Car Loan Rates USAA: Everything You Need to Know

6 min readJul 6, 2023

If you’re looking for a car loan, you may have heard of USAA. As a financial institution, USAA offers a range of products and services, including car loans. In this article, we’ll take a closer look at car loan rates USAA offers, and what you need to know before applying for a car loan.

What is USAA?

USAA, short for United Services Automobile Association, is a financial institution that caters to members of the military and their families. Founded in 1922, USAA has grown to become one of the largest financial institutions in the United States. It offers a range of products and services, including banking, insurance, and investments.

Car Loan Rates USAA Offers

USAA offers car loans to its members at competitive rates. The rates depend on a variety of factors, including the amount of the loan, the length of the loan, and the creditworthiness of the borrower. As of May 2023, USAA’s car loan rates range from 2.99% APR to 17.99% APR.

Factors that Affect Car Loan Rates

There are several factors that can affect the car loan rates USAA offers. These include:

Credit Score

One of the most important factors that affect car loan rates is your credit score. If you have a high credit score, you’re more likely to qualify for a lower interest rate. If you have a lower credit score, you may still be able to qualify for a loan, but you may have to pay a higher interest rate.

Loan Term

The length of the loan can also affect the interest rate. Generally, shorter-term loans have lower interest rates than longer-term loans.

Loan Amount

The amount of the loan can also affect the interest rate. In general, larger loans have higher interest rates than smaller loans.

Collateral

The collateral you offer can also affect the interest rate. If you offer a high-value asset as collateral, such as a home or a car, you may be able to qualify for a lower interest rate.

Benefits of USAA Car Loans

There are several benefits of getting a car loan from USAA. These include:

Competitive Rates

USAA offers competitive rates on car loans, which can save you money over the life of the loan.

No Hidden Fees

USAA does not charge any hidden fees on its car loans. You’ll know exactly what you’re paying for before you sign on the dotted line.

Flexible Payment Options

USAA offers flexible payment options, including automatic payments and online payments. This makes it easy to manage your car loan and stay on top of your payments.

Discounts for Military Members

USAA offers discounts to military members and their families. If you’re a member of the military, you may be able to qualify for a lower interest rate on your car loan.

How to Apply for a USAA Car Loan

If you’re interested in getting a car loan from USAA, you can apply online or over the phone. To apply, you’ll need to provide some basic information, including your name, address, and Social Security number. You’ll also need to provide information about the car you want to buy, including the make, model, and VIN number.

What You Need to Qualify for a USAA Car Loan

To qualify for a car loan from USAA, you’ll need to meet certain requirements. These include:

Membership

You’ll need to be a member of USAA to apply for a car loan. Membership is open to members of the military and their families.

Credit Score

You’ll need a good credit score to qualify for a car loan from USAA. In general, a credit score of 700 or higher is considered good.

Income

You’ll need to have a steady source of income to qualify for a car loan from USAA. This could be from your job, retirement income, or other sources.

Down Payment

You may need to make a down payment on the car to qualify for a USAA car loan. The amount of the down payment will depend on the cost of the car and other factors.

Insurance

You’ll need to have auto insurance to qualify for a USAA car loan. USAA also offers insurance products, so you may be able to get a discount if you bundle your car loan and insurance with USAA.

Tips for Getting a Car Loan from USAA

If you’re interested in getting a car loan from USAA, here are some tips to help you get the best deal:

Check Your Credit Score

Before you apply for a car loan, check your credit score. You can get a free credit report from each of the three major credit bureaus once a year. If your credit score is low, take steps to improve it before applying for a car loan.

Compare Rates

Shop around and compare rates from different lenders, including USAA. Look at the interest rate, fees, and other factors to determine which lender offers the best deal.

Consider a Shorter-Term Loan

A shorter-term loan may have a higher monthly payment, but it can save you money in the long run by reducing the amount of interest you pay over the life of the loan.

Get Pre-Approved

Before you go car shopping, get pre-approved for a car loan from USAA. This will give you an idea of how much you can afford to spend on a car and can help you negotiate a better price.

Negotiate the Price

When you’re buying a car, negotiate the price with the dealer. If you can get the dealer to lower the price, you may be able to get a lower monthly payment on your car loan.

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Conclusion

Getting a car loan from USAA can be a great option if you’re a member of the military or a family member of a military member. USAA offers competitive rates, flexible payment options, and discounts for military members. Before applying for a car loan, check your credit score, compare rates from different lenders, and consider a shorter-term loan. By following these tips, you can get the best deal on a car loan from USAA.

FAQs

How do I become a member of USAA?

To become a member of USAA, you must be a current or former member of the military, or a family member of a military member.

Can I get a car loan from USAA if I have bad credit?

It may be more difficult to qualify for a car loan from USAA with bad credit, but it’s still possible. You may need to pay a higher interest rate or make a larger down payment.

How long does it take to get approved for a car loan from USAA?

The approval process for a car loan from USAA can take a few days. You’ll need to provide some basic information about yourself and the car you want to buy.

Can I get a discount on my car loan from USAA if I have auto insurance with them?

Yes, USAA offers a discount on car loans for members who also have auto insurance with them.

Can I refinance my car loan with USAA?

Yes, USAA offers car loan refinancing. This can be a good option if you want to lower your monthly payment or reduce the amount of interest you pay over the life of the loan.

Reference

USAA. “Auto Loans.” Accessed May 1, 2023. https://www.usaa.com/inet/wc/bank-auto-loans.
NerdWallet. “USAA Auto Loan Review: Competitive Rates for Military Members.” Accessed May 1, 2023. https://www.nerdwallet.com/reviews/loans/auto-loans/usaa-auto-loan.
Experian. “What Is a Good Credit Score?” Accessed May 1, 2023. https://www.experian.com/blogs/ask-experian/credit-education/score-basics/what-is-a-good-credit-score/.
The Balance. “Short-Term vs. Long-Term Car Loans: Which Is Better?” Accessed May 1, 2023. https://www.thebalance.com/short-term-vs-long-term-car-loans-which-is-better-4168511.
Investopedia. “How to Negotiate a Car Price.” Accessed May 1, 2023. https://www.investopedia.com/articles/personal-finance/050715/how-negotiate-car-price.asp.