While Bank of America may have a history dating back to 1904, its auto loan application experience is refreshingly modern. With the ability to apply for an auto loan online and even receive approval in just 60 seconds, a loan through Bank of America is an appealing option. If you’re going to shop for a new car or want to refinance an existing auto loan, this company has options to help.
There are a few major advantages to a Bank of America loan, including the ability to repay the loan early without facing any penalties. The company offers loans for both new and used vehicles, as well as refinancing and lease buyouts. The advertised annual percentage rates (APRs) are competitive, too.
Whether you’re just getting started with the process of buying a vehicle or are looking to shop around for the best loan rates, a Bank of America auto loan is worth consideration.
Car Loan Application Requirements
If you’re ready to apply for an auto loan, you’ll need some standard information about your finances:
- Personal information like your home address, date of birth, citizenship, and Social Security number
- Income information and information about your housing situation
- Your desired loan amount and information on the car that you’re buying, if you’ve already found a car
Loan applicants must be at least 18 years old and U.S. citizens, resident aliens, or non-resident aliens.
This loan approval includes a 30-day rate lock, so you have plenty of time to shop and find the vehicle that’s right for you. If you’re trying to decide the total loan that you can afford, or what monthly payments work for you, Bank of America’s auto loan calculator can help. You can see how different loan amounts affect your monthly payments, based on the interest rate that you’re pre-approved to receive. And if you want to refinance a loan, the auto loan refinance calculator can help you to determine your potential savings.
Types of Auto Loans Available Through Bank of America
Bank of America offers a wide variety of auto loan and refinancing options:
- Dealer purchase loans for new or used cars
- Refinancing for current auto loans
- Lease buyouts
- Private party loans for when you buy a vehicle from an individual
- Access loans specifically for new or used accessible cars, vans, or light-duty trucks
- Business auto loans for cars, vans, and light trucks for small business use
These loans are available in all 50 states, and loans start at $7,500, or $8,000 in Minnesota. Bank of America will not offer loans for vehicles that are more than 10 years old or that have 125,000 or miles on them. Vehicles must be worth at least $6,000 and cannot be used for commercial purposes. Loans are not currently available for motorcycles or RVs.
If you’re buying a car from a dealer, Bank of America loans are only for franchise dealerships, rather than independent dealers. BofA does provide loans for approved independent dealers including online dealership, Carvana, as well as Enterprise Car Sales, Hertz Car Sales, and CarMax.
Loan terms range between 12 and 60 months.
Fees and Rates
Multiple factors will affect your interest rate, including your credit score and income. As of the writing of this article, Bank of America offers the following starting interest rates on its auto loans:
- New car dealer loan: 2.69% APR
- Used car dealer loan: 2.99% APR
- Auto loan refinancing: 3.69% APR
Bank of America Preferred Rewards members can get interest rate discounts on their auto loans:
- Gold: 0.25% discount
- Platinum: 0.35% discount
- Platinum Honors: 0.50% discount
Joining the Preferred Rewards program is free. You’ll need:
- A Bank of America personal checking account that’s eligible for the program
- Combined balances from three months that average $20,000 or more (These need to be in Bank of America banking accounts and Merrill investment accounts)
There are no application or origination fees for these loans.
Bank of America Loan Application Process
You can apply for a Bank of America auto loan online. The process takes just a few minutes and, in most cases, you’ll receive an approval within just 60 seconds. If your application needs any additional review, you’ll receive an email as soon as it’s approved. This approval will include your monthly payment, so you can shop for a vehicle that fits your budget.
If you know that you’ll be buying a vehicle from a dealership, consider shopping at a Bank of America authorized dealer. Your loan approval will include an approval code. Any authorized dealer will be able to use this code to quickly retrieve your loan details for a streamlined buying experience.
Bank of America doesn’t offer a loan pre-approval process, so when you apply for a loan, the bank will perform a hard inquiry into your credit. This may also mean that your credit score could lose a few points because of that inquiry.
One of the best features of Bank of America auto loans is that if you pay your loan off early, you won’t pay a prepayment penalty. With this option, if you find ways to pay more than your monthly minimum payments, you could pay your loan off early and save on interest payments. Other lenders might penalize you for early repayment, but with Bank of America, you’ll just save money without any extra fees.
With the option to repay your loan early without any penalty, you can agree to a loan term with monthly payments that you can comfortably afford. Then, focus on putting extra money toward your payments when you’re able. Paying your loan off a few months or even a year early can mean significant savings and is a nice perk to Bank of America auto loans.
Bank of America loans offer many benefits, including no early repayment fees and the ability to get approved in just 60 seconds. A Bank of America auto loan may be best for you if:
- You’re ready to buy a car and don’t mind a hard inquiry into your credit
- You’ll be buying a vehicle from a franchise dealership
- You might be able to pay off your loan early
- You’re a Bank of America Preferred Rewards member
While BofA offers competitive interest rates, your interest rate will vary depending on your income, your credit rating, and other factors. Loans through large banks like Bank of America typically have lower interest rates than the loans you’ll get directly through a dealership. To get the best loan with the best interest rate, you’ll want to research several different loan companies and apply for pre-approval or approval.
Check out our other auto loan reviews below to continue exploring your options.