Chase Bank has regularly been in the business of auto loan lending, including loans for both new purchases as well as refinancing existing ones. To access these loans, Chase is requiring applicants to already be a customer of the bank with at least a checking account, but this is not hard to create. With a starting balance of $100 a borrower can get approved very quickly, even online.
The benefit Chase offers comes in the form of a discount on what would otherwise be a normal loan offering that seems to be the same as other big banks in terms of interest rates charged. In Chase’s case, the applicant who is already a member would receive a discount of 0.75 percent below otherwise regular rate charges. This discount would come in two forms: a 0.25 percent for normal checking accountholder, a 0.50 percent discount for premier checking accountholders, and an extra 0.25 percent discount when the loan payments are scheduled to be paid automatically once the loan is approved. Again, combined, the borrower can conceivably receive a combined discount of 0.75 percent less than what would otherwise be charged to a borrower for a Chase auto loan.
Where national bank rates normally can be between 3 and 4 percent, a 0.75 discount can make a significant difference in cost and overall loan savings.
To be eligible, most borrowers can find out about account creation information on Chase Bank’s website, chase.com. At a minimum, a basic checking account with Chase will cost $10 a month in fees if the accountholder carries a balance less than $1,500. Otherwise, the account is free to maintain. The premier checking account tends to cost more.
It’s important to note that Chase’s auto loan deal is not a loan offer in itself; it is a contingency offer if the borrower meets certain conditions. As a result, borrowers need to pay attention to the criteria and meet it exactly. Sometimes it helps to remind Chase personnel that criteria has been met. When shown, the personnel will make the necessary adjustments at a Bank office immediately to ensure the discount earned is provided.