As one of the largest financial services providers in the country, Bank of America has the ability to offer a wider range of loan products and services than many banks. In this Bank of America auto loan review, you'll discover how the company works with dealers and automakers to provide financing.
However, you'll also learn that its rates are sometimes higher than those of its competitors. Buyers have new and used auto loans to choose from, and BofA also offers refinancing and lease buyout loans. The company easily make our list of the best used auto loan providers.
Pros
- Bank of America does not charge prepayment penalties or application fees
- Discounts available, including for customers with large bank account balances
- Refinancing and lease buyouts available
- Available in all 50 states
Cons
- Rates can be higher than those of competing banks
- BofA does not do prequalifications
- $7,500 minimum loan amount
About Bank of America
Charlotte, NC-based Bank of America has been in business for almost 80 years and has grown into one of the country’s largest financial institutions. The bank owns Merril Lynch investment services, and it offers one of the most comprehensive lines of loan products anywhere. It has a range of user-friendly online banking services, including a robust app and support options.
Company Insights
Bank of America is a heavily advertised company. As such, its website declares in no uncertain terms the following:
"Advertised as low as APR (Annual Percentage Rate) assumes excellent borrower credit history. Your actual APR may differ based on your credit history, approved loan amount, term, state of residence and applicable discounts, such as Preferred Rewards."
Features and Benefits
While its rates can be more expensive than others, Bank of America’s used auto loans come with a range of benefits and features that make them a compelling option in the market.
30-day rate-lock guarantee
Online application and loan servicing
Branch locations across the country
Customer support available Monday through Friday
Discounts for high-value account holders
Loans for private party sales are no longer available
Bank of America Auto Loan Review: Editorial Rating
Trusted Company Reviews Rating Score for Bank of America: 8.6
Bank of America scored in the middle of the pack in our rankings because of its nationwide reach and wide range of loan products. Its 30-day rate-lock guarantee makes it easier to shop around, and the coast-to-coast bank branches gives buyers the option for personal customer service (if they want it). It also offers refinancing and lease buyout loans.
While BofA has a lot to offer, the basics of its loan programs are very similar to those of the competition.
Loan Types | New cars, used vehicles, refinancing, lease buyout |
Maximum Loan Amount | $85,000 |
Maximum Loan to Value | Not available |
Additional Services | Discounts, 30-day rate lock |
Why We Like It
The option for personal service is a nice touch, and Bank of America has one of the most extensive product offerings in the industry. Discounts are limited but available, and the 30-day rate-lock guarantee is a big selling point. No application or prepayment fees is also a nice bonus.
What We Don't Like
BofA’s rates are higher than others, and its best discounts are withheld for customers with hefty bank account balances. It also has a $7,500 minimum loan amount, limiting its usefulness for less expensive vehicle purchases, and it doesn’t have a prequalification process for new loan applications. Finally, Bank of America loans can’t be used for private party purchases, and it doesn’t work with all dealerships.
Bank of America Rates and Terms
Bank of America’s rates land between 5.49 and 6.09 percent, depending on the type of the loan. Some borrowers may qualify for discounts, though the bank’s best rates are reserved for people with large bank balances of $20,000 or more. Most loans are available with terms between 48 and 72 months.
Additional Perks
Bank of America’s used auto loans come with a 30-day rate lock, and its applications generally close with a quick decision. It also offers special financing programs and rate discounts, though they are more limited in scope and availability than with other lenders.
Bank of America Auto Loan Review: Customer Reviews
Many customers say Bank of America provided an easy, painless experience, and most praise the bank for its wide range of services. At the same time, BofA is consistently criticized for its slow response times and challenging customer service, which is also unavailable on the weekends. Others say it was difficult or impossible to get the rates advertised by the bank, and others say its credit score requirements are too restrictive.
Who Is Bank of America Best For?
Bank of America is best for well-qualified buyers who also have the ability to hold a large bank account balance. Its most generous discounts are only available to valued customers, and its base rates are often higher than others. BofA can also be a good option for people who enjoy personal service, as its deep network of branches gives it the ability to provide in-person service almost anywhere.
Bank of America Vs Lightstream Used Auto Loan
While the two have similar loan offerings, Lightstream’s loans are unsecured, so they aren’t tied to the vehicle. That gives buyers the ability to shop almost anywhere and for any vehicle. Despite that, Lightstream is an online-only lender, so it does not provide the in-person service available at BofA branches.
Bank of America | ||
Loan-to-Value | Not available | Unsecured loans |
Maximum Loan Terms | 84 months | 84 months |
GAP | Yes | Yes |
Bank of America Alternatives
Bank of America offers strong nationwide support and a useful 30-day rate lock, but it’s not the only option. If you’d rather work with a credit union, try an unsecured loan, or shop online with ease, these lenders may be a better fit. Also, check out our overviews of the best cheap auto insurance companies and the best personal loans to help save more or discover more financing solutions.
PenFed Credit Union: Extremely competitive rates, flexible loan terms, and excellent customer service.
Lightstream: Fast unsecured loans with broad vehicle eligibility, though stricter credit requirements.
Capital One: Simple prequalification and Auto Navigator make car shopping more transparent.
Upgrade: Quick refinancing approvals and strong reviews, but no direct purchase loans.
Frequently Asked Questions
Conclusion
Bank of America offers a wide range of auto financing solutions, including new and used vehicle loans, refinancing, and lease buyouts. With a 30-day rate-lock guarantee and available in-person support at branches nationwide, it appeals to buyers who prefer personal service. However, interest rates can be higher than competitors, and the best discounts are reserved for customers with large account balances.
The $7,500 minimum loan amount and lack of a prequalification process may limit its appeal, but Bank of America remains a solid option for well-qualified buyers seeking flexibility and full-service banking features. The company holds a spot in our overview of the best used auto loan providers.
About Author
Chris Teague
After earning an MBA, Chris began writing about tech and finance as part of his work as a bank analyst and consultant. Wanting to pursue his first love in life, Chris jumped ship and turned his focus to the automotive industry, first as a freelance writer for Forbes, J.D. Power, The Drive, and U.S. News & World Report, before starting YourTestDriver.com and the America on the Road Radio Show. Chris brings more than ten years of experience in product reviews, in-depth analyses, and news, and has been recognized as a significant contributor in building the future of the automotive media field.