Commerce Bank Auto Loans: Fees, Discounts and Who They Suit

How Commerce Bank auto loans work

Commerce Bank's vehicle loan pages cover auto loans for new and used cars, loans for older cars, student auto loans and auto loan refinancing. The auto loan page also invites lease buyout customers to call and discuss options.^[1][3][4][5]

A car loan from Commerce is an installment loan: you borrow a lump sum and repay it with interest in monthly payments. Commerce's FAQ adds that auto loans usually carry lower rates than unsecured personal loans because the vehicle secures the loan, and that an auto loan is meant for buying the car. For other borrowing needs, it points to a personal loan.^[6]

• No closing fees, prepayment penalties or early payoff fees.
• A 0.25% rate discount for automatic payments from a Commerce checking or savings account, with the exclusions listed below.
• Terms described as flexible, whether long, short or in between, and worked out with a banker.
• Applications online, by phone or at a branch, with financing finalized as early as the same day.
• Financing for cars 7 years old or older, classic cars and cars with more than 100,000 miles, if the car fits Commerce's collateral guidelines.

Sources^[1][4][6]

Who it suits, and what Commerce looks at

Commerce says a credit score is required, but that score requirements change and differ by loan type, and that other factors are used too. For refinancing, it names three common factors: your credit history (FICO Score), your ability to repay and the value of your vehicle, along with other underwriting checks.^[6]

You must be 18 or older to apply, and every loan is subject to credit approval. Proof of income may be required when you apply to buy or refinance a car.^[1][6]

Commerce also offers student auto loans to people currently enrolled in undergraduate, graduate or technical school who need a car for their commute. That page does not publish separate rates or eligibility rules.^[5]

Where you live matters. Commerce's branch locator lists locations in Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Missouri, Ohio, Oklahoma, Tennessee and Texas, and describes full-service banking within the Midwest. Its auto loan pages do not say whether it lends to people who live outside that area, and rates are looked up by ZIP code.^[1][8]

• Our view of a likely fit: you already have a Commerce checking or savings account, you live in its footprint, and you want a bank loan for a dealer or private-party purchase, a refinance or an older car.
• Our view of a weaker fit: you live far from Commerce's branches, you want to compare published rates before sharing any details, or you need a small loan below the online minimum.

Rates and terms: what Commerce publishes

Commerce does not print an APR range on its auto loan pages. Each page has a rate tool that asks for your ZIP code, and the FAQ says to enter one to view current new and used car rates. We did not enter a ZIP code, so this guide does not quote a rate.^[1][2][6]

The rate disclosure says rates are subject to change and apply only to new and used car, truck and motorcycle loans. Your APR is set by your creditworthiness, the length and amount of the loan, and the age of the vehicle, and higher rates may apply to older vehicles.^[1][2]

Sources^[1][2][7]

The autopay discount has conditions. It cannot be combined with any other offer, and it is not available on dealer loans, mortgages or refinances of Commerce Bank loans. It is also subject to credit approval.^[1][3]

Because no rate appears until you give a ZIP code, write down the APR, term and amount the tool or banker gives you, and ask other lenders to quote the same term and amount.

Fees, down payment and paying early

Commerce's FAQ says there are no closing fees, prepayment penalties or early payoff fees on its auto loans. Its refinance page says you can refinance at no cost, with no fees at loan closing.^[3][6]

Commerce's disclosures also warn that extending your loan term increases the total finance charges. A lower monthly payment from a longer term usually means paying more interest overall.^[1][3]

Commerce does not set a down payment figure on these pages. Its FAQ says the down payment should depend on your budget, and that to borrow with no money down you must be able to repay the loan you request.^[6]

Paying more than the minimum each month pays the loan off sooner, but Commerce notes it does not lower your required monthly payment. If you owe more than the car is worth, you are still responsible for the full amount borrowed.^[6]

How applying and closing work

• Apply online, by phone or at a branch, before or after you have found the car.
• The online application's first page states that the amount requested must be at least $7,000.
• Commerce reviews the application and contacts you with its decision. If you are approved, it contacts you about closing the loan and buying the car.
• Financing can be finalized as early as the same day.
• The FAQ says that after the loan closes, the money is released directly to the seller. The older-car page instead describes loan funds deposited into your account, so ask which applies to your purchase.

Sources^[1][6][7]

Before you shop, you can ask a banker about applying for preapproval. Commerce says this gives you a clear picture of what you can afford for the term and amount you request.^[1]

Commerce says applying can result in an inquiry on your credit history. These pages do not say whether it is a hard or soft inquiry, so ask if that matters to you.^[6]

Private-party purchases are possible: you still submit a loan application, and Commerce notes the process can differ depending on the buyer's and seller's situation.^[6]

Limits and fine print

• Rates are not published without a ZIP code, and they can change.
• Higher rates may apply to older vehicles.
• The autopay discount excludes dealer loans and refinances of Commerce loans, and cannot be combined with other offers.
• An auto loan is for buying the vehicle. For other purposes, Commerce points to a personal loan.
• Term lengths and a maximum loan amount are not published; the online application starts at $7,000.
• The auto loan pages do not say which states Commerce lends in.

Sources^[1][2][6][7]

Cash-out refinancing is possible but depends on equity. Commerce's example: if your car is worth $15,000 and you owe $10,000, you may have $5,000 in equity, which may let you borrow $15,000 and take $5,000 in cash. A bigger loan means more interest to repay.^[6]

What to compare it with

Commerce's FAQ argues that dealers often offer a cash rebate as an alternative to a low promotional rate, and that taking the rebate and financing with Commerce may save more. That is the bank's view; the only way to know is to compare both offers side by side.^[6]

• A credit union or your own bank, especially if you live outside Commerce's branch states.
• Dealer financing, including any manufacturer promotions on new cars. Ask for the APR and the total cost, not just the monthly payment.
• Keeping your current loan, if a refinance would save only a small amount over the remaining term.

• What is the APR, and is it fixed?
• How many months, and what is the total amount repaid?
• Are there any fees, and is there a penalty for paying off early?
• Is the credit check a hard or soft inquiry?
• Does the discount depend on opening an account or on automatic payments?