Ratings Methodology for Aggregator Auto Loans

Our comprehensive rating system for auto loans offered via aggregators of lenders considers a range of factors.

20+ lenders reviewed

4 profiles assessed

60+ data points analyzed

Methodology, broken down by category

NerdWallet reviews and rates purchase loans for new and used vehicles, refinance loans and lease buyout loans. Our overall ratings are weighted averages of ratings in the following categories:

Auto loan aggregators do not have in-house loan products. Instead, they match borrowers to third-party lenders within a network. Because aggregators are not the actual lender and servicing of the loan passes to the lender in most cases, NerdWallet focuses most heavily on the front end of the loan process. This includes level of service/support and transparency, with less focus on the actual loan product.

5.0

Overall score

Loan requirements and flexibility includes loan availability by state, number of loan term options and likelihood a loan applicant can have a co-signer.

Affordability (20%)

Loan affordability includes competitive rates, possibility of origination fees and likelihood of rate discounts for autopayments. For example, if all lenders in an aggregator’s network offer a rate discount, that aggregator will score higher than one with no lenders offering a rate discount.

Transparency & Disclosures (30%)

Transparency and disclosures includes availability of pre-qualification with a soft credit check and visibility of information such as rates, terms and minimum eligibility requirements.

Customer experience (30%)

Customer experience includes ease of the application process, level of support from the aggregator and financial education efforts, such as website articles and tools.

Variations in scoring and weighting

Subcategories within categories vary slightly for refinance loans, lease buyout loans and purchase loans. For example, refinance loan flexibility considers limitations on how soon a borrower can refinance, which is not a consideration for purchase loans. For this reason, an aggregator can have different star ratings for different loan products.

A fifth category is unweighted and discretionary. An aggregator’s rating may be adjusted down based on the following:

It has faced governmental regulatory action in the past two years for practices harmful to auto loan consumers.
It offers a consumer-friendly feature (not scored in other categories) that other lenders do not offer.
It has a unique aspect to the loan or servicing that would negatively impact the borrower. An example would be charging a prepayment penalty, when most lenders no longer do.

Data collection and review process

We survey 25 companies that offer new and used car loans, auto refinance loans and lease buyout loans. These companies include direct lenders and aggregators. Aggregators don't have their own loan products. Instead, they match borrowers to outside lenders.

The survey for aggregators has different questions than the survey for direct lenders, but both surveys include more than 60 data points.

Our team checks lender websites to confirm survey responses when possible. We also follow up with company representatives as needed. At least one writer and an editor verify facts in every lender review to ensure accuracy.

Data accuracy

Auto loan reviews are completely updated every 12 to 18 months. Our team also updates data as needed through the year, such as rate changes, new features and star ratings.

The review team

The auto loans review team is made up of writers and editors who cover a range of auto loan topics. Our auto loan writers and editors have over 30 years of combined experience in finance. Each team member adheres to NerdWallet’s strict guidelines for editorial integrity.