What we like:
Offers an on-demand line of credit to buy, lease, or refinance new and used vehicles.
|Rates (APR)||Not disclosed|
|Loan amounts||$25,000 to $250,000|
|Repayment terms||Up to 90 months|
|Minimum credit score||680|
Carputty puts a spin on auto financing that differs from the traditional auto loans seen in the industry for years.
The company’s auto loan product allows buyers to maintain an auto-specific line of credit, which they can then pull from at any time to make a new or used vehicle purchase, take out a lease on a vehicle, or even refinance an existing auto loan.
Here’s a look at what Carputty offers to buyers and vehicle owners, and whether it’s an option you should consider instead of the standard auto loan.
In this review:
- Carputty auto loans at a glance
- Pros and cons of a Carputty auto loan
- What do Carputty’s customers say?
- Do I qualify for an auto loan from Carputty?
- How do I apply with Carputty?
- Does Carputty charge any fees?
- Does Carputty have a customer service team?
Carputty auto loans at a glance
The traditional auto loan structure is simple: Buyers choose a vehicle according to their design preferences and budget, and apply for a new auto loan based on their vehicle’s price. They then make payments on that loan, as agreed with the lender, until the vehicle is paid off or sold.
If the owner later wants to purchase a new vehicle, buy out their auto lease agreement, or refinance that original auto loan, the process starts over from the beginning, often with a new auto lender.
Carputty, however, takes a different approach.
With Carputty, you use a single line of credit on demand. Called Flexline, the line maintains a variable interest rate, which is locked in any time you need to withdraw funds to:
- Purchase a new or used vehicle
- Buy out an auto lease buyout
- Refinance an auto loan
As long as the line of credit is open and has an available balance, you can pull from it any time for your auto financing needs—without applying for a brand-new loan or initiating a credit check.
Because you can use the same line to buy or refinance multiple cars, your monthly payment covers all your financed vehicles.
|Carputty Flexline rates and terms|
|Loan amounts||Up to $150,000 per vehicle|
|Term lengths||63-month initial term, but this can be extended after month 30|
- Eight years old (or less)
- Less than 85,000 miles
- A clean title
The limit on your Flexline depends on factors such as your credit score, income, and location. Carputty lines of credit can be as low as $25,000 or as high as $250,000, and you can withdraw as much as $150,000 for a single vehicle purchase or refinance.
Any time you withdraw from your Carputty line of credit to buy or refinance a vehicle, your interest rate is locked in for an initial term of 63 months. At month 30, you can choose one of three paths:
- Pay off the remaining balance in full (with no prepayment penalty)
- Continue making payments as scheduled for the remainder of the original term
- Reset the loan terms on your remaining balance, choosing between a 24-, 36-, 48-, or 60-month term
If you reset your loan terms, your loan will also be reamortized, which results in a new interest rate with a new monthly payment.
In addition, Carputty’s V3 valuation tool allows you to track your car’s value, so you can ideally time a sale or purchase.
Pros and cons of a Carputty auto loan
When determining whether Carputty’s Flexline suits your needs, it’s wise to consider the pros and cons.
No need to reapply every time you refinance or buy a car
On-demand line of credit allows you to jump on purchases without delay
High Flexline limits (up to $250,000) give you lending flexibility and allow you to cover multiple vehicles with one monthly payment
Only one credit pull required
Available to individuals and businesses
V3 valuation tool allows you to time a sale or new car purchase
Origination and vehicle release fees can add up if you buy, sell, or refinance often
Interest rates on the line of credit are variable and can increase before you’re ready to buy or refinance
RVs, motorcycles, boats, and custom vehicles not allowed
Only available in some states (listed below)
What do Carputty’s customers say about the company?
Ratings collected on March 6, 2023.
Now that you know what Carputty offers, it’s important to research how other customers have felt about their experience with the company. This feedback provides a firsthand view of how the company operates and whether the product performs as promised.
Two trusted customer review platforms include the Better Business Bureau (BBB) and Trustpilot. The BBB is an agency that fields consumer complaints and offers business accreditation, while Trustpilot is a review-based platform.
Carputty is accredited through the BBB and holds an A rating at the time of writing. Since the company is newer, customer reviews are limited. As of March 2023, the company has a rating of one out of five stars with just one consumer review posted. Since this is a single customer’s experience, you might take this with a grain of salt.
A few more reviews are posted on Trustpilot but still not many. As of March 2023, Carputty has a rating of 4.3 out of five stars with 12 reviews published, which earns Carputty an excellent rating through the platform.
Do I qualify for an auto loan from Carputty?
Carputty is open about its borrower and vehicle requirements to qualify for a line of credit and a withdrawal from that line.
When you first apply for its Flexline line of credit, Carputty will conduct a soft credit check to see your basic credit history and possibly prequalify you. If you move forward with the application, Carputty will perform a hard credit pull to gain a more comprehensive view of your credit history.
To qualify, you must have:
- A credit score of at least 680
- At least two years of credit history, with at least 12 months of on-time payments
- A minimum of three tradelines, which are existing lines of credit you hold, such as credit cards, mortgages, personal loans, or personal lines of credit
- At least one installment loan
- A maximum debt-to-income ratio of 50% before factoring in the new line of credit
Carputty isn’t yet available in all states. As of May 2023, Flexlines are only offered to borrowers in the following states: AK, AR, AZ, CO, CT, DC, FL, GA, HI, IA, ID, IL, KS, KY, MA, MD,
ME, MI, MN, MO, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, OR, PA, SC, SD, TN, TX, VA,
WI, WV, and WY.
How do I apply with Carputty?
Applying for a Carputty Flexline takes just a few minutes online and requires providing the following information:
- Email address
- Phone number (required)
- Social Security number
- Date of birth
You need to link your bank account as part of the application process. You’ll do this through Plaid, a platform that uses encryption protocols to keep your information safe and private.
If Carputty deems your credit history and score favorable after a soft credit pull, it will invite you to advance to a full application. At that stage, you may need to provide information about your income, current assets and expenses, and any vehicles you plan to purchase immediately.
Upon completing your application, Carputty can approve your auto line of credit up to $250,000 within two minutes.
Does Carputty charge any fees?
Fees are involved with a Carputty Flexline. Many traditional auto loans don’t include these fees, so you may end up paying a bit more for your vehicle—and for Carputty’s flexibility.
You will incur a 1% origination fee with each withdrawal from your credit line to purchase or refinance a vehicle. This fee is added to the financed amount (rolled into your loan), so you can pay it out in installments along with your vehicle’s purchase price.
If you pay off, sell, or refinance a vehicle, you’ll also pay a $250 asset removal fee to remove the vehicle from your line of credit.
As with other auto loans, you should expect to pay finance charges on the loan based on the agreed APR at the time of funding. The higher your APR, the more your auto purchase will cost you.
|Carputty Flexline fees|
|Origination fee||1% of the funded amount|
|Asset removal fee||$250|
|Finance charges||APR not disclosed but is fixed at the time of funding|
Does Carputty have a customer service team?
If you have questions about a new or open Carputty Flexline or want to speak with a customer service team member, Carputty offers three methods for contacting the company:
- Chat live with a customer service agent through the Carputty website. Agents are available Monday through Friday from 8 a.m. to 6 p.m. Eastern time.
- Contact by phone at 408-998-8044.
- Send an email to [email protected].