Prosper auto loans review
Unsecured financing from $2,000 to $40,000 with no age or mileage restrictions.
Min. Loan Amount
Max. Loan Amount
6.95% to 35.99%
|Product Name||Prosper Auto Loans|
|Min. Loan Amount||$2,000|
|Max. Loan Amount||$40,000|
|APR||6.95% to 35.99%|
|Interest Rate Type||Fixed|
|Requirements||640+ credit score, debt-to-income ratio below 50%, no bankruptcies within the past year, less than 5 inquiries on your TransUnion credit report within the last 6 months, 3+ open trade lines on TransUnion credit report, ages 18+|
Jennifer Gimbel has over five years of experience informing editorial strategy at one of Disney’s digital media brands. Now as loans editor at Finder, she strives to create engaging, transparent content to help readers find products to meet their financial goals. On the weekends, you can catch Jenn at the dog park with her pup Olive or exploring the streets of Brooklyn — iced coffee in hand.
Prosper auto loans are ideal if you don’t want to secure your loan with the vehicle you’re purchasing. Instead, you’ll take out an unsecured personal loan to buy any type of vehicle you want — with no age or mileage restrictions.
However, it’s not the fastest lender out there since its loans are funded by investors. And it doesn’t offer the most competitive rates. You could also face an origination fee of up to 5% depending on your credit profile.
Prefer working with a traditional car loan provider? Compare your other options below.
First, do I qualify?
The minimum criteria for a Prosper auto loan includes:
- Credit score of at least 640
- Debt-to-income ratio below 50%
- No bankruptcies filed within the past year
- Less than five inquiries on your TransUnion credit report within the last six months
- At least three open credit lines on your TransUnion credit report
- At least 18 years old
What makes Prosper auto loans unique?
Prosper was the first peer-to-peer lending marketplace in the US, and its loans are funded entirely by the company’s increasing number of investors. Unlike traditional auto loan providers that use your car as collateral, Prosper offers unsecured personal loans to buy any type of vehicle — including motorcycles, RVs and boats. And unlike many providers, there are no age or mileage restrictions for used vehicles.
However, because its loans aren’t backed by the vehicle you’re purchasing, rates are on the higher side compared to traditional auto lenders.
What types of auto loans does Prosper provide?
Prosper offers several types of personal loans used to purchase a vehicle or refinance your existing auto loan:
- New car loans. Funding for the purchase of a new vehicle from a dealership.
- Used car loans. Money to buy a preowned vehicle from either a dealership or private seller.
- Auto loan refinancing. Pay off your existing auto loan with one that has better terms or rates.
Other vehicle financing options from Prosper
Prosper loans can also be used to purchase new or preowned motorcycles, RVs and even boats. The terms, fees and rates are no different in these cases, since you’ll be taking out the same unsecured personal loan through Prosper.
What are the benefits of Prosper auto loans?
Prosper’s unique peer-to-peer lending platform gives several benefits to borrowers:
- No vehicle eligibility requirements. Prosper auto loans can be used to purchase new or used vehicles of any kind, regardless of their age, type or mileage.
- Prequalify without affecting your credit. Checking the rate you might qualify for won’t affect your credit score. A hard inquiry will only appear if you decide to follow through with the full application.
- Unsecured loan. Unlike traditional car loans that are secured by the vehicle you’re purchasing, you don’t risk losing your car if you fall behind on repayments.
What to watch out for
Prosper auto loans have several attractive features, but there are some potential drawbacks to consider as well:
- Origination fee. Prosper charges an origination fee of up to 5% of the loan amount, meaning how much you actually receive will be less than what you applied for.
- Higher rates. If your credit score is low and you’re deemed a risk by Prosper’s underwriting criteria, your loan could have a fixed APR of up to 35.99%.
- Slower turnaround time. It could take up to five days to get your money because you need to wait for an investor to fund your loan. Other online auto loan providers can get you funds in as little as one day.
Compare your other car loan options
Prosper reviews and complaints
|BBB customer reviews||1.5 out of 5 stars, based on 54 customer reviews|
|BBB customer complaints||123 customer complaints|
|Trustpilot Score||1.5 out of 5 stars, based on 4,507 customer reviews|
|App Store Score||4.7 out of 5 stars, based on 1,084 customer reviews|
|Google Play Score||3.9 out of 5 stars, based on 197 customer reviews|
|Customer reviews verified as of||19 October 2020|
As of October 2020, Prosper has a decent reputation in terms of online reviews. While its Better Business Bureau (BBB) profile pulls a disappointing 1.5 out of 5 stars, it’s only based on 54 customer reviews. Its Trustpilot profile, however, has over 4,500 and a much more favorable rating of 4.5 out of 5 stars.
What complaints there are typically revolve around the rate the customers received, or being denied for a loan after being preapproved. Meanwhile a number of happy customers cite the customer service received as a reason for their glowing reviews.
How do I apply?
Applying for a Prosper auto loan can be done over the phone by calling 877-611-8801 or on its website. Follow these steps to get started online:
- Go to Prosper’s website and click Check your rate.
- Enter the amount you’d like to borrow, then click Continue.
- Select Auto/Motor under how you plan on using your loan. Click Continue.
- Enter your name, date of birth and email. Click Continue.
- Enter your address and click Continue.
- Select your primary source of income, then click Continue.
- Enter how much you make each year and your monthly rent or mortgage payment. Click Continue.
- Enter your phone number and check whether you’d like to receive updates from Prosper. Click Continue.
- Create a password and click that you’ve read through the terms and conditions. Click Check your rate.
What happens after I submit my application?
If you like the rate you’re offered, you can go through with the full application. It can take anywhere from one to three days for Prosper to complete the underwriting process, and investors have up to 14 days to commit funds to your loan. Once your loan is fully funded by the investors, it should only take a day or so for the money to be transferred to your bank account.
I got a Prosper auto loan. Now what?
Once you’ve received the money transfer from Prosper into your bank account, you are free to use those funds to buy the vehicle of your choice — or for any other reason you deem fit. Your first payment will be due the month following your origination date.
If you chose to sign up for autopay, your monthly payment will be automatically deducted from your bank account on its due date. Otherwise, you can make a payment online, over the phone or by mailing a check. If you choose to pay by check, you’ll be on the hook for a processing of 5% of your payment due or $5 — whichever is less.
Keep an eye on your bank account and loan balance. If you have any questions, reach out to customer service as soon as possible by calling 866-615-6319 or emailing email@example.com.
Check out our car loans guide to compare Prosper auto loans with other lenders.