This big-name bank can take the complication out of finding an auto loan so you can focus on getting the car you want.
First, do I qualify?
You may qualify for a Bank of America loan as long as you are at least 18 years old and a citizen or permanent resident of the US. However, not every car is eligible for an auto loan.
Bank of America will not finance vehicles that are:
- Older than 10 years
- Have more than 125,000
- Valued at less than $6,000
- Used for commercial or business purposes.
- Salvaged, rebuilt or have branded titles.
- Motorcycles, recreational vehicles, boats or aircraft
What makes an auto loan from Bank of America unique?
Bank of America has a simple three-step process that can put your loan funds into your account in a matter of days.
- Apply online. Fill out Bank of America’s online application and see how much you can borrow, typically within a few minutes.
- Shop around. Once your rate is approved, it’s locked in for 30 days, giving you time to shop for the perfect car you know you can afford.
- Seal the deal. Once you’ve settled on a car, use your financing to buy your car and start making payments.
What types of car loans does Bank of America offer?
Bank of America has auto loans for both new and used cars as well as lease buyouts and loan refinancing. You can borrow anywhere from $5,000* to $100,000, and for borrowers with good to excellent credit, you may see your APR as low as 3.39%.
- New car from a dealer. Starting at 3.39% APR
- Used car from a dealer. Starting at 3.49% APR
- Used car from an individual. Starting at 5.24% APR
- Refinancing. Starting at 3.69% APR
- Lease buyout. Starting at 3.69% APR
There is also no origination fee for a 12- to 60-month repayment plan, giving you more value for your money.
*Minimum loan amount of $7,500 in Minnesota and South Carolina.
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What are the benefits of a Bank of America auto loan?
- Low APR. Though interest rates depend on your creditworthiness and the specifics of your loan, BofA generally offers quite competitive rates when compared to other lenders.
- Quick approval. Applying for your loan online can be quick, with approval in as little as 60 seconds.
- Member discounts. You could be eligible for a 15% discount if you have or open a Bank of America checking account.
- Authorized dealer network. Bank of America’s authorized dealer network can further streamline your car-buying process. Once approved, you can take your approval letter to any one of BofA’s network dealerships to negotiate the price of a car.
What to watch out for
Bank of America offers affordable loans and a network or dealers to help you get a loan you can afford, but consider its drawbacks before applying.
- No financing for independent dealers. With only a few exceptions, dealers that aren’t affiliated with an auto manufacturer aren’t eligible for BofA auto financing.
- Used car restrictions. Bank of America won’t finance cars that are over 10 years old or that have more than 125,000 miles.
- Not all vehicles are eligible. You won’t be able to finance vehicles for commercial or business use, salvaged or rebuilt cars, conversion or delivery vehicles, motorcycles or RVs.
How do I apply?
To apply for a Bank of America auto loan, you must be at least 18 years old (or 19 in Alabama or Nebraska) and live in the US as a US citizen, resident or nonresident alien.
You and the seller will need to meet a few other conditions:
- Purchases from independent dealers are not eligible for financing.
- The seller must be the same as the registered owner listed on the vehicle title.
- The vehicle must be purchased directly from the seller or current owner.
Start your application by visiting the BofA website and navigate to the auto loans page. From here, follow these quick steps to finish the preapproval process.
- Select Apply Now to be taken to the application.
- Select your loan type and provide extra details BofA requests.
- Enter the loan amount and select the loan term you would like.
- Supply your personal, financial and contact information.
- Read the Terms and Conditions before agreeing.
- Review your application details and submit.
Bank of America will review your application and give you an approval decision. From here, you can get started finalizing your application and searching for your next car.
Your loan approval and interest rate are locked in for 30 days from the date you submit your original loan. To access your loan application, log in to your online account. You can access your saved application for 30 days.
More about Bank of America loans
What documents do I need to apply?
When you’re ready to apply, go to Bank of America’s site with the following information:
- Your full name and contact information
- Social Security number and date of birth
- Employment information and proof of income
- Your federal tax returns, W-2s and other financial statements
- Your citizenship status
- Purchase agreement or bill of sale (optional)
- Registration and title (optional).
- Lease buyout instructions, if applicable.
I got the Bank of America auto loan. Now what?
Now that you have your auto loan, it’s time to start making regular payments. Bank of America allows you to pay your monthly bill a few different ways:
- Bill pay. If you use Bank of America’s online banking, you can schedule recurring or one-time bill payments from your checking or money market accounts.
- By phone. Call Bank of America’s payment line to pay by phone 24/7.
- By mail. Mail your auto loan payment and loan account number to Bank of America, N.A., P.O. Box 15220, Wilmington, DE 19886-5220.
- In person. Pay your auto loan in person at any Bank of America branch.
If you don’t have a Bank of America deposit account, you can set up electronic payments from your account at another financial institution.
While Bank of America charges no origination or other loan fees, late or missed payments can result in extra costs to your loan. Check your loan contract to see what type of fees you might have to pay for late or returned check fees.
Bottom line
Buying a car or any big purchase can be overwhelming. If you’re looking to buy a new or used car and want a loan from a trusted bank, Bank of America offers simple auto loans with fast turnaround. And if you’re still unsure of where to turn, you can compare your car loan options before making a final decision.
Will I get penalized if I refinance before the first payment on an auto loan?
Hi Janet,
Thank you for your comment.
There’s no need to wait any minimum amount of time before refinancing your car loan as long as meet all the requirements for the new loan in order to refinance. You can refinance immediately after buying or even before you make your first monthly payment. Just be sure that you end up with a better deal and that refinancing doesn’t cause you to pay more for your vehicle.
If you’re planning to refinance from the Bank of America lender, you must discuss with them your options. These are the general requirements needed to refinance:
To refinance an existing loan, you need the following :
– A new loan with better terms or pricing than your existing auto loan
– Details about your current loan, including the current lender, your account number, and your loan balance
– Information about your vehicle, including the make, model, year, and VIN
– Documentation of your ability to repay, such as pay stubs or tax returns
I hope this helps.
Regards,
Jhezelyn