Pros and cons
Clearlane auto loans
Regular APR
Refinance/Lease Buyout: 3.74% to 7.49%
Pros
- Soft credit check to prequalify
- Co-borrowers allowed
- Guaranteed Asset Protection (GAP)
Cons
- Restrictive loan amount range
- Higher APR than competitors
- Only loan refinancing and lease buyouts available
- Available in 48 states
- Slow funding process
- Loan amount range from $10,000 to $80,000
- Repayment terms between 36 to 72 months
- GAP coverage available, which reduces the gap between how much the car is worth and how much you owe on the vehicle if your car is totaled or stolen
- Can’t get a loan in Nevada, Vermont, or Washington, DC
- Funding can take up to a few weeks
- Customer service available by phone and email
- Loans are made by Ally Bank, member FDIC
In most states, Clearlane offers Guaranteed Asset Protection, which can help reduce the gap between how much the car is worth and how much you owe on the vehicle if your car is totaled or stolen. This is a unique feature that not all lenders offer.
Additionally, Clearlane allows co-signers on its loans. Co-signers can help borrowers with lower credit scores qualify for a loan.
How Clearlane auto loans work
Clearlane only offers two types of auto loans, loan refinancing and lease buyouts — you won’t be able to buy a new or used car with the lender. Loan terms range from 36 to 72 months, and loans are available in every state except Nevada and Vermont. You can’t get an auto loan in Washington, DC, either. Loan amounts range from $10,000 to $80,000.
The financing process may take between several days and a few weeks, depending on how quickly you get Clearlane the documents they need to approve your loan. These documents include your social security number, employment details, and contact information.
You must have a minimum monthly income of $2,000 to qualify for a Clearlane loan. For your vehicle to be eligible for a Clearlane loan, it must be less than 10 model years old and never previously used as a police car or taxi.
Clearlane’s interest rates are fixed, meaning they won’t change over the course of your loan. The lender doesn’t charge application or documentation fees. You’re allowed to add a co-borrower to your loan, though this isn’t required.
Before settling on a car loan, shop around and compare all your offers. Look beyond the monthly payment and consider the interest rate and the length of the loan.
Is Clearlane trustworthy?
Ally, Clearlane by Ally’s parent company, is rated a D- by the Better Business Bureau, a non-profit organization focused on consumer protection and trust. The BBB cited 73 unresolved complaints against the business as the reason for its rating. The BBB evaluates companies by looking at responses to consumer complaints, honesty in advertising, and clarity surrounding business practices.
Keep in mind that BBB scores may not be representative of the relationship you’ll have with the company and are merely starting points on your search to find an auto loan lender.
On a positive note, Clearlane hasn’t been involved in any recent scandals.
How Clearlane auto loans compare
Compared to other lenders, Clearlane has less competitive rates on its auto financing products. Here’s how the online lender stacks up against Bank of America and Lightstream.
Clearlane’s lowest APR on lease buyouts and loan refinancing is roughly 0.3% to 0.7% higher than APRs from Bank of America and Lightstream. Its loan range has both a higher minimum and lower maximum than Lightstream or Bank of America, making it more restrictive depending on how much money you need to finance.
Both Lightstream and Bank of America offer loans for purchasing new and used cars, while Clearlane doesn’t have that option. Clearlane doesn’t offer any rate discount for AutoPay, while Lightstream does. Clearlane also doesn’t have a discount or for being a member of its parent bank Ally, which Bank of America offers.
Lightstream offers same-day funding in some cases, while it can take a few weeks to get your money through Clearlane.
