Auto Approve Auto Loan Review
Auto Approve auto loans at a glance
| Refinance auto loans | |
|---|---|
| Starting annual percentage rate (APR) | 5.49% |
| Loan terms | 12 to 96 months |
| Loan amounts | $10,000-$150,000 |
| See Auto Refinance Rates |
As interest rates trend down, you could save a big chunk of change by refinancing your auto loan. Refinancing is the act of replacing your current loan with another one, hopefully with lower rates and better terms. Auto Approve can make the process easier by doing the shopping for you.
Auto Approve connects applicants with banks, finance companies and credit unions. You’ll fill out one application, which Auto Approve then uses to get quotes from its partners.
Auto Approve offers traditional auto refinance loans as well as lease buyout loans. However, unlike most lenders, you can’t get a traditional car loan if you’re buying a new or used car.
Learn what you can expect with our Auto Approve review.
- Does not provide loans itself: Auto Approve doesn’t fund loans. Instead, it uses your information to shop with its partners on your behalf. You don’t have to pay out of pocket to use Auto Approve’s service.
- Don’t need perfect credit to qualify: Auto Approve requires a credit score of just 560.
- Your first payment might not be due for 90 days: Your first payment is usually due 45 days after you refinance, but if you’ve got solid credit, you may be able to push your payment to 90 days.
- Can check rates without hurting your credit: Auto Approve lets you check rates with only a soft credit hit. That is called prequalification.
- Offers extras like GAP and warranties: For an average of $14 a month, you can include (guaranteed asset protection) GAP insurance on your Auto Approve refi loan. GAP insurance helps cover the difference between what you owe and what your car is worth if it’s totaled in an accident. You can also add a vehicle protection plan for an additional cost.
- Best for an easy refinancing experience: In many ways, Auto Approve takes the hassle out of refinancing. It’ll pay off your current lender and handle the DMV for you once you sign your paperwork. But since it only offers refinancing and lease buyouts, you’ll have to look elsewhere to borrow for a new or used car.
Auto Approve auto loan requirements
As long as you have a credit score of at least 560, you can refinance your car loan with bad credit. Additionally, Auto Approve requires a credit score of 730 or higher to get its cheapest rates.
Your vehicle should be no older than 2005 and not have above 125,000 miles.
Outside of that, it only refinances loans between $10,000 and $150,000. The best way to see Auto Approve’s loan details is to prequalify. This should take just a few minutes online.
Auto Approve pros and cons
Auto Approve won’t work unless you want to refinance your auto loan or need a car lease buyout.
If that applies to you, review the pros and cons below to see if Auto Approve is right for you. You should also get some quotes from a few other lenders to make sure Auto Approve is the most competitive.
| Pros | Cons |
|---|---|
| No application fees Accepts poor credit Customer service is available via live chat | Only offers refinancing and lease buyouts Charges $550 doc fee Doesn’t list its lender partners online |
Refinancing your car loan can be a great way to save money, especially if you’ve improved your credit score since buying your car. But refinancing can be confusing — even if it isn’t your first time.
If you have questions, Auto Approve has an online chat staffed with loan consultants, not just a bot. And once you’ve signed your loan documents, Auto Approve will handle paying off your current lender and filing paperwork with the DMV. You also only need at least poor credit to qualify.
However, Auto Approve charges a $550 doc fee. You won’t have to pay this upfront, but Auto Approve will roll it into your loan. Doc fees increase how much overall interest you’ll pay, since you’ll have a bigger loan balance. Lenders typically charge this fee to cover the cost of filing your paperwork.
Auto Approve company overview
Auto Approve was founded in 2016 and does business in all 50 states. Its corporate headquarters are located in Minnesota, with an additional office located in Chicago.
Auto Approve auto loan types offered
Auto Approve offers a few types of auto loans, all of them with a starting APR of 5.49%.
- Auto refinancing: As long as you aren’t driving a commercial vehicle, you could be eligible to refinance through Auto Approve. The car must also be registered in your name, not a business’s.
- Lease-end buyout: If you would like to buy your lease at the end of your contract but need a loan to do it, Auto Approve can help.
- Early lease buyout: Auto Approve can also help you find financing if you want to buy your car in the middle of your lease instead of the end.
How to get an auto loan with Auto Approve
It’s easy to check rates with Auto Approve. Here’s how:
- Answer a few basic questions. First, prequalify on Auto Approve’s website. To do so, you’ll provide your name, your address and your vehicle’s year, make and model. Auto Approve will also ask for an estimate of your odometer reading.
- Tell Auto Approve about your current loan. Auto Approve then asks for your monthly payment, interest rate and balance on your current auto loan. This will help it match you with a partner that is competitive. It will also ask for your citizenship status.
- Get prequalified. Once you’ve gone through this short application, Auto Approve shows you what you could be qualified for. Some offers may give you a lower interest rate, while others may give you a lower monthly payment by extending your loan term.
- Formally apply. After you choose your offer, you will answer questions about your finances. Auto Approve also asks for your driver’s license, registration, proof of insurance and proof of income. Then, it will send your formal application to the lender. If approved, Auto Approve will handle filing your paperwork.
Is an Auto Approve auto loan right for you?
Auto Approve could be right for you if you’re looking to refinance your auto loan or buy out your current lease. It has generally low rates and an easy application process and doesn’t require perfect credit to qualify.
Even so, continue to shop and use an auto refinance calculator to make sure refinancing works in your favor. Unless you refinance a second time, you could be with Auto Approve for several years.
How Auto Approve auto loans compare
To get the most accurate quotes, prequalify with a handful of lenders. When you do, pay attention to APRs that apply specifically to refinancing. Usually, starting APRs on car refinance loans are higher than regular auto loans.
Since Auto Approve only offers auto refinancing loans (and lease buyouts), the following information applies only to refinancing.
| Auto Approve | Gravity Lending | Digital Federal Credit Union (DCU) | |
|---|---|---|---|
| Starting APR | 5.49% | 4.99% | 4.99% (with direct deposit discount) |
| Loan terms | 12 to 96 months | 48 to 96 months | Up to 84 months |
| Loan amounts | $10,000-$150,000 | $15,000-$150,000 | Up to 130% of the car’s value |
| Minimum credit score | 560 | 660 | Not specified |
Gravity Lending works a lot like Auto Approve. It only offers auto refinance loans and lease buyouts. It also works with partner lenders. However, it has a lower APR than Auto Approve. But only expect that low rate if you have a credit score of at least 760, have an impeccable credit history and meet other factors.
Digital Federal Credit Union (DCU) is a credit union, so you will need to join it to borrow. If you do, you can borrow over your vehicle’s value and pocket it as cash (if you qualify). This is called a cash-out auto refinance loan.
Frequently asked questions
You need a credit score of at least 560 to qualify for Auto Approve.
Yes, Auto Approve is a legit company that provides car loan refinancing, motorcycle refinancing and lease buyouts. Note that it sometimes sends mailers if it thinks you might be eligible for a lower rate. You can use the included promo code on Auto Approve’s website to start the process.
Auto Approve doesn’t charge an application fee, but it does charge a $550 doc fee. It will roll this fee into your loan so you don’t have to pay it up front. It may also charge an admin fee — although the amount is unspecified — as well as mandatory DMV, tag and title transfer fees. These are also rolled into your loan.