Bank of America Auto Purchase and Refinance Loans: 2024 Review

Full Review of Bank of America

Bank of America offers new and used car dealer purchase loans and auto refinance loans. You can apply for Bank of America auto loans on the bank’s website, by phone, at any branch 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 auto loan rates and payments without affecting their credit scores. However, pre-qualification is limited to Bank of America customers who have an online banking login and it isn’t available for Bank of America auto refinance loans.

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 at a glance

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

Do you qualify for a Bank of America auto loan?

How to apply for a Bank of America auto loan

How auto loan rates work and how we collect them

How do we review auto loan direct lenders?

Bank of America auto loans at a glance

• Restrictions

  • 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.

• Other loan details

  • 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.

• More lender details

  • 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).

» MORE: Compare auto loan refinancing lenders

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).