Pros Explained

• Good rates: Bank of America's advertised interest rates are better than the national average, particularly for purchases from franchise and independent dealerships. However, remember the lowest rates are typically reserved for those with the best credit, and there is no pre-qualification tool to check whether you might qualify. 
• Discounts for existing Bank of America customers: Existing Bank of America customers in the Preferred Rewards program can qualify for an auto loan interest rate discount. Rate discounts vary by your Preferred Rewards tier, ranging from 0.25% to 0.50%. 
• Provides financing for electric vehicles and residential chargers: Bank of America allows you to finance your new electric car purchase and potentially your residential electric vehicle charger in one loan—if you use a Bank of America network dealer.
• Wide range of finance options: Not all lenders offer private party financing, refinancing, or lease buyouts, which allow you to buy the vehicle you’re currently leasing. Bank of America does offer these options. 

Cons Explained

• Private party loan challenges: You must apply at a BofA financial center for a private party vehicle purchase unless you’re a Bank of America online banking customer. In addition, private-party loans have higher interest rates.
• High loan/vehicle value minimum: If you’re not looking to borrow much, be aware that the minimum loan amount for new and used car loans is $7,500 ($8,000 in Minnesota). This amount is higher than the minimums offered by other banks we surveyed. 
• Vehicle purchase limitations: Autos can’t be more than 10 years old or have more than 125,000 miles, and must be worth at least $6,000 as established by a franchise dealer invoice or a J.D. Power car-buying guide. Bank of America doesn’t finance commercial or business vehicles, motorcycles, or recreational vehicles (although it does work with a network of partner RV dealerships to help you get financing).

Types of Auto Loans Offered by Bank of America

Bank of America offers auto loans for new and used cars, and it also allows borrowers to refinance existing car loans.

Take note that the minimum rates below include the 0.50% APR discount mentioned above.

New Auto Loans

• APR: As low as 6.49%
• Loan amounts: $7,500 and up ($8,000 in Minnesota)
• Loan terms: 48, 60, or 72 months; other terms available via customer support

Used Auto Loans

• APR: As low as 6.89%
• Loan amounts: $7,500 and up ($8,000 in Minnesota)
• Loan terms: 48, 60, or 72 months; other terms available via customer support

Bank of America considers a car “used” if it has 6,000 miles or more on the odometer, was never titled or registered with the DMV, or is a prior-year untitled vehicle as of June 1 of the current year.

Refinance Auto Loans

• APR: As low as 7.59%
• Loan amounts: $7,500–$100,000
• Loan terms: 48, 60, or 72 months; other terms available via customer support

Whether your car loan is through Bank of America or another lender, you can refinance your auto loan with Bank of America. You could qualify for a lower rate and pay less overall, or extend your loan term to reduce your monthly payment. 

Time to Receive Funds

You can receive a decision about your application within 60 seconds of submitting the application online. Bank of America doesn’t disclose how soon you may receive the funds after being approved and signing the loan agreement.

Borrower Requirements

• Minimum recommended credit score: Bank of America doesn’t disclose its minimum recommended credit score.
• State availability: Bank of America's auto loans are available in all 50 states and the District of Columbia. 
• Membership requirements: Anyone can apply for a Bank of America auto loan, but only existing Bank of America customers can qualify for the Preferred Rewards interest rate discount, which ranges from 0.25% to 0.50%.

Vehicle Requirements

• Maximum accepted mileage: 125,000
• Maximum loan-to-value ratio: Not disclosed
• Maximum vehicle age: 10 years old
• Vehicle restrictions: Cars must be worth at least $6,000 as established by a franchise dealer invoice or a J.D. Power car-buying guide. Bank of America does not finance heavy-duty trucks, commercial or business vehicles, motorcycles, or recreational vehicles. 

Bank of America Auto Loan Features

• Origination fee: Usually $0 except for dealer purchase loans in Indiana ($195) and Ohio ($195)
• Prepayment fee: Bank of America does not charge prepayment penalties. 
• Discounts: Existing Bank of America customers can qualify for an interest rate discount up to 0.50% through the Preferred Rewards program. 
• Pays creditors directly for refinance loans: Yes, Bank of America will pay off your existing creditor directly.
• Can change due date: You can change your payment due date once during the life of the loan. 
• Car-buying service: You can use Bank of America's website to search for a vehicle from the bank's authorized dealers and apply for financing online.
• Partner dealerships: Bank of America partners with franchise dealers and three independent dealers: CarMax, Enterprise Car Sales, and Carvana. 
• First-time car buyer program: Bank of America does not have a first-time car buyer program. 
• Mobile app: Bank of America has a mobile app you can use to manage your bank accounts and loans in one place. 

Co-Signers and Co-Applicants

If you don't qualify for an auto loan on your own, you may be eligible–or may qualify for a better rate–by adding a co-borrower to your application. Bank of America allows joint applications and considers both borrowers’ credit scores and incomes, so you're more likely to qualify for a loan with competitive rates if you have a creditworthy co-borrower.

Take note that co-borrowers will share equal ownership of the vehicle, and will be equally responsibility for paying back the loan. This is unlike a co-signer, who doesn’t share ownership of the car and is only responsible for making payments if the primary borrower fails to pay.

Customer Service

You can contact customer support by visiting a financial center in person or by calling the appropriate auto loan customer service line.

Medium	Contact	Availability
Telephone (New Customers)	(844) 892-6002	N/A
Telephone (Existing Customers)	(800) 215-6195	Weekdays, 8 a.m. to 8 p.m. ET

Customer Satisfaction

Customer reviews of Bank of America tend to be mixed. The bank was ranked 8th out of 14 “Luxury” lenders in the 2022 J.D. Power U.S. Consumer Auto Financing Study, and it was ranked 15th out of 24 “Mass Market” lenders. 

In the Consumer Financial Protection Bureau’s consumer complaint database, 646 individuals complained about Bank of America in relation to a vehicle loan or lease, a fairly minimal number out of 4,028,530 total complaints about the bank since 2011. Top complaints concerned billing problems, credit denial, problems getting a car title, or other problems after paying off the loan. 

How to Apply for a Bank of America Auto Loan

To apply for a car loan from Bank of America, follow these steps: 

1. Collect documents: The bank will ask you for personal details, such as your address, Social Security number, employment information, and citizenship status. Depending on the type of loan you're applying for, you may need a purchase agreement or bill of sale, car registration, title, proof of income or financial statements, and the VIN, make, model, year, and mileage. 
2. Fill out the application: You can apply online for most loans. Bank of America does not have a pre-qualification tool, so the only way to check your eligibility is to submit an application and consent to a hard credit check. 
3. Shop for a car: If you're approved, take your approval letter to an authorized dealership or approved independent dealer to purchase your selected vehicle. If you're buying a car from a private party, you'll have to schedule an appointment with a loan specialist at a Bank of America financial center to complete the purchase. 
4. Complete the sale: Bank of America doesn't send car loan funds directly to you, the borrower. With an approved independent dealer, you must call the loan specialist on the approval letter, who will request additional documentation about the vehicle you're purchasing and help you coordinate dealer payment. With a private party, you’ll submit the loan documentation and receive a check made payable to the seller of the vehicle.

Alternatives to Bank of America Auto Loans

Loan Types Offered	New, used, refinance, lease buyout	New, used, refinance, cash-out refinance, lease buyout	New, used, refinance, motorcycle, RV
States Available	All states and D.C.	All states, D.C., Puerto Rico	All states and D.C.
New APR Range	As low as 6.49%*	5.39%–17.99%*	4.75% and up*
Used APR Range	As low as 6.89%*	5.24%–17.99%*	4.75% and up*
Refinance APR Range	As low as 7.59%*	5.94% and up*	1.80% and up*
Min. Time to Receive Loan	Not disclosed	5 days	Not disclosed
Recommended Min. Credit Score	Not disclosed	Not disclosed	Not disclosed
Max. Accepted Mileage	125,000 miles	125,000 miles	None
Max. Accepted Age	10 years	None	None
Max. Accepted Loan-to-Value Ratio	Not disclosed	125%	80%

Final Verdict

If you already have a bank or investment account with Bank of America, you may qualify for valuable interest rate discounts when you take out a car loan. The lender offers a wide variety of useful financing options, including private-party loans and loans for electric vehicles and home charging systems (a rare find). 

However, you can’t use Bank of America’s loans anywhere you wish, and if you’re hoping to buy an inexpensive or older car, you may need to keep looking for a lender. Without a pre-qualification tool, it may be difficult to estimate an accurate interest rate based on your credit score and history. Before picking a lender, shopping around and comparing rates from leading auto lenders that do have a pre-qualification option can be a smart idea.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of auto loan lenders. To rate providers, we collected hundreds of data points across more than 20 auto loan lenders, including interest rates, fees, loan amounts, borrower requirements, and vehicle requirements, to ensure that our reviews help users make informed decisions for their borrowing needs. We also conducted a survey of 1,016 auto loan borrowers for attitudes and opinions about lenders and the loan approval and disbursement process. See our full auto loan review methodology for more information.