Bank of America auto loans offer benefits for customers who already have accounts with them, while also offering low-interest rates which are often a good bet for anyone looking for a car loan in 2021.
Compared to competitive rates, Bank of America’s initial 2.59% APR for new car purchases and 2.89% APR for used car purchases are pretty low. Much of the competition starts at higher rates.
It is important to clarify that only buyers with the best credit scores will receive the lowest possible interest rate. In fact, before establishing a car loan, remember to shop around and compare all offers. Also, look beyond the monthly payment and consider the interest rate and loan term.
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Should you go for a Bank of America auto loan?
Bank of America offers its customers several types of car loans, including loans to purchase a new or used car from a dealership. You can also choose to buy your car directly from a private individual. This lender does not finance motorcycles or RVs with auto loans, nor commercial vehicles, although a separate auto loan is available for small businesses.
The terms of the loan range from 12 to 75 months. Buyers can use Bank of America Auto Financing.
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Who is BofA auto loan best for?
This option is best for those who already have a Bank of America account. Not only will it be easy to see your car loan with the same login information as the rest of your bank, but you will also have some benefits if you have elite status with the bank.
Instead of the classic automatic payment discounts, Bank of America offers incentives to customers who already use its services. Customers with honors status in gold, platinum, or platinum will receive up to 0.5% off the car loan APR.
While this option is the most convenient choice for current customers, anyone can apply for a car loan. And, with this lender’s initial interest rates so low, it could still beat the competition, even without the discount.
The pros of BofA loan
Low interest rates
As we have already mentioned, one of the biggest advantages of BofA auto loans is the low-interest rates they offer. Rates for new and used cars start well below the competition. In many cases, Bank of America is nearly a full percentage point below the competition.
No loan fees
Some lenders charge automatic fees when they originate new loans, or charge fees to anyone who pays off the loan early, in case you want to pay off the loan earlier. Conversely, Bank of America car loans involve no upfront payment or origination fees.
>>> Learn more here: Capital One Auto Finance: A Complete Guide
Several different types of loans to choose from
One of the greatest benefits offered by Bank of America is to offer different types of auto loans in one place. In fact, as already clarified, it not only offers loans for the purchase of new and used cars by dealers but also offers loans for purchases by private individuals, lease acquisitions, and refinancing.
The cons of BofA auto loan
Interest rate discounts require a relationship
Unlike some lenders who offer discounts for setting up automatic loan payments each month, Bank of America does not. It offers discounts only to current customers who have balances in their Bank of America or Merrill Lynch accounts.
High minimum loan amount
Bank of America requires a fairly high minimum loan of $7,500. Given such a high minimum amount, this could be a problem if you are looking for a cheaper vehicle.
How do Bank of America auto loans compare to competitors?
Unlike other lenders, Bank of America has some of the lowest initial interest rates available for new cars and used cars purchased from dealerships:
|Lender||New car purchase starting APR||Used car purchase starting APR|
|Bank of America auto loan||2.59% APR||2.89% APR|
|Capital One auto loan||3.39% APR||3.39% APR|
|USAA auto loan||2.89% APR||3.29% APR|
If you want to compare more in depth you can read the other reviews we wrote.
In this article, we have focused on the characteristics of Bank of America auto loans. We have also listed the pros and cons. We hope that with this article, you will have the necessary material to choose who to apply for the loan for the car you have always dreamed of.