Bank of America auto loans are similar to those of other major banks. They offer financing through a network of partner dealerships for both new and used car purchases.
This guide explains the essential details of Bank of America auto loans, including the available loan types, interest rates, and eligibility criteria.
Knowing what to expect during the application process helps ensure a smoother experience. This breakdown gives you the key information needed to make a confident decision.
Bank of America Company Overview
Bank of America, the second-largest bank in the U.S., has a rich history dating back to 1904 when it was initially founded as the Bank of Italy in San Francisco.
It became Bank of America in 1930 and is now headquartered in Charlotte, N.C. The bank offers a wide range of financial services, including for individuals, small businesses, and corporations.
In auto loans, Bank of America sits in the middle of the pack, receiving an average customer satisfaction rating for both luxury and mass-market auto financing in a 2023 J.D. Power study.
Types of Auto Loans with Bank of America
Bank of America provides several auto loan options: new car loans, used car loans, refinancing, and lease buyouts.
1. New Car Loans
Bank of America offers new car loans to help finance brand-new vehicles, often with more favorable rates than used car loans.
2. Financing New Cars
A new car loan covers the full cost of the vehicle minus any down payment.
Loan terms range from 36 to 72 months, depending on the amount financed and the borrower’s preferences. Rates are determined by credit score and loan duration.
For lease buyouts, Bank of America also provides competitive rates, making it an option worth considering for those purchasing their leased vehicle.
Benefits of Financing Through Bank of America
Bank of America offers several advantages for auto loan financing:
- Competitive interest rates for qualified borrowers.
- Flexible loan terms to suit various budgets.
- Pre-approval to assist in dealership negotiations.
- Easy loan management through the Bank of America app and website.
3. Used Car Loans
Bank of America offers used car loans to finance pre-owned vehicles. These loans are similar to new car loans, but terms may differ. Used car loans cover the vehicle’s price after any down payment, with monthly payments to repay the loan.
Interest rates tend to be higher for used cars due to their lower value and the vehicle’s age and condition. Loan amounts are typically smaller as used cars cost less.
4. Auto Refinance Loans
Bank of America also offers auto refinance loans, which replace your current auto loan. Refinancing allows you to pay off your existing loan with a new one, often at a lower rate or with better terms.
This can reduce your monthly payments or shorten the loan term. Refinancing is a smart move if your credit score has improved or if current rates are more favorable.
5. Lease Buyout Loans
If you’re leasing a car and want to keep it, Bank of America’s lease buyout loans can help.
This loan covers the remaining value of the car, allowing you to purchase it once your lease ends. Monthly payments are required to pay off the loan, making it easy to own the vehicle you’ve been leasing.
Bank of America Auto Loan Requirements
To apply for a BofA car loan, certain requirements must be met:
- Age: 18 years or older
- State of Residency: Available in all 50 states and Washington, D.C.
- Citizenship Status: U.S. citizen, permanent resident, or non-permanent resident
Bank of America auto loan can only be used for vehicles purchased through a partner dealership, and specific vehicle criteria apply:
- Mileage: Under 125,000 miles
- Age: Vehicles 10 years old or less
- Value: Must be worth over $6,000
- Title: No salvaged or branded titles
- Use: For personal use only (not for business)
- Type: Excludes commercial or heavy-duty vehicles (e.g., 450-series trucks)
Bank of America also does not finance airplanes, boats, or motorcycles but does finance RVs purchased from partner RV dealerships.
How to Get an Auto Loan With Bank of America
To apply for a Bank of America auto loan, you have several options. The fastest method is to apply online, which takes just a few minutes, and you’ll receive a decision within 60 seconds.
Alternatively, you can apply by phone or visit a local Bank of America branch. Bank of America also offers prequalification, allowing you to check your chances of approval and loan options before completing a full application.
Here’s what you’ll need to provide on your application:
- Name
- Email address
- Mailing address
- Citizenship status
- Social Security number
- Employment details
You may also need to submit additional documents, such as:
- Proof of sale (purchase agreement)
- Vehicle details (VIN, make, model, year, mileage, registration, title, or lease contract)
- Proof of income (W-2s, pay stubs, or tax returns)
If approved, you’ll receive an approval letter that you can take to an authorized dealership. The letter can be printed and used to complete the purchase once you’ve selected your vehicle and negotiated the price.
Bank of America car loan Rates and Fees
Bank of America Auto loan rates are based on factors like credit score and loan term. For example:
- A 5-year loan for a new car ($49,000) results in monthly payments of $938 with an APR of 5.59%.
- A 5-year loan for a used car ($32,000) comes with monthly payments of $618 and an APR of 5.89%.
- Lease buyout loans are higher, with a 5-year loan for $26,000 resulting in monthly payments of $515 and an APR of 6.99%.
Rates can vary depending on credit history. Generally, shorter loan terms offer lower interest costs but higher monthly payments. Always check loan terms before committing.
Loan Terms and Conditions
Bank of America auto loans typically range from 36 to 72 months. Shorter terms mean higher monthly payments but lower overall interest.
Longer terms reduce monthly payments but increase the total interest paid. Be sure to check for any early payment penalties or fees before agreeing to a loan.
Pros and Cons of Bank of America Vehicle Loans
Here are some pros and cons to help evaluate if a Bank of America auto loan is the right choice. Reviewing these points provides a clearer understanding of what to expect.
Pros:
- Competitive interest rates for borrowers with good credit.
- Flexible loan options for new, used, and lease buyout vehicles.
- Convenient online management via the Bank of America mobile app.
- Pre-approval simplifies dealership negotiations.
Cons:
- Higher rates for borrowers with poor credit.
- A high credit score is often needed for the best terms.
- Limited options for loan terms and repayment flexibility.
- Additional fees for late payments or changes.
Is a BOFA auto loan Right for You?
Choosing the right auto loan requires considering a few key factors:
- Interest rates: Compare Bank of America’s rates to those of other lenders to ensure you get a competitive deal.
- Loan terms: Select terms that fit your budget and financial goals.
- Credit score: Check if your credit score qualifies for the best rates.
- Monthly payments: Confirm that the monthly payments are affordable based on your income.
Final Thoughts: Bank of America Auto Loans
Bank of America auto loans provide flexible options for new, used, and lease buyouts. With competitive rates and various loan terms, these loans are designed to suit different needs.
To make the best decision, understand the interest rates and fees. Utilize the available tools to manage your loan effectively.
Note: Interest rates and loan terms may change. Always review the latest information and consult a loan advisor before deciding.