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8 User Reviews
LAST UPDATED: April 23rd, 2021
State Farm was founded in 1922 in Bloomington, Illinois. They provide insurance to more than 80,000 Americans and Canadians. In the late 1990's, State Farm expanded their services to offer a variety of financial support options, including mutual funds, and loans. With a State Farm Auto Loan, customers receive competitive rates, affordable payment options, and around-the-clock access to State Farm's customer service department.

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The Good

  • Payoff Protector
  • Recreational vehicles
  • Interest rate reductions

Payoff Protector

State Farm includes the State Farm Bank Payoff Protector with each car loan. Payoff Protector provides financial protection in case the borrower incurs a total loss of their car and the insurance settlement isn't enough to cover the remaining balance of the loan. Payoff Protector is not an insurance policy, but may help ease the financial burden in the event of a theft or major accident.

Interest Rate Reductions

State Farm offers interest rate reductions for borrowers that currently bank with State Farm through bank checking, money market, or a savings account. Borrowers who agree to make monthly payments through electronic automatic withdrawals can also get interest rate deductions on their loans.

Recreational Vehicles

State Farm is one of the few lenders we reviewed for car loans that doesn't limit their financing options to automobiles. State Farm will also finance boats, motorcycles, ATVs, snowmobiles, and more. This is a benefit for borrowers who have an interest in more recreational vehicles.
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The Bad

  • No online application
  • Longer process
  • Mileage restrictions

Disadvantages

Of the car loan companies we reviewed, State Farm is the only one that does not offer an online application option. To apply for a loan, customers must contact a local State Farm agent directly. This means that applying for and obtaining a car loan may take longer with State Farm than it would with other companies. This is because borrowers will have to get hold of an agent and schedule an application appointment before being able to complete the process. State Farm will not finance a vehicle that is driven more than 35,000 miles per year. This means that commuters or those who travel frequently may not be able to get a car loan with State Farm.

Lack of Transparency

One major issue we have with State Farm is their lack of transparency with a lot of pertinent information. Customer's should have access to this general information without having to go to apply first. We would like to see State Farm have information regarding APRs, term lengths, early-pay penalty fees, and bad credit options. Without this information it is more difficult for customers who are shopping around for the right company to fit their needs. It is also difficult for our team to rank their services with other companies in the industry.
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The Bottom Line

Although State Farm doesn't offer an online application, there are plenty of benefits to taking the time to get approved for a State Farm car loan. Some of those benefits include APR discounts for borrowers who bank with State Farm Bank, APR discounts for borrowers who enroll for auto-debit payments, finance options for recreational vehicles, and access to a personal local State Farm agent. However, with the lack of transparency and some of the restrictions it is difficult for us to recommend working with State Farm at this time.
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Star Rating

3.3

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8 Reviews

Review Breakdown

5 grade

50%

4 grade

0%

3 grade

13%

2 grade

0%

1 grade

38%

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Mary barksdale Forrest City, AR

I financed a car in May 2018. Since I did not request that they include tax title and fees they did not inform me it was an option either. I am now struggling to keep the car at all. I really feel they should have made me aware of this option. It has become a nightmare

3 years ago

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J.R Ashley Grants Pass, OR

Terrible bank to deal with. They had a lien on a vehicle I inherited that was paid off years earlier. Took several months and finally a threat of a lawsuit to get them to release the lien. Every call took 1/2 hr to an hour and then they would never follow up. Faxed copies of my documents a dozen times, when I would call back to find out the status they would constantly say I sent it to the wrong department and give me a different number.

4 years ago

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Julie Firkins Orem, UT

i was with state farm for over 30 years and had very few minor claims. my husband was in a serious accident and was injured, the other person happened to also have state farm. they didn't want to give fair compensation, we sued them and they had a clause that we had to go to a person set up to be a go between, guess who won.

5 years ago

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Richard Beckham

I missed two payments when my contractor failed to pay me. I set up an auto-pay with State Farm Bank. Got call from Eric the asshole. Told me it would cost $611 more due to repossession.

4 years ago

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Review Source

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Eli Slesk Alpine, UT

Great rates for me on my most recent purchase. Also like that it includes gap insurance at no additional charge.

3 years ago

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Kenneth Garwood

Good interest rate and easy to apply when I needed a loan

4 years ago

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LaRue Wright

Good interest rate and easy to apply when I needed a loan

4 years ago

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Juan Martinez

Easy to work with and great low rates nice friendly staff

4 years ago