What Is Ally Clearlane?
Technically, Ally Clearlane isn’t a lender at all. Instead, this subsidiary company of All Financial, Inc. is a loan marketplace that connects borrowers with local, regional, and national auto loan or financing providers. In other words, it’s a broker that makes it easier to find a lender and loan agreement perfect for your unique financial situation.
>> More: Best Auto Loan Rates
How Does Ally Clearlane Work?
Ally Clearlane offers various limited loan types, including auto loans, refinancing loans, and more. However, as it is a limited loan marketplace, there are only a few lender options for each loan type. Still, many people opt to use Ally Clearlane because it lets borrowers apply for pre-qualification without risk.
They use soft credit inquiries so borrowers can see if they qualify for a loan with out their credit scores being affected. Without intermediary companies like Ally Clearlane, lenders sometimes use hard credit inquiries that have the potential to lower borrowers’ credit scores.
When you apply for an auto loan through Ally Clearlane, you’ll potentially be offered a loan agreement from Ally Direct Lending based on your financial details. This company offers loans for both buying out your leased vehicle and refinancing an existing loan.
Ally Clearlane Features, Services, and Benefits
Ally Clearlane is a beneficial loan marketplace service for various reasons, offering several major services and benefits that other marketplaces lack.
As mentioned, you can get auto loan refinancingthrough Ally Clearlane.
Clearlane hooks you up with Ally Direct Lending if you have fair credit and/or need to add a cosigner to your application.
Cosigners are sometimes used to boost the odds of loan application approval.
>> More: How to Refinance Your Car Loan
Ally Clearlane is also well known for offering loans to let you purchase a vehicle you have already leased. This is known as a lease buyout.
This is beneficial if ownership of the vehicle doesn’t transfer to you until the current loan is fully paid off – in buying out your car, you can continue to make regular monthly payments but enjoy the benefits and privileges of direct ownership.
Ally Clearlane doesn’t require a Social Security number or credit score for the pre-qualification process and will tell you in minutes if you pre-qualify.
Guaranteed Asset Protection (GAP) Financing
Ally Clearlane offers some borrowers the opportunity to purchase GAP or guaranteed asset protection insurance.
This helps cover the difference between anything you owe on your current auto loan and the present value of your car if it is destroyed in an accident or stolen.
Vehicle Service Protection Options
Additionally, Ally Clearlane offers insurance options for vehicle service protection (i.e., damages that may be incurred when your vehicle is being serviced or repaired). These contracts protect you from many types of unexpected costs in the future.
No SSN Required
For most of Ally Clearlane’s auto loans and other insurance contracts or services, you aren’t required to provide your Social Security number for pre-qualification.
Note that this only applies to the pre-qualification process; once you select an offer and apply for it fully, you will have to provide your SSN, and the lender will do a hard credit check to verify your creditworthiness.
No Impact on Credit Score
As touched on above, you don’t need to worry about a credit score during the pre-qualification process for an auto loan or an insurance contract.
The soft credit check doesn’t ding your credit score to any degree.
But once you select a loan and apply for it, expect a minor hit to your credit score, as hard credit checks are required to fully verify creditworthiness.
Ally Clearlane allows cosigning on most of its auto loans. Cosigning is a beneficial process for those with subpar credit or not much credit history (such as teenagers or those without a lot of work history), as it ties another individual’s credit score to the contract.
In short, this could allow individuals who might otherwise not qualify for an auto loan to get one through Ally Clearlane.
No Application Fee
One last benefit – Ally Clearlane is excellent for budget-minded loan shoppers since they don’t charge any application fees.
Ally Clearlane Auto Loan Rates
Although Ally Clearlane technically accepts applicants with relatively low credit scores, like 500-600, most successful auto loan applicants have good to excellent credit (usually 700+).
Those with credit scores in this preferred range will enjoy better auto loan rates than those with bad credit. Regardless, most people who get an auto loan through Ally Clearlane will enjoy an APR between 3.74% and 7.49%.
These rates are excellent relative to the rest of the industry and ensure that you won’t have to worry about interest adding too much to your loan total over time. On the downside, Ally Clearlane’s loan terms are between 36 and 72 months, meaning you’ll be saddled with one of their auto loans for 3 years at minimum in most cases.
How to Apply for a Loan from Ally Clearlane
Applying for one of Ally Clearlane’s auto loans is quick and simple, and you can usually get feedback about prequalification within a few minutes.
- Visit Ally Clearlane’s website and click “Apply for an Auto Loan.”
- Then provide your personal information
- The website will do a soft credit check to complete the preapproval process
- If it looks like you’ll be approved, you can apply for the loan and provide your Social Security number for the hard credit check
- You don’t have to worry about an application fee or late payment penalties
- You and/or your cosigner will sign the loan contract once it is sent, then you can return it to Ally Clearlane
- You can apply either online or over the phone
Ally Clearlane Restrictions and Requirements
Although Ally Clearlane can be a beneficial choice for many, especially those with middling credit, there are some important restrictions and requirements to keep in mind.
- A minimum monthly income of $2000
- A maximum vehicle age of 10 years if you want a refinancing loan
- A maximum loan-to-value ratio of 155%, which restricts the kinds of vehicles that will qualify for these loans
- Maximum vehicle mileage of 120,000 miles
Lastly, Ally Clearlane auto loans are unavailable in Nevada, Vermont, and Washington DC, so you’ll need to look for a different provider if you live in these areas.
How Much Can I Borrow from Ally Clearlane?
The specifics depend on your credit score and how much you need, but Ally Clearlane provides auto loans with total amounts between $10,000 and $80,000.
This makes them a great choice for buying or refinancing a vehicle, but they aren’t the best lending institution to check out if you need repairs to your vehicle that only cost a few thousand dollars.
Ally Clearlane Auto Loans Pros and Cons
- You can quickly prequalify with a soft credit check
- Cosigners allowed for most loans
- Good maximum loan amount
- Good APR range for most borrowers
- Can use loans to buy out your financed vehicle
- No late/application fees
- Has restrictions on minimum income
- Most loan terms are on the long side
- Limited loan types available
How Does Ally Clearlane Compare to Other Auto Loan Companies?
While Ally Clearlane has its benefits, it’s not the only lending institution or networking organization out there. Let’s take a look at some competitors, so you know all your options before applying to any of them.
#1. Ally Clearlane vs. Caribou
Caribouis a worthwhile lending institution in many ways, offering lower APRs compared to other lenders in this industry.
However, their loans do come saddled with loan fees of up to $399 for paperwork and retitling, and their auto loans are only eligible for passenger vehicles.
>> More: Caribou Review
#2. RefiJet vs. Ally Clearlane Auto Finance
Like Ally Clearlane, RefiJet offers auto refinancing loans through a dedicated network of lenders. To qualify, you’ll have to have a good history of on-time payments with current loan agreements and proof of significant income.
Older vehicles aren’t eligible for refinancing, but it’s otherwise a solid loan networking service all around.
>> More: RefiJet Review
#3. Autopay vs. Ally Clearlane Auto Loans
Autopay is another loan marketplace that can help you find a suitable auto loan refinance rate.
APRs can vary between as low as 1.9% to 17.9%, and some loan amounts can be quite low, as little as $2500: perfect for paying for repairs or maintenance on your vehicle.
However, this lender has many vehicle restrictions, so your car or truck may not qualify even if your credit score does.
>> More: Autopay Review
#4. Capital One Auto Finance vs. Ally Clearlane
Capital One offers its own prequalifying auto finance loans. However, auto purchasing loans can only be picked up at participating dealerships.
For this organization, you can get loans up to $50,000, and there isn’t a minimum credit score requirement.
Co-applicants are allowed, but unfortunately, these loans are not available in every state.
>> More: Capital One Auto Loans Review
Frequently Asked Questions
Is Ally Clearlane Legit?
Yes. This company is known as a loan marketplace, which means that it connects borrowers or applicants with worthwhile lenders with good APRs and other factors. It has a small network of lenders, which does minimize your options somewhat, but it can still be helpful for those with subpar credit.
Is Clearlane a Good Car Loan?
Clearlane may offer you a good car loan, particularly if you want to buy out your currently financed car or you want to refinance your vehicle for a better rate. But there are other lenders out there that offer better auto purchasing loans overall.
Is Ally Clearlane Free?
Yes. Ally Clearlane doesn’t actually handle your loans, so they don’t charge late or application fees. They instead get paid by lending institutions for connecting them to customers.
What Credit Score Do You Need for Ally Clearlane Auto Loans?
Technically, none. But Ally Clearlane usually requires a minimum credit score of 600 for you to qualify for any of its auto loans, and they prefer applicants with credit scores of 700 or above if they want to secure the best APRs.
Bottom Line: Ally Clearlane Auto Loans Review
All in all, Ally Clearlane’s auto refinancing loans can be advantageous and affordable, especially if you’re struggling with your credit score and you have a willing cosigner available to help you qualify.
However, keep in mind that their loans are relatively limited in scope and are mostly suitable for specific vehicles or vehicle owners looking to refinance or buy out their current car, not purchase a new one.