When people get caught up in interest rates on their savings and investment accounts, it’s sometimes easy to forget about interest rates being charged on things like auto loans. If you don’t have a good rate on your auto loan, the extra money you’re making on that CD account can be quickly cancelled out if you’re paying a high interest rate on an auto loan. That’s why it’s important to always make sure you’re getting the best rate possible on your loan products.
Bank of America is currently offering some great rates on new, used and refinance auto loans. Although actual APRs may vary slightly by state, in Massachusetts and New York, customers with excellent credit can obtain a new car loan for up to 60 months at a 3.09% APR. The interest rates increase slightly to 3.59% for used cars purchased from franchise dealers, and to 4.75% for used cars purchased from private parties. In order to get these rates, the total amount financed must meet certain state-specific discounts and/or the amount financed divided by the collateral value must be less than 90%. Customers should be aware that a loan fee may apply.
Of course, the better your credit history, the better interest rate you’ll receive on loan products, so it’s important to review your credit reports annually for any errors.