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U.S. Bank Auto Loan review

U.S. Bank Auto Loans offer financing for new and used cars as well as refinancing options, but they aren't cheap.

U.S. Bank Auto Loan review
(Image: © US Bank)

Our Verdict

U.S. Bank auto loans are more expensive than competitors such as Capital One and Alliant Credit Union, but it does offer a more varied range of services and it looks after its customers well.

For

  • Discounts for U.S. Bank account holders
  • Reliable service provider
  • Offers in-person applications

Against

  • High fees and transaction costs
  • Fussy credit requirements

U.S. Bank Auto Loans are among the most expensive. However, U.S. Bank does offer discounts to existing account holders or to those who purchase a specific type of vehicle, and the fact that this is a more established bank means that you can take advantage of more services than most other providers. Its APR is higher than Lightstream Auto Loans - our pick of the best auto loan services - at 4.59% and there are a number of fiddly charges that you will need to pay as you get the process underway. 

However, what U.S. Bank does have, compared to some of its cheaper, exclusively online competitors, is the option to apply for a loan in three different ways – phone, online or in person. This makes it very easy for you to sort out your loan in a way that best suits your unique situation and personal requirements. And it's quite reassuring to be able to actually speak to someone.

U.S. Bank Auto Loan review: How the process works

Key specs

Application process:  Online, digital pre-approval, Zoom meeting and in-store 
APR: From 4.59% with dependent on amount, terms and banking institution
Fees: Origination fee
Loan terms: New vehicle, used vehicle, vehicle refinance, and pre-payment penalties

  • Four different application options
  • Quick and simple pre-approvals

U.S. Bank doesn’t smother you in information; you have to hunt around for some of the details, but it’s incredibly upfront and transparent about its APR and costs. From the moment you opt into your chosen application process, you’re given the tools you need to get started. 

If you click on Visit a Branch, the automated mapping tool will locate all U.S. Bank branches within 50 miles of your location. If you click on Call, the website will automatically start a Zoom meeting, and if you opt in to get pre-approved, you are taken into the online application area for a pre-approval letter that’s valid for up to 30 days. 

This is very detailed. U.S. Bank is clear about how you can get the best rates – 36-month terms, a loan of more than $10,000, 100 percent or less of the car value, and automated payments from a U.S. Bank personal checking account. Tick these boxes and you’re going to have an easy time of it. If you know the car, the company and the costs, you can simply click on Apply Now to get started with an online application. 

A U.S. Bank auto loan is more expensive, but the services on offer are extensive

A U.S. Bank auto loan is more expensive, but the services on offer are extensive. (Image credit: Progressive)

U.S. Bank Auto Loan review: Ease of use and customer reviews

  • Mixed customer reviews
  • Simple and accessible platform 

U.S. Bank is not the leader when it comes to customer service and loan costs - we think the likes of Bank of America Auto Loans and Capital One Auto Loans are way better. The customer reviews on ConsumerAffairs are not that pleasant with many customers complaining about their auto loan processes and issues around how bad bank behavior has affected their credit scores. 

That said, the company has a solid foundation and can provide you with a bevy of different services from one central location – the discounts for those who already have accounts are worth investigating. 

U.S. Bank Auto Loan review: Is it transparent, accessible and usable?

  • Online calculator to instantly assess rates
  • Difficult to find information about fees

The platform is easy to use and navigate but it’s difficult to find the FAQ section, information about fees, and overall costs, such as pre-payment penalties. To find out what your origination fees will be or how much you’ll pay in pre-payment penalties, you have to go into Google and be very specific because the website has a poor search engine and doesn’t fine tune according to product portfolio. 

Should you choose a U.S. Bank Auto Loan?

U.S. Bank is a solid and well-known financial institution that offers a full range of financial services. The advantage of using this auto loan option is that you can slide from a bank account across to a loan with relative ease, or you can use your loan to expand your portfolio with the company. U.S. Bank has been an accredited member of the Better Business Bureau (BBB) since 1970 and has an A- rating, however, it does have very variable customer reviews that seem to leap from very positive to outright negative. Those APR rates are very high, though, and if you have bad credit you should probably look elsewhere, like Wells Fargo Auto Loans.