Ally Auto Loan and Refinance Review

About Ally Bank

Ally was once known as GMAC, General Motors’ financing division. It rebranded as Ally in 2010 and continues offering vehicle financing to individuals and dealers. The bank claimed more than half a billion dollars in 2023, making it one of the country’s largest auto finance companies.

That size gives it the ability to offer a wide range of financial products, including leasing services, lease buyouts, new and used financing, and refinancing. Ally also operates as a traditional bank, offering checking and savings accounts and credit cards.

Ally’s vehicle financing and refinancing are popular options for borrowers because they come with a range of benefits, including a 100% online application process and prequalification in minutes. The bank also states that borrowers save an average of $158 per month, or $18,96 per year. Some vehicles and borrowers may also be eligible for vehicle protection plans or extended warranty services.

Features and Benefits

Ally is a huge bank with considerable resources, giving it the ability to offer a range of benefits its competitors can’t match. While that includes a wide range of loan products, it also includes vehicle protection plans, financial advice and information, and standard banking services.

• Offers checking, savings, and credit card services in addition to loans

• The bank says its customers save more than $150 per month on average

• Leasing and lease buyouts are available

• Some find lower monthly payments with Ally

• Prequalification does not require a hard credit check

• Borrowers can add or remove a co-borrower during the application process

• Terms of up to 75 months are available, depending on the loan and borrower

• Auto refinance process and loan application happen completely online

Ally Bank Costs and Fees

Ally does not charge fees that many of its rivals require. That includes no application or documentation fees, and borrowers can pay off their loans early with no prepayment penalties. That said, some borrowers using third-party payment processing services may see fees, though not from Ally itself. It’s also important to note that interest is not considered a fee, and Ally does charge late fees, which it says can add $25 to $50 on top of the monthly payment amount.

Ally Auto Loan Reviews: Editorial Rating

Trusted Company Reviews Rating Score for Ally: 9.0

We rated Ally with a strong nine out of ten score because of its zero-fee loans and solid customer service. The bank also has a fast and easy application process, and it works with a range of credit scores, making it more accessible to more borrowers. That said, Ally’s rates aren’t as competitive as others, and its add-ons, while generous, fall short of the top competitors’.

There’s a lot to like about Ally’s rates and terms, but that doesn’t mean it’s the best choice for every borrower. Even knowing Ally’s prices, it’s important to shop around to make sure that you’re not missing out on an opportunity with a better lender for your needs. The same is true for refinancing a car with Ally, where it’s important to explore all your options.

Why We Like It

We like Ally’s customer service and its ability to work with a wider range of credit scores than its competitors. It also has a variety of terms available, though some term lengths are limited to specific loan types.

What We Don't Like

One of the most common complaints against Ally is related to its funding times, which some people say can extend into weeks. We also don’t like the fact that borrowers can’t view sample rates or terms until the end of the prequalification process, though there’s no hard credit check, reducing the impact of an application.

Ally Bank Customer Reviews

Many customers talk about Ally’s easy application process and user-friendly online services. Borrowers say the bank was helpful throughout the application timeline, and others say Ally’s interest rates were more competitive than those of much of the competition.

At the same time, there are an outsized number of negative Ally refinance customer reviews that say the lender is slow to pay loan funds and that it can be difficult to get documents and other information when needed.

However, like any other bank, many negative reviews come from customers who were unfamiliar with their loan paperwork, including several who were surprised to learn that part of their monthly payments covered interest. As a side note, Ally chooses not to be accredited with the Better Business Bureau.

Who Is Ally Bank Best For?

Ally is best for people who are comfortable applying for and managing their loans online, as the entire process happens digitally. That’s a huge benefit for many borrowers, but some people are uncomfortable with sending their personal information into the internet ether.

Additionally, while Ally works with a range of credit scores, its best rates and benefits are only available for well-qualified borrowers, making it more important to have your credit in order before applying.

Ally Bank Vs Capital One Auto Loans

When comparing Ally Bank to Capital One for auto financing, borrowers will find important trade-offs. Ally stands out for accessibility, as it accepts credit scores as low as 520, offers refinancing and lease-buyout options, and enables a fully online process.

However, in practice, many customers say Ally falls short on the service end. Delayed funding and less-than-stellar customer service experiences have been reported.

Capital One, on the other hand, offers a more traditional auto-loan experience with broad state availability, streamlined pre-qualification, and solid app ratings. While some users report positive, smooth financing with Capital One, it also draws consistent complaints around customer support and refinancing processes.

In short, if your credit is weaker or you’re focused on refinancing and want online convenience, Ally may be a strong fit, despite some poor review scores. If you prefer a more traditional lender, albeit one with strong digital tools and perhaps more stable service records, Capital One may edge ahead. However, choosing still requires comparison shopping to ensure you’re getting the best rate.

Is It Better to Refinance or Buy a Different Car?

Both approaches mean applying for a loan and having a hard credit check, but refinancing can be a better choice for people who don’t want the expense of a new car and loan.

Refinancing can help lower monthly payments and interest rates, but it can cost more if not approached correctly. In some cases, it’s better to buy a new car and start with a new loan on a vehicle that you can trust, especially if the current vehicle is giving you problems.

Ally Alternatives

While Ally offers competitive rates, flexible terms, and a strong online experience, it's not the only option worth exploring. Some lenders specialize in refinancing, others provide better discounts for military members, and a few extend membership benefits that make their loans even more appealing.

Comparing alternatives is easy in our overview of the best auto refinance loan providers, and ensures you find the right fit for your budget, eligibility, and desired loan features. Additionally, personal loans and HELOCs can be powerful as alternative auto loan solutions.

• Gravity Lending: Marketplace lender offering low refinance rates and extended terms.

• PenFed Credit Union: Nationwide credit union with competitive rates and generous loan limits.

• Navy Federal Credit Union: Military-focused lender with low APRs and no fees.

• Upgrade: Online refinance lender known for quick approvals and high customer satisfaction. Check your rates with Upgrade here.