Bank of America Auto Loan Review for 2024

Bank of America offers a modern auto loan application process, including the ability to apply and receive approval online in just 60 seconds. The company also offers options for purchasing a new car or refinancing an existing auto loan.

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Bank of America Auto Loans Review

There are a few major advantages to a Bank of America loan, including the ability to repay the loan early without facing any penalties. In addition, the company offers financing for new and used vehicles, refinancing services, and lease buyout loan options. The advertised annual percentage rates (APRs) are competitive, too.

Whether you’re just getting started with the process of buying a vehicle or are looking to shop around for the best loan rates, a Bank of America car loan is worth consideration.

Bank of America Auto Loan Application Requirements

If you’re ready to apply for a car loan, you’ll need some standard information about your finances:

  • Personal information like your home address, date of birth, citizenship, and Social Security number
  • Income information and information about your housing situation
  • Your desired loan amount and information on the car that you’re buying, if you’ve already found a car

Loan applicants must be at least 18 years old and U.S. citizens, resident aliens, or non-resident aliens.

This loan approval includes a 30-day rate lock, so you have plenty of time to shop and find the vehicle that’s right for you. If you’re trying to decide the total loan amount you can afford or what monthly payments work for you, Bank of America’s auto loan calculator can help. You can also speak to a loan officer after you’ve submitted your application.

You can see how different loan amounts affect your monthly payments based on the interest rate that you’re pre-approved to receive. And if you want to refinance a loan, the auto loan refinance calculator can help you determine your potential savings.

Types of Bank of America Auto Loans

Bank of America offers a wide variety of auto loan and refinancing options:

  • Dealer purchase loans for new or used cars
  • Auto refinance loans
  • Lease buyout loans
  • Private party loans for when you buy a vehicle from an individual
  • Access loans specifically for new or used accessible cars, vans, or light-duty trucks
  • Business auto loans for cars, vans, and light trucks for small business use

Auto loans are available in all 50 states. The minimum loan amount starts at $7,500, or $8,000 in Minnesota. Bank of America doesn’t offer auto loans for vehicles that are more than 10 years old or that have 125,000 or miles on them. Vehicles must be worth at least $6,000 and cannot be used for commercial purposes. Loans are not currently available for motorcycles or RVs.

If you’re buying a car from a dealer, Bank of America loans are only for franchise dealerships rather than independent dealers. BofA provides auto loans for approved independent dealers, including online dealerships, Carvana, Enterprise Car Sales, Hertz Car Sales, and CarMax.

Loan terms range between 12 and 60 months.

Bank of America Auto Loan Rates and Fees

Multiple factors will affect your interest rate, including your credit score and income. Interest rates for Bank of America car loans start at:

  • New car dealer loan: 6.29% APR
  • Used car dealer loan: 6.49% APR
  • Auto loan refinancing: 7.29% APR
  • Lease buyouts: 7.19% APR
  • Private seller: 9.29% APR

Bank of America Preferred Rewards members can get a discount on interest rates:

  • Gold: 0.25% discount
  • Platinum: 0.35% discount
  • Platinum Honors: 0.50% discount

Joining the Preferred Rewards program is free. You’ll need:

  • A Bank of America personal checking account that’s eligible for the program
  • Combined balances from three months that average $20,000 or more (These need to be in Bank of America banking accounts and Merrill investment accounts)

There are no application or origination fees for these loans.

Bank of America Auto Loan Reviews

Bank of America auto loans has received a mix of positive and negative reviews for its auto loan services. Some customers have praised the company’s convenient online application process and competitive rates. However, others have had negative experiences with customer service or difficulties with the loan process.

The Better Business Bureau (BBB) currently gives Bank of America Auto Loan an A+, with few complaints.

Bank of America Auto Loan Application Process

You can apply for a Bank of America auto loan online. The process takes just a few minutes, and in most cases, you’ll receive an approval within just 60 seconds. If your application needs any additional review, you’ll receive an email as soon as it’s approved. This approval will include your monthly payment, so you can shop for a vehicle that fits your budget.

If you know that you’ll be buying a vehicle from a dealership, consider shopping at a Bank of America authorized dealer. Your loan approval will include an approval code. Any authorized dealer will be able to use this code to quickly retrieve your loan details for a streamlined buying experience.

Bank of America doesn’t offer a loan pre-approval process. When you apply for a purchase or refinance loan, the bank will perform a hard inquiry on your credit report. Unfortunately, this may also mean that your credit score could lose a few points because of that inquiry.

Special Features

One of the best features of Bank of America auto loans is that if you pay off your car loan early, you won’t pay a prepayment penalty. With this option, if you find ways to pay more than your monthly minimum payments, you could pay your loan off early and save on interest payments. Other lenders might penalize you for early repayment, but with Bank of America, you’ll save money without any extra fees.

With the option to repay your loan early without any penalty, you can agree to a loan term with monthly payments that you can comfortably afford. Then, focus on putting extra money toward your payments when you’re able. Paying your loan off a few months or even a year early can mean significant savings and is a nice perk to Bank of America auto loans.

Bottom Line

Bank of America loans offer many benefits, including no early repayment fees and the ability to get approved in just 60 seconds. A Bank of America car loan may be a good fit for you if:

  • You’re ready to buy a car and don’t mind a hard inquiry
  • You’ll be buying a vehicle from a franchise dealership
  • You might be able to pay off your loan early
  • You’re a Bank of America Preferred Rewards member

While BofA offers competitive interest rates, your interest rate will vary depending on your income, credit scores, and other factors. They may also require a down payment or cosigner, depending on your credit history.

Loans through large banks like Bank of America typically have lower interest rates than the loans you’ll get directly through a dealership. To get the best loan with the best interest rate, you’ll want to research several auto lenders and apply for pre-approval or approval.

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