the refinance process work?
If you get approved during the pre-qualification process, you can potentially view multiple offers for a new auto refinance deal. If one of those offers looks like a good fit, you can submit a formal application directly to the lender.
They’ll give you a list of required documents to upload and then they’ll verify your application. Once the verification process is complete, you can review your loan documents, sign your loan agreement, and finalize the refinance process. Your new lender pays off your loan balance with your original lender. Then you start fresh with loan payments reflecting your new rate and terms.
Just know that even if you save money every month, you could end up paying more in interest if you extend the life of your auto loan. You simply need to weigh the pros and cons of each option to determine the right one for you.
A lease buyout allows you to purchase the car you’re leasing rather than turning it in. Again, you can get pre-qualified for this loan type as well, so you can preview rates before getting a hard credit check. Once you review those offers and select one, you can formally apply through your chosen lender. Simply upload some documents and sign your loan agreement to finalize the lease buyout.
Clearlane makes the car buying process much easier, and what’s better is that you can complete a lot of the leg-work before you go into a high-pressure sales environment at your local dealership.
Here’s how it works.
You can start by either getting pre-qualified first or by searching for a vehicle first. Input your zip code to see what kind of inventory is available at local dealers near you.
No matter what order you decide to go with, you can go into a local dealer better equipped to negotiate because you’ve already been pre-qualified for your car loan. The online process is fast, simple, and best of all, you can take advantage of wholesale rates that could potentially save you a lot of money compared to other options.
Fees and Rates
It’s hard to pin down fees and rates since Clearlane is a matching service, not a direct lender. The service itself is free to use. Once you apply for a car loan, refinance, or lease buyout, you should carefully review the terms and conditions of your financing offer to understand all of the costs involved.
Just like any other type of loan, a car loan hinges greatly upon your credit score. Some lenders, however, use credit scoring models that are more specific to auto loans. FICO, for example, is the biggest credit scoring company out there. They offer a FICO Auto Score that puts more weight on your previous history paying back car loans.
This information, paired with your traditional credit score and income, have a huge bearing on what kind of interest rate you can expect to pay with your next car loan. Since Clearlane provides a pre-qualification without performing a hard credit pull, it’s easy to find out what kind of APR you can expect through their lender network.
Clearlane’s Application Process
The application process is fairly similar whether you’re using Clearlane for a refinance, lease buyout, or purchase. You can pre-qualify without entering your social security number or impacting your credit report and score.
Initially, any information regarding your application is communicated through Clearlane. After that, however, you’ll work directly with your new lender to begin making payments on your auto loan.
Clearlane’s biggest winning feature is the fact that you can get near-instant quotes on your next car financing product. Another plus is that you can save your application if you don’t finish in one sitting. When you’re ready, you can simply log back on and start right where you left off at a more convenient time.
Clearlane is backed by one of the nation’s largest online banks. That gives it some automatic clout because they have the size and technological capabilities to make the car loan process as easy as possible. You can shop for vehicles in your area and also get instantly connected to lenders who cater to your exact borrower profile.
Whether you have excellent credit or challenged credit, it’s likely that you can find the auto loan you’re looking for with Clearlane’s financial partner network. Plus, it’s a risk-free way to compare offers no matter what stage of the buying process you’re in right now.