Bank of America Auto Purchase, Refinance and Lease Buyout Loans: 2022 Review

Bank of America customers may qualify for auto loan purchase and refinance rate reductions through the Preferred Rewards program.
Mar 16, 2022

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Auto loan reviews

BankofAmerica
  • New auto purchase loan

  • Used auto purchase loan

  • Auto loan refinancing

  • Auto lease buyout loan

The bottom line:

Best for borrowers who prefer working with a large, well-established bank that offers a rate discount based on high balances.

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

  • Apply online, by phone, in a financial center or at an authorized dealership.

  • Offers rate discount for customers with qualifying account relationship.

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

  • Customer service available on Saturday.

  • Provides Spanish version of website.

Cons

  • Social Security number required to submit initial application.

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

Best for applicants who qualify for a Bank of America Preferred Rewards rate discount or want the convenience of purchasing and financing a new car at a Bank of America-authorized dealer.

Full Review

Bank of America offers new and used car dealer purchase loans, refinance loans and lease buyout loans. It also offers private-party purchase loans, which typically have a higher interest rate than dealer purchase loans. The Bank of America website provides current rates for each type of auto loan it offers, but the rates displayed are “as low as” rates available only for applicants with excellent credit. Applicants will see their actual rate quote upon loan approval.

Through a Preferred Rewards program, Bank of America customers who have a Bank of America checking account and combined, qualifying deposit balances can lower their interest rate on new loans for auto purchase and refinance. The rate reduction amount depends on which of three Preferred Rewards tiers a customer falls into. To meet tier requirements, a customer must have a three-month combined average daily balance as listed below in qualifying Bank of America deposit accounts and/or Merrill investment accounts.

  • Gold tier requirement of $20,000 = 0.25 percentage point reduction.

  • Platinum tier requirement of $50,000 = 0.35 percentage point reduction.

  • Platinum honors tier requirement of $100,000 = 0.50 percentage point reduction.

Applicants should be aware that the interest rate discount is not reflected in the rates Bank of America publishes on its website. Also, the Preferred Rewards rate discount is not available if a borrower applies at a dealership.

Bank of America provides a number of ways to apply for an auto loan. In addition to using the online application, borrowers can apply at more than 4,000 financial centers and thousands of dealerships across the U.S. An authorized dealer locator is available on the Bank of America website. When applying at a Bank of America authorized dealer, car buyers finalize loan paperwork and their title transfer at the dealership.

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

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

  • Want to apply at a dealership: Bank of America works with dealerships across the U.S., so borrowers can finalize all loan paperwork and the title transfer at an authorized dealer. Note that the Preferred Rewards rate discount is not available when applying at the dealership.

  • Want the convenience of loans and 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 easily make loan payments and manage their loan through online banking and a mobile app.

Bank of America at a Glance

Application process
  • Origination fee: None.

  • Personal information needed: Name, address, Social Security number, employment information, income, U.S. citizenship status and email address. Depending on the specifics of the loan, additional documents and information may be required prior to loan closing. Refinance loans and lease buyouts require specific vehicle information such as make, model, year, mileage and VIN.

  • Pre-qualification available: No. Rate quoted upon loan approval valid for 30 days from the date of original application submission.

  • Online, in-person or both: Apply online, schedule an appointment at a financial center or call 844-892-6002.

  • Approval speed: Most decisions available within 60 seconds of application submission.

  • Funding: Amount of time to fund a loan varies.

Qualifications
  • Minimum FICO 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.

  • Bankruptcy-related restrictions: Did not disclose.

  • States covered: All 50 states.

Restrictions
  • Maximum vehicle age: 10 years.

  • Maximum vehicle mileage: 125,000 miles.

  • Other vehicle restrictions: No commercial vehicles or vehicles valued at less than $6,000. If purchasing at a dealership, must be a franchised dealer. Bank of America does not finance vehicles purchased from independent dealers other than CarMax, Enterprise Car Sales and Carvana.

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

  • Loan amount maximum: Did not disclose.

  • Time restrictions: Can refinance any time after vehicle registration.

Other loan details
  • Loan terms: 12-72 months. Online application only allows selection of 48, 60 or 72 months.

  • Automatic payment: Available but not required.

  • Rate discount: Bank of America customers may be eligible for a Preferred Rewards discount of 0.25 to 0.50 percentage points.

  • Greater-than-minimum payments: Accepted and can be made by automatic payment and online banking. Customers can request that surplus be applied directly to principal. Otherwise, surplus goes to interest then principal.

  • Bi-weekly payments: Accepted but only through autopay setup in online banking.

  • Late payment fee: Did not disclose.

  • Prepayment penalty: None.

  • Co-borrowers allowed: Yes.

  • Co-signers allowed: No.

  • Payment options: Mailed-in check, phone, online banking, mobile app, ACH, in person.

  • Selected payment date: Yes, after loan closing by contacting client care.

  • Cash-out refinancing: Not offered.

  • Hardship plans: Did not disclose.

Customer service
  • Assistance provided: Borrower works with a loan specialist whose phone number is provided on loan approval.

  • Availability: New customers call 844-892-6002 - Mon–Fri 8 a.m.-midnight, Sat 8 a.m.-8 p.m. ET. Existing customers call 800-215-6195 - Mon–Fri 9 a.m.-8 p.m., Sat 9:30 a.m.-6 p.m. ET.

  • Contact options: Call or visit a financial center. Customers can also send secure email through online banking.

How does this loan compare?

Consumers Credit Union
Upstart
LightStream
Est. APR

1.99-17.54%

Est. APR

2.25-29.99%

Est. APR

5.49-10.99%

Loan amount

$7,500-No max.

Loan amount

$9,000-$60,000

Loan amount

$5,000-$100,000

Min. credit score

620

Min. credit score

510

Min. credit score

660

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

  • Apply online, by phone, in a financial center or at an authorized dealership.

  • Offers rate discount for customers with qualifying account relationship.

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

  • Finances vehicles purchased from private parties.

  • Provides Spanish version of website.

Cons

  • Minimum loan amount is higher than other lenders.

  • Social Security number is required to submit initial application.

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

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

Best for applicants who qualify for a Bank of America Preferred Rewards rate discount or want the convenience of purchasing and financing a used car at a Bank of America-authorized dealer.

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

  • Apply online, by phone or in a financial center.

  • Offers rate discount for customers with qualifying account relationship.

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

  • Will refinance existing Bank of America auto loans.

  • Provides Spanish version of website.

Cons

  • Social Security number required to submit initial application.

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

  • Minimum loan amount is higher than other lenders.

Best for applicants wanting to refinance their auto loan and who qualify for a Bank of America Preferred Rewards rate discount.

Auto lease buyout loan review

BankofAmerica
Bank of America - Lease buyout loan

Not yet rated

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

Pros

  • Apply online, by phone or in a financial center.

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

  • Customer service available on Saturday.

  • Provides Spanish version of website.

Cons

  • Social Security number required to submit initial application.

  • Minimum loan amount is higher than other lenders.

Best for applicants wanting to quickly determine if they qualify for a lease buyout loan and at what rate.

More from Bank of America

Bank of America offers an online car buying service through their network of participating dealers. Car buyers can choose their car and financing online, and then visit the dealership to finalize their loan paperwork. This service is not available in all states.

Bank of America auto loan rates

Lenders set their own requirements, but Bank of America’s lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above). Borrowers with bad or fair credit won’t qualify for the lowest interest rates.

You can check your credit score before applying for a car loan.

Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 661-780, a $20,000 car loan, repayment term of 48 months, interest rate of 4.5% and $0 down payment would have monthly payments of $457.

To review Bank of America, NerdWallet sent a survey requesting more than 60 data points and followed up with company representatives. This information was compared with other lenders that seek the same customer or offer a similar product.