Ally Auto Refinance: 2023 Review
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The bottom line:
Best for borrowers wanting an easy online application process and the ability to see pre-qualified offers without affecting their credit scores.
Pros & Cons
Applicants can pre-qualify with a soft credit check.
Application process 100% online including document upload.
Social Security number not required to see pre-qualified offers.
Borrowers can choose loan payment due date.
No rate discount offered.
24-month loan term not offered.
Has vehicle restrictions.
Compare to Other Lenders
Min. credit score
Min. credit score
Min. credit score
Ally Auto Refinance, part of Ally Financial Inc., is a direct lender that offers loans for refinancing your existing auto loan as well as buying out your leased vehicle.
Ally has 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.
The pre-qualified offers show several different options for loan terms and the resulting rate and monthly payment. 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.
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. Ally says most approval decisions are immediate, with the remainder usually provided in less than 30 minutes.
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. Ally has a lower minimum credit score requirement than many other lenders. Also, 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.
Ally Auto Refinance at a glance
More from Ally Auto Refinance
In most states, Ally also offers Guaranteed Asset Protection or GAP insurance and vehicle service contracts that help cover repair costs no longer covered by a factory warranty. The cost of these products can be rolled into the refinancing loan.
While the Ally website does not provide a lot of information, it does offer a frequently asked questions section that answers questions about the application process, eligibility, pre-qualification, approval and vehicle details.
Many lenders quantify how much money they save customers, and Ally says it saves clients an average of $122 monthly in car payments. NerdWallet is unable to verify these claims.
Ally auto loan rates
Credit requirements vary by auto lender, but the lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 670 and above). With fair or bad credit you won’t get the lowest interest rates, which means your monthly payment and total interest paid will be more. You can check your credit score before applying for a car loan.
To review Ally Auto Refinance, NerdWallet sent a survey to Ally requesting more than 60 data points and followed up with company representatives. This information was compared with other lenders that seek the same customer or offer a similar product.
Frequently asked questions
Ally Auto Refinance is part of Ally Financial Inc., which is headquartered in Detroit. Ally also offers banking products, home loans and investment accounts. Ally has provided automotive financing (formerly as Ally Clearlane and General Motors Acceptance Corporation or GMAC) since 1919. Ally Clearlane was introduced in 2017 as an online marketplace that provided loans through various lenders. In 2020, Ally Clearlane became a direct lender with all auto loans financed by Ally. In 2023, the Ally Clearlane name was changed to Ally Auto Refinance.