Bank of America Cheap Car Loans
Bank of America is offering good deals on auto loans this fall, with rates starting as low as 2.34% APR on 60-month financing for new cars and trucks.
That’s what you’ll pay if you have a checking or savings account at the nation’s second-largest bank. If not, you’ll be charged a slightly higher 2.49% APR.
Both of those rates are considerably lower than the national average for 60-month loans — 4.02% APR, according to our latest survey of major lenders.
Borrow $25,000 for five years at 2.49%, and you’d pay $444 a month. Finance the same amount at the national average of 4.02%, and the monthly payment would jump to $461 a month.
Over the course of the loan, you’d save just over $1,000 in interest charges.
Used Car Loans
What really got our attention are Bank of America’s used car loans. You can borrow money to buy preowned autos and trucks for as little as 2.49% APR over five years with the customer discount, or 2.64% APR for non-account holders.
Most lenders charge much higher rates for used-car financing. In fact, our survey average for preowned auto loans is currently 4.73% APR. And that’s just for three years.
See the table below for the best auto loan rates from dozens of other lenders in your area to see if you can find a better deal.
Then, you can use our auto loan calculator to help you budget your monthly payment.
These loans are only available for vehicles sold through new-car dealers, and you’ll need good credit to qualify for the lowest interest rates. You have the best chance of qualifying if your FICO credit score is in the mid-700s and up.
You can apply online at Bank of America and receive a decision in as little as 60 seconds. There is no loan documentation fee.
Knowing about a deal like this makes it much easier to judge any loan you’re offered by a dealer’s finance manager.
If he or she can beat Bank of America’s terms, then you’ll know you negotiated a real bargain. If not, you can go with the bank’s offer.