Bank of America offers auto loans through its retail banking division, with rates and terms that vary based on your credit profile and the vehicle you're financing
Bank of America (BofA) auto loans are available to customers who have an existing relationship with the bank or who are willing to open one. The bank does not publish a single rate — instead, your rate depends on your credit score, the loan term you choose, the age and type of vehicle, and whether you're financing a new or used car. BofA typically finances vehicles up to a certain age (usually 10 years for used cars) and requires a down payment, though the minimum varies.
Unlike some lenders that operate primarily online, BofA handles auto loans through its branch network and phone banking. This means you'll work with a loan officer at a local branch or call their auto lending team. The process involves submitting financial documents, getting pre-approved, and then shopping for a vehicle — or bringing an existing purchase to the bank for financing.
Key Takeaways
- Bank of America auto loans require you to have or open a checking or savings account with the bank before you can borrow.
- Your interest rate is not posted publicly and depends on your credit score, the vehicle age, loan term, and down payment amount.
- You can get pre-approved before shopping for a car, which gives you a spending range and shows dealers you're a serious buyer.
- BofA finances used vehicles typically up to 10 years old and new vehicles, but will not finance salvage titles or vehicles with high mileage relative to age.
- The bank requires a down payment, full insurance coverage on the vehicle, and proof of income and employment.
How to get pre-approved for a BofA auto loan
Pre-approval is the first step and does not commit you to anything. You can start online at bankofamerica.com, call 1-800-731-2265, or visit a local branch. You'll need to provide your Social Security number, employment information, income, and details about any existing debts. BofA will pull your credit report during this process.
Pre-approval typically takes a few minutes to a few hours, depending on whether you explore online or in person. The bank will tell you the maximum loan amount you can borrow and give you a rate range. This pre-approval letter is valid for a set period (usually 30 to 60 days) and shows car dealers that you have financing lined up. It does not lock in your final rate — that happens when you actually explore for the loan after selecting a vehicle.
What documents you'll need to provide
BofA requires standard financial documentation to complete your loan. You'll need a government-issued ID, proof of income (recent pay stubs or tax returns), proof of employment (an employment verification letter from your employer), and proof of residence (a utility bill or lease agreement). If you're self-employed, you may need to provide additional tax documents or business records.
Once you've found a vehicle, you'll also need the vehicle identification number (VIN), the purchase agreement or invoice, and proof of insurance. The bank will not fund the loan until you have full coverage insurance in place, with BofA listed as the lienholder. Your insurance company will send proof of coverage directly to the bank.
Interest rates and how they're set
BofA does not publish its auto loan rates online. Instead, rates are determined individually based on several factors: your credit score (the higher your score, the lower your rate), the loan term (shorter terms typically have lower rates), the vehicle age and type, and your down payment amount. A larger down payment can lower your rate because it reduces the bank's risk.
The bank's rates change frequently and are not the same for all borrowers. Two people explore on the same day may receive different offers. To find out what rate you might receive, you need to complete a pre-approval or speak with a loan officer. Some customers report that BofA's rates are competitive for borrowers with good to excellent credit but may be higher for those with fair or poor credit compared to credit unions or online lenders.
Loan terms and monthly payments
BofA typically offers auto loan terms ranging from 24 to 84 months, though the exact options depend on the vehicle and your credit profile. A shorter term (like 36 or 48 months) means higher monthly payments but less interest paid overall. A longer term (like 72 or 84 months) lowers your monthly payment but increases the total interest you'll pay.
Your monthly payment is calculated based on the loan amount, interest rate, and term length. BofA provides an online calculator on its website where you can estimate payments by entering the vehicle price, down payment, interest rate, and term. Once your loan is approved and funded, your payments are due monthly, and you can set up automatic payments from your BofA checking account.
Down payment requirements and options
BofA requires a down payment, but the minimum amount is not fixed — it depends on the vehicle, your credit score, and the loan term. Generally, the bank expects between 10% and 20% of the vehicle's purchase price, though some borrowers with strong credit may may have access to with less. A larger down payment reduces your monthly payment and can improve your interest rate.
Your down payment can come from savings, a trade-in vehicle, or a combination of both. If you're trading in a vehicle, BofA will factor its value into your down payment. The bank will handle the title transfer and payoff of any existing loan on your trade-in. If your trade-in is worth more than you owe on it, that equity can be applied to your new purchase.
Vehicle restrictions and what BofA will not finance
BofA has specific rules about which vehicles it will finance. The bank generally will not finance vehicles with salvage titles, flood titles, or branded titles. It also will not finance vehicles that are older than a certain age (typically 10 years for used cars) or have very high mileage relative to their age. Exotic or specialty vehicles may face additional restrictions.
The bank also requires that the vehicle be used primarily for personal transportation, not commercial purposes. If you're buying a vehicle for business use, you may need a different type of loan or may not be able to finance through BofA's standard auto loan program. Before you fall in love with a specific car, you can ask BofA whether it meets their financing requirements.
Insurance requirements and what happens if you don't maintain coverage
BofA requires full coverage insurance on any financed vehicle. This means comprehensive and collision coverage, not just liability. The bank must be listed as the lienholder on your insurance policy, which means the insurance company will notify BofA if your coverage lapses or is cancelled. Your insurance company will send proof of coverage directly to the bank before the loan is funded.
If your insurance lapses or is cancelled, BofA may purchase force-placed insurance on your behalf and add the cost to your loan balance. Force-placed insurance is typically more expensive than insurance you buy yourself and covers only the bank's interest in the vehicle, not yours. To avoid this, make sure your insurance renewal is processed before your current policy expires and that BofA remains listed as the lienholder throughout the loan term.
Frequently Asked Questions
Can I get a BofA auto loan if I don't have an account with the bank?
You will need to open a checking or savings account with Bank of America to borrow from them. This is a requirement for their auto lending program. You can open an account online or at a branch before you explore for the loan.
What's the difference between pre-approval and final approval?
Pre-approval is based on your credit report and financial information and gives you a rate range and maximum loan amount. Final approval happens after you've selected a specific vehicle and the bank verifies the vehicle details, your insurance, and your employment. Your final rate may differ slightly from your pre-approval rate.
Can I pay off my BofA auto loan early without a penalty?
BofA auto loans typically do not have prepayment penalties, meaning you can pay off the loan early without extra fees. However, you should confirm this in your loan documents or ask your loan officer before signing. Paying early reduces the total interest you'll pay over the life of the loan.
What happens if I miss a payment?
Missing a payment will result in late fees and may damage your credit score. If you miss multiple payments, BofA may repossess the vehicle. If you're having trouble making a payment, contact your loan officer when ready to discuss options like a payment deferment or loan modification.
Does BofA offer refinancing for existing auto loans?
Yes, Bank of America offers auto loan refinancing for loans from other lenders. Refinancing can lower your interest rate or change your loan term if your credit has improved or interest rates have dropped. You can explore refinancing options through the same channels as a new auto loan process.