Our Verdict
Wells Fargo outshines Bank of America when it comes to auto loans. With over 4,800 branches across the states, you can easily walk into any of its branches for inquiries. And the beautiful thing is that you don’t need a Wells Fargo bank account to obtain auto loans. Yeah, but it helps to have an account!
With this bank, you get access to a variety of financing solutions for purchasing new or used vehicles.
Here are a few reasons you should choose Wells Fargo Auto Loans:
- In-person loan management system.
- Competitive interest rates.
- No origination fee.
- Relationship discounts.
On the other hand, Bank of America performs pretty well based on a few criteria. For instance, you can get car loans up to $1,000,000 along with discounts for a tiered rewards program. The thing is that both auto loan institutions have different offerings. But still, Wells Fargo has an edge over Bank of America.
Therefore, if you’re looking for in-person loan management that comes with competitive interest rates and plenty of dealership options, choose Wells Fargo. For large funds and loan discounts for a tiered rewards program, Bank of America is a good choice.
But again, your choice depends on your needs and eligibility. If you have a higher credit score and a stable income, you’re likely to get a loan from both banks.
So, compare your options and go with what’s best for you.
Why Choose Wells Fargo Auto Loan
Who’s Suitable for a Wells Fargo Auto Loan
Opt-in for a Wells Fargo Auto Loan if you:
- Desire Auto Loans with Competitive Rates: Wells Fargo has a long-standing reputation for offering favorable interest rates. You can have access to the bank’s pool of resources, both in terms of capital and expertise. This helps to avoid running into extra expenses.
- Have a Good FICO Score: You must have a good credit history and a high credit score if you desire approval for favorable auto loan terms. Typically, the bank requires you have a minimum FICO score of 670. The institution wants to be sure you can repay your loan at the right time. Consider other auto loan options if you don’t meet with the bank’s credit score requirement.
- Appreciate Online Account Management: Wells Fargo allows you to manage your auto loan accounts using online management tools. This gives you convenience and quick access to your account information.
- Prefer Dealership Relationships: Wells Fargo has a broad network of dealerships that can help you facilitate a seamless financing process. You can have a variety of loan options and competitive deals from dealers.
- Value Good Customer Services: If good customer service is a main concern for you, choose Wells Fargo. The institution has quality support to help with your needs.
- Seek a Nationwide Presence: According to statistics by NerdWallet, Wells Fargo, at the moment has 4,800 branches nationwide. If you value physical presence and accessibility, consider Wells Fargo.
>>>MORE: Wells Fargo Loans Review
Who’s Not Suitable for Wells Fargo Auto Loan
Don’t opt in for a Wells Fargo Auto Loan if you:
- Have a Negative Banking History: You may not get auto loan approval if you have a history of overdrafts. Similar issues, such as bounced checks, and other related financial issues can negatively impact your chances of approval. If you fall into this category, consider other loans, just in case.
- Have Legal or Regulatory Issues: Your chance of approval is slim when you have existing legal or regulatory issues. If you have unresolved bankruptcies or outstanding judgments, you should reconsider your loan options.
- Offers unfavorable Collateral Value: When your desired auto loan amount is higher than the vehicle you are financing, you may have issues with your loan approval process.
- Don’t Have Stable Income: If you don’t have sufficient income, you may encounter some hitches. Wells Fargo wants to know that you can repay your loan at the set date.
Why Choose Bank of America Auto Loan
Who’s Suitable for Bank of America Auto Loan
Choose Bank of America Auto Loan if you:
- Meet the Age Requirement: According to Bank of America, you must be 18 (+) years old to get your auto loan approval.
- Have Accurate Documentation: Ensure that all necessary credentials are handy. Gather everything including your credit report, proof of income and residency, and so on. This helps streamline the loan approval process.
- Maintain a Positive Payment History: You can improve your creditworthiness if you have made on-time payments on previous loans.
- Have a Good to Excellent Credit Score: Bank of America is likely to favor your application if you have a positive credit history along with a higher credit score. Consider other loan options if you don’t meet this criterion.
- Possess a Stable Source of Income: You stand a higher chance of approval if you have a consistent and stable income stream. Bank of America needs to verify that you can pay your loan at the due date.
- Comply with the Law: Ensure that you comply with legal requirements. For instance, a valid driver’s license indicates that you are qualified to own (or drive) a car. Also, comply with insurance policies and other state regulations.
Who’s Not Suitable for Bank of America Auto Loan
Choose Bank of America Auto Loan if you:
- Don’t Meet the Car Lifespan limit: If your vehicle is more than 10 years old, you won’t be eligible for a loan.
- Have a Less-Valued Vehicle: Bank of America checks (based on license dealer invoice) to see if your vehicle values below $6,000. When it does, your car is not suitable for the loan.
- Are Commercializing the Vehicle: Be aware that Bank of America does not give auto loans for commercial or business purposes. You can opt-in for small business auto loans via the “Business Advantage” product.
- Need Certain Kind of Vehicles: If you are seeking heavy-duty commercial trucks such as 450/4500 series trucks and vans, just forget it.
- Need Recreational Vehicles: Bank of America doesn’t finance Recreational Vehicles (RV). To get a loan for an RV, use Bank of America’s Recreational Vehicles (RV) Dealer Locator to find dealerships.
- Have U.S. Citizenship or Permanent Residency: If you’re currently residing in the US without being a citizen or having permanent residency, forget it. Bank of America serves only American citizens.
- Seek Flexible Loan Application: Bank of America has a strict process when it comes to auto loan application. If you don’t meet loan terms and conditions, your chances of approval are slim.
Main Differences
| Wells Fargo | Bank of America | |
|---|---|---|
|
Ideal For |
Individuals who desire loan refinancing options, relationship discounts, and dealership partnerships |
First-time car buyers and individuals seeking relationship benefits, along with special promotions. |
|
Pricing |
|
|
|
Eligibility Criteria |
Speak with the customer service for further directions. Ask the dealership if the loan is available to you. |
Speak with customer support to know if you’re eligible. |
|
How to Apply |
Visit the Wells Fargo Auto Loan website to choose the right dealer and send in your application. You can also reach out to customer support at 1-800-289-8004. Visit any of their local branches to apply in person. |
Visit the auto loan application page and fill out the necessary details. Visit any of their local branches for an in-person application. Call customer support at 844-892-6002 for further clarifications. |
Standout Features
Wells Fargo Auto Loan
- Offers payment deferment services where you delay or extend the maturity date.
- Unlocks this feature only on request.
- Comes with flexible loan terms.
- Access car returning policy where you surrender your vehicle when you don’t meet up with your monthly payment.
- Extend maturity dates by utilizing the payment deferment option.
- Offers in-person assistance for those who seek one-on-one customer support.
- Gives access to a pool of dealership relationships.
- Provides a responsive online platform for a seamless experience.
- Presents an online pre-approval process.
>>>PRO TIPS: Are Bank of America Business Loans Worth It?
Bank of America Auto Loan
- Provides prepayment option without attracting any penalty.
- Gives approval on auto loans before picking out your car.
- Charges no application fee.
- Delivers flexible loan terms at competitive interest rates.
- Offers online application and approval.
- Runs auto loan refinancing options.
- Offers discounts on interest rates.
- Gives maximum preferred auto loan interest rate discount at 0.50%.
Pros and Cons of Wells Fargo Auto Loan
- Pros
- Charges no extra fees.
- Delivers competitive interest rates.
- Provides a convenient online management system.
- Offers relationship discounts.
- Gives considerably fast loan approval process.
- Comes with a wide range of loan terms.
- Provides occasional provision of discounts.
- Cons
- Disallows car refinancing loans.
- Offers no prequalification option.
- Provides car loans via the dealership.
- Comes with criteria for loan approval.
- Has interest rate fluctuations.
Pros and Cons of Bank of America Auto Loan
- Pros
- Provides resources and guides to help borrowers.
- Offers various loan terms for different financial needs.
- Provides convenient online tools to track and manage auto loans.
- Allows in-person assistance and support.
- Has a considerably fast approval rate.
- Offers competitive interest rates.
- Cons
- Comes with stricter eligibility criteria.
- Charges extra fees occasionally.
- Has very limited promotional offers compared to other banks.
- Offers fluctuating interest.
Customer Reviews
Both Wells Fargo and Bank of America have encouraging customer reviews. On a closer look, Wells Fargo demonstrates good customer satisfaction, incredible online account management, competitive interest rates, and a responsive mobile app.
For instance, the Wells Fargo mobile app has a 4.8-star rating on both Apple Store and Google Play Store with over 2 million reviews (at least) from customers. This implies that over 90% of users indicate a high level of satisfaction while the other 10% have some concerns or issues.
Comparatively, Bank of America has a 4.6-star rating on both the Apple Store and Google Play Store with 1.1 million reviews from users. That’s below 90%, looking at Wells Fargo’s percentage. This shows that customers are more likely to recommend the Wells Fargo mobile app than its counterpart.
According to Forbes publication, Wells Fargo has a 3.1-star rating from customers, while Bank of America has a 3.0-star rating. This shows that Wells Fargo slightly leads the game in terms of customer satisfaction. Do further findings to be sure of your choices.
Competitors
Finding the best auto loan institution that meets your unique needs can be a tall order. While several competitors have their uniqueness, these institutions give related collections of products and services. Consider every available option to make an informed decision.
JP Morgan Chase
Chase is one of the largest financial institutions in America directly competing with Wells Fargo—but that’s a different topic for another day. With its large branch network, you can access a variety of auto loan options. You can also apply for a loan online. Pretty much, Chase offers pretty much the same products and services that Wells Fargo and Bank of America offer.
U.S. Bank
Check out the U.S. Bank, as the institution provides similar offerings with Wells Fargo and Bank of America. This bank offers competitive interest rates with flexible loan terms. One interesting thing about the bank is its “Special Financing Program”. With this program, you get special promotions for a particular type of vehicle on special occasions. Do your findings and get the best auto loan offer.
Capital One
Check out Capital One, as it offers similar products and services to Wells Fargo and Bank of America. You can access various auto loan options at competitive interest rates. You can also leverage its online pre-approval process to verify your eligibility before meeting with the dealership. Capital One allows you to offset your auto loan waaaaaay before the repayment date. So, you don’t have to worry about any penalties. Again, do your findings!
Ally Financial
Ally Financial is a major player in auto loan services. It competes with Wells Fargo and Bank of America on a couple of features. Some of the features include competitive interest rates, a variety of auto loan options, e-learning tools, and many others.
The bank has an online platform—Ally Clearance—where you can refinance current auto loans.
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Pro Tips
- Consider your budget before approaching any dealer.
- Compare other available loan options. Check the variations in loan terms, interest rates, and extra fees.
- Review your credit report. It’s important to check your credit score to know your chances; a higher credit score allows you to get auto loans at lower interest rates.
- Take note of income-consuming features like extended warranties or supplementary insurance.
- Sign loan agreements only when you’re okay with the rates and terms.
- Speak with customer care and find out if there are embedded fees you should know about.
Recap
Wells Fargo and Bank of America are both good choices for individuals seeking auto loans. If you’re seeking competitive interest rates and good customer support, both banks are good.
However, these banks have their differences. For instance, Wells Fargo currently has 4800 extended branches compared to Bank of America which has 4000. Also, you can only get an auto loan from Wells Fargo through dealership partnerships, while Bank of America offers applications in the bank or through dealers.
So whatever you do, check your options, needs, and eligibility as you choose what’s best for you. Good luck!
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