U.S. Bank Auto Loans and Refinancing Review (2024 Rates) (2024)

All APR figures last updated on 7/14/2023 – please check partner site for latest details. Rate may vary based on credit score, credit history and loan term.

Pros and Cons

Year founded: 1863
Headquarters: Minneapolis, Minn.
Better Business Bureau (BBB) rating: A-

U.S. Bank traces its roots all the way back to the Lincoln administration, with the charter for First National Bank in Cincinnati. The company’s Minneapolis headquarters were set up the following year. Today, U.S. Bank has more than 2,000 branches spread across 26 states, offering financial products and services to individuals, families, government institutions and businesses of all sizes.

Loan Amount: $5,000 to $100,000
Starting annual percentage rate (APR): 7.46%
Term Length: Up to 60 months
Prepayment penalty: 1% of original loan amount if closed within one year ($50 minimum and $100 maximum)
Application fee: None

You can expect competitive rates when financing a new or used car through U.S. Bank and its lowest rates offered stand at 7.46%. However, this interest rate is only available if you get preapproval and meet certain requirements.

The U.S. Bank Vehicle Marketplace makes browsing dealerships more convenient. If you’re pre-approved for a loan through U.S. Bank, you can send your approval letter to a dealership representative and get the exact car you want.

If you fit the following profile, you’ll receive the lowest APR that the company offers:

• Credit score: 800 or higher
• Loan term: 60 months or less
• Loan amount: $35,000 or more

These factors may result in higher loan rates:

• Purchasing a vehicle from a private party
• A vehicle that’s older than six model years
• Loan amounts below $35,000
• Loan terms longer than 60 months

Auto Loan Refinancing With U.S. Bank

If you want to pay off your auto loan sooner or reduce your monthly car payment, refinancing is the way to go. U.S. Bank offers auto loan refinancing with an APR that currently sits at 7.89%.

To qualify for this rate, your loan must be for $30,000 or more and have a term of 36 months or less and the car can’t be more than 12 months old. You must also finance 80% or less of the car’s value, meaning you’ll need an initial down payment. You’ll also need a credit score of 800 or better and to set up automatic payments from a U.S. Bank checking or savings account. Finally, you’ll need to reside in one of the 26 states where U.S. Bank offers auto refinance loans.

Lease Buyout Through U.S. Bank

A lease-buyout loan allows you to purchase a leased vehicle at the end of your lease term. You can apply for a lease-buyout loan with U.S. Bank whether your lease is with the company or another provider. If your lease isn’t with U.S. Bank, you’ll need to sign your lease buyout loan at your nearest U.S. Bank branch.

You can use online banking services to apply for auto loan pre-approval through U.S. Bank. If you successfully complete the loan approval process, you’ll have a locked-in rate for 30 days. If you have a low credit score, you should consider adding a co-signer with a strong credit history to your application. This will improve your chances of getting approved for the loan you want, so your loan payment will be the lowest possible.

Here’s what you’ll need to have handy when you apply for any type of U.S. Bank vehicle loan:

• Personal identification such as your Social Security number
• Income information
• Employer’s name and address
• Current housing information
• Amount you expect to finance and loan term
• Manufacturer’s suggested retail price (MSRP), color, make and model of the vehicle
• The vehicle identification number (VIN)
• Kelley Blue Book or, for used vehicles, the National Automobile Dealers Association (NADA) value
• Insurance information
• Lienholder name and payoff amount for refinancing or a private party purchase

U.S. Bank overall has low ratings from consumers about their services. The company holds an A- rating from the BBB and has a 1.1 out 5.0 stars score from over 600 customer reviews. On Trustpilot their customers echo a similar sentiment with a grade of 1.2 out of 5.0 stars from just under 700 people.

The company was rated just below average in the J.D. Power 2022 U.S. Consumer Financing Satisfaction Study℠, ranking 18th out of 24 lenders in the mass market category. However, in the J.D. Power 2022 U.S. Consumer Lending Satisfaction Study℠, U.S. Bank got the second-highest score for overall customer satisfaction in the personal lending category.

The company also has a well-reviewed mobile app, with 4.6 out of 5.0 stars on Google Play and 4.8 out of 5.0 stars on the App Store.

Positive U.S. Bank Reviews

There aren’t many reviews across BBB or Trustpilot sites related specifically to U.S. Bank’s auto loan process. However, there are few sparkling reviews about U.S. Bank in general. These reviews talk about reliable customer service interactions and resolutions in specific bank account errors.

Negative U.S. Bank Reviews

Customer reviews aren’t very enthusiastic about U.S. Bank. The most common complaints about the auto loan provider refer to slow application processes for car leases, errors and delays in title transfers and poor customer service.

Some customer reviews complained about being transferred to wrong departments, being hung up on, and agents not able to answer their questions. We reached out to U.S. Bank for a comment on these negative reviews and ratings but did not receive a response.

Recommendations for Auto Loans

Whether you want to purchase a vehicle, refinance an auto loan or secure a lease buyout loan, it’s always best to shop around for the best APR and lock in the lowest-possible monthly payments. We recommend starting with myAutoloan and Auto Approve in your search for the right lender.

myAutoloan

It’s easy to compare auto loan and refinancing rates through the myAutoloan marketplace. The company also offers lines of credit for lease buyout loans. You can get a new car loan with an APR as low as 5.29% for 37 to 60 months. Refinance loans from myAutoloan feature an APR of 4.01% for 36 months or less.

Keep reading: myAutoloan review

Auto Approve: Best Refinance Loan

Specializing in auto loan refinancing, Auto Approve has built a strong industry reputation. Refinancing APRs start at 5.24% with Auto Approve, although the best interest rates are only available for customers with excellent credit scores. The company also offers lease buyout loans for those who want to purchase their leased vehicles.

Keep reading: Auto Approve review

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

• Industry standing: Our research team considered ratings from industry experts and each lender’s years in business when giving this score.
• Rates and discounts: Auto loan providers with low APRs, good discount opportunities and high loan amounts scored highest in this category.
• Availability: Companies that cover a variety of circ*mstances are more likely to meet consumer needs.
• Customer service: This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness, friendliness and helpfulness of each loan company’s customer service team based on our shopper analysis.

Our credentials:

• 300+ hours researched
• 25 companies reviewed
• 2,000+ consumers surveyed

*Data accurate at time of publication.