When they’re handing out auto loans on every street corner like candy, it’s because someone in a gray office wearing an expensive suit needs another pleasure craft. The fear that many investors have is that another 2008 will come around. Thankfully, Bank of America happens to be one of those institutions to shy away from what could be another blow to a fragile reputation. This review takes a look at the product that sparked other institutions to securitize it. However, we want to know whether the actual loan is a good option for customers and in comparison with the bank’s peers, such as Well Fargo Loans. Let’s take a look at how Bank of America Auto Loans did.
About Bank of America
Although regarded as one of the main players in the banking arena, Bank of America had humble beginnings. The bank had many different roots that all merged together into what is known as the second biggest bank in America. Furthermore, despite facing trying times when the subprime mortgage bubble burst and evidence of discrimination surfaced, the bank was still in the trenches trying to repair these relationships. It will take some time for public opinion to improve, however, the decision to stay away from this new investment opportunity is a bold, yet safe move for the group.
A full review on Bank of America details the entire service offering of the bank.
Auto Loan Hacks For Those Who Want to Pay the Minimum Monthly Instalment
Consumers who find themselves living from paycheck to paycheck and can’t really afford a new car installment, but can’t get around it either, will want to read on. There are a number of ways to get that installment as low as possible without having to compromise too much on a good ride.
Whether it’s a new member of the family on the way or a carpool that disintegrated, it’s not always possible to save up for a car. Those who wish to stretch their paycheck as far as possible and still have a decent car can opt for the longer term options. Some banks offer customers up to 72 or 84 months to repay their loan.
This may seem like an obvious choice, however, the difference in the installment can really only be seen when customers have a look at the quote comparisons. Although it’s going to take a fairly large chunk of change to have an effect on the installment, it’s worth it for those who want as little impact on their monthly payments as possible.
Consider Used or Demo Models
This is not something the car enthusiast will want to hear, but the moment many of the car brands currently on the market drive off the showroom floor, they start losing value. There are the odd vehicles that gain value, however, these are the exception. Customers need to consider that a vehicle that is even just a year older than the model they wish to buy, will make a dramatic difference.
Demo models are also an option. These are the ones on the showroom floor that customers sit in to get a feel for the vehicle. They also have the opportunity to take it for a test drive. Because this vehicle is set aside for that specific use, dealerships are often willing to sell them for a lower price than one straight off the lot.
Bank of America Auto Loans Product Offerings
This is a straightforward loan option that provides a variety of rate options. Furthermore, customers enjoy a fast response.
- The loan options include new cars, used cars, and refinancing.
- The Preferred Rewards option also lets customers benefit from rate discounts. Gold level enjoys 0.25%, Platinum 0.35%, and Platinum Honors 0.5%.
- Furthermore, customers have the option to apply for the finance online.
- Also, the loan type provides customers with a 30-day rate lock in order to allow them to shop around.
- Customers can view their account online or through the mobile app.
- Finally, customers have access to an online calculator that provides them with an estimated repayment and affordability calculation. This, however, is not the final decision or the final figures as an assessment still needs to be done.
This loan type allows customers to buy or refinance an accessible vehicle. Furthermore, the option also allows them to modify an existing vehicle with adaptive equipment.
- These loans are designed for customers with special vehicle needs.
- Customers can use the finance for an accessible car, van, or light-duty truck.
- Furthermore, there are terms of up to 72 months available.
- Those who qualify for those loan type are people with disabilities and immediate family members of people with disabilities.
- Finally, customers can apply for the loan online and there is no application fee. Cases that require some more info, may take a little longer to finalize.
Business Auto Loans
Business Advantage Loan
This is a great option for those who want to purchase automobiles, vans, and light trucks. Furthermore, the minimum loan amount of this finance is $10,000.
- Customers benefit from a competitive fixed rate.
- The term is between 4 to 6 years.
- Finally, there is no application fee.
Commercial Vehicle Loan
Customers who wish to purchase commercial vehicles can look at this loan type. These tend to include vehicles over 2.5 tons.
- The minimum finance amount here is $25,000.
- Furthermore, customers enjoy a competitive interest rate. This is based in part on the business relationship the customer has with Bank of America.
- Customers enjoy flexible terms of up to 7 years.
- Finally, there is an origination fee of 0.5% of amount financed plus the closing costs.
This option is available for the commercial use of the vehicle. Furthermore, customers enjoy lower monthly payments due to predetermined residual value.
- At the end of the lease, customers can purchase the vehicle for a predetermined value or return the vehicle to b sold by the bank.
- The term is 6 years and there are no mileage charges or restrictions.
- Furthermore, customers can expect to pay certain fees.
- Finally, the LTV is up to 100%, with a further 20% for soft costs.
This is the ideal type of finance for those who wish to purchase a commercial vehicle. Furthermore, there are higher monthly payments due to no residual value.
- The customer owns the equipment for $1.
- Customers enjoy a finance term of 7 years.
- Furthermore, the loan type does include certain fees such as origination fees, and more.
- Finally, the loan type offers an LTV of up to 100% plus another 20% for soft costs.
Key Differences in the Finance Options Of Leasing and Buying
- Down Payment – the buying option allows customers to finance up to 125% and the lease hardly ever requires a down payment.
- Ownership – The customer is the owner with the authority to sign on behalf of the business in an ownership deal. With the lease option, customers have multiple options at the end of the term including assuming ownership, purchasing for a dollar, or to receive the fair market value.
- Taxes – There are different tax benefits which should be discussed with a specialist.
What we Like About Bank of America Auto Loans
Of the bank that we’ve reviewed thus far, only a few banks have managed to produce a variety of financing options. Bank of America is one of those banks.
Furthermore, the loans cover the needs of people with disabilities as well. This is one of the only banks we’ve come across that offers this finance.
Finally, the business options are simple and easy to understand. Business owners who have the right documentation in place should have no issues processing their finance requests. The different options make it simpler for accounting and taxation purposes as well.
What We Don’t Like About Bank of America Auto Loans
Although there is some variety in these options, the bank could do with a few more. These include finance for boats, motorcycles, motorhomes, and more.
We also reviewed the mortgage options of Bank of America.
Critical Reviews Rating Bank of America Auto Loans – 9 of 10
This is one of those product ranges where we sit back and smile. It offers a little more than the average bank, and customers have some neat options. Furthermore, the terms are quite flexible and on the business side, there are additional options as well.
Customers who wish to get their passenger vehicle can stop in at the bank for finance. The only drawback on the finance offering is that we can’t seem to find options for those who wish to purchase boats, motorhomes, or motorcycles. With a vast network of customers, Bank of America can almost assume that this product would appeal to their customers. This is an option a discerning customer would miss and might send them over to the competitors. Anything that could lure a customer over to the opposition, is something a bank should work on with urgency.
One of the banks that performed the best in this category, was Standard Bank.