Auto Shop Business Loans Are Frequently Used For These Reasons
- upgrade the equipment in your auto garage
- hire additional staff
- expand your auto repair operation
- hire more mechanics to work for you
- advertise in a local newspaper or magazine
- open another auto repair garage
- take advantage of a special discount on car parts from your supplier
- invest in new tires, glass, and paint for your shop
Bank Of America Is Best For Borrowers Who:
Have established businesses. Bank of America requires that your business be under current ownership for at least two years in order to qualify for financing.
Are current Bank of America customers. Small-business owners with eligible Bank of America and/or Merrill business accounts can qualify for the Preferred Rewards program, which offers interest rate discounts, as well as other benefits.
Dont need cash fast. Bank of America offers limited online loan applications. More likely than not, youll need to apply for a business loan over the phone or in person. Compared to online lenders that can provide financing in just 24 hours, it may take several days to get access to capital. If timing isnt a top concern, however, youll be able to benefit from the competitive interest rates and loan terms that Bank of America can offer.
How Does A Business Owner Finance A Car
If youre a business owner looking to finance a car, there are a few things you need to do to make sure you get the best possible deal.
- Get approved: First, youll need to get credit approval from a lender. This will help you determine how much money youre eligible to borrow.
- Find a lender: Youll need to find a commercial vehicle financing company that offers competitive rates. Shop around and compare offers from commercial auto loan lenders before you decide on a lender.
- Monthly payments: Once youve found a lender, youll need to calculate your monthly payment. This will help you budget for your loan and make sure you can afford the payments.
- Get a loan: Once youve found a lender, youll need to apply for a business auto loan. Be sure to have all of your financial documentation in order, such as your tax returns and business financial statements.
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Types Of Bank Of America Business Loans
Bank of America offers several different types of business loans including:
Secured and unsecured term loans.
Secured and unsecured lines of credit.
Business auto loans.
You can make a phone or in-person appointment with your local small-business specialist to learn more about franchise or health care practice financing from Bank of America.
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Business Auto Loans Vs Personal Auto Loans
Commercial auto loans and personal auto loans have a similar structure as far as terms and fees. However, there are a few key differences between these two loan types.
- Business auto loans help your business build credit
- Purchasing a vehicle through your company will reduce your personal liability for the vehicle but will likely have higher insurance costs
- Personal auto loan offers are based on your personal credit history commercial vehicle financing companies also factor in your business credit score, time in business, and business revenue
Typically, an established business that requires a vehicle will benefit from financing that vehicle through a commercial vehicle loan. If you have a small, newer business but good personal credit, you may have better luck securing a consumer car loan. Just make sure you consider all of the liability, insurance, and tax implications.
Who Is Eligible For Bank Of America Auto Refinance
Anyone 18 or older with U.S. citizenship or residency can apply to refinance their current loan with Bank of America. The financial institution only provides auto financing for vehicles less than 10 years old and with fewer than 125,000 miles. Additionally, Bank of America doesnt cover:
- Vehicles valued at less than $6,000
- Vehicles used for commercial or business purposes
- Salvaged or branded-title vehicles
- Gray market or lemon law vehicles
- Conversion or delivery vehicles
- Motorcycles, recreational vehicles , boats or aircraft
Bank of America doesnt list any minimum income or minimum credit score requirements. Borrowers with good or excellent credit history are more likely to be approved for auto refinancing, while those with poor credit may be turned down.
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Best Business Auto Loans Of 2022
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Types Of Bank Of America Auto Loans
Bank of America offers a wide variety of auto loan and refinancing options:
- Dealer purchase loans for new or used cars
- Refinancing for current auto loans
- Lease buyout loan
- Private party loans for when you buy a vehicle from an individual
- Access loans specifically for new or used accessible cars, vans, or light-duty trucks
- Business auto loans for cars, vans, and light trucks for small business use
Auto loans are available in all 50 states. The minimum loan amount starts at $7,500, or $8,000 in Minnesota. Bank of America doesnt offer auto loans for vehicles that are more than 10 years old or that have 125,000 or miles on them. Vehicles must be worth at least $6,000 and cannot be used for commercial purposes. Loans are not currently available for motorcycles or RVs.
If youre buying a car from a dealer, Bank of America loans are only for franchise dealerships rather than independent dealers. BofA provides loans for approved independent dealers, including online dealerships, Carvana, Enterprise Car Sales, Hertz Car Sales, and CarMax.
Loan terms range between 12 and 60 months.
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How To Get A Business Auto Loan
Editorial Note: The content of this article is based on the authors opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.
If you need to finance a vehicle for commercial use, a business auto loan might be your best option.
Unlike a consumer auto loan, business auto financing can offer the benefits of reducing your personal liability and increasing your tax benefits. Plus, auto loans require you to use your vehicle as collateral, so they are generally more affordable than unsecured small business loans.
Legal Information And Disclosures:
1Automatic Payment rate discount of 0.25% is valid only for applications submitted directly to Bank of the West via the Apply Now link, at a branch, or over the phone to a Bank of the West Call Center. Cannot be combined with other relationship discounts.
Maximum loan term is based on loan amount.
Rates and terms are subject to change without notice.
Actual rate and term may vary based on collateral age, loan amount, Loan to Value, Term and Credit Score.
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Alternatives To Business Auto Loans
Going with a business auto loan isnt your only option, though. Here are three alternatives that could help you secure the car your business needs.
- Small business loan: If you need another type of working capital, a small business loan may be a better option. But often these come with higher fees and interest rates than a traditional business auto loan.
- Personal loan: Its not a great idea to use a personal loan to finance a business vehicle. These types of loans are typically more expensive than business-specific loan options.
- Consumer auto loan: If the vehicle will be driven more for personal use, a consumer auto loan may be a better option. These can be easier to secure, but you put your personal credit on the line, rather than your businesss.
- Leasing: You may be able to lease a car for your business rather than buy it. The car wont be an asset your business can claim, but there are ways to incorporate the cost into your taxes. It may also be less expensive on a month-to-month basis.
New And Used Trailers For Lease
We maintain an extensive inventory of semi-trailers for lease to fleet owners across the U.S. We have new trailers for lease slotted for production each month through the end of the year. Also choose from our current inventory of used trailers, including: composite plate vans , refrigerated trailers, flatbeds, dumps, steps, and low boys. We have new trailers for lease slotted for production each month through the end of the year, so please contact us for available new trailer inventory.
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Gather this information to get ready
- Asset information
- Two years of verifiable income history
- Debt information
- Social Security or Taxpayer ID Number
- What might prevent me from getting a loan?
Loans are subject to credit and application approval. Credit scores of 600 or higher are preferred.
- Can I have a co-signer?
- Who can apply?
To apply, you must be 18 years of age or older and reside in the bank’s 19-state retail footprint. For expatriates located in the United States, refer to the International Banking Group.
- What vehicles qualify for financing and which do not?
Standard Production Vehicles qualify for financing.
Collateral we do not finance:
- Cars imported through sources other than factory authorized distributors.
- Vehicles for hire
- Trucks weighing over one ton
- Special body trucks
- Salvaged vehicles
- Vehicles that are not in working order
- Hail damaged vehicles
- Exotic/limited production vehicles
- Van conversions
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Financing And Leasing For Refuse Recycling And Other Specialty Vehicles
We work with businesses and corporations of all sizes that need capital equipment and with vocational equipment manufacturers and distributors to help provide financing for your customers equipment acquisitions.
We finance and lease a variety of vocational equipment including:
- Refuse and recycling haulers
- Vacuum, pumper, and tanker trucks
- Tow, utility, and tire service trucks
- Scrap industry equipment
- Transfer stations and sorting lines
- Balers and compactors
- Medium duty service and work trucks
- Tanker, refuse, and vocational trailers
- Boom and crane trucks
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How Do Business Auto Loans Work
This type of business loan is secured by the vehicle, which means that if you default on the loan, the lender can repossess the vehicle. Commercial auto loans typically have lower interest rates than personal auto loans, and they may also come with additional perks, such as flexible repayment terms.
To qualify for a business auto loan, you will usually need to have a good credit score and a strong business financial history.
Crest Capital: Best Alternative Lender For Business Auto Financing & Leases
Crest Capital is an alternative lender specializing in business vehicle financing, providing an easy online application for business auto leases and loans. Unlike many bank lenders, Crest will finance used vehicles and private-party sales. However, you will need at least two years in business and fair credit to qualify.
Crest finances all types of business vehicles, including work trucks, trailers, vans, and specialty vehicles. The only vehicles Crest does not finance are passenger cars and trucks for owner-operators .
Crest Capital is refreshingly transparent when it comes to disclosing terms and borrower qualifications. Loans can be small enough for mom-and-pops or as large as $1,000,000 term lengths range from 24-72 months.
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Bank Of America Auto Refinance Review
We rate Bank of America auto refinance 8.9 out of 10.0 because of its customer service reputation and streamlined application process. While there are many negative customer reviews on the BBBs site, almost none of them have to do with auto loan rates or auto refinancing.
Bank of America is the second-largest financial institution in the United States. It offers several banking and lending products, including auto refinance loans. With a positive customer service reputation and low rates, Bank of America may be one of the best options for borrowers who want to refinance their auto loans at a big bank.
We at the Home Media reviews team will provide you with a complete guide to Bank of America auto loan refinancing, including how it works, whos eligible and what the auto refinance application process is like. In addition to getting refinance rates from Bank of America, we recommend reaching out to providers with the best auto refinance rates or to those with the best auto loan rates if youre considering purchasing a vehicle instead.
Should I Lease Or Loan My Commercial Vehicle
It depends on a few factors, such as how long you want to use the vehicle, your budget, and your expected mileage. Loans make more sense for long-term vehicle use. A business auto loan usually costs more upfront than a lease and may have lower monthly payments, but the insurance costs are lower with a loan vs. a lease.
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Financing In The Business Name
If you’re looking to finance commercial vehicles in the name of your business without affecting your personal credit, Ally features two solutions.
When you want to buy or lease vehicles in the name of your business but need to secure additional financing, you may act as a third-party guarantor. This allows you to keep your name off the title and may keep the debt off your personal credit record. Keep in mind, if your business defaults, you may become liable and the debt may be reported on your personal credit record.
Business name only
If your business qualifies for financing without the owner’s guaranty, you can obtain financing in the business name only. This gives you the ability to save your personal credit for other use as well as:
Build credit in your business name
Protect yourself from liability related to the operation of the vehicle
Find a local dealer to learn more about how Ally financing works for your business.
Which Bank Is Best For Commercial Auto Loan Finance
Bank of America is a great choice overall mainly because of its low APR and easy-to-meet commercial auto loan qualifications. Remember though that to get the best possible deal on a business car loan, its important to compare offers from multiple lenders and choose the one that best suits your business needs.