Yes, Chase offers car loans, but only through its auto finance subsidiary
Chase Bank itself does not make car loans directly. Instead, Chase Auto Finance—a separate division of JPMorgan Chase—handles all auto lending. This matters because you cannot walk into a Chase branch and leave with a car loan. You explore through Chase Auto Finance, which operates as its own lending unit with its own underwriting, rates, and approval process.
Chase Auto Finance works in two ways: it finances cars you buy from a dealer (called dealer financing), and it refinances existing car loans you already have with another lender. The dealer route is more common. When you buy a car at a dealership, the dealer's finance office can submit your information to Chase Auto Finance along with applications to other lenders, and you see which one approves you and at what rate.
Key Takeaways
- Chase Auto Finance is a separate company from Chase Bank and handles all car loans through a dealer network, not through bank branches.
- You can finance a new or used car through a dealership that works with Chase, or refinance an existing loan from another lender.
- Chase Auto Finance does not publish its interest rates publicly; rates depend on your credit score, down payment, loan term, and the vehicle itself.
- The process process at a dealership usually takes a few hours, and approval decisions typically come back within one business day.
- If you already have a Chase checking or savings account, you may see slightly better terms, but this is not may provide.
How dealer financing through Chase Auto Finance works
When you find a car at a dealership and decide to finance it, the dealer's finance manager will ask for your driver's license, proof of income (usually a recent pay stub), and proof of residence (a utility bill or lease). They run a hard credit inquiry, which temporarily lowers your credit score by a few points. The dealer then sends your information to multiple lenders at once—Chase Auto Finance, Ford Credit, Capital One, and others—to see who will approve you and at what rate.
Chase Auto Finance will pull your credit report and verify your income and employment. If approved, they send back a rate quote. You see all the quotes the dealer received and choose which lender to use. This process usually takes a few hours while you are at the dealership, though some dealers send applications overnight and call you the next day with results.
Once you accept Chase's offer, Chase funds the loan directly to the dealership, and you sign the loan documents. You then make monthly payments to Chase Auto Finance, either online, by phone, or by mail. Chase does not require you to have a Chase bank account, but existing Chase customers sometimes see slightly lower rates.
Refinancing an existing car loan with Chase Auto Finance
If you already have a car loan with another lender—a bank, credit union, or another finance company—you can refinance it through Chase Auto Finance. This means Chase pays off your old loan in full, and you now owe Chase instead. People refinance to get a lower interest rate, extend the loan term to lower monthly payments, or shorten the term to pay off the car faster.
To refinance, you visit the Chase Auto Finance website or call their refinance line. You provide your current loan details: the lender's name, your loan number, the vehicle identification number (VIN), and the current balance. Chase pulls your credit and makes an offer. If you accept, Chase pays off the old lender and you begin making payments to Chase.
Refinancing usually takes three to five business days from approval to funding. Your old lender will send you a payoff letter showing the exact amount owed, and Chase uses that to calculate how much to send them. During this time, you continue making payments to your old lender as usual—do not stop paying until you see the loan is paid off on your account.
What Chase Auto Finance rates and terms look like
Chase Auto Finance does not publish interest rates on its website. Your rate depends on your credit score, the size of your down payment, the loan term (how many months you take to repay), the age and mileage of the vehicle, and whether you are a Chase bank customer. Someone with a credit score above 750 and a 20 percent down payment will see a much lower rate than someone with a score of 650 and no down payment.
Loan terms typically range from 24 to 84 months. A longer term means a lower monthly payment but more interest paid overall. A shorter term costs more per month but you own the car sooner. Chase Auto Finance generally allows loans up to 84 months on newer vehicles and shorter terms on older used cars.
You can request a rate quote without a hard credit inquiry on the Chase Auto Finance website. This is called a soft inquiry and does not affect your credit score. It gives you a ballpark idea of what you might may have access to for, though the actual rate after a full process may differ.
Down payment requirements and trade-in credit
Chase Auto Finance does not require a minimum down payment, but putting money down lowers your interest rate and reduces the amount you need to borrow. A typical down payment is 10 to 20 percent of the car's price, though some people put down less or nothing.
If you are trading in an old car, the dealer applies its value as a credit toward the purchase price. This reduces the amount you need to finance. For example, if you buy a car for $25,000 and trade in a vehicle worth $5,000, you finance $20,000 (minus any down payment). The dealer handles the trade-in appraisal and paperwork; Chase does not directly value the trade-in.
What happens if you have bad credit or no credit history
Chase Auto Finance does lend to people with credit scores below 650, but rates are significantly higher. If your score is in the 500s or 600s, you may still be approved, but you could pay 8 to 12 percent interest or more, compared to 3 to 6 percent for someone with excellent credit. A larger down payment helps offset a lower credit score.
If you have no credit history at all—you have never borrowed money or had a credit card—Chase may require a co-signer: someone with good credit who agrees to pay the loan if you do not. The co-signer does not need to be present at the dealership, but they do need to sign the loan documents.
Some dealerships work with subprime lenders (lenders who specialize in bad credit) in addition to Chase. If Chase declines you, the dealer can submit your process to other lenders. You are not limited to Chase even if you prefer to work with them.
Comparing Chase Auto Finance to other lenders
Chase Auto Finance is one option among many. Credit unions, banks, and online lenders all offer car loans. Credit unions often have lower rates for members, especially if you have been a member for a while. Online lenders like LendingClub and Upstart sometimes approve people with lower credit scores faster than traditional banks.
The advantage of Chase is that it is widely available through dealerships nationwide, and existing Chase bank customers may see rate discounts. The disadvantage is that rates are not transparent until you explore, so you cannot easily compare Chase to competitors without submitting applications to multiple lenders.
If you are shopping for a car, it is worth getting pre-approved by your bank or credit union before you go to the dealership. A pre-approval letter shows the dealer what rate you may have access to for elsewhere, and it gives you negotiating power. You can then compare that offer to what the dealer brings back from Chase and other lenders.
Frequently Asked Questions
Can I get a Chase car loan if I do not have a Chase bank account?
Yes. Chase Auto Finance does not require you to be a Chase bank customer. However, existing Chase customers sometimes receive slightly lower rates. You do not need to open a checking account to may have access to for a loan.
What is the difference between Chase Bank and Chase Auto Finance?
Chase Bank is the retail banking division where you have checking and savings accounts. Chase Auto Finance is a separate lending company owned by JPMorgan Chase that specializes in car loans. They operate independently, though they share the same parent company.
How long does it take to get approved for a Chase car loan?
At a dealership, the process usually takes a few hours. Chase typically returns a decision within one business day. If you are refinancing an existing loan, approval usually takes one to two business days, and funding takes another three to five days.
Can I pay off a Chase car loan early without a penalty?
Yes. Chase Auto Finance does not charge a prepayment penalty, meaning you can pay off the loan in full at any time without extra fees. This is standard across most auto lenders.
What happens if I miss a payment on a Chase car loan?
A missed payment is reported to the credit bureaus after 30 days and damages your credit score. Chase may charge a late fee. If you miss multiple payments, Chase can repossess the vehicle. If you are struggling with payments, contact Chase Auto Finance as soon as possible to discuss options like deferment or loan modification.