Clearlane by Ally Auto Loan Review 2022

Advantages and disadvantages

Clearlane Auto Loans

Regular APR

Refinancing/Lease buyout: 3.74% to 7.49%

  • Advantages and disadvantages

  • Details

  • Advantages
    • Flexible credit check to prequalify
    • Authorized co-borrowers
    • Guaranteed Asset Protection (GAP)
    The inconvenients
    • Restrictive loan amount range
    • Higher APR than competitors
    • Only loan refinances and lease buyouts are available
    • Available in 48 states
    • Slow funding process
    • Loan amount ranges from $10,000 to $80,000
    • Repayment terms between 36 and 72 months
    • GAP coverage available, which reduces the gap between the value of the car and the amount you owe on the vehicle if your car is destroyed or stolen
    • Unable to 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 provided by Ally Bank, Member FDIC

    In most states, Clearlane offers guaranteed asset protection, which can help close the gap between the value of the car and the amount you owe on the vehicle if your car is destroyed 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 refinance and lease buyout – you won’t be able to buy a new or used car with the lender. Loan terms vary from 36 to 72 months and loans are available in all states except Nevada and Vermont. You also cannot get a car loan in Washington, DC. Loan amounts range from $10,000 to $80,000.

    The funding process can take anywhere from several days to 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, which means they won’t change over the course of your loan. The lender does not charge any application or documentation fees. You are allowed to add a co-borrower to your loan, although this is not 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 term of the loan.

    Is Clearlane Trustworthy?

    Ally, Clearlane by Ally’s parent company, is rated D- by the Better Business Bureau, a nonprofit organization focused on consumer protection and trust. The BBB cited 73 unresolved complaints against the company as the reason for its rating. The BBB rates businesses by looking at responses to consumer complaints, honesty in advertising, and clarity in business practices.

    Keep in mind that BBB scores may not be representative of the relationship you will have with the company and are only starting points in your search to find an auto lender.

    On a positive note, Clearlane has not been involved in any recent scandals.

    Comparison of Clearlane car loans

    Compared to other lenders, Clearlane has less competitive rates on its auto finance products. Here’s how the online lender compares to Bank of America and Lightstream.

    Clearlane’s lowest APR on lease buyouts and loan refinancing is approximately 0.3% to 0.7% higher than Bank of America and Lightstream’s APRs. Its loan lineup has both a higher minimum and a lower maximum than Lightstream or Bank of America, making it more restrictive based on the amount of money you need to fund.

    Lightstream and Bank of America offer loans for the purchase of new and used cars, while Clearlane does not have this option. Clearlane does not offer any rate reductions for AutoPay, unlike Lightstream. Clearlane also doesn’t have a discount or for being a member of its parent bank Ally, offered by Bank of America.

    Lightstream offers same-day financing in some cases, while it can take a few weeks to get your money through Clearlane.