What Bank of America offers for auto loans
Bank of America offers auto loans for new and used vehicles through its retail banking division. You can borrow money to purchase a car, and the vehicle itself serves as collateral for the loan. The bank handles the loan directly — there is no middleman or dealer financing required, though you can also work with a dealer who partners with Bank of America.
The loan terms, interest rates, and monthly payments depend on factors like your credit score, the vehicle's age and value, how much you put down, and how long you want to borrow the money. Bank of America does not publish a single rate; your rate is determined during the process process based on your financial profile.
Key Takeaways
- Bank of America auto loans are available for both new and used vehicles, with loan terms typically ranging from 24 to 84 months.
- You can explore online, by phone, or in person at a Bank of America branch, and the bank will tell you within minutes whether you are pre-approved.
- The interest rate you receive depends on your credit score, down payment amount, and the vehicle's age — better credit scores generally result in lower rates.
- Bank of America requires a down payment, though the minimum amount varies; you can finance the rest of the purchase price.
- The vehicle is held as collateral, meaning the bank has a lien on the title until you pay off the loan completely.
How to get pre-approved before shopping
Pre-approval means Bank of America has reviewed your financial information and told you how much you can borrow and at what interest rate. This step happens before you find a specific vehicle. Getting pre-approved first gives you a clear budget when you shop and shows dealers you are a serious buyer.
You can start the pre-approval process online at bankofamerica.com, by calling 1-800-432-1000, or by visiting a local branch. You will need to provide your Social Security number, income information, employment details, and a list of your current debts. The bank pulls your credit report as part of this process. Pre-approval typically takes a few minutes to a few hours, and the bank will tell you the loan amount and interest rate you may have access to for.
Pre-approval is not a may provide — the final loan is still subject to the vehicle inspection and title verification. But it gives you a solid starting point and locks in your rate for a set period, usually 30 to 60 days.
Interest rates and what affects yours
Bank of America does not publish a standard interest rate for auto loans because each borrower's rate is different. The rate you receive depends on several factors working together: your credit score is the biggest one, but the down payment amount, the vehicle's age, the loan term length, and whether the vehicle is new or used all play a role.
A higher credit score typically results in a lower interest rate. A larger down payment also helps lower your rate because you are borrowing less money relative to the vehicle's value. Newer vehicles usually may have access to for lower rates than older ones. Shorter loan terms (like 36 months) often have lower rates than longer ones (like 72 months), though your monthly payment will be higher.
You can ask Bank of America for your rate before you commit to anything. During pre-approval, the bank shows you the specific rate you may have access to for based on the information you provided. If you do not like the rate, you can shop around with other lenders before deciding.
Down payment requirements and options
Bank of America requires a down payment, but the minimum amount is not fixed — it depends on your credit profile and the vehicle. Generally, the bank prefers at least 10 to 20 percent of the vehicle's purchase price as a down payment, though borrowers with strong credit may be able to put down less.
Your down payment can come from savings, a trade-in vehicle, or a combination of both. If you are trading in a vehicle, Bank of America will assess its value and explore that amount toward your down payment. If the trade-in is worth more than you owe on an existing loan, the difference goes toward your down payment. If you owe more than it is worth, you can still trade it in, but you will need to cover that gap with cash.
A larger down payment lowers your monthly payment and reduces the interest you pay over the life of the loan. It also improves your chances of approval and may lower your interest rate.
The process and approval process
Once you have found a vehicle, you move from pre-approval to the full process. If you are buying from a dealer, the dealer can submit your process to Bank of America directly. If you are buying from a private seller, you submit the process yourself online or at a branch.
The full process asks for the same financial information as pre-approval, plus details about the specific vehicle: the vehicle identification number (VIN), purchase price, and odometer reading. Bank of America orders a vehicle inspection report and verifies the title. This process usually takes 24 to 48 hours, though it can be faster if you are at a branch or working with a dealer.
Once approved, Bank of America issues a check or funds the loan electronically. If you are buying from a dealer, the dealer handles the paperwork and sends it to the bank. If you are buying privately, you receive the funds and handle the transaction yourself. Either way, the bank places a lien on the vehicle's title — your name and the bank's name both appear on the title until the loan is paid off.
Monthly payments and loan terms
Your monthly payment is determined by three things: the loan amount (purchase price minus down payment), the interest rate you received, and the loan term you choose. Bank of America typically offers terms from 24 to 84 months, though 36, 48, 60, and 72 months are the most common.
A shorter term means higher monthly payments but less total interest paid. A longer term means lower monthly payments but more total interest paid over time. For example, a $25,000 loan at 5 percent interest costs less in total interest over 36 months than over 72 months, but your monthly payment is higher.
You can make payments online through your Bank of America account, by phone, by mail, or automatically through your checking account. If you pay off the loan early, Bank of America does not charge a prepayment penalty, so you can save money on interest by paying faster if you are able to.
What happens if you cannot make a payment
If you miss a payment, contact Bank of America when ready. A single missed payment typically does not result in repossession, but it will be reported to credit bureaus and will damage your credit score. The bank may charge a late fee, usually between $25 and $35.
If you are facing financial hardship, Bank of America may offer options like a temporary payment deferment, a loan modification, or a forbearance agreement. These are not automatic — you have to ask for them and explain your situation. The sooner you contact the bank, the more options you may have.
If payments go unpaid for several months, the bank can repossess the vehicle. Once repossessed, the bank sells the vehicle and applies the proceeds to your loan balance. If the sale price is less than what you owe, you are responsible for the difference, called a deficiency. Repossession also severely damages your credit for years.
Frequently Asked Questions
Can I refinance my Bank of America auto loan with another lender?
Yes. Once you own the vehicle and have paid down some of the loan, you can refinance with any lender, including Bank of America itself. Refinancing means taking out a new loan with different terms to pay off the old one. You might refinance to get a lower interest rate, extend the loan term to lower your payment, or shorten the term to pay it off faster.
What credit score do I need to get approved?
Bank of America does not publish a minimum credit score requirement. Borrowers with scores in the 600s can be approved, but rates are typically better for scores above 700. The only way to know if you will be approved is to start the pre-approval process and let the bank review your full financial picture.
Can I get an auto loan if I am a new Bank of America customer?
Yes. You do not need to have an existing checking or savings account with Bank of America to explore for an auto loan. However, having an existing relationship with the bank may make the process slightly faster since they already have some of your financial information on file.
What if I want to pay off the loan early?
Bank of America allows early payoff without penalty. You can pay extra toward your principal each month, make a lump-sum payment when you have the money, or pay off the entire balance at once. Paying early reduces the total interest you pay and gets you out of debt faster.
Do I need to have insurance before the loan funds?
Yes. Bank of America requires proof of comprehensive and collision insurance before it will fund the loan. You must have insurance in place before you take possession of the vehicle. Your insurance company can provide proof of coverage electronically, which speeds up the process.