Bank of America Auto Loan Review
When shopping around for a loan, look at a few banks to see what they offer; check out the auto loan rate available. By seeing what’s out there, you’ll be able to know whether a loan is among the best you can get, or if you should keep looking.
We combed through information on Bank of America’s auto loans and broke it down for you. Here we’ll review the company, its financing, how to apply and who the loan might be best for.
As the second-largest bank in the U.S. with over $2 trillion in assets, Bank of America is ranked fifth on Forbes’ list of the world’s largest public companies. The bank’s sheer size and market presence allows it to offer loans in all 50 states and Washington D.C.
Here’s a summary of what Bank of America auto loans are like. You can get one for new and used vehicles purchased from a dealer or private seller, as well as for refinancing and lease buyouts. Terms go up to 60 months and the minimum loan amount required is $7,500 ($8,000 in Minnesota). Here are Bank of America’s starting APRs for new, used and refinance loans:
|New car loans||Used car loans (dealers)||Refinance loans|
|Terms||12–60 months||12–60 months||12–60 months|
Interested in buying a used car from a private seller? Private party auto loan rates start at 5.99%. Rates for loans to buy your leased vehicle start at 4.19%, as of Sept. 17, 2019. To see all of Bank of America’s starting APRs, check here.
- Preferred Rewards clients might be able to get interest rate discounts up to 0.5% depending on their level within the program. These rates are only for consumers, not businesses. Small business vehicle and equipment loans have different rates.
Here are the strengths and weaknesses we found. Be sure to consider them and look at other lenders to compare.
Highlights of the Bank of America auto loan
- Its advertised APRs are competitive
- There’s no fee to apply for a loan
- Most credit decisions take 60 seconds
- There’s no prepayment penalty
Lowlights of the Bank of America auto financing
- To get an idea of what you qualify for with Bank of America, you have to get preapproved, which means the lender conducts a hard pull on your credit report. Some auto lenders allow you see which terms you might qualify for without performing a hard pull on your credit report. (A hard pull may have a slightly negative affect on your credit score.)
- It doesn’t finance vehicles purchased from non-approved dealers
On the Bank of America auto loan FAQ page, it specifically mentions loan-to-value as a consideration, meaning it’s best for you not to take out an auto loan for more than the car is worth. You might not be able to roll over negative equity from a trade-in vehicle into a new Bank of America auto loan.
You’ll need to provide personal information such as employment information, income, Social Security number and contact details. You don’t need to already have a car picked out if you want to get a preapproval.
Once you do know exactly which vehicle you want, you can put in the car’s make, model, year, mileage and VIN to finalize your loan offer. If you’re asking for a refinance or lease buyout loan, you’ll need the car information to get an offer.
Depending on the loan request, you might have to provide proof of income, such as a W-2 or tax return, the purchase agreement or bill of sale, lease buyout instructions, vehicle registration and title.
If you are preapproved for a loan amount or want to look at the vehicles for sale by a Bank of America authorized dealership, you can input a ZIP code on their website to find dealers and check out their website inventory, or locate an authorized dealer and visit them.
- The Bank of America auto loans we’ve described don’t apply to business vehicles or specialty vehicles, such as motorcycles, RVs, boats and aircraft
- Vehicles have to be worth $6,000+, be 10 years old or younger and have 125,000 miles or less.
- You have to live in the U.S. legally and be 18 years old (19 years old in Alabama and Nebraska)
- The vehicle cannot have a salvaged, rebuilt or branded-title
- Even if the vehicle falls within the amount you were approved to finance, you may be required to give a down payment, depending on the loan-to-value
As one of its banking customers, getting a Bank of America auto loan might be very convenient; you can view all of your accounts with one login. So, if you are (or plan to be) a banking customer with the company and you don’t expect to borrow more than what your new car is worth, then it might be good for you to apply and see what it offers.
Remember to check out a couple of lenders in your search. You won’t hurt your score by comparing auto loan offers or applying to multiple lenders within a two-week period.