Ally Auto Refinance and Lease Buyout Loans: 2024 Review

Full Review of Ally Auto Refinance

Ally Auto Refinance, part of Ally Financial Inc., is a direct lender that offers refinancing and lease buyout loans.

Ally is an online bank and therefore doesn't have any physical locations. Applicants can apply for a loan by phone or through an easy application process that’s 100% online. Applicants are able to receive pre-qualified offers based on a soft credit check, which won’t affect their credit scores. Unlike some lenders, Ally does not require a Social Security number with the initial application.

Table of contents

Ally Auto Refinance at a glance

Ally Auto Refinance may be a good fit for those who ...

Do you qualify for an Ally Auto Refinance loan?

How to apply for a Ally Auto Refinance loan

How auto loan rates work and how we collect them

How do we review auto loan direct lenders?

Ally Auto Refinance at a glance

• Restrictions

  • Maximum vehicle age: 10 model years.

  • Maximum vehicle mileage: 121,000.

  • Other vehicle restrictions: Does not refinance business or commercial vehicles, cars that have branded titles or more than one lien, cars that have unrepaired or comprehensive damage and vehicles that were financed less than seven months before loan application.

  • Loan amount minimum: $7,500.

  • Loan amount maximum: $99,999.

  • Maximum loan-to-value ratio: 155%.

  • Refinance time restrictions: Borrowers must have at least seven months remaining on their current loan or lease to refinance. Additionally, borrowers must wait a set number of months after closing on the previous loan to refinance with Ally. The bank did not disclose how many months a borrower must wait.

  • Bankruptcy restrictions: No currently open bankruptcies.

• Other loan details

  • Approval speed: Within minutes. Approved loan offer is good for 30 days.

  • Initial deferred payment: Does not offer.

  • Existing loan payoff: For refinancing, funds are mailed to the lender by check.

  • Selected payment due date: Borrowers can select their payment due date after the first payment is made.

  • Late payment grace period and fee: Offers a grace period of 10 or more days. Charges late payment fee of $15 or 5% of the part of the payment that is late, whichever is greater.

  • Hardship plans: Offers hardship plans in the form of an extension program for short-term hardships, and date modification requests for continued financial hardships.

• More lender details

  • Contact options: Email and phone. Ally also provides Spanish-speaking agents by phone.

  • Availability: Customer service is available Mon-Fri, 10 a.m.-8 p.m. ET.

  • Mobile app to manage account: Yes.

  • Online resources: Provides educational articles about car-buying and car-maintenance.

  • Related services: Ally offers GAP insurance and an extended vehicle protection plan for an additional fee to consumers who pre-qualify for financing through the bank.

Ally Auto Refinance may be a good fit for those who:

• Want to compare rates. Pre-qualification with a soft credit check will not affect an applicant's credit score.

• Have fair credit. Co-borrowers are accepted, which can help a person who might not qualify alone.

• Prefer an online application process. Ally's application is simple and 100% online, including document upload.

Do you qualify for a Ally Auto Refinance loan?

Here are Ally's basic eligibility requirements to apply for an auto loan:

• Must be 18 years or older or 19 in Alabama.

• Must be a U.S. citizen, permanent resident or non-permanent resident who lives in the U.S.

Here are Ally's's minimum borrower requirements to qualify for an auto loan. Note that meeting these requirements doesn’t guarantee approval. Also, many lenders are flexible with minimum requirements when considering an applicant's total financial picture.

• Minimum credit score: 520.

• Minimum credit history: None.

• Maximum debt-to-income ratio: Did not disclose.

• Minimum annual income: $24,000.

Before you apply

Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.

Figure what monthly payment you can afford. For purchase loans, use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price. For auto refinance loans, use an auto refinance calculator to see your monthly payment and determine what APR and term you need to make refinancing worthwhile.

Gather your documents. Ally requires the following to submit an initial application: Address, time at address, phone, email, birthdate, employment status, income, housing status, housing payment amount, basic vehicle information and vehicle identification number.

» MORE: Compare auto loans, rates and lenders

How to apply for an Ally Auto Refinance loan

1. Pre-qualify online or by phone. Applicants can apply for a loan online or by phone at 1-888-925-2559. During the pre-qualification process, applicants are asked to provide information about the vehicle they’re financing as well as some personal and housing information. The pre-qualified offers show several different options for loan terms and the resulting rate and monthly payment. Pre-qualified loan offers aren’t a guarantee of approval and can change after a hard credit inquiry. If the information initially submitted was accurate though, the pre-qualification offer shouldn’t change significantly and can help with faster approval.

2. Preview offers and formally apply. After an applicant selects a loan offer, Ally will run a hard credit inquiry and request additional information, such as Social Security number. A hard credit inquiry slightly lowers your credit score, but only temporarily.

3. Stay on top of your loan payments. Ally Auto Refinance reports car payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments, if available, is a good way to make sure your payments arrive by the due date.

» MORE: Compare auto loan refinancing lenders

How auto loan rates work and how we collect them

The auto loan APR range NerdWallet displays is provided by the lender. We make every attempt to keep rates updated, by sending out bimonthly rate surveys and encouraging lenders to send us updates when rates change. We also compare these rates to APRs on the lender's website, if available. The accuracy of our rates depends on the information lenders provide to us. It’s always a good idea to check average auto loan interest rates, and compare to similar lenders, to determine if a lender’s provided rate seems realistic.

We ask lenders to provide their lowest rate that at least 10% of applicants applying for the lowest rate have qualified for in the previous three months, without including any potential rate discounts. The lowest rates shown are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above).

We also ask lenders for their highest rates, which typically reflect rates available to borrowers with fair or bad credit (a FICO score in the mid-600s or below). The highest interest rates result in higher monthly payments and more total interest paid.

Actual rates received by this lender’s auto loan borrowers may be different from the rates shown in this review.

How do we review direct lenders for auto loans?

NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.

To receive a star rating, a lender must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).