What Bank of America offers for car loans
Bank of America offers auto loans for new and used vehicles through its consumer banking division. You can borrow money to buy a car, refinance an existing loan from another lender, or finance a lease buyout. The bank handles the loan directly — you work with Bank of America from process through payoff, not through a dealer or third party.
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 for. Bank of America does not publish a single rate; your rate is determined during the process process based on your financial profile and current market conditions.
Key Takeaways
- Bank of America auto loans are available for new cars, used cars, and lease buyouts, with terms typically ranging from 24 to 84 months.
- You can start the loan process online, by phone, or at a branch, and the bank will tell you your rate before you commit.
- Bank of America requires a down payment, though the minimum amount varies; a larger down payment typically lowers your interest rate.
- The bank will place a lien on the vehicle title until the loan is paid off, meaning the car serves as collateral for the loan.
- Current customers with an existing Bank of America checking or savings account may receive a rate discount compared to new customers.
How to get a Bank of America auto loan
Start by visiting bankofamerica.com/auto or calling 1-800-432-1000 to request a loan. You can also visit a local Bank of America branch. The bank will ask for basic information: your income, employment status, the vehicle you want to buy (or the one you're refinancing), and your Social Security number so they can check your credit.
Bank of America will give you a pre-qualification estimate — a preliminary rate and monthly payment based on the information you provided. This is not a final offer. Once you have found the specific vehicle and are ready to move forward, you complete a full process. The bank then orders a vehicle inspection and appraisal to confirm the car's condition and value.
After the bank approves your process, you receive loan documents to sign. You will need to provide proof of insurance before the loan funds. Once everything is signed and insurance is in place, the bank sends the money to the seller or your current lender (if refinancing). The entire process typically takes three to seven business days from full process to funding.
What documents and information you'll need
Gather these items before you start: a valid government-issued ID, your Social Security number, recent pay stubs or tax returns showing your income, and a list of your current debts (credit cards, student loans, other car loans). If you are self-employed, bring two years of tax returns and a current profit-and-loss statement.
For the vehicle itself, you will need the vehicle identification number (VIN), the current mileage, and the asking price. If you are refinancing an existing loan, have your current loan statement handy so the bank knows how much you still owe. If you are buying from a dealer, the dealer can provide the VIN and details. If you are buying from a private seller, you will need to inspect the car and get this information yourself.
Bank of America will order its own vehicle inspection and title search, so you do not need to arrange those yourself. However, you must have proof of insurance before the loan closes — contact an insurance company and get a quote or policy in place before your closing appointment.
Interest rates and what affects your rate
Bank of America does not publish standard rates online. Your rate depends on your credit score, the loan term you choose, the vehicle's age and condition, how much you put down, and whether you are an existing customer. Customers with excellent credit (typically 740 and above) generally receive lower rates than those with fair or poor credit.
Newer vehicles usually may have access to for lower rates than used vehicles because they hold their value better and are less likely to need expensive repairs. A longer loan term (60 or 84 months) typically carries a higher rate than a shorter term (36 or 48 months) because the bank takes on more risk over time. Putting down a larger amount reduces the bank's risk and often lowers your rate.
If you are an existing Bank of America customer with a checking or savings account in good standing, you may receive a rate discount. The bank will show you your rate before you commit, so you can see the exact monthly payment and total interest you will pay over the life of the loan.
Down payment requirements and loan terms
Bank of America requires a down payment, but the minimum varies. Generally, the bank wants to see at least 10 to 20 percent of the vehicle's purchase price, though this is not a hard rule — it depends on your credit profile and the vehicle. A larger down payment strengthens your process and usually lowers your interest rate.
Loan terms range from 24 to 84 months. A shorter term (24 to 48 months) means higher monthly payments but less total interest paid. A longer term (60 to 84 months) means lower monthly payments but more interest paid over time. Bank of America will calculate your monthly payment based on the loan amount, interest rate, and term you choose.
If you are refinancing an existing loan, the down payment requirement may be different. Some refinance loans require little or no down payment because you are replacing an existing loan, not buying a new vehicle. Ask the bank about refinance-specific terms when you call.
What happens after your loan is approved
Once your loan is approved and funded, Bank of America holds the title to the vehicle as lienholder — meaning the bank has a legal claim on the car until you pay off the loan. You own and drive the car, but you cannot sell it or refinance it without the bank's permission until the loan is paid in full.
Your monthly payment is due on the date specified in your loan documents. You can pay online through your Bank of America account, by phone, by mail, or at a branch. If you pay early or in larger amounts, the extra money goes toward the principal, reducing the total interest you pay and shortening the loan term.
If you want to pay off the loan early, contact Bank of America to ask about any prepayment penalties — most auto loans do not have them, but it is worth confirming. Once you pay off the loan completely, the bank releases the lien and sends you the title, which you can then transfer to your name if needed.
Refinancing an existing car loan with Bank of America
If you have a car loan with another lender and want to refinance through Bank of America, the process is similar to getting a new loan. You provide information about your current loan, the vehicle, and your finances. Bank of America will order an appraisal and title search to confirm the car's value and ownership.
Refinancing makes sense if Bank of America offers you a lower interest rate than your current lender, which would reduce your monthly payment or total interest paid. It also makes sense if you want to change your loan term — for example, if you want to pay off the car faster or extend payments to lower your monthly cost.
When your refinance loan is approved and funded, Bank of America pays off your old loan in full. The old lender releases the title, and Bank of America becomes the new lienholder. You then make payments to Bank of America instead of your previous lender. The entire process takes about the same time as a new auto loan — three to seven business days from full process to funding.
Frequently Asked Questions
Can I get a Bank of America auto loan if I have bad credit?
Bank of America considers borrowers with various credit profiles, but a lower credit score typically means a higher interest rate and may require a larger down payment. If your credit is very poor, the bank may decline your process. In that case, you could try again after improving your credit, or explore other lenders that specialize in borrowers with lower scores.
What if I want to refinance my Bank of America auto loan later?
You can refinance your Bank of America loan with another lender at any time, or refinance with Bank of America itself if rates drop or your financial situation improves. There are typically no prepayment penalties on Bank of America auto loans, so you can pay off or refinance without extra fees.
Do I need to have insurance before I explore for the loan?
You do not need insurance to start the process, but you must have it in place before the loan closes and funds. Contact an insurance company and get a quote or active policy before your closing appointment so you can provide proof to Bank of America.
What if the car I want to buy is worth less than what I owe on my trade-in?
If you are trading in a vehicle and owe more on it than it is worth, you have negative equity. Bank of America may roll this amount into your new loan, meaning you would borrow extra money to cover the gap. Ask the bank about this option during your process.
Can I make extra payments toward my Bank of America auto loan?
Yes. You can pay more than your monthly payment at any time, and the extra amount goes toward the principal. This reduces the total interest you pay and shortens your loan term. There are no penalties for paying early or paying extra.