You can finance a new or used car through Wells Fargo Dealer Services. But doing so will probably cost you money and maybe even your sanity.
Who Is Wells Fargo Dealer Services?
In 1852, Henry Wells and William Fargo founded Wells Fargo to provide banking services to miners of the California gold rush.
It’s evolved over time into a large banking institution that serves over 70 million customers with banking, credit cards, and loans.
Wells Fargo along with Bank of America, JPMorgan Chase, and Citigroup makes up the “Big Four Banks” of the United States.
Wells Fargo Dealer Service is one of many programs the bank offers. However, you cannot get a Wells Fargo Auto Loan directly from Wells.
To use Wells Fargo Dealer Services you will have to purchase a car from one of the many dealerships that offer Wells Fargo car loans.
The DOJ also got a settlement from a Wells Fargo Dealer Services Lawsuit where they were illegally repossessing servicemembers’ cars. These guys really suck.
How Do Wells Fargo Dealer Services Work?
Until the middle of 2019, Wells Fargo offered a variety of auto loans you could apply for directly through them. Recently, however, Wells Fargo became an indirect auto lender. So what exactly does this mean?
If you want to apply for an auto loan, you’ll have to turn to one of its partner dealerships.
Currently, Wells Fargo partners with more than 11,000 dealerships that take care of the financing process on their behalf. These dealerships are basically middlemen that Wells Fargo trusts with their auto loans.
If you’re interested in refinancing your auto loan, you can apply through Wells Fargo directly. Otherwise, you’ll have no choice but to go through a partner dealer.
Since the bank doesn’t list its partner dealers on its website, you might want to pick up the phone and call 1-800-289-8004 to speak to an auto loan specialist.
They can inform you of which nearby dealers they work with. If you live in one of these states, you’re out of luck because WellsFargo Dealer Services does not serve them.
- North Dakota
- Washington D.C.
Once you visit a partner dealer, you’ll have to provide information such as your:
- Social Security number
- Current and previous addresses
- Employment history
- Proof of income
You’ll also have to state the VIN, year, make, model, and mileage of the new or used vehicle you want to buy.
WellsFargo Dealer Services (Basics)
Loan Terms: 12 to 72 months
Loan Amounts: Between $5,000 and $300,000
Loan Rates: Depends on your credit and your debt to income ratio
Loan Fees: $99 origination fee
Since you have to go through a dealership to take out a new or used auto loan with Wells Fargo, you won’t be able to find out your rate and terms in advance. You’ll have to physically walk into a dealership and apply to find this information out.
If you’re expecting a good interest rate, understand that Wells Fargo Dealer Services may let you down. Here’s why: Dealers often negotiate higher rates so they can keep the difference and make some money.
This is no surprise as nobody wants to work for free and handle financing without getting something in return.
So you’ll probably pay way more than you need to if you opt for Wells Fargo Dealer Service.
Chances are you’ll be able to lock down a lower interest rate and more favorable terms if you go with a bank, credit union, or another lender instead.
Quick Tip: FICO allows you to shop around for the best auto loan rates for 30 days after your first inquiry. During this grace period, you can apply for an unlimited number of auto loans without any additional inquiries being recorded to your credit file.
Checking Current Wells Fargo Auto Loan Rates
Wondering how much your monthly payments may be if you move forward with WellsFargo Dealer Services?
Since you won’t be able to get preapproved beforehand and get an idea of what your interest rate will be until you visit a partner dealer, we cannot give you an estimate on their reates.
Take a look at the chart below to see what average current auto loan interest rates are and what you can expect.
|Dates||60-month new car||48-month new car||36-month used car|
Wells Fargo Dealer Services Reviews
If you browse various review sites like Yelp and Google, you’ll find plenty of reviews on Wells Fargo Dealer Service.
Unfortunately, almost all of them are negative.
Most customers are unhappy with their auto loans and wish they would’ve chosen an alternative option.
Let’s take a closer look at what some reviewers had to say.
As Alex F. pointed out, you can expect a sky-high interest rate, especially if you don’t have the best credit.
This can cost you hundreds or even thousands of dollars over the life of your loan.
Chances are you’d rather put that money toward retirement, college, travel, or just about anything other than interest for your car loan.
Alex E. is one of the countless reviewers that was disappointed by the customer service.
So if you don’t want to deal with poor customer service, a confusing website, and surprise fees, you may be better off with another auto lender.
Wells Fargo BBB Better Business Bureau Reviews
Wells Fargo Dealer Services has had a file with the BBB since 2009.
BBB Accredited: No
# of complaints: 3,653
# of customer reviews: 400
Customer rating: 1.08/5 star
Most of the BBB complaints are from customers who are frustrated because Wells Fargo continues to collect loan payments from them, even after they’ve paid off their accounts.
There’s also a lot of talk about surprise fees that were not included in their contracts.
It’s pretty clear that the company has better things to do than respond to these negative reviews as most of them have been ignored.
No wonder they earned an F rating and a 1-star rating from customers.
Taking Action On An Auto Loan
Hopefully, you found this Wells Fargo Dealer Services Review helpful because getting an auto loan from the wrong bank can be bad.
We’ve spent hundreds of hours reviewing the best auto loan companies to ensure you get the right terms and rates.
Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements, or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved, or otherwise endorsed by any of these entities prior to publication.
Disclaimers: Annual Percentage Rates (APR), loan term, and monthly payments are estimated based on analysis of information provided by you, data provided by lenders, and publicly available information. All loan information is presented without warranty, and the estimated APR and other terms are not binding in any way. Lenders provide loans with a range of APRs depending on borrowers’ credit and other factors. Keep in mind that only borrowers with excellent credit will qualify for the lowest rate available. Your actual APR will depend on factors like credit score, requested loan amount, loan term, and credit history. All loans are subject to credit review and approval.