Wells Fargo Auto Loan: Reviews, Rates and Options (2022) (2023)

FAQs

Does Wells Fargo have good auto loan rates? ›

You can see that people with excellent credit find can find rates below 3.0 percent for new car loans from other lenders, but Wells Fargo's rates start at 3.9 percent. This means Wells Fargo might not offer the best rates for every situation, which is why we recommend comparing multiple offers when you shop.

Wells Fargo considers people with fair credit. Nearly 34% of auto loans issued in the first quarter of 2020 went to people with FICO credit scores under 680, according to the bank's Q1 2020 quarterly report.

As of July 2022, Wells Fargo's interest rates start at 3.99% for the most qualified customers and extend up to 19.99%, with repayment terms spanning from 24 to 75 months.

What do you need to qualify for Wells Fargo Auto Loans? Applicants with a credit score of at least 650 and up to 850 may be eligible for Wells Fargo Auto Loans. The minimum age to be eligible is 18 or the state minimum, whichever is higher.

Rates for borrowers with excellent credit scores start at 3.99% for new cars and 4.24% for used cars, but those with credit scores of 575 or above can find loan offers through the site.

There isn't a strict minimum credit score with Wells Fargo, but it typically only approves applicants with good credit or excellent credit. Stable income: You need a consistent source of income to be approved for any credit cards.

What credit score do auto lenders look at? The three major credit bureaus are Experian, TransUnion and Equifax. The two big credit scoring models used by auto lenders are FICO® Auto Score and Vantage.

In December of 2022, the Fed indicated that it expects the funds rate to fall to 4.1% by the end of 2024 after reaching the 5.1% mark by the end of 2023. If that holds true and the federal interest rate begins to fall, auto loan rates should start to drop shortly after.

What is a good interest rate for a car for 72 months? ›

If you have a 650 credit score you may be eligible for a loan but you might not get a favorable interest rate yet. With a credit rating of 600 to 650, the interest rate can be as high as 25-30%. In that case, you must make a down payment of at least 20% of the total amount.

Wells Fargo may periodically review your account and increase your credit limit automatically if you're eligible. The card issuer doesn't offer specific advice on how to qualify for an automatic credit line increase.

Yes, just like the price of the vehicle, the interest rate is negotiable. The first rate for the loan the dealer offers you may not be the lowest rate you qualify for. With dealer-arranged financing, the dealer collects information from you and forwards that information to one or more prospective auto lenders.

In terms of the best time of the year, October, November and December are safe bets. Car dealerships have sales quotas, which typically break down into yearly, quarterly and monthly sales goals. All three goals begin to come together late in the year.

Yes, it is possible to get a 0% interest rate loan when you buy a car. In fact, it is a common financial incentive in the automotive sales industry. You might even find opportunities to get a 0% APR loan with no money down if you qualify for both offers.

Rates for used cars were higher — 10.26 percent across credit scores. And the average rate for bad credit was a sky-high 20.62 percent. So, a “bad” annual percentage rate for a car would be on the upper end of these numbers. Legally, loans can't have an APR over 36 percent.

Those with higher credit scores pose a lower default risk to issuers, and they tend to land better interest rates. Even if you have a higher interest rate and carry a balance, you can pay less interest on your credit card debt if you make payments whenever you can.

What is a bad interest rate on a car loan? ›

Car Loan APRs by Credit Score

Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.

Working directly with a bank to discuss financing before you head to the dealership could potentially help you save more money because it allows you to compare interest rates. Securing financing ahead of time also means there's no chance of a dealer increasing the loan rate as compensation for its part in the process.

Pay off the car

The best way to get rid of a car loan is to pay off the balance of the loan. Check with your lender to see if a prepayment penalty will apply. If not, you can make extra principal payments to pay off the loan balance early. Then you will own the car outright and can keep it, sell it or trade it in.

The main drawback we see with Wells Fargo are the low APYs on most accounts — if you're looking to earn money through interest, this is not the bank for you. Wells Fargo should also be avoided by people who struggle with overdraft fees. The standard overdraft fee is $35 at a max of three a day.

Other reasons for denial include too high of a debt level or too many recent credit inquiries. Or, there might be other negatives in your history, such as recent bankruptcy, that led to Wells Fargo's decision to deny you.

FICO^® Score 9 from Experian^®

Simple access via Wells Fargo Online, to help you know where you stand.

When you apply for an auto loan, a lender is likely to use one version of the following credit scores: FICO® Auto Score, Base FICO® Score, or VantageScore®. FICO® scores are used by 90% of top lenders and VantageScore® credit scores are used by nine of the 10 largest banks.

In general, you'll need a credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required to finance a car loan varies by lender. If your credit score falls into the subprime category, you may need to look for a bad credit car loan.

There's no set time frame for how long it takes a car loan to improve your credit score. After buying a car, you can expect to see your score improve after making monthly payments on time and paying down your loan balance.

Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.

Are interest rates going to go back down in 2023? ›

Mortgage rates could decrease next week (May 29-June 2, 2023) if the mortgage market takes a cautious approach to a possible recession. However, rates could rise if lenders account for the Federal Reserve taking measures to counteract inflation or if a global event brings economic uncertainty.

So far in 2023, the Fed raised rates 0.25 percentage points twice. If they hike rates at the May meeting, it is likely to be another 0.25% jump, meaning interest rates will have increased by 0.75% in 2023, up to 5.25%.

Can you pay off a 72-month car loan early? Yes, you can pay off a 72- or 84-month auto loan early. Since these are long repayment terms, you could save considerable money by covering the interest related to a shorter period of time.

With a $1,000 down payment and an interest rate of 20% with a five year loan, your monthly payment will be $768.32/month.

Automotive experts said there's a couple reasons why auto-loan costs are climbing. The Federal Reserve is still raising its benchmark interest rate in its continued fight against inflation, which is simultaneously pushing auto rates higher.

750 is a good credit score that can get you car loans with equally as good rates. They aren't the best, but they are still in the top five. More specifically, you would be able to qualify for apr rates of anywhere from 3% to 6% for a new car loan and 5% to 9% for a used car loan.

The company doesn't list a minimum credit score requirement for a Tesla auto loan or lease. However, borrowers with good or excellent credit have a higher chance of qualifying and getting a lower interest rate.

It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.

Wells Fargo may carry out a soft or hard credit pull when you submit a credit limit increase request. If there's a hard inquiry, you can expect your credit score to temporarily drop by a few points.

What is the longest term Wells Fargo auto loan? ›

In some cases, Wells Fargo might automatically increase your credit limit without you having to request one. If you demonstrate a good payment history and are a reliable customer, the issuer will occasionally award you with more credit.

Bottom Line. There is no set minimum FICO® Score to get a car loan. However, a good score at 720 or better will get you the best rate. Consider spending some time improving your credit score before shopping for your next car.

In general, lenders look for borrowers in the prime range or better, so you will need a score of 661 or higher to qualify for most conventional car loans.

Car Loan APRs by Credit Score

Excellent (750 - 850): 2.96 percent for new, 3.68 percent for used. Good (700 - 749): 4.03 percent for new, 5.53 percent for used. Fair (650 - 699): 6.75 percent for new, 10.33 percent for used. Poor (450 - 649): 12.84 percent for new, 20.43 percent for used.

A good credit score — typically a score of 680 or higher — can help you secure a low interest rate from the dealer. In fact, taking your score from 600 to 780 could halve your rate.

That said, yes, 3.5% is a good interest rate for most car loan borrowers. In general, people with average to above-average credit scores can find interest rates from 3% to 4.5% on 36-month car loans.

Yes, just like the price of the vehicle, the interest rate is negotiable.

Is it better to get a car loan from your bank? ›

The primary benefit of going directly to your bank or credit union is that you will likely receive lower interest rates. Dealers tend to have higher interest rates, because dealers add a markup to the interest rate when they connect you with a lender.

Rates for used cars were higher — 10.26 percent across credit scores. And the average rate for bad credit was a sky-high 20.62 percent. So, a “bad” annual percentage rate for a car would be on the upper end of these numbers. Legally, loans can't have an APR over 36 percent.

You can pay less interest on a car loan by shopping around for offers, making a large down payment, opting for a shorter loan term, making additional payments and declining extra coverage options.

Refinance your car loan

You can get a lower interest rate with the same term remaining on your current loan, which means you pay less each month. Or you can refinance at a longer loan term. This will make your monthly payments lower, but you'll pay more interest overall.