State Farm auto loans review October 2018 | finder.com

State Farm auto loans review

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Financing up to $250,000 for your next car, boat, RV or travel trailer.

This insurance provider can do more than just protect your home and car in an accident. State Farm offers loans for cars, boats, recreation vehicles and motorcycles. With financing up to $250,000 and APRs starting of $5,000, State Farm offers competitive loan products to get you behind the wheel of your next vehicle. But if you’re looking for an application you can fill out solely online, make sure you live in an eligible state. Otherwise, you may have to speak to a local agent to apply.
Product NameState Farm vehicle loans
Min Loan Amount$5,000
Max. Loan Amount$250,000
APR3.29% (starting at)
Interest Rate TypeFixed
Minimum Loan Term1 year
Maximum Loan Term7 years
RequirementsState Farm vehicle loans aren’t available in Massachusetts or Rhode Island
Fees
  • Not be a resident of Massachusetts or Rhode Island.
  • Be a US citizen or permanent resident.
  • Be at least 18 years old.

First, am I eligible?

To get a loan from State Farm you must:

  • Not be a resident of Massachusetts or Rhode Island.
  • Be a US citizen or permanent resident.
  • Be at least 18 years old.

What makes State Farm unique?

You may know State Farm by its insurance commercials, but it offers more than that. Beyond insurance and banking, you can finance your next vehicle purchase through State Farm, including both new and used cars, motorcycles, boats, RVs and travel trailers. If you’re looking to buyout a lease or refinance a loan, you’ll need to contact a local representative for rates for these services.

What types of auto loans does State Farm finance?

State Farm offers loans between $5,000 and $250,000 for new or used cars and boats, and $40,000 for motorcycles.

Loan type Minimum APR Loan term
New car, truck, van or SUV 3.29% 12–84 months
Used car, truck, van or SUV 3.99% 12–72 months
New boat, RV or travel trailer 4.39% 12–240 months
Used boat, RV or travel trailer 5.39% 12–48 months
New motorcycle 6.24% 12–72 months
Used motorcycle 6.84% 12–60 months

What are the benefits of a vehicle loan from State Farm?

  • High maximum loan amount. If you have your eye on an expensive vehicle, like a new car to a luxury RV, you can apply for a loan from State Farm for up to $250,000.
  • State Farm Bank Payoff Protector. Automatically included with all vehicle loans, Payoff Protector cancels the outstanding balance on your loan if your vehicle is deemed a total loss by an insurance company.
  • Get preapproved, then find your car. State Farm will base your auto loan preapproval on your credit score, application details and debt-to-income ratio. Use this offer to shop around and gauge your rates, and then when you find the right vehicle, submit a full application to State Farm.

What to watch out for

  • Prepayment penalty. State Farm charges a fee of $100 for any loan paid off within the first 12 months.
  • Mileage restrictions. To be covered by a loan, your vehicle must not have more than 150,000 miles or have been driven more than 50,000 miles per vehicle year.
  • Online application restrictions. You won’t be able to apply for a lease buyout or private party loan through the State Farm online application, and some states don’t have access to the online application.

Other car loan providers

Rates last updated October 23rd, 2018

Reveal your potential loan offers and rates

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Unfortunately, none of the personal loan providers offer loans for that credit score. If you are in urgent need of a small loan, you might want to consider a short term loan.
Name Product Product Description Minimum Credit Score Term of Loan Requirements
car.Loan.com Car Loans
Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.
300
Varies by lender
Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.
Auto Credit Express Car Loans
Get connected with an auto lender near you, even if you have bad credit.
300
Typically 3 to 6 years
Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.
LendingClub Auto Refinancing
Lower your monthly car payments and save on interest through a fast and easy online application process.
Fair or poor credit
Minimum of 2 years
Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.
MotoRefi Car Loan Refinancing
A car loan connection service for borrowers looking to refinance.
525
1–6 years
Must have an income of at least $2,000/month and have a vehicle with less than 100,000 miles.
myAutoloan.com Car Loans
Get up to four offers in minutes through one simple application. Multiple financing types available including new cars, used cars and refinancing.
550
24 to 84 months
Must have a Social Security number; make $24,000+/year; have no open bankruptcies.
LendingTree Auto Loans
Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.
670
Typically 1 to 7 years
Must be a US citizen and 18+ years old. Must have good to excellent credit.
Capital One Auto Financing
You could qualify for a car loan of up to 40000, but not all dealers accept this bank's financing.
Good to excellent credit
36 to 72 months
Valid street address; existing Capital One accounts in good standing. Car must be a 2006 model or newer with less than 120,000 miles.

Compare up to 4 providers

How do I apply?

If you want to apply online, follow the steps below. Keep in mind that only residents of Connecticut, Delaware, Florida, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Virginia, Vermont, West Virginia and Washington, DC can fill out the online application. Other applicants must contact a local State Farm representative instead.

  1. Go to the State Farm site, click Menu in the upper left-hand corner and then select Vehicle Loans.
  2. Enter your ZIP code on the loan page.
  3. Sign in to your State Farm account or continue as a guest.
  4. Select the type of loan you’re requesting, as well as your vehicle type and year.
  5. Enter your address, name, date of birth, Social Security number, email and phone number.
  6. Enter information about your employment, income and housing.
  7. Select if you’re applying by yourself, with a cosigner, as joint credit or as joint credit with a cosigner.
  8. Read over the terms and conditions, agree and submit your application.

If you choose to add a cosigner or coapplicant, you will need to enter their basic information and give permission for State Farm to contact them about the application.

How to apply step-by-step with screenshots

What documents do I need to apply?

To complete your application, you and your cosigner or coapplicant need to provide the information listed below.

  • Your name, date of birth, address, Social Security number and phone number.
  • Your monthly housing payment and whether you rent or own.
  • Your employment status, time at current employer and employer’s contact information.
  • Your monthly or yearly income and its sources.
  • The make, model, VIN number and mileage of the vehicle you’re looking to buy.

If refinancing, you need to provide State Farm with your remaining loan balance and information about your current lender.

What happens after I’m approved for a vehicle loan?

After you’re approved and have received your funds, it’s time to start paying down your loan balance. State Farm allows its borrowers to make payments online, over the phone, by mail or through wire transfer services like MoneyGram or Western Union.

You’ll be on the hook for late fees if you’re more than 10 days late on a payment. The exact amount varies based on your loan terms, so check your promissory note, coupon book or online account for more information.

Keep an eye on your loan balance and your bank account, and if you notice anything off, reach out to State Farm as soon as possible by calling 844-619-8906.

Bottom line

State Farm offers competitive rates and high loan amounts for people looking to finance their next vehicle, either on the road or in the water. Depending on where you live, however, you may not be able to apply online. And its prepayment penalties may be a turnoff if you were hoping to try to pay off your loan within a year.

Before settling on a lender, compare your car loan options to make sure you find the best one for your needs.

Interested in State Farm car insurance? Read our review.

Frequently asked questions

Image Source: shutterstock and statefarm.com

Kellye Guinan

Kellye Guinan is a writer and editor with finder.com and has years of experience in academic writing and research. Between her passion for books and her love of language, she works on creating stories and volunteering her time on worthy causes. She lives in the woods and likes to find new bug friends in between reading just a little too much nonfiction.

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