Bank of America Auto Purchase and Refinance Loans: 2024 Review

Bank of America offers many ways to apply for auto loans, including online, by phone, in a branch and at certain dealerships.
Shannon Bradley
By
Last updated on February 21, 2024
Edited by
✅ Fact checked and reviewed
Julie Myhre-Nunes
Edited by
✅ Fact checked and reviewed

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NerdWallet's auto loans content, including articles, reviews and recommendations, is produced by a team of writers and editors who specialize in consumer lending. Their work has appeared in Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets. They have also appeared on NerdWallet's "Smart Money" podcast.

Auto loan reviews

BankofAmerica
New auto purchase loan Not yet rated
Auto loan refinancing Not yet rated
The Nerdy headline:

Best for existing Bank of America customers who can take advantage of pre-qualification with a soft credit check for purchase loans and possible rate discounts.

New auto purchase loan review

BankofAmerica
Bank of America - New car purchase loan

Not yet rated
Loan amount
$7,500 - Max. not disclosed
Min. credit score
Did not disclose

Pros

  • Offers options to apply online, by phone, in a financial center or at certain dealerships.

  • The application process can be 100% online with information provided to a dealership.

  • Customers with qualifying account relationships may be eligible for a rate discount.

  • Usually provides a loan decision within 60 seconds of application submission.

  • Offers pre-qualification with a soft credit check for customers with an online banking login.

Cons

  • Rate discount available only with deposit balances of $20,000-plus.

  • Applications made at a dealership don’t qualify for a rate discount.

  • Borrowers must have a Bank of America online banking login to take advantage of pre-qualification.

Best for applicants who want a streamlined process of applying online and purchasing a new car at a Bank of America-authorized dealership.

Compare auto loans lenders
Lender
Est. APR
Loan amount
Min. credit score
MyAutoloan
4.0
Visit Lenderon MyAutoloan's website
on MyAutoloan's website
6.29- 29.90%
$8,000- $100,000
575
6.24- 34.90%
$8,000- $100,000
575
7.99- 16.19%
$5,000- $100,000
660
Visit Lenderon LightStream's website
on LightStream's website
7.99- 16.19%
$5,000- $100,000
660
Visit Lenderon LightStream's website
on LightStream's website
Consumers Credit Union
Visit Lenderon Consumers Credit Union's website
on Consumers Credit Union's website
6.79- 17.54%
$0- $100,000
600
Visit Lenderon Consumers Credit Union's website
on Consumers Credit Union's website
View more

Used auto purchase loan review

BankofAmerica
Bank of America - Used car purchase loan

Not yet rated
Loan amount
$7,500 - Max. not disclosed
Min. credit score
Did not disclose

Pros

  • Offers options to apply online, by phone, in a financial center or at certain dealerships.

  • The application process can be 100% online with information provided to a dealership or online retailer.

  • Customers with qualifying account relationships may be eligible for a rate discount.

  • Usually provides a loan decision within 60 seconds of application submission.

  • Offers pre-qualification with a soft credit check for customers with an online banking login.

Cons

  • Borrowers must have a Bank of America online banking login to take advantage of pre-qualification.

  • Won't finance vehicles purchased at independent dealers not affiliated with auto manufacturers.

  • Rate discount available only with deposit balances of $20,000-plus.

  • Applications made at a dealership don’t qualify for a rate discount.

Best for applicants who want a streamlined process of applying online and purchasing a used car at a Bank of America-authorized dealership, CarMax, Carvana or Enterprise Car Sales.

Auto loan refinancing review

BankofAmerica
Bank of America - Refinance loan

Not yet rated
Loan amount
$7,500 - Max. not disclosed
Min. credit score
Did not disclose

Pros

  • Will refinance as soon as title can be transferred.

  • Will refinance an existing Bank of America auto loan.

  • Offers options to apply online, by phone or in a financial center.

  • Offers rate discount for customers with qualifying account relationship.

  • Usually provides a loan decision within 60 seconds of application submission.

Cons

  • Pre-qualification with a soft credit check not available for auto refinance loans.

  • Rate discount available only with deposit balances of $20,000-plus.

Best for applicants who can take advantage of the Bank of America Preferred Rewards rate discount when refinancing.

Full Review of Bank of America

Bank of America offers new and used car dealer purchase loans and refinance loans. Borrowers can apply on the bank’s website, by phone, at any Bank of America location or at dealerships across the U.S.

The bank has several offerings that could benefit borrowers, but it’s important to read disclosures closely since there are many stipulations and exclusions. For example, through a Preferred Rewards program, Bank of America customers may be eligible for an auto loan rate discount of 0.25-0.50 percentage points. To qualify, borrowers must have a Bank of America checking account and at least a three-month combined average daily balance in certain Bank of America deposit accounts and/or Merrill investment accounts. The Preferred Rewards rate discount isn’t available for loan applications made at a dealership.

As another example, Bank of America recently introduced the option to pre-qualify with a soft credit check — enabling borrowers to see estimated rates and payments without affecting their credit scores. However, pre-qualification is limited to customers who have a Bank of America online banking login and it isn’t available for auto loan refinancing.

Bank of America also offers lease buyout loans, but we were unable to obtain enough information to include it in this review.

Table of contents

Bank of America auto loans at a glance

Minimum credit score

Did not disclose.

Minimum credit history

Did not disclose.

Minimum annual gross income

Did not disclose.

Maximum debt-to-income ratio

Did not disclose.

Maximum loan-to-value ratio

Did not disclose.

Loan terms

Online application allows selection of 48, 60 or 72 months and says to discuss other terms with a loan officer after an application is submitted.

Co-applicants allowed?

Allows co-borrowers but not co-signers.

Pre-qualification or preapproval offered?

Offers pre-qualification but only for new and used vehicles purchased at dealerships. Available only to Bank of America customers with an online banking log in. Preapproval with a hard credit inquiry is also offered.

Origination/processing fee?

None.

Rate discount offered?

0.25-0.50% APR discount based on borrowers having a Bank of America checking account and qualifying deposit balances. Not available when applying at a dealership. No discount for automatic payments.

States covered

All 50 states.

    • New vehicle definition: Never been titled. Prior year untitled vehicles are considered used as of June 1 of the current year.

    • Maximum vehicle age: 10 years.

    • Maximum vehicle mileage: For new cars up to 6,000 miles; for used up to 125,000 miles.

    • Other vehicle restrictions: No vehicles valued at less than $6,000. New and used vehicles must be purchased at franchised dealerships that sell vehicles for auto manufacturers such as Ford, General Motors, Chrysler, Honda and others. Used vehicles can also be purchased through CarMax, Enterprise Car Sales or Carvana.

    • Loan amount minimum: $7,500 ($8,000 in Minnesota).

    • Loan amount maximum: Did not disclose.

    • Maximum loan-to-value ratio: Did not disclose.

    • Refinance time restrictions: Will refinance as soon as the previous loan's paperwork is complete and the title can be transferred (no set waiting period).

    • Bankruptcy restrictions: Did not disclose.

    • Approval speed: Most decisions available within 60 seconds of application submission. Approved loan offers are good for 30 days.

    • Initial deferred payment: Does not offer.

    • Selected payment due date: Yes, after loan closing by contacting client care. New date can be up to 15 days in the future. Due date can be changed only once in the life of the loan/contract.

    • Maximum debt-to-income ratio: Did not disclose.

    • Late payment grace period and fee: Did not disclose.

    • Hardship plans: Did not disclose.

    • Contact options: New customers call 844-892-6002. Existing customers call 800-215-6195. New and current customers can also call or visit a financial center. Existing customers with online banking can send a secure email. Spanish-speaking agents available by phone and in banking centers.

    • Availability: Mon–Fri 8 a.m.-8 p.m. ET.

    • Mobile app to manage account: Yes.

    • Online resources: Has detailed auto FAQs, calculators, articles and videos on the Bank of America website. Also has a Spanish website version.

    • Related services: Offers an online car buying service through a network of participating dealers, although it isn’t available in all states. Car buyers can select a car, apply for financing online and finish paperwork at the dealership.

» Curious about other options? Compare auto loan rates from other lenders

Bank of America may be a good fit for those who:

  • Want to save time at a dealership. Car buyers can find an authorized dealership on the Bank of America website and in some cases shop for vehicles online. They can also apply for financing through the bank’s website, resulting in less paperwork at the dealership.

  • Carry higher deposit balances. Borrowers with at least $20,000 in combined, eligible Bank of America deposit accounts may qualify for an auto loan rate discount.

  • Want the convenience of loans and other accounts at one bank. Having a Bank of America checking account is one requirement for the Preferred Rewards auto loan rate discount. Customers with a Bank of America checking account and auto loan can make loan payments and manage their loan through online banking and a mobile app.

Do you qualify for a Bank of America auto loan?

Basic eligibility requirements to apply for a Bank of America auto loan include the following:

  • Must be at least 18 years old.

  • Must be a U.S. citizen or permanent resident.

Bank of America did not disclose minimum and maximum borrower requirements to qualify for an auto loan, such as minimum credit score, minimum credit history or maximum debt-to-income ratio.

Before you apply

Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.

Figure what monthly payment you can afford. For purchase loans, use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price.

For auto refinance loans, use an auto refinance calculator to see your monthly payment and determine what APR and term you need to make refinancing worthwhile.

Gather your information and documents. Bank of America requires the following to submit an initial loan application: name, address, Social Security number, employment information, income, U.S. citizenship status and email address. Refinance loans also require specific vehicle information such as make, model, year, mileage and vehicle identification number (VIN).

How to apply for a Bank of America auto loan

  1. For purchase loans, find an approved dealership. Since Bank of America financing is limited to new and used vehicles purchased through franchised dealerships — and online retailers CarMax, Carvana and Enterprise Car Sales — it’s a good idea to make sure these sources have a car you want. Bank of America no longer offers private party auto loans. The bank’s website has a locator to help you find dealerships within its authorized dealer program which will streamline the application process. However, you can also finance vehicles bought at dealerships outside of the authorized network, as long as the dealer sells cars for certain manufacturers like Ford, General Motors, Chrysler, Honda and others.

  2. Submit your auto loan application. You can apply on the bank’s website, by phone at 844-892-6002 or at a Bank of America location. For purchase loans, you can also apply at the dealership. Bank of America customers with online banking can log in to take advantage of pre-qualification with a soft credit check, but moving forward with an actual application will result in a hard credit inquiry.

  3. If approved, follow the directions provided. After you’re approved for a Bank of America auto loan, your next steps vary depending on whether your loan is to refinance or purchase a car — and where you made the purchase. The bank will provide next-step information or you can check the bank’s website FAQs under the “What to do once you’re approved” topic.

  4. Stay on top of your loan payments. Bank of America reports car payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments is a good way to make sure your payments arrive by the due date.

How auto loan rates work and how we collect them

The auto loan APR range NerdWallet displays is provided by the lender. We make every attempt to keep rates updated, by sending out bimonthly rate surveys and encouraging lenders to send us updates when rates change. We also compare these rates to APRs on the lender's website, if available. The accuracy of our rates depends on the information lenders provide to us. It’s always a good idea to check average auto loan interest rates, and compare to similar lenders, to determine if a lender’s provided rate seems realistic.

We ask lenders to provide their lowest rate that at least 10% of applicants applying for the lowest rate have qualified for in the previous three months, without including any potential rate discounts. The lowest rates shown are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above).

We also ask lenders for their highest rates, which typically reflect rates available to borrowers with fair or bad credit (a FICO score in the mid-600s or below). The highest interest rates result in higher monthly payments and more total interest paid.

Actual rates received by this lender's auto loan borrowers may be different from the rates shown in this review.

How do we review direct lenders for auto loans?

NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.

To receive a star rating, a lender must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).

For more details about the categories considered when rating direct lenders and our process, read our full methodology.

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Frequently asked questions

  • Bank of America does provide some current auto loan rates on its website for new and used cars purchased at a dealership, auto refinancing loans and lease buyout loans. The rates displayed are for a 60-month term and are “as low as” rates available only for applicants with excellent credit. Borrowers with fair or bad credit will not qualify for the lowest rates shown. Applicants will see their actual rate quote upon loan approval, and this requires a hard credit inquiry which can slightly and temporarily lower your credit score.

  • Bank of America does offer auto loan refinancing and is one of the few lenders that allows current customers to refinance an auto loan already at Bank of America. Lease buyout loans are also offered at Bank of America.

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