AAA Auto Loan Review 2023: What Are The Benefits?

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Want to know what the benefits of an AAA Auto Loan are? There are many reasons why you should consider taking one out, even if you can get a much lower rate elsewhere.

It is possible to find loans that have rates as low as 1.69%, but when you have a poor credit history, this rate will likely be much higher, and it will require a large down payment.

If you need to drive a reliable car that is in good condition, but you have bad credit history due to previous mistakes or errors, then an AAA Auto Loan could be the solution for your problems.

AAA Auto Loans don't require a down payment, which is very useful if you don't have the cash available. They also include car inspections, ensuring that your car meets their requirements before they will lend money towards it. Customers with a good credit history are more likely to receive competitive rates when taking out an auto loan.

What Is AAA Auto Loan?

AAA Auto Loans are offered by AAA Federal Credit Union. The AAA Auto Loan is a low rate loan that allows for financing of both new and used cars, trucks, vans, boats, motorcycles, and recreational vehicles.

AAA offers loans to anyone, including those with subprime credit scores (620+) who may not be able to get an auto loan elsewhere. To get an AAA Auto Loan, you must become a member of AAA. Membership is available for $12/yr at local clubhouses or $15/yr online.

What Is AAA Auto Loan?

AAA offers rate discounts to members on its other financial products as well, including loans for home improvement and refinancing, lines of credit, certificates of deposits, money market accounts, and checking accounts.

The AAA Auto Loan is a 10-year loan with a fixed interest rate for the entire term of the loan. The rate is not tied to an index like the Prime Rate or LIBOR, so AAA members are spared from fluctuations in market rates that can affect their borrowing costs.

At application, you select your desired monthly payment. This is not an adjustable-rate loan. The AAA Auto Loan has no prepayment penalty, so you are free to repay your loan at any time at no additional cost.

At closing, you have the option of either paying for your car outright using the cash available in your checking account or financing through AAA by putting down 20% of the vehicle cost and financing the remainder.

How To Apply For AAA Auto Loan?

  1. Visit AAA Federal Credit Union's website at
  2. Click on "Investment Services" from the menu on your left-hand side of the page and then click "Auto Loans." This will bring you to a page that focuses specifically on Auto Loans; view more information about them here:
  3. Fill out the application for an AAA Auto Loan ( This will require getting pre-approved to get an initial rate quote.
  4. Once you have completed the application, you will receive your rate quote either through email or snail mail within 24 hours. Your credit union membership will be verified, and you can then go to a local AAA office for further processing of the loan. You may also visit for a member near you.
  5. You will receive a "Red Car" or membership card and your official AAA Federal Credit Union membership certificate in the mail within two to four weeks once all documentation is reviewed and approved by credit union underwriters. This usually happens very quickly as AAA only approves those that they feel are most likely to repay their loans.

Calculating Your Payment For An AAA Auto Loan

The monthly payment for your AAA Auto Loan is determined by the amount financed during the loan application, the interest rate offered, and the length of time you want to finance your car.

The total financing cost will be made up of both principal and interest.

Loan Amount:

Enter the total price of your new or used car, including taxes and fees. AAA offers a maximum loan amount that is higher than most other lenders, so you can finance up to $35,000 for both new/used vehicles. The average AAA member borrows between $10,000 and $15,000 to purchase a used automobile.

Interest Rate:

AAA offers a 10-year, fixed interest rate for its Auto Loans. The rate is not set by an index, so it will always be the same throughout the life of your loan.

At application, you select your desired monthly payment, and that amount can never change during the loan term, even if market rates go up or down.

Number Of Payments:

AAA offers a 10-year, fixed interest rate for its Auto Loans. The rate is not set by an index, so it will always be the same throughout the life of your loan.

At application, you select your desired monthly payment, and that amount can never change during the loan term, even if market rates go up or down.

The AAA Auto Loan does not have a prepayment penalty, so even if you pay off your loan early, you will never be penalized for doing so. To save money on interest, in the long run, try to keep your monthly payment as low as possible by adding more down payment at purchase and/or selecting a shorter loan term.

Who Is Eligible For AAA Auto Loan?

To meet AAA Federal Credit Union's eligibility requirements, you must be a member of AAA. Membership is free with most car insurance policies, so anyone can join for free.

There is also an auto loan application requirement, so not just any person who joins will be eligible to apply for the loan product. A few other ways to quickly become verified as an AAA Credit Union member include:

  • Car Insurance Policyholder with AAA
  • Financial Relationship with AAA (investment account, credit card, or car insurance policy)
  • Email confirmation from the Automobile Association of America for auto club membership.

If you initially apply through a local office and your application is not approved, you will be notified by mail within two to four weeks. This rejection letter will state the reason for your denial, and you will have a chance to correct it by calling or visiting the nearest AAA credit union office before reapplying.

What Documents Are Needed To Apply For A Loan?

  • Three pay stubs or your most recent income tax return. The lender needs verification of your income if you are self-employed, so please file an IRS Form W-2 along with the application. AAA only requires two payslips even though they ask for three to be on hand just in case one is not legible.
  • Two most recent bank statements for your checking and savings accounts. The lender needs to see that you have enough money in the account at closing that is needed to pay closing costs such as taxes, document/recording fees, electronic funds transfer fee (ETF), and title transfer fee.
  • Most recent loan application with another financial institution if you've applied within the last 90 days.
  • Proof of identity such as a driver's license or passport and one other form of ID such as a work ID, social security card, credit card with photo, military ID card, etc.
  • Most recent federal income tax returns if you are self-employed and/or have recently filed an amendment to your return.
  • Two most recent statements from an investment account such as a 401K, IRA, margin trading statement, etc. AAA only requires one, but having two on hand will speed up the process and may be required by some lenders depending on your amount of assets. If you have any money invested in stocks or bonds, you will need to provide the account statements.
  • Residential lease if you are still a renter or homeowner association document if you own your home. AAA only requires one of the two documents even though they ask for both just in case one is not legible. The lease must be dated within three months and show all occupants' names and signatures at the time of lease.
  • Two most recent utility bills, such as your electric, gas, or water bill. AAA only requires one of the two documents even though they ask for both just in case one is not legible and/or dated within three months. These don't have to be the same utility company, but you do need to provide proof that you pay utilities to live in your home.
  • Most recent car insurance policy or binder to show proof of insurance. AAA only requires one even though they ask for two to be present just in case one is not legible.
  • Self-addressed stamped envelope if you are requesting the lender's closing cost estimate be mailed to you instead of being provided over the phone.

What Are The Benefits Of AAA Auto Loan?

Easy Apply:

The application can be submitted to any local AAA office, and in most cases, your loan will be pre-approved in under ten minutes.

This fast approval rate is due to the fact that no credit score is required or even looked at by some companies when you use this specific lender.

Flexible Repayment Options:

You have the choice between a five or seven-year plan with fixed interest rates that can be as low as 3.5% APR for the five-year option and 4.5% APR for the seven-year option.

There is also an eleven-year repayment plan which carries a lower interest rate of 2.75% APR, but there are no prepayment privileges on this plan.

Benefits Of aaa finance and auto loans

Numerous Terms:

There are a variety of terms and conditions that can be customized to your needs, so you have the ability to choose the loan amount, term, and rate.

Some lenders will allow you to borrow up to five times your monthly gross income, while others limit it to three times your annual salary. You may also have the choice of a single or double lien.

No Prepayment Penalties:

There are no penalties for paying off your loan early. This can give you flexibility only found with a traditional bank and the credit union model.

Easy Documentation:

AAA requires few documents to process a car title loan application. You will need a driver's license or passport, two most recent pay stubs, and two most recent bank statements showing proof of income.

Quick Approval Process:

The entire loan application process is completed in one visit, meaning that if your loan is approved, you could have cash in hand within minutes after signing the paperwork.

What Are The Disadvantages Of AAA Auto Loan?

Maximum Loan Amount:

AAA Auto Title Loans only has a maximum loan amount of $35,000. This may be too little for larger purchases or cashouts.

After your title is used as collateral to secure the funds, the lender will hold onto your vehicle until you pay off the remaining balance on your loan in full.

It's important to note that if you are unable to repay the loan in full, there may be an option for a partial payoff or to extend your loan term, which could increase your monthly payment amount.

Credit Check:

A credit check will be completed as part of the application process. Even though a credit score is not required, it must still be present on file with one of the three major agencies.

If you have not been issued a social security number, you may need to provide another form of identification to complete your loan application.

Not Applicable To All Cars:

AAA Auto Title Loans uses a third-party loan provider that purchases your loan. Only certain types of vehicles can be used as security for your title loans, such as most cars, light trucks, and some motorcycles up to three years old.

The lender you choose will do their best to work with what they have, but if it is not in the system, they cannot make it work.

What Is A Good Credit Score?

A credit score is a rating assigned by creditors to determine your level of risk. The higher the number, the lower the risk you represent for them. A bad score can reflect negatively on you either by lowering your chances of getting approved or increasing your interest rate if you are deemed too risky to lend money to.

What Is A Good Credit Score

Also, if you are looking to finance a car, auto insurance companies also use your credit score as part of the application process. Generally, an excellent credit score starts at 750 or higher. You can check your credit score for free on sites like Credit Karma, Credit Sesame, and Quizzle.

Generally, anything over 700 or 740 is considered good. If your score is higher than 750, you will have excellent credit. Anything between 680 to 719 is considered average, while anything under 680 is considered bad.

It is important to note that if your credit score falls into the average range, it does not mean you are ineligible for a loan or have poor credit; however, it can increase the interest rate charged by lenders, which can be offset by increasing your down payment amount.

How Does One Build Good Credit?

There are several steps you can take to improve your credit score, and one of the main ones is to establish a good payment history.

This means always paying your bills on time, keeping your account balances low, and reducing the amount of debt you carry. In addition, avoid opening multiple lines of credit at once because this will result in a lower number as well.

If you have access to credit cards, use them sparingly and pay them off in full at the end of each month.

How Do These Loan Companies Make Money?

The loan company makes money in two ways when they give you a short-term loan. First, they take out their cost of doing business from the initial payment.

These costs can include things like underwriting fees and processing fees. A smaller percentage of the total amount paid is considered profit for the company, which also covers them if they have to repossess your car.

This can be considered a trap for some as they are forced to pay more money back than what they initially applied for if the interest adds up over time and/or you do not make a larger down payment.

What Are The Drawbacks Of This Form Of Financing?

Unfortunately, there are several reasons why you might not be able to get funding. One reason is that your car must be a specific model and year. If it doesn't match these requirements, they cannot use it as security for a loan.

It also means that if you have an older car, you might not be able to get this type of financing. Another reason is if your car doesn't have enough value to cover the loan amount plus fees. If that's the case, they may ask you to increase your down payment or come up with another vehicle as security.

Lenders set their own interest rates, which are high but can be offset by a larger down payment. If you fail to make your monthly payments on time, the interest rate can get even higher and be very difficult to manage.

Another drawback is that if you default on the loan, they will repossess your vehicle and sell it to recoup their money. While that may sound like an easy solution for them, it can be difficult for you to find the money to try and re-purchase your vehicle.

There are a number of fees that come into play with short-term loans, so it is important to ask about them before signing anything.

The biggest drawback is that most people cannot afford this type of financing because they have too many other commitments going on.

If you do not have a large down payment, this means your car will be repossessed, and you will have an even bigger problem because you are likely to have outstanding credit, which reflects negatively on your ability to pay off debts.

Alternatives To Short-Term Loan Financing For Vehicles:

The good news is there are other options available to those with bad credit. One option you have is to apply for a car title loan where you use your car as collateral, and they will not take it from you if you default on the terms of the agreement.

This is viewed as a better option because you can keep your vehicle and won't risk having your credit damaged further by repossession.

Is This A Good Way To Finance Vehicles?

For some people, short-term loans are the only option that they have available to them. For those who want to use an installment loan, it will probably turn down because of their bad credit history.

If you do not have the money for a higher down payment, you can use your car as security, and it will be cheaper in the long run for you to take a short-term loan rather than a high-interest rate if you fail to make your payments.

The important thing is that you can afford what you borrow and do not borrow more than what you will be able to repay if there are unforeseen circumstances that prevent you from being able to make your regular payments.


AAA Auto Title Loans is a great option for those who need quick cash and want to avoid the hassle of dealing with traditional banks. It's perfect for people that have bad credit and don't qualify for loans at their bank or credit union.

There are no pre-payment penalties, so you can pay off your loan early without any additional fees. The application process is simple, with few documents needed to get approved.

Compared to other car title loan companies, AAA Auto Title Loans offers the best interest rates and lowest loan amounts, so you have more options for funding your emergency expense. We would recommend giving them a try if you're in need of some quick cash!

Michael Restiano

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.