Bank of America auto loans are offered through both the retail bank and the auto finance subsidiary BofI Auto Finance

Bank of America offers auto loans through two channels. If you have an existing relationship with Bank of America as a checking or savings customer, you can explore for an auto loan through the main bank. The bank also owns BofI Auto Finance, a separate subsidiary that originates auto loans and purchases loans from dealers. Understanding which channel you're dealing with matters because the terms, rates, and servicing experience differ between them.

The main Bank of America auto loan program is available to existing customers and new applicants. Rates and terms depend on your credit score, income, debt-to-income ratio, and the vehicle itself — newer cars and trucks typically may have access to for better rates than used vehicles. The loan amount can range from a few thousand dollars up to the full purchase price of the vehicle, though the bank will not finance vehicles older than a certain model year (this threshold changes and varies by location).

BofI Auto Finance, the subsidiary, operates differently. It purchases loans that dealers originate, meaning you may end up with a BofI Auto Finance loan even if you never applied to Bank of America directly. This happens when you finance through a dealer and the dealer sells your contract to BofI. The terms and rates are set at the point of sale through the dealer, not by BofI after the fact.

Key Takeaways

  • Bank of America auto loans through the main bank are available to existing and new customers, with rates based on credit score, income, and the vehicle's age and condition.
  • BofI Auto Finance, Bank of America's subsidiary, purchases loans from dealers after you sign at the dealership, so you may have a BofI loan without explore to Bank of America directly.
  • The bank will not finance vehicles beyond a certain age, and used cars typically carry higher rates than new vehicles.
  • Monthly payments, interest rates, and loan terms are determined at the time of process or purchase and locked in for the life of the loan.
  • You can make payments online through Bank of America's website or mobile app, by phone, or by mail, depending on which entity services your loan.

how the process works for a Bank of America auto loan

If you are a Bank of America customer, you can start the process process online through your bank account or by visiting a branch. You will need to provide basic personal information, employment details, and income verification. The bank will also ask for details about the vehicle you plan to purchase — the make, model, year, and whether it is new or used.

The process itself does not take long, but the bank will pull your credit report and may request additional documentation. If you have an existing relationship with the bank, the process typically moves faster because the bank already has some of your financial information on file. You can receive a pre-approval, which gives you a rate range and maximum loan amount before you shop for a vehicle.

If you are not a Bank of America customer, you can still explore, but you may be asked to open a checking account as part of the process. Some applicants are required to set up automatic payments from a Bank of America account, though this requirement varies.

Interest rates and what affects them

Bank of America auto loan rates are not published as a single number — they vary based on individual factors. Your credit score is the largest driver of your rate. Borrowers with scores above 750 typically receive the lowest rates, while those below 650 may face significantly higher rates or may not be approved at all. The bank also considers your debt-to-income ratio, employment history, and whether you are putting down a down payment.

The age and condition of the vehicle also matter. New cars receive better rates than used cars. A five-year-old vehicle will carry a higher rate than a one-year-old vehicle. The bank will not finance vehicles beyond a certain model year threshold, which means very old cars are not an option regardless of your credit profile.

Loan term length — whether you choose 36, 48, 60, or 72 months — can also affect your rate. Shorter terms sometimes carry slightly lower rates, though the difference is usually small. The trade-off is that a shorter term means a higher monthly payment.

Monthly payments and loan terms

Bank of America auto loans are typically offered in terms of 36, 48, 60, or 72 months. Your monthly payment is calculated based on the loan amount, the interest rate you receive, and the term length. A longer term means a lower monthly payment but more interest paid over the life of the loan. A shorter term means a higher monthly payment but less total interest.

You can calculate an estimate of your monthly payment using Bank of America's online calculator, which asks for the vehicle price, down payment, trade-in value, and your estimated credit tier. The calculator gives you a range rather than an exact number because your actual rate depends on the full process and credit review.

Once your loan is approved and funded, your monthly payment is fixed for the entire term. You can make payments online through your Bank of America account, by phone, by automatic bank transfer, or by mail. If your loan is serviced by BofI Auto Finance, you will make payments through their system instead, though the process is similar.

What happens if you want to pay off the loan early

Bank of America auto loans do not carry a prepayment penalty, meaning you can pay off the loan in full at any time without owing extra fees. This is standard across the auto lending industry and is required by federal law in most states. If you receive a bonus, inheritance, or other lump sum, you can put it toward your auto loan without penalty.

Paying off the loan early saves you interest, but it does not improve your credit score as much as making regular on-time payments does. Credit scoring models reward consistent payment history, so making all 60 payments on time builds your credit more than paying off the loan in 30 months. That said, the interest savings usually outweigh the credit-building benefit.

If you want to pay off the loan early, contact Bank of America or BofI Auto Finance (depending on who services your loan) and ask for a payoff quote. The quote tells you the exact amount needed to close the loan as of a specific date, accounting for the final interest charge.

If you fall behind on payments

If you miss a payment, Bank of America will typically report the miss to the credit bureaus after 30 days. A single missed payment can lower your credit score by 100 points or more. The bank will contact you by phone and mail to request payment. At this stage, you can still bring the account current without additional consequences beyond the credit report entry.

If you miss two or more payments, the bank may begin repossession proceedings. The exact timeline varies by state, but most states allow the lender to repossess the vehicle once you are 60 to 90 days behind. Repossession damages your credit severely and leaves you owing the difference between what the vehicle sells for at auction and the remaining loan balance — a debt called a deficiency.

If you are struggling with payments, contact Bank of America or BofI Auto Finance as soon as possible. Some borrowers are able to work out a loan modification, deferment, or forbearance arrangement that temporarily reduces or pauses payments. These options are not may provide, but lenders are more likely to work with you before you fall behind than after.

Refinancing a Bank of America auto loan

You can refinance a Bank of America auto loan with another lender if your credit score has improved or if interest rates have dropped since you took out the original loan. Refinancing means taking out a new loan with a different lender to pay off the Bank of America loan in full. The new lender pays off the old loan, and you make payments to the new lender instead.

Refinancing makes sense if the new interest rate is at least 1 to 2 percentage points lower than your current rate and you have enough time left on the loan to recoup the refinancing costs. If you are in the final year of a five-year loan, refinancing may not save you money because the remaining interest is small.

To refinance, you will need to contact other lenders — credit unions, online lenders, or other banks — and request a rate quote. The new lender will pull your credit and verify the vehicle details. Once approved, the new lender sends the payoff amount to Bank of America, and your loan is closed. You then owe the new lender instead.

Frequently Asked Questions

Can I get a Bank of America auto loan if I have bad credit?

Bank of America does not publish a minimum credit score requirement, but borrowers with scores below 650 face difficulty getting approved. If you are approved with a lower score, your interest rate will be significantly higher. Credit unions and some online lenders may offer options for lower credit scores, though rates will still be higher than for borrowers with good credit.

What is the difference between a Bank of America auto loan and a BofI Auto Finance loan?

Bank of America auto loans are originated directly by the bank when you explore. BofI Auto Finance loans are purchased from dealers after you finance through a dealership. Both are Bank of America products, but they are serviced separately and have different process processes. You may not know which one you have until after you sign the paperwork.

Do I have to use my Bank of America checking account to make payments?

No. While Bank of America may encourage automatic payments from a Bank of America account, you can make payments by phone, mail, or online transfer from any bank. If your loan is serviced by BofI Auto Finance, you will use their payment system, which accepts payments from any financial institution.

What happens to my auto loan if I sell the car?

You still owe the loan balance even if you sell the vehicle. The buyer can pay off the loan in full at the time of sale, or you can use the sale proceeds to pay off Bank of America or BofI Auto Finance directly. If the sale price is less than what you owe, you are responsible for the difference — this is called being "upside down" on the loan.

Can Bank of America repossess my car if I am one month behind?

No. Most states require the lender to wait 60 to 90 days of missed payments before repossession is legal. However, missing even one payment damages your credit and triggers collection calls. Contacting the bank as soon as you know you will miss a payment gives you the best chance of working out a solution before repossession becomes an option.