Drivers with past bankruptcies or low credit scores might find a Santander auto loan alluring. But it’s wise to read what Santander auto loan reviews have to say about the lender before entering into a deal with them. To help you get a better understanding of the provider, we’ll look closely at Santander’s loan specifics and client reviews in this post.
About Santander Bank
Founded: 1902
Headquarters: Boston, Massachusetts
A fully owned component of the Spanish Santander Group is Santander Bank (Banco Santander). Customers of Santander can apply for new and used auto loans, among other banking services. Santander does not provide loans for private party transactions, lease buyouts, or auto refinancing.
Santander or Chrysler financing, a partner of Santander’s, provide direct security for new car loans. Vroom, a New York City-based online dealer of used cars, handles used automobile loans.
| Pros | Cons |
|---|---|
| Offers loans to customers with bankruptcies and low credit scores | Poor customer reputation |
| Easy application process | History of deceptive loan practices |
| Can apply for financing and shop for a used car through the same platform (Vroom) | High interest rates |
Santander Car Loan Review: 2.5 Stars
Santander is not a reputable lender, as evidenced by the current class-action lawsuit addressing auto loans with extremely low loan-to-value ratios. In general, we do not advise obtaining an auto loan from Santander. You’ll most likely be able to get bad credit vehicle loan offers from more respectable auto lenders even if you have a low credit score or an active bankruptcy.
| Santander Car Loan | 2.5 Stars |
|---|---|
| Loan Details | 2.0 |
| Loan Availability | 3.5 |
| Application Process | 3.5 |
| Customer Service | 1.5 |
Santander Car Loan Rates and Terms
“Simple interest loan contracts” are what Santander refers to as being used. These contracts have a monthly payment schedule with daily interest accrual.
You won’t be penalised if you make your payments earlier. In fact, if you pay off your Santander auto loan early, you’ll pay less interest overall and have a shorter contract.
However, your interest rates can increase if you skip any car payments.
| Santander Auto Loan Details | Santander Auto Loan Details |
| Loan Amount Range | $5,000 to $75,000 |
| Annual Percentage Rate (APR) | As low as 1.9% |
| Loan Term Length | Up to 72 months |
Santander boasts rates as low as 1.9 percent, but these are only available to borrowers with the best credit. APRs of 20% and higher have been reported by many clients for Santander loans.
Santander Car Loan Application Process
For both new and used car purchases, there are distinct application procedures with Santander. While used automobile purchases occur through Vroom, new car finance is handled through Santander Consumer USA Inc. or Chrysler Capital. Borrowers with bad credit can also apply through Santander’s direct financing website RoadLoans.com.
To provide auto loans, Santander Consumer USA collaborates with more than 14,000 dealerships across the US. In order to apply for financing through this programme, you must first go to a participating dealer.
1. Chrysler Capital
You may apply for finance, explore the online inventory of any FCA dealership, and buy a car all online with Chrysler Capital. You can view both local offers according to your zip code and national discounts when you visit the website. All Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Ram models fall under the FCA brand.
Applicants for loans can submit an online pre-approval application and get an answer in as little as 60 seconds. You’ll need to speak with a dealer to finish the transaction once you’ve received pre-approval.
Pre-approval will necessitate a hard query on your credit report, so be aware of that. This is due to the fact that a pre-approval, as opposed to a basic pre-qualification, can be utilised to start a loan.
The participating Chrysler dealerships also accept in-person applications for auto financing.
Requirements:
Santander advises prospective applicants to have a credit score of at least 650. Additionally, those who have been with their current work and residence for at least a year are given preference.
2. RoadLoans
Many lenders won’t work with consumers who have had bankruptcies in the past or have bad credit, but if this describes you, you might still be able to get a Santander vehicle loan with RoadLoans. This is the online direct lending platform for Santander.
Preapproval for RoadLoans requires submitting a complete credit application. If accepted, you can barter with a dealership of your choice for a fair price using the leverage of a cash buyer.
Requirements:
RoadLoans focuses on helping consumers with poor credit. Although RoadLoans doesn’t specify a minimum credit score, you must have a yearly income of at least $21,600. Through RoadLoans, many people with bad credit or bankruptcy convictions have been able to secure finance. Be advised that those with low scores may face exorbitant interest rates.
3. Vroom
Through the online used automobile shop Vroom, Santander provides used car purchasing. Customers can browse the inventory of vehicles on Vroom and even arrange for home delivery of their new autos.
Santander, Capital One, and TD Bank are just a few of the 12 loan partners that Vroom has. This implies that when you apply on the website, you have additional financial possibilities.
You can apply quickly using Vroom to be prequalified. Your credit score is not affected by this procedure. To determine how much financing you are eligible for before shopping, use here. After selecting a vehicle, you’ll take five minutes to complete an online finance application.
Requirements:
Although Vroom doesn’t specify a minimum credit score, those with low scores can anticipate having to provide proof of a consistent source of income.
Vroom claims that its lending partners can deal with the majority of borrowers.
Santander Car Loan Customer Reviews And Reputation
When it comes to auto loans, Santander doesn’t have a good reputation. 34 state attorneys general asserted that Santander made unfair auto loans with high interest rates, which was the subject of a class action lawsuit. Additionally, the business recently reached a settlement in a complaint against the Consumer Financial Protection Bureau for breaking consumer finance laws.
The Better Business Bureau (BBB) has given Santander a B grade, and based on roughly 300 reviews, it has received an average rating of 1.1 out of 5.0 stars from customers. Based on more than 4,000 reviews, the business has a 1.4-star rating on Trustpilot.
Positive Reviews
Not everyone has a negative experience with Santander, and some clients say they had a positive one. Here is one endorsement for Santander auto loans that we located:
“This bank is awesome. I have a car loan with them. Recently I started a business and it set me back a little. They were very understanding and super excited for me … on top of that, they even deferred a payment for me to help with business costs.”
“This bank is awesome. I have a car loan with them. Recently I started a business and it set me back a little. They were very understanding and super excited for me … on top of that, they even deferred a payment for me to help with business costs.”
Ryan B. via BBB
Negative Reviews
Unfortunately, Santander’s excessive costs and deceptive techniques have sent away the majority of clients. Poor pricing, lousy customer service, and high interest rates are common concerns.
I would not recommend doing business with [Santander]. I’ve been paying on my lease for close to seven years, and every time it looks like the payoff is going down, they find a way to add more fees.”
Reynaldo B. via BBB
“have sent messages to have someone review my account due to the extremely high interest rate. [I] bought the car in 2016. It is a 2013 Avenger, and [I] have already paid over $20,000. [I] still owe $11,000 more with the sticker price $9,999.”
Debra B. via BBB
Conclusion:
Santander auto loans had a rating of 2.5 out of 5.0 in this evaluation. For borrowers with poor credit, Santander may be a good option, however their loan terms and ratings are undesirable. To discover the best auto loan for you, we advise you to search for more auto loan companies and weigh your options.
FAQ
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Is Santander a good bank for car loans?
From a variety of web sources, Santander has received mixed ratings.
But before passing judgement in full, it’s critical to carefully consider what those reviews are saying.
You should make sure you read everything attentively because many have to do with misinterpreting loan conditions. -
Does Santander offer deferred payments?
Santander offered assistance at the beginning of the COVID-19 pandemic, but those programs may have changed or ended by now. Contact Santander to find offers available to you.
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How long does it take for Santander to approve a car loan?
For its own customers with active accounts, Santander claims that it can approve and fund a new loan in as little as two days.
Before deciding to buy a car, it’s crucial for you to speak with the bank because your own experience could differ.
