Bank of America is a comprehensive international financial institution. The corporation has roots dating back to 1784, and those early institutions had a significant influence on the development of the United States and contemporary financial services. Eventually, these institutions matured into the brand we know today.
If you are searching for a bank of America loan regarding queries, then you are at the right place. In this article, we will discuss every detail like eligibility, interests, and pros & cons of the bank of America loans. You’ll learn everything you need to know about Bank of America Auto Loans after reading this review.
One of its historic banks, for instance, contributed to the funding of Chicago’s population explosion and post-Great Fire reconstruction in 1850. The original credit card, which later evolved into Visa, was also made by Bank of America. As a result, you can be confident that the financial institution you are working with is respectable and has a long history of providing excellent customer service.
Bank Of America Auto Loans
Low-interest rates are one of the main benefits of Bank of America auto loans. Rates for both new and pre-owned autos start off significantly lower than the competitors. Bank of America vehicle loans offer benefits to those who already have accounts, but because of their typically low-interest rates, they’re frequently a smart choice for everyone.
Some lenders impose fees on new loan originations or charge prepayment costs to borrowers who pay off their loans early. No origination or prepayment costs are associated with auto loans from Bank of America.
Keep in mind that Bank of America has a minimum lending requirement of $7,500 ($8,000 in Minnesota), which is somewhat expensive. Bank of America will finance vehicles with a minimum $6,000 value, but a $7,500 minimum loan is required. Your loan could become upside down, with the car’s value being less than the loan’s value if your budget is less than $7,500.
How Bank of America Auto Loan Work
Bank of America provides a variety of auto loans, including those for leasing a new or used vehicle, buying your current vehicle off of your current lease, and purchasing a vehicle from a private party. Customers who require an accessible vehicle can also get an auto loan from Bank of America. Despite offering a separate small business auto loan, this lender does not finance motorbikes, recreational vehicles, commercial vehicles, or RVs with auto loans.
Requirements For Bank Of America Auto Loan
A loan might have a period of 12 to 75 months. The Bank of America auto loan program is available to buyers in all 50 US states. A few requirements must be met by the car you want to buy. It has to:
- Be younger than ten years old
- Have less than 125,000 miles
- Have a NADA value of over $6,000
- Neither be rebuilt nor have salvage or branded title.
The best candidate for this lender is someone who already has a Bank of America account. With the same login credentials as the rest of your banking, it will be simple to view your auto loan, and if you have elite status with the bank, you’ll also get certain benefits.
How To Apply For a Bank of America Auto Loan
It is quick and simple to apply for vehicle financing online with Bank of America. You will fill out an application with details about your identification, finances, and employment as well as information about the vehicle you wish to finance.
You might be asked to supply more information about the car or proof of your employment and income, depending on the specifics of your loan request. However, the majority of applicants hear back in within a minute. Your loan application may require a cosigner if you don’t have good credit or sufficient work history.
Perks & Benefits Of Bank of America Auto Loan
Bank of America rewards regular users of its services instead of offering discounts for autopay. APR reductions of up to 0.5% are available to customers with gold, platinum, or platinum honors status. Each category requires that you have a three-month average balance in Merrill Lynch investment accounts or Bank of America accounts that is greater than or equal to the corresponding sums.
- Gold members (minimum balance of $20,000): 0.25% off the listed APR.
- Platinum members (minimum balance of $50,000): 0.35% off listed APR.
- Platinum honors members (minimum balance of $100,000): 0.5% off listed APR.
Anyone can apply for a vehicle loan from this lender, even though current clients have a lot of good things to say about it.
Bank of America Auto Loan Rates
For new cars bought through a dealer, the starting rate for a Bank of America auto loan at the moment is 2.99% over 60 months. Rates for used autos typically start at 3.29%. The exceptions to this rule include CarMax, Hertz, and Carvana; Bank of America does not offer loans for vehicles acquired from other independent dealers.
Customers who currently use Bank of America’s online banking service may be qualified for financing when buying a car from a private seller.
Loans from private parties and independent sellers currently have starting rates of 5.24 percent. Auto loans with rates starting at 3.89 percent are currently available for lease buyouts.
Pros & Cons Of Bank of America Auto Loan
The Advantages
The quick and simple application process is one of the major advantages of Bank of America auto loans. Before sitting down to complete your auto purchase, you can quickly receive a decision and a loan offer that is valid for 30 days so that you are aware of your affordability. No origination costs or application fees are charged.
Existing bank customers of Bank of America also receive additional perks. Owners of personal checking accounts enjoy a 0.15 percent reduction in the interest rate on their loans. Your auto loan interest rate will be reduced by 0.25 to 0.50 percent if you sign up for Bank of America’s Preferred Rewards program at the time of application.
There are no costs associated with joining the Preferred Rewards program, but you must fulfill certain criteria in order to be qualified. Members of Preferred Rewards must hold a personal checking account with Bank of America and keep their investment accounts at Merrill Lynch or Bank of America with a lead to a total balance of $20,000 over the previous three months.
Additional Pros
- Interest rates are lower than those of competitors.
- No upfront payments or upfront costs
- There are numerous different auto loan options.
- Discount on interest rates if specific criteria are met
- Mobile application
Disadvantages
Through dealers who offer unique financing conditions, applicants may be able to secure better loan terms. However, the rates and conditions are competitive with those provided by other financial organizations. Loan offers are valid for 30 days, and applicants cannot be pre-approved for a loan. For some borrowers, the distance and age restrictions may be an issue, although they are comparable with the practices of other big banks.
The finest clients of Bank of America are those that buy new cars from a dealership and receive the lowest interest rates. Even while you can borrow money from an independent, individual seller to buy a car, the interest rates on these loans will probably be much higher.
The final restriction is that borrowers cannot utilize a Bank of America auto loan to buy a car from a private automobile dealer.
Additional Cons
- High account balances are necessary for discounts at Bank of America.
- The minimum loan amount is high
The Conclusion
The bottom line is that Bank of America offers auto loans at rates that are cheaper than those of its rivals. Additionally, clients who already have an account with Bank of America are given the incentive to borrow from the company by receiving interest rate reductions of up to 0.5%.
However, not every buyer should choose a Bank of America vehicle loan. Your loan offer can have an interest rate that is much higher than the rates quoted if you don’t have good credit or a steady income. If you wish to buy a car directly from a seller, the rates will be significantly higher, and you won’t be able to receive a loan to buy a car from an independent car dealer.
Compare the top auto loans to make sure you get the one that best suits your requirements.