Home > FAQs > How to refinance my Ally Financial auto loan?

How to refinance my Ally Financial auto loan?

Ally Financial targets the segment of American car shoppers with moderate (i.e. near-prime) credit and we observed an average auto loan interest rate of 12% (within a range of +/- 6%). If you have a Ally Financial auto loan and have not looked into refinancing your car loan yet, you should do so now!

Ally Financial car loan rates vary a lot by credit score. Our Ally Financial auto loan calculator can help you get a sense for how much you can expect to save from a Ally Financial auto refinance.

The following chart illustrates Ally Financial's auto loan rates by credit score. We obtained the data from Ally Financial's recent auto loan securitization filings and the data includes used and new car loans. The subsidized new car loan rates make the average rates (the green markers) and especially the sub-prime rates look lower than they really are:

Ally Financial Auto Loan Portfolio Rates

Before going into more detail though, here a little background about Ally Financial: Ally Financial was founded in 1919 by General Motors and first called General Motors Acceptance Corporation. GMAC provided financing to car shoppers, often with challenged credit.

Today, Ally Financial is the largest auto loan company in the U.S. by volume, serving more than six million car owners.

Published: June 27, 2020

Refinance your Ally Financial auto loan

To lower your monthly payments on your Ally Financial auto loan, you need to find a lender that can extend your used car loan term or offers you a lower rate before the loan is paid in full. Usually, lenders offer you a lower rate for one of two reasons:

  1. When you bought your car, the dealer marked up your rate. That's common for auto loan originations and to make more money
  2. You improved your credit over time and now qualify for a lower car payment and interest rate.

Both of these observations are the reason for why you can save a lot of money. You improved your credit with the credit bureaus from near-prime credit (i.e. between 600 and 680 on your credit report) to prime credit (i.e. above 680), you're not facing any financial difficulties and therefore, your new lender will be likely one of the following ones:

You successfully got out of the near-prime credit segment (a FICO between 600 - 680 on your credit history) and moved into the prime credit segment (FICO above 680). Commercial banks will now aggressively market to you, often via auto-dialers or direct mail. Commercial banks are in the business of (amongst others) lending money to consumers at a profit and you now match their perfect customer profile.

In the following, we will walk you through the exact steps to pay off your Ally Financial loan.

Ally Financial loan payoff amount

First and foremost, we need to pull up your Ally Financial loan payoff statement. The loan payoff statement is not your outstanding balance. Instead, the loan payoff statement summarizes the following data points:

  • your payoff amount (usually your loan amount balance plus a few small fees)
  • the due date until your payoff is valid to avoid late fees (usually 10 days from when you requested it)
  • the per-diem (how much of daily interest your loan accumulates)
  • your account number (the new lender needs that to payoff your loan)
  • the payoff address (the new lender needs to know where to mail the check to)

All the above information can be found on the official payoff statement. You have multiple payment options but first you need to locate the payoff statement from Ally Financial's customer service reps:

  1. Call the Ally Financial customer service phone number at 1-888-925-2559 and ask to be connected to the loan payoff department.
  2. Log into the online banking at Ally Auto Online Services (https://www.ally.com/auto, login on the right) and browse to the 'Loan Payoff' tab. You will be able to download a PDF.
  3. Do a three-way phone call with the new lender and a Ally Financial customer service rep at 1-888-925-2559, which allows the new lender to ask Ally Financial all the questions necessary to pay off your existing loan.

Should you plan to payoff your loan, you can overnight a check to this address:

Ally Financial
6716 Grade Lane
Building #9 Suite 910
Louisville KY 40213-3416

We provided those addresses above because we always struggle to find a service provider's contact information. Moreover, due to COVID-19, waiting times for customer service reps might be longer than usual.

How soon can you refinance a Ally Financial loan

You're eager to refinance your Ally Financial loan? Great, you should absolutely work towards lowering your Ally Financial payments through refinancing.

Dealers make most of their money on finance and insurance products. Therefore, there's a good chance that you can already save money through refinancing the day you drive off the lot. That said, you will save the biggest amount of money from refinancing after you made 12 to 18 payments. That's when you will notice the effect from improving your credit above and beyond moderate (i.e. near-prime) credit.

Take a look at our auto loan refinance calculator and the paragraph about negative vs. positive equity.

Savings from refinancing a Ally Financial loan

We performed a study on the top 40 auto loan companies to refinance and found that the average Ally Financial loan rate is around 12% (within a range of +/- 6%). If you made your payments for 6 / 12 / 18 consecutive months, you're guaranteed to be able to save money on your Ally Financial loan.

Your new interest rate should be on the order of 6% or below. That means you will save $600 every year / $50 every month if your remaining loan balance is around $10,000 and you refinance. Usually, we see higher loan balances when refinancing our customers, e.g. around $15,000. If your loan balance is around $15,000 you will save $900 every year / $75 every month when you lower your rate by 6%.

We built an auto loan refinance calculator to help you get a quick overview of what your monthly payments could / should be based on your credit score and the term of the loan you choose. Just click on the link, select your vehicle (Year, Make and Model) and you'll be able to adjust a few parameters to get a sense for your future monthly payments.

For a guaranteed rate in less than 2 minutes, open WithClutch.com, enter your phone number, select your goal (e.g. 'Lower my monthly payment') and click on 'Apply Now'. Our process will not hurt your credit and you'll receive a firm and guaranteed rate with not more than 5 clicks. Should you have any further questions, check out our FAQs.

Things to know about Ally Financial

If you currently have a loan with Ally Financial, you most likely got the loan at the dealership where you bought your car and you can make your payments by clicking on Ally Auto Online Services at https://www.ally.com/auto.

79% of all Americans with auto loans get their auto loan at the dealership. People shop for cars, they don't shop for loans. As a result, car dealers have a lot of power and authority when it comes to giving car shoppers loans.

The challenge is this:

  1. the number 1 goal of a car dealer is to sell a car
  2. the number 2 goal of a car dealer is to sell the car at the highest possible margin

Considering the interests of the car dealer and how most car shoppers get their loans, no wonder Americans are overpaying on their interest rates, right?

As mentioned above, Ally Financial is an auto loan company that specializes on the segment of Americans with moderate (i.e. near-prime) credit. We looked at reviews for Ally Financial and found the following:

  • BBB: 1 out of 5 stars and 1,292 complaints
  • Yelp: 1 out of 5 stars from 158 reviews
  • Glassdoor: 3.7 out of 5 stars from 1,018 reviews

Ever wondered if Ally Financial treats everyone like you? Sadly, they do. Other loans you might have also qualified for could have been with one of the following auto loan companies:

If you bought your car at a Franchise Dealership, you may have qualified for a loan with one of the Captive Finance companies (i.e. the auto loan companies that are owned by the respective car brand), e.g.:

After you've made your first 6 / 12 / 18 payments, your chance to refinance your loan and lower your monthly payments has come. The challenge with refinancing is that most auto loan companies require you to visit their branch before they can give you any indication of how much money you will be saving. Fortunately, we can help with that.

Ally Financial car loan refinance rates

We can help you get the following Ally Financial refinance rates:

Credit Score New car Used car
760+ 2.69% 3.49%
700-760 3.00% 4.25%
650-700 5.50% 6.50%
600-650 9.75% 10.75%
550-600 15.50% 17.50%
Below 550 22.00% 22.00%

As mentioned above, Ally Financial car loan rates vary a lot by credit score. We therefore recommend taking a look at our Ally Financial auto loan calculator.

Refinance your Ally Financial loan now

Haven't explored refinancing yet?
WithClutch.com is a fully digital platform that lets car owners like you do so from the comfort of their own home. No need to set a foot in a bank or credit union. You can lower your rate or get cash in as little as 20 seconds.

Follow three simple steps to refinance your auto loan, get approved in seconds and save thousands in minutes.



WithClutch, LLC

2120 E El Parque Dr

Tempe, AZ 85282