Bank of America Auto Loan Review
Bank Of America offers competitively priced auto loans that you can apply for and be approved within minutes. The bank offers loans for purchasing new and used vehicles from a dealership, loans for purchasing from a private party, refinancing on current loans and lease buyouts.
Bank Of America auto loans at a glance
| Loan Type | APR | Terms | Amount | Min. credit score |
|---|---|---|---|---|
| New (dealer) | 5.79% | Up to 72 months | Minimum of $7,500 | Not disclosed |
| Used (dealer) | 5.99% | Up to 72 months | Minimum of $7,500 | Not disclosed |
| Refinance | 6.34% | Up to 72 months | Minimum of $7,500 | Not disclosed |
| Lease buyout | 6.29% | Up to 60 months | Minimum of $7,500 | Not disclosed |
| Private Party | 8.39% | Up to 60 months | Minimum of $7,500 | Not disclosed |
Bank of America auto loans pros and cons
| Pros | Cons |
|---|---|
Can apply online and get approved within minutes Offers discounts to Bank of America customers who have qualified accounts No application fee Competitively priced interest rates | Rate discounts only applicable to customers who maintain high Bank of America account balances High minimum loan offers |
A closer look at Bank of America auto loans
Bank of America offers loans for new and used cars purchased from dealers. It also offers lease buyouts, refinancing loans and loans for vehicles purchased from private parties. The Bank of America auto loan site lists out the APRs for each product, but keep in mind that the interest rates listed are the lowest available. The rate that you ultimately receive will be based on a variety of factors, from the type of vehicle you’re buying, to your credit history, to where you live.
Interest rates for Bank of America auto loans are competitively priced. According to Experian, the average interest rate for a new car loan for consumers with prime credit scores (660-719) is 4.68% Bank of America’s lowest APR offer for new vehicles purchased from dealers is just 5.79%.
If you’re already a Bank of America customer, you could score some discounts on your loan. The bank offers discounts of 0.25%, 0.35% and 0.50% if you’re a member of its Preferred Rewards program. Here’s a quick breakdown:
Preferred Rewards Program Discounts
- Gold Tier: Maintain a combined account balance (including a checking and savings accounts, investments, etc.) of $20,000 to earn a 0.25% discount.
- Platinum Tier: Maintain a combined account balance of $50,000 to earn a 0.35% discount.
- Platinum Honors Tier: Maintain a combined account balance of $100,000 to earn a 0.50% discount.
How to apply for a Bank of America auto loan
The application process for a Bank of America auto loan is fairly straightforward. You can do it online and receive confirmation within minutes. If there is a need for further review, Bank of America will email you. or you can call and apply over the phone. Before applying, make sure you have the following information ready to go:
-
- Name, address, personal email
- Social Security number
- Employment documentation
- Bank statements proving income level
There could be additional items requested, depending on the nature of the loan. For example, for refinancing or lease buyout loans, you’ll need the make, model, mileage and vehicle ID number. The bank will also perform a credit check, so make sure your credit score is as high as possible before applying.
If you’re approved for an auto loan, your rate and terms are locked in for 30 days after the day you submitted your application. This gives you time to shop around for the best rates.
Your Bank of America auto loan can be used in a variety of ways. You can use it to purchase a new or used vehicle from a dealership or authorized independent dealers including CarMax, Enterprise Car Sales and Carvana. If you are purchasing a car from a private party, the seller must be the registered owner listed on the vehicle title and the car must be purchased directly from the seller (no consignment sales).
How Bank of America auto loans compare
Bank of America has some solid options for auto loans. When compared to Capital One, for example, it comes out ahead with a lower starting APR. Bank of America also allows you to buy from private parties, while Capital One does not.
When comparing Bank of America’s auto loans to Wells Fargo, the latter has a much lower starting APR. However, just like Capital One, Wells Fargo does not let you buy a vehicle from a private seller. Wells Fargo also does not offer auto loan refinancing, while Bank of America does.
| Bank of America | Capital One | BMO Harris | |
|---|---|---|---|
| APR | 5.79% (new vehicle purchased from dealer) | 5.79% (new) | 3.99% (new) |
| Terms | Up to 72 months | 36-72 months | 12-84 months |
| Amount | Min. of $7,500 | Starting at $4,000 | Starting at $2,000 |
| Min. credit score | Not disclosed | Not disclosed | 640-650 |
Is a Bank of America loan right for you?
Bank of America’s low starting interest rates for their auto loans make the products a good idea for most people. The loans get even more attractive if you’re already a Bank of America customer. The extra discounts that can get tacked on will make your auto loan more affordable. If you’re not a Bank of America customer and looking for a small auto loan you might want to look elsewhere, as Bank of America’s loans start at $7,500.
Make sure you shop around before making your decision about your auto loan. Look into at least three different lenders and see which product best fits your budget and needs.