Wells Fargo Auto Loan Review

Couple Finalizing a New Car Purchase
••• Zero Creatives / Getty Images

Taking out a car loan is an important decision that you should carefully consider. Among the many factors to consider are your personal credit worthiness, how much of a loan you need, and how long you want your loan to be. There are a variety of different options for financing an auto loan, and it pays to compare many options. Below is a review of Wells Fargo Auto Loan products and services to help you make that important decision. While the company has been in the news recently for consumer scandals, they are working hard to regain consumer trust and have revamped their auto loan system.

Wells Fargo Pros

Receiving a discount if you have a Wells Fargo checking account and for maintaining automatic payments is just the beginning perks you will get:

  • Quick credit decisions and same-day funding
  • Better rates than you are likely to get from a dealership
  • Option to speak with a Wells Fargo loan specialist
  • Loans do not require down payment
  • Military discounts
  • Your fee for starting the loan is included in your monthly payments rather than charged upfront.
  • Loan amounts range from $5,000 to $100,000

Wells Fargo Cons

As with any lender, there are some things Wells Fargo could do a little better:

  • Auto loans are only available for up to 72 months, so if you need a longer loan, you’ll need to look elsewhere.
  • History of very questionable financial practices, especially towards those who pay off their loans early...and charging customers without their knowledge. Yikes!
  • If you live in Louisiana, you’re out of luck: Wells Fargo doesn’t service loans there.
  • No pre-approval. You can only apply for a loan on a vehicle you’ve already selected.​

What You’ll Need to Apply for a Loan at Wells Fargo

You’ll need to have copies of the following financial documents in order to apply:

  • Social security number
  • previous and current residential addresses
  • statement detailing your rent or mortgage payments on your home or apartment
  • employment history and status of current employment
  • proof of income

You will also need to have a vehicle selected before you apply for a loan. You will need to provide:

  • The vehicle’s VIN, year, make, model and mileage.

If you are refinancing your loan, you will also also need proof of car insurance.

A Note on APR

The annual percentage rates listed below are the absolute lowest you would pay—and assume that you have excellent credit as well as a reasonable loan amount that is for no more than 85 percent of the vehicle’s cost and also above $22,000.

Notably, the rates also assume that you have a Wells Fargo checking account that you’ll be making regular payments from. If you do not, you can add on an additional 0.25 percent to these rates from the get-go.

If you have a perfect credit score, you will likely pay something similar to these rates. The lower your score though, the more you can expect to pay in interest.

Types of Auto Loan Products

New Car Loan Financing: This product is available for those who purchase a new car directly from a dealer.

Starting APR: 3.88 percent

Used Car Loan Financing: These type of loans are available both for those who are planning on buying a used car from a dealer and also for those who are buying from a private seller.

Starting APR: 4.14 percent for those buying from a dealer; 6.84 percent for those buying from private seller.

Lease Buyout Financing: If you lease a car and decide that you want to keep it at the end of your lease term, you will probably need a loan in order to do so.

Starting APR: 4.34 percent

Car Loan Refinancing

If you have a car loan but are dissatisfied with your rate, Wells Fargo might be a good option.

Starting APR: 4.62 percent

Bottom Line: If you have perfect credit and a Wells Fargo checking account, you should definitely consider this product if you are buying a new car that sells for more than $26,000. But if you are buying a less expensive vehicle, a used vehicle, or have less than stellar credit, proceed with caution, and only after you have pre-applied elsewhere. It’s also important to remember that you will have to know what vehicle you want before you apply for a loan, because unlike many lenders, Wells Fargo does not allow you to be pre-approved.