What Bank of America car refinancing is and how to explore it
Bank of America offers car refinancing through its auto lending division, which means you can refinance an existing car loan — whether it was issued by Bank of America or another lender — into a new loan with Bank of America. The process involves Bank of America paying off your current loan balance and issuing you a new loan with new terms, a new interest rate, and a new monthly payment schedule.
Refinancing makes sense if your credit score has improved since you took out your original loan, if interest rates have dropped, or if you want to change your loan term — for example, paying off the car faster or extending payments to lower your monthly bill. Bank of America evaluates your credit, income, and the vehicle's value to determine whether to offer you a new rate and what that rate will be.
Key Takeaways
- Bank of America refinances cars through its auto lending program, and you can refinance a loan from any lender, not just Bank of America.
- Your new interest rate depends on your current credit score, income, and the vehicle's age and condition — not on your original loan terms.
- You can contact Bank of America directly through its website, by phone, or in person at a branch to learn about current rates and terms.
- The refinancing process typically takes one to two weeks from process to funding, and Bank of America pays off your old loan directly.
- Refinancing resets your loan term, so a shorter new term means higher monthly payments but less interest overall, while a longer term lowers payments but costs more in interest.
How to start exploring Bank of America car refinancing
Bank of America customers and non-customers can both refinance through the bank. The first step is to gather information about your current loan: the outstanding balance, your current interest rate, and the original lender's name. You will also need the vehicle identification number (VIN) and details about the car's condition and mileage.
You can begin by visiting Bank of America's auto lending website, calling their auto lending phone line, or visiting a local branch. Bank of America offers online rate quotes that do not require a hard credit pull, meaning you can see estimated rates without an when ready impact on your credit score. A hard pull — which does affect your score slightly — happens only when you formally request a refinancing offer.
Bank of America will ask about your employment, income, and whether you have any other debts. The bank will also order a vehicle valuation to confirm the car's current market value. This matters because the loan amount cannot exceed what the car is worth; if your car has depreciated significantly, you may owe more than it is worth, which can complicate refinancing.
What affects your new interest rate
Your new rate is not based on your old rate or your original loan terms. Instead, Bank of America looks at your current credit score, your debt-to-income ratio, the age and condition of the vehicle, and current market rates. If your credit score has improved since you took out the original loan, you may may have access to for a lower rate. If rates have fallen across the market, that also works in your favor.
The vehicle's age matters significantly. Bank of America typically refinances cars that are no more than 10 years old, though some loans go to older vehicles depending on mileage and condition. A car with very high mileage or known mechanical issues may not may have access to, or may receive a higher rate to offset the lender's risk.
Your income and employment history also factor in. Bank of America wants to see stable income and will verify your employment. If you have recently changed jobs or have gaps in employment, the bank may ask for additional documentation or offer a higher rate.
Loan terms and monthly payment options
When you refinance, you choose a new loan term — typically ranging from 24 to 72 months, though Bank of America's exact options depend on the loan amount and your credit profile. A shorter term (24 to 36 months) means higher monthly payments but significantly less interest paid over the life of the loan. A longer term (48 to 72 months) spreads the payments out, lowering your monthly bill but increasing total interest.
Bank of America will show you the monthly payment for each term option before you commit. The loan documents will spell out the interest rate, the total amount of interest you will pay, and the payoff date. Some refinancing offers include the option to make extra payments without penalty, which lets you pay off the loan faster if your financial situation improves.
The refinancing timeline and what happens to your old loan
Once Bank of America approves your refinancing request, the process typically takes 7 to 14 days to complete. During this time, Bank of America orders a final vehicle inspection (sometimes done at a dealership or inspection facility), confirms your employment, and prepares the loan documents.
When the new loan funds, Bank of America sends a payoff check directly to your current lender. Your old loan is closed, and you begin making payments to Bank of America on the new schedule. You will receive new loan documents and a new payment coupon or online payment portal. During the transition period — usually a few days — make sure you know where to send your next payment so you do not miss a due date.
If you have a lien on the vehicle title (which is normal if you still owe money), Bank of America will handle the lien release from your old lender and file the new lien in its name. You do not need to visit the DMV or handle title paperwork yourself; Bank of America manages this as part of the refinancing process.
Costs and fees associated with refinancing
Bank of America does not charge an origination fee or process fee for auto refinancing. However, you may encounter costs from other sources. Your state's DMV may charge a small fee to record the new lien on the title, though Bank of America often covers this. Some states also charge a sales tax on the refinancing transaction, which varies by location.
If your old lender charges a prepayment penalty for paying off the loan early, you will owe that fee when Bank of America pays off the loan. Check your original loan documents or contact your current lender to learn about a prepayment penalty applies. In many cases, the interest savings from a lower rate outweigh a prepayment penalty, but it is worth calculating before you commit.
You will also need to maintain auto insurance throughout the refinancing process. Bank of America requires proof of full coverage (comprehensive and collision) before funding the new loan. If your insurance lapses, the refinancing may be delayed.
When refinancing makes financial sense
Refinancing saves money when your new interest rate is meaningfully lower than your current rate — typically at least 0.5 to 1 percentage point lower — and you plan to keep the car long enough to recoup any costs. If you are 18 months into a 60-month loan and refinance into a new 60-month loan, you are extending your payoff date and paying more interest overall, even if the rate is lower.
Refinancing also makes sense if you need to lower your monthly payment due to a change in your financial situation. Extending the loan term reduces the payment, though you will pay more interest. Conversely, if your financial situation has improved and you want to pay off the car faster, refinancing into a shorter term can save you substantial interest.
Run the numbers before you commit. Bank of America's rate quote will show you the total interest you will pay under the new terms. Compare that to what you would pay if you kept your current loan. If the savings are less than $500 to $1,000 over the remaining life of the loan, refinancing may not be worth the effort and the hard credit pull.
Frequently Asked Questions
Can I refinance a car I still owe money on?
Yes. Bank of America refinances cars with outstanding loans. The new loan pays off the old loan in full, and you begin making payments to Bank of America. The car must be worth at least as much as the amount you owe; if you are underwater (owing more than the car is worth), refinancing becomes more difficult.
What if my credit score is poor?
Bank of America may still refinance you, but you will likely receive a higher interest rate than someone with excellent credit. If your score has improved since your original loan, refinancing could still lower your rate. If your score is very low or you have recent late payments, Bank of America may decline the refinancing request.
How long does the refinancing process take from start to finish?
From process to funding typically takes 7 to 14 days. Getting an online rate quote takes minutes. Once you formally request a refinancing offer, Bank of America orders a vehicle inspection and verifies your employment, which adds a few days. The actual funding and payoff of your old loan happens near the end of the process.
Can I refinance if I have a co-signer on my original loan?
Yes, but Bank of America will evaluate the refinancing based on your income and credit alone unless you want the co-signer to remain on the new loan. If the co-signer is removed, you must may have access to on your own. If the co-signer stays, both of you remain responsible for the debt.
What happens if I want to pay off the loan early?
Bank of America auto loans typically do not have prepayment penalties, so you can pay off the loan early without extra fees. Extra payments go directly toward the principal, reducing the total interest you pay. Confirm this in your loan documents when you receive them.