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.
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.
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.
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, 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.