Purchasing a new and used vehicle, and securing the best auto loans may appear complicated, but you have more options. You can apply for a loan at your local bank branch or credit union or choose from various online auto lenders that specialize in personal finance.
However, Bank of America, one of the top financial institutions, maybe the right option for you. While Bank of America auto loans come with benefits for existing bank clients, their cheap interest rates make it a fantastic choice for everyone. The annual percentage rate (APR) for auto loans typically runs from 3% to 10%. Most America auto loans bank and other lenders provide payment plans ranging from 24 to 72 months, with shorter loan term loans usually carrying cheaper interest rates.
A Bank of America auto loan is worth considering whether you're just starting started with buying a vehicle or seeking the best loan rates. This article will help you with the details and instructions about the car loan rates.
What is Bank of America?
Bank of America offers low-cost auto loans that you can apply online and receive loan approval in a short time. It is a bank in Charlotte, North Carolina and Washington, DC. that was formed in 1784. The bank provides car financing for new and used vehicles, America auto purchase from dealerships, as well as private parties purchase, refinancing of existing loans, and lease buyouts. The Bank of America Auto loan website provides a list of Annual Percentage Rate (APRs) for each program.
However, keep in mind that the advertised interest rates are the best available. Several criteria will determine your final loan rate, including the sort of vehicle you're purchasing, your excellent credit history, and where you live.
Bank of America offers financing for over two million vehicles available through dealership across the country. It does not affiliate the Bank of America authorized dealer with them and does not require a customer to purchase a vehicle. As a result, Bank of America makes no warranties or representations. It is not liable for any part of your vehicle purchase or associated products and services from these allowed dealerships. It doesn't just have an extensive network; eligible preferred rewards members can get a rate discount.
Pros and cons of Bank of America’s auto loans
Bank of America provides the security of a well-known bank, but weighs all factors before taking out a loan. Here are the pros and cons of Bank of America auto loans.
Pros of Bank of America auto loans:
- Accessible in all 50 states.
- Long window for shopping.
- Preferred Rewards members get a lower interest rate.
- There are no origination fees or penalty for prepayment.
- Competitive interest rates.
- There are various types of car loans to select from.
Cons of Bank of America auto loans:
- Minimum loan amount is rather high.
- Only deposit balances of $20,000 or more qualify for the rate discount.
- Only members get a discount.
The 0.25% to 0.50% auto loan preferred rate discount is depending on reward tier and is only good for enrolled members at the Preferred Rewards Program who apply for an auto purchase or refinance loan. A Bank of America auto loan offers a maximum 0.50% preferred interest rate discount. This preferred interest rate discount is not visible in their website pricing, but they will disclose it in the interest provided after loan approval.
Requirements for Bank of America’s auto loans
To finance a car with Bank of America, you must be a U. S inhabitant or stable resident and at least 18 years old. However, auto financing is not available for the following vehicles:
- Vehicles that are over ten years old.
- Vehicles with a mileage of at least 125,000 miles.
- Vehicles with a market value of less than $6,000.
- Cars that are used for commercial purposes.
- Vehicles with salvage or branded titles.
- Lemon law or gray market cars.
- Vehicles for conversion or delivery.
- Motorcycles, recreational vehicles (RVs), boats, and planes are all examples of vehicles.
When you qualify for a car loan with Bank of America, you'll be required to supply details such as your name, home address, Social Security number, employment details, revenue, citizenship in the United States, and email address. The following may also be required prior to closing, depending on the specifics of your loan request:
- Purchase agreement or bill of sale,
- Car Registration,
- Car Title,
- Lease buyout loan instructions,
- Proof of Income,
- federal tax returns,
- Wage and Tax Statement, and
- Financial statements.
They may also require particular car information, such as brand, model, year, mileage, and vehicle identification number (VIN) for refinance loans and lease buyouts.
Bank of America auto loan rates
Bank of America provides dealer purchase loans, refinance loans, and lease buyout loans to new and used automobile dealers. It also offers private-party purchase loans, which are often more expensive than dealer purchase loans. The Bank of America website displays current rates for each type of auto loan it offers. However, the rates are "as low as" rates that are only available to applicants with exceptional credit report. Following loan authorization, applicants will see their exact rate offer. Below are the amounts where car loan rates begin;
- New car dealer loan: 2.59% APR
- Used car dealer loan: 2.79% APR
- Auto loan refinancing: 3.49% APR
Customers with a Bank of America checking account and combined eligible bank deposit amounts can lower their interest rate on new car loans and refinances through the Preferred Rewards program. Customers must have a three-month combined average daily balance in qualifying a Bank of America account or Merrill investment account to meet tier requirements. The amount of the rate reduction is determined by the three Preferred Rewards tiers of the client. Below are the three tiers and their rate point reduction.
Minimum $20,000 balance in Gold tier requirements = 0.25% APR reduction
Minimum $50,000 balance in platinum tier requirements = 0.35% APR reduction
Minimum $100,000 balance in platinum honors tier requirements = 0.5% APR reduction.
Bank of America's minimum car value is $6,000 and may not be used for commercial gain. The company has a minimum loan amount is $7,500 and a minimum loan of $8,000 in Minnesota. and can rise to $100,000. They also require a down payment, and a loan fee may apply to Indiana and Ohio.
If your budget is less than $7,500, you risk being upside down on your loan, with the automobile being worth less than the debt. Auto loans from Bank of America are not available for vehicles that are over ten years old or have over 125,000 miles on them. Motorcycles and recreational vehicles are not eligible for loans.
Bank of America loans are only available to franchise dealerships, not independent dealers, if you're buying a car from a dealer. However, Bank of America offers financing to qualified independent dealers, including those who operate online, including Enterprise Car Sales. You must also have an eligible America personal checking account with the bank and a three-month average total balance of $20,000 or more in qualifying Bank of America auto loans.
The length of the loan varies from 12 to 75 months. Bank of America auto finance is available in all 50 US states.
How to apply for Bank of America’s auto loans?
Pre-qualification
Other lenders let borrowers to apply for prequalification to see what conditions they might be eligible for. This prequalification usually just causes a soft credit inquiry, which has no impact on your credit history. Bank of America doesn't have a prequalification option.
To know what rate you qualify for, you must submit an official application with a hard credit inquiry. However, you may receive a decision in as little as one minute, and they guaranteed the rate for 30 days, giving you plenty of time to select the ideal vehicle. You may track the progress of your car loan application. They will also forward you an email once they have decided on your application.
Procedure: online, in-person
Bank of America auto loan also offers online banking with a process that takes just a few minutes. If your application requires further evaluation, they will inform you by email as soon as they approved it. They will include your monthly payment in this approval, allowing you to shop for a vehicle that suits your budget.
Consider shopping at a Bank of America allowed dealer if you know you'll be buying a vehicle from a dealership. They will include an approval code for your loan approval. Any approved dealer can use this code to get your loan details for a more efficient buying experience.
If you prefer face-to-face communication, a Bank of America loan could be effective. You can make an appointment to visit with a representative at your local financial center or call them at 844.892.6002 to apply over the phone. Without having to wait in line, speak with a loan specialist at your leisure. Customer service is available via phone Monday through Friday from 8 a.m. to 5 p.m. Saturday from 8 a.m. to midnight ET to 8 p.m. ET.
Most applicants will receive a loan approval in less than 60 seconds. There are no prepayment or origination fees with Bank of America vehicle loans.
Refinancing may raise the total number of monthly payments or the total amount paid. After refinancing, it may reduce your monthly payment. Thus, consider the potential rise in interest costs and the additional years required to pay off the loan.
