USAA Auto Loans Review: Rates, Fees, & Terms

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USAA Auto Loans are available to members of USAA. They have very competitive rates and flexible terms and accept members with poor credit. For those who qualify, USAA Auto Loan Rates and Terms are hard to beat.

Find out in this USAA Auto Loan Review why thousands of U.S. Service Members and Veterans turn to this bank for Auto Finance.

Best for Military Auto Loans
USAA Auto Loan Reviews
USAA Auto Loan Rates
  • Loan Amount
    $5,000 - $50,000
  • Est. APR
    2.59% - 16.28%
  • Learn More
  • Auto Loan Details

How USAA Auto Loans Work

Your loan is complete in three simple steps. First, you apply online and get your decision on your loan in less than 5 minutes.

Next, you sign online documents, so you don’t have to mail them in. Lastly, you get your funds as quickly as the day you applied.

You’ll need your income before taxes, the amount of money you wish to borrow, information on your housing, and information about your current employment.

USAA Auto Loans Rates and Terms

For new cars that are from 2020 or newer, you can get an APR as low as 1.89%. Terms can go as long as 84 months.

There are no application fees and no payments for as long as 60 days. If you enroll in autopay, you will get a .25% discount on your rate.

For used cars that range from 2014 to 2019, your term can go to 72 months. There are no application fees and no payments for the first 60 days. Rates go down .25% if you enroll in autopay.

How to Qualify for a USAA Auto Loan

USAA Auto Loans have competitive auto loan rates with no minimum credit score, nor do they have an income requirement.

But they don’t preapprove online, and they don’t publicly show their maximum loan rates, so you won’t know your full rate until you have applied.

You have to be a USAA member to qualify, which means if you are a U.S. military member or veteran, a pre-commissioned officer, or a spouse or child of one of the above.

USAA Auto Loans Features and Benefits

USAA doesn’t hide any fees. They help you buy your lease if you want to keep it. You can get a specialized loan for cars designed for you if you are disabled.

There are no prepayment penalties. You can buy from a private seller. The rates are competitive.

You can apply on your phone. The terms are flexible. They give payment deferment if there is a natural disaster.

No Hidden Fees

USAA doesn’t hide any fees. One fee that is often hidden is the origination fee. This is the fee you must pay upfront. Another fee is the underwriting fee.

This pays the people who sort through your information, although it’s not a common fee because it is typically included in the origination fee.

Late payment fees are another common fee. Prepayments are also quite common (USAA doesn’t have prepayment fees)!

Flexible Terms

USAA Auto Loans have very flexible terms. Their terms extend as far as 84 months, which is 7 years.

If you take out a loan of $10,000 and use the full 7 years to pay it off, you only need to pay roughly $120 a month (not including APR).

You also don’t have to pay for the first 60 days of the term. That gives you two months to sort out your finances and prepare for paying off your Auto Loan.

New Car Loans

New cars are considered to be models from 2020 or beyond. Their APR is as low as 1.89%, which is lower than their used car loans.

The terms go up to 84 months or 7 years. There are no fees when you hand in your application, and you don’t have to pay anything for the first 60 days.

You also get a .25% discount if you enroll in autopay, which might not seem like much, but adds up to a lot.

Used Car Loans

Used car loans are similar to USAA’s new car loans, except the APR and terms differ. The lowest APR for used car loans is 2.79%, which is higher than new car loans. The terms go up to 72 months, which is 6 years as opposed to 7.

But similarities include that there are no application fees, so you can apply for free. You also don’t have to pay for the first 60 days. Lastly, you can get a .25% discount for enrolling in autopay.

Loan Rate Discount

If you enroll in autopay, you can get a .25% discount on your APR. The new car loan 1.89% APR includes the .25% discount, and similarly, the used car loan 2.79% APR includes the .25% discount.

You get a discount when you enroll in autopay because it helps the lender trust you as a borrower to pay off your bills.

If they are set to autopay, you can never forget to pay them because the money will be automatically withdrawn.

Competitive Rates

USAA has incredibly competitive rates. They have low interest and flexible terms. Their rates are so competitive because they want to help active military veterans and their families.

Their loan amounts range from $5,000 to $50,000, and the terms can range from 12 to 18 months.

It depends on the model year and the amount of money you’re borrowing. Their new car loan APR is as low as 1.89%, and their used car loan APR is as low as 2.79%.

Does USAA Offer Auto Loan Refinance?

Yes, USAA offers auto loan refinancing. Their rates are competitive. When you refinance with USAA, you may get an improved interest rate or a better term length.

You won’t have to pay for the first 60 days. There are no application fees or prepayment penalties.

The amount of your current loan that you can refinance depends on USAA’s loan limits as well as how much your vehicle is worth.

>> More: Best Auto Loan Refinancing Lenders

How Do USAA Auto Loans Compare to Other Lenders?

#1. Caribou vs. USAA Auto Loans

Caribou is not a direct lender. That means they connect you with partnered lenders but do not lend money themselves.

They have a single $300 fee, which USAA doesn’t have. However, similar to USAA, there are no prepayment fees.

With both Caribou and USAA, you can take out a loan as high as $50,000. Like USAA, their maximum APR is not disclosed. Late fees depend on the lender that Caribou connects you to.

>> More: Caribou Review

#2. Tresl Auto Loans vs. USAA

Tresl Auto Loans are great for people with bad or fair credit who need help with vehicle transfer paperwork.

They have APRs ranging from 1.99 to 17.99%. Their lowest APR is competitive to USAAs, while USAA doesn’t disclose their highest APR.

You can prequalify with just a soft credit check, but you can’t prequalify with USAA. They both have loan terms longer than 60 months.

>> More: Tresl Auto Loans Review

#3. USAA Auto Loans vs. Autopay

Autopay is designed for people who want to shop around for the right auto refinance loan for them.

Their APRs range from 1.99 to 17.99%. Their low APR is competitive with USAA’s lowest APR, but USAA doesn’t disclose their highest APR.

Their loan amount is $2,500 to $100,000 while USAA’s is $5,000 to $50,000. You can prequalify with a soft credit check, which USAA doesn’t offer. USAA also doesn’t include multiple lenders.

>> More: Autopay Review

What Credit Score Do You Need to Qualify for a USAA Auto Loan?

You need a credit score as low as 560 or as high as 850 to qualify for a USAA Auto Loan. 560 is considered a very poor credit score, while 850 is the highest score you can have.

Can I Payoff My USAA Auto Loan Early?

Yes, you can pay off your USAA Auto Loan early without having a prepayment penalty. A lot of lenders have prepayment penalties.

These are fees that lenders charge if you pay off part or all of your loan term early. It encourages people to pay off their principal over time slowly, which lets the lender collect the full amount of interest.

What Do You Need to Qualify for a USAA Auto Loan?

First, you need to be in the military, a veteran, or a family member of someone who is in the military or a veteran.

It is free to be a member of USAA. To get a loan, you can buy a new vehicle from 2020 or further, or a used vehicle between the years of 2014 and 2019.

They accept extremely poor credit and have no income requirements. You’ll need proof of identity and income, how much you want your loan to be, information about the car, and your social security number to apply.

Does USAA Charge an Origination Fee for Auto Financing?

Refinancing helps you lower your payment by getting you a better interest rate or changing your term length. With USAA, you won’t have to pay for the first 60 days, and they will help you get a deal that fits your budget.

There is no origination fee. An origination fee is something lenders charge for funding, underwriting, and processing a loan. They typically fall between .05% to 5% of the total loan.

Bottom Line: USAA Auto Loans Review

If you are a member of USAA or an eligible member, USAA Auto Loans are a great option to take out a loan or refinance your car.

They have a very low credit score requirement and no income requirement. You don’t have to pay for the first 60 days.

The term lengths range from 6 to 7 years. Their APR rates are competitive. You get a .25% discount for enrolling in autopay.

There are no hidden fees. Really, USAA Auto Loans don’t leave you wanting anything. They are perfect for many people.

Drew Cheneler
Drew Cheneler

Drew is our Co-Founder and is a recognized Credit, Small Business, and Personal Finance Expert. He has been featured in CNBC, Fox Business News Section, The Huffington Post,, Moneyunder30, US Chamber of Commerce, and more. He is known for breaking down complex personal finance topics into action-oriented advice, so you can make the most of your hard-earned money. Drew attended the U.S. Coast Guard Academy where he majored in Business Management with a focus on Information Systems.