Santander Bank Car Loan

A Santander Bank car loan through RoadLoans may be tempting to drivers with past bankruptcies or low credit scores. However, before signing a contract with Santander, it’s worth looking at what Santander auto loan reviews have to say about the lender.

Our team has spent hundreds of hours reviewing some of the most popular auto loan providers. Our research methodology covers loan terms, availability, customer service, and more. For Santander in particular, we collected 33 pieces of information from fees and loan restrictions to starting APRs. To understand what consumers care about when shopping for auto loans, our team also surveyed 2,000 loan customers. Overall, we rate Santander 3.8 out of 5.0 stars.

To find the best loan offer for your budget, you’ll want to compare options from multiple lenders. Check out our review of the best auto loans for our top recommendations.

The fact that Santander was recently the subject of a class-action lawsuit regarding auto loans with very poor loan-to-value ratios indicates this lender is not on the up and up. We recommend a Santander auto loan if you can get a good interest rate and avoid fees. However, there may be better options out there. Even if you have a poor credit score or open bankruptcy, you’ll likely be able to find bad credit auto loan offers from more reputable auto lenders.

How We Rated Santander Auto Loans

Our team reviews loan providers across the same core categories: industry standing, availability, loan details, rates and discounts, and customer service. Below, you can see details on how we rated Santander in each of these categories.

Industry Standing

Our first category covers an auto lender’s longevity in the industry and its standing with the Better Business Bureau (BBB). Santander was originally started in Spain in 1857. It founded its first US location in 1902. So, the company has been around for a while. Santander Bank has a B+ rating on the BBB because it failed to respond to one complaint, but it has responded to all others. We rated Santander 3.7 for industry standing.

Availability

Next, we looked at Santander’s availability. Not all car owners can get any loan, and that’s not just because of credit score. Santander provides loans through multiple outlets (more on that later) and availability can vary depending on where you get the loan. Overall, we rate Santander 4.0 for availability because it operates in all states and doesn’t have many restrictions.

Loan Details

We also look at the types of loans a company offers and the amounts available for financing along with monthly terms. Santander offers many types of loans including used and new auto loans plus refinancing. We rate it 4.0 in this category.

Rates And Discounts

When shopping for auto loans, many people wonder, “What’s this going to cost me?” According to our consumer survey, APR is the most important factor for borrowers shopping around – 29 percent chose this answer over other answers like loan options or company reputation. 

Santander advertises a low starting APR of 2.9 percent at this time on specific new vehicles and loans of 48 months. However, looking into customer reviews, it seems many people have higher rates with Santander than with other lenders. Overall, we rated Santander 3.9 for this category.

Note: APR stands for “annual percentage rate,” which is not the same thing as your interest rate. The interest rate is the basic cost of the loan as a percentage. The APR includes the interest rate plus other fees, like origination fees or dealership fees.

Customer Service

Lastly, our team considers customer service ratings. We look at customer ratings and complaints on the BBB along with ratings on Trustpilot. We analyze dozens of reviews to see if there are patterns in negative or positive feedback. For this category rating, we also consider how reachable a company is and its mobile app ratings. Santander scored lowest in this category – 2.7 out of 5.0. It offers online chat and loan calculators but has poor customer ratings. 

Santander Car Loan Pros and Cons

Founded: 1902

Headquarters: Boston, Massachusetts

Santander Bank is a wholly owned subsidiary of the Spanish Santander Group (Banco Santander). Among its many banking services, Santander customers can apply for new and used auto loans plus refinancing and new leases depending on the partner.

New auto loans are secured through dealerships or through Chrysler financing, with which Santander partners. Borrowers with less-than-perfect credit can use RoadLoans to get new and used auto loans or refinance loans.

Santander loan terms vary depending on where you get the loan – from Chrysler Capital, RoadLoans, or a dealership. Generally speaking, loans through Chrysler Capital for good-credit borrowers will have the best rates. Since RoadLoans caters to low-credit borrowers, its rates may be higher to cover the borrowers who default. And if you go to a dealership, rates can vary slightly depending on fees and add-ons from each dealer.

While Santander advertises rates as low as 2.9 percent, these are reserved for those with the highest credit scores. Many customers have reported APRs up to 20 percent and higher with their Santander loans.

The 2.9 percent rate was advertised on a brand new 2023 Jeep Compass with a loan term of 48 months. You are likely to find higher rates if you don’t have perfect credit or you want a longer auto loan.

Average APRs For Auto Loans

Below are average APRs for new and used car loans according to Experian’s 2022 State of the Automotive Finance Market Report in the third quarter of that year. This applies to rates across the industry for many different lenders. You can use this to compare your rate to what the average is for your credit score range.

In our auto loan survey, we found 54 percent of respondents had a rate of 7 percent or lower. On the other hand, 24 percent of respondents had a high interest rate between 15 and 26 percent. Looking at Santander auto loan reviews, it seems borrowers tend to find higher rates from the company.

The Santander auto loan application process is different depending on where you get the loan. This is because Santander doesn’t offer loans directly online under its own name. Here are the different ways you can get a Santander auto loan:

• Santander Consumer USA: Santander Consumer USA partners with over 14,000 dealerships nationwide to offer auto loans. To find a loan under this program, you’d first visit a participating dealer in person and then apply for financing there.
• Chrysler Capital: If you’re shopping for a new vehicle from Fiat Chrysler Automobiles (including Fiat, Jeep, Wagoneer, Ram, Dodge, and Chrysler), you can apply for financing online with Chrysler Capital and get preapproved for a Santander loan.
• RoadLoans: RoadLoans is Santander’s division geared toward borrowers of any credit type. You can get new and used purchase loans and refinance loans from this site. RoadLoans offers preapprovals.
• Drive: With this platform, you can view dealership inventory in your area and get prequalified for a loan before visiting the dealer. At this time, it’s only available in Phoenix, Arizona, but Santander plans to expand it in 2023.
• Preapproval vs. prequalification: Preapproval requires a full credit check and can lower your score temporarily, but you get an exact APR and loan amount that you are approved for. On the other hand, prequalification doesn’t hurt your credit but it only offers an estimate of rates and loan amounts you may qualify for.

Santander Consumer USA

Santander Consumer USA offers new and used car loans through an extensive network of dealerships across the country. You can use the Santander Consumer USA website to locate a participating dealership in your area. More likely, you’ll shop for auto loans after you select your car, and you may or may not end up with a Santander loan depending on the dealer.

Santander Consumer USA Minimum Requirements

Since Santander Consumer USA works with a variety of dealers, it doesn’t publish minimum credit requirements or income requirements.

Chrysler Capital

With Chrysler Capital, you can browse the online inventory of any FCA dealership, apply for financing, and purchase a vehicle online. When you go to the site, you can see local offers for your zip code and nationwide offers. The FCA brand includes all Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, and Ram models.

Prospective borrowers can complete an online application for preapproval and receive a response in as little as 60 seconds. After receiving preapproval, you’ll need to contact a dealer to complete the transaction.

Be aware that getting a preapproval will require a hard inquiry on your credit report. This is because the preapproval can be used to begin a loan, whereas a simple prequalification can’t.

You can also apply for automotive financing in person at participating Chrysler dealerships.

Chrysler Capital Minimum Requirements

Santander doesn’t list a minimum credit score for Chrysler Capital, but since it only lends for new cars it’s likely to require good to excellent credit. Preference is also given to those with at least one year at their current residence and one year with their current employer.

RoadLoans

Many lenders do not service borrowers with past bankruptcies or poor credit, but if you’re in this situation, you may still be eligible for a Santander auto loan through RoadLoans. This is Santander’s online direct lending platform.

The RoadLoans process involves submitting a full credit application for preapproval. If approved, you have the bargaining power of a cash buyer to negotiate a good price from a dealership of your choice.

RoadLoans Minimum Requirements

RoadLoans specializes in bad-credit borrowers. RoadLoans doesn’t list a minimum credit score, but you will need to make an annual income of $21,600 or more. Many people who have poor credit or past bankruptcies have found financing through RoadLoans. Be aware that interest rates can be high for those with poor scores.

Drive

Santander recently opened a division for selling cars directly to consumers on its own called Drive. Drive is only available in Phoenix, Arizona, at this time but the company plans to expand in 2023. This site allows you to prequalify for an auto loan and browse dealership inventories in your area. 

Drive Minimum Requirements

Drive doesn’t list minimum requirements at this time. Qualification may vary depending on the dealership and location in the future.

Santander has a poor reputation when it comes to auto loans. It was the subject of a class-action lawsuit, and 34 state attorneys general filed claims that Santander issued unfair auto loans with excessive interest rates. The company also recently settled a lawsuit with the Consumer Financial Protection Bureau for violating consumer finance regulations.

The outcome of the lawsuit required Santander to pay about $65 million in total to consumers who defaulted on their auto loans between 2010 and 2019. It also required Santander to forgive up to $433 million in auto loans in default at the time of the class-action lawsuit. Santander is required to monitor certain dealers who changed borrower incomes or expenses to get their loans approved easier, as well.

Santander has a B+ rating on the BBB and has a customer review score of 1.1 out of 5.0 stars based on nearly 300 reviews. On Trustpilot, the company has a 1.4-star rating based on over 500 reviews.

Positive Santander Auto Loan Reviews

Not everyone is displeased with Santander, and some customers report a satisfactory experience. Here’s one positive Santander auto loan review we found:

“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 Santander Auto Loan Reviews

Unfortunately, most customers are displeased with Santander because of high fees and misleading practices. Common complaints regard poor customer service, a bad pricing structure, and excessive interest rates.

“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

“[I] 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

This last review is an example of the bad quality loans Santander had given out in the past. No one should have to pay $30,000 total for a $10,000 car. 

In this review, Santander Bank auto loan earned a 3.8 out of 5.0 stars. Though Santander can be an attractive lender for those with bad credit, its loan details, reviews, and ratings are not desirable. We recommend you look for other auto loan providers and compare your options to find the best auto loan for you.

Santander Auto Loan Competitors: Top Picks

While we can’t recommend getting an auto loan with Santander, there are several providers worth considering. You can use these lenders as a starting point as you begin to shop around for auto financing.

myAutoloan: Best Loan Marketplace

Rather than a direct provider of loans or an auto financing broker, myAutoloan is a loan marketplace. While you can get instant loan offers on the site too, this model allows you to input your information into the company’s website and wait for offers to come to you. As a result, you can easily compare multiple loan offers to see which lender offers the best rates and terms for you.

Auto Credit Express: Best For Bad Credit

While many lenders turn borrowers with bad credit away, Auto Credit Express specializes in helping them. The broker works with dealers and lenders around the country to connect bad credit borrowers with partners who can offer a car loan. Auto Credit Express even works with people going through bankruptcy and other difficult financial situations.