Bank of America offers auto loans through its retail banking division, but you must apply in person or online, and the bank does not finance used cars older than ten years or new cars it considers high-risk.
Bank of America auto loans are available to customers who meet credit and income requirements. The bank funds new vehicles, certified pre-owned (CPO) vehicles up to ten years old, and refinancing of existing auto loans from other lenders. You cannot use a Bank of America auto loan to buy a used car that is not certified pre-owned, and you cannot finance a vehicle you already own unless you are refinancing an existing loan.
The loan process starts online or at a branch. You will need proof of income (recent pay stubs or tax returns), a valid driver's license, proof of insurance, and the vehicle identification number (VIN) of the car you want to buy. If you are refinancing, bring the loan documents from your current lender. Bank of America will pull your credit report and make a decision within one to three business days for most applicants.
Key Takeaways
- Bank of America auto loans cover new cars and certified pre-owned vehicles up to ten years old, but not used cars without CPO certification.
- You must apply online or visit a branch in person; Bank of America does not process auto loan applications by phone.
- The bank requires proof of income, a valid driver's license, proof of insurance, and the vehicle's VIN before making a lending decision.
- Loan approval typically takes one to three business days, and the interest rate you receive depends on your credit score and the vehicle's age and condition.
- Bank of America customers may receive a rate discount if they set up automatic payments from a Bank of America checking or savings account.
What vehicles Bank of America will and will not finance
Bank of America finances new vehicles from any manufacturer and certified pre-owned vehicles up to ten years old. CPO vehicles come with a manufacturer's warranty and have passed a multi-point inspection, which is why the bank treats them differently from regular used cars. The bank will not finance a used car that is not certified pre-owned, regardless of its condition or mileage.
The bank also will not finance vehicles it considers high-risk, including salvage titles, flood-damaged cars, or vehicles with branded titles (titles that indicate prior damage or structural issues). If you are unsure whether a car qualifies, ask the dealer for the vehicle history report (usually a Carfax or AutoCheck report) and contact Bank of America before you commit to buying the car.
Interest rates and how your credit score affects them
Bank of America auto loan interest rates vary based on your credit score, the loan term you choose, and whether you are buying new or certified pre-owned. The bank does not publish its rates publicly; you must apply or call to receive a rate quote. Rates change daily and depend on market conditions and the Federal Reserve's benchmark rate.
Borrowers with credit scores above 740 typically receive the lowest rates. Scores between 700 and 739 receive slightly higher rates, and scores below 700 may face rates that are 2 to 4 percentage points higher than the best-may have access to borrowers. If your credit score is below 620, Bank of America may decline your application or require a co-signer.
Bank of America offers a rate discount of 0.25 percentage points if you enroll in automatic payments from a Bank of America deposit account. This discount applies whether you are a new customer or an existing account holder.
How to apply for a Bank of America auto loan
Start by visiting the Bank of America website and selecting "Auto Loans" under the Borrowing section, or visit a branch in person. Online, you will answer questions about the vehicle you want to buy, your income, and your employment. The bank will ask for the vehicle's VIN, the purchase price, and the down payment amount you plan to make.
After you submit the online application, Bank of America will request documentation. You will need to upload or bring in person: recent pay stubs (usually the last two), a recent tax return or W-2, a valid driver's license, and proof of auto insurance. If you are self-employed, bring two years of tax returns and a profit-and-loss statement for the current year.
Once the bank receives all documents, a loan officer will review your application and pull your credit report. Most decisions come within one to three business days. If approved, the bank will issue a loan commitment letter that shows the loan amount, interest rate, and monthly payment. You can then take this letter to the dealer to complete the purchase.
What happens after you are approved
After Bank of America approves your loan, the bank will issue a commitment letter valid for a set number of days (usually 30 to 60). You take this letter to the dealership, and the dealer's finance office will coordinate with Bank of America to finalize the paperwork. The dealer will have you sign the loan agreement and title documents.
Bank of America will then disburse the loan funds directly to the dealership or to you, depending on the dealer's preference. The funds typically arrive within one to two business days. Your first payment is usually due 30 days after the loan closes, though some loans have a grace period of up to 60 days.
You are required to carry comprehensive and collision auto insurance on any vehicle financed by Bank of America. The bank will ask for proof of insurance before funding the loan, and the insurance policy must list Bank of America as the lienholder (the bank's name appears on the title until you pay off the loan).
Refinancing an existing auto loan with Bank of America
If you have an auto loan with another lender, you can refinance it with Bank of America to potentially lower your interest rate or change your loan term. Refinancing makes sense if your credit score has improved since you took out the original loan, or if interest rates have dropped.
To refinance, bring your current loan documents (the promissory note or loan agreement) and the vehicle's title to a Bank of America branch, or apply online. The bank will pay off your existing loan and issue you a new one with Bank of America. The process takes one to two weeks from approval to funding. You will pay a payoff fee to your current lender (usually $50 to $150), but Bank of America does not charge a refinancing fee.
When Bank of America might deny your application
Bank of America may deny an auto loan application if your credit score is below 620, if you have recent late payments or charge-offs on your credit report, or if your debt-to-income ratio is too high (meaning your monthly debt payments are more than 50 percent of your gross monthly income). The bank may also deny the application if the vehicle does not meet its lending criteria—for example, if it is a used car without CPO certification or if it has a branded title.
If your application is denied, you have the right to request a written explanation from the bank. You can also ask whether a co-signer would help, or whether waiting a few months to improve your credit score would change the outcome. Some applicants are approved with a higher interest rate instead of being denied outright; ask the loan officer whether that option is available to you.
Frequently Asked Questions
Can I get a Bank of America auto loan if I have bad credit?
Bank of America typically requires a credit score of at least 620 to approve an auto loan. If your score is below that, you may be denied, or you may be approved with a significantly higher interest rate. A co-signer with better credit may help you get approved or receive a lower rate.
Does Bank of America finance used cars?
Bank of America finances certified pre-owned vehicles up to ten years old, but not regular used cars. CPO vehicles come with a manufacturer's warranty and have passed an inspection. If the used car you want is not certified pre-owned, you will need to find another lender.
How long does it take to get approved for a Bank of America auto loan?
Most applicants receive a decision within one to three business days after submitting all required documents. Once approved, you receive a commitment letter that is valid for 30 to 60 days. The actual funding (money sent to the dealer) happens one to two business days after you sign the final loan agreement.
What is the minimum down payment for a Bank of America auto loan?
Bank of America does not publish a minimum down payment requirement. The amount you put down affects your loan-to-value ratio and may influence your interest rate, but the bank will work with borrowers who have little or no down payment. Ask for a rate quote based on your specific down payment amount.
Can I pay off my Bank of America auto loan early without a penalty?
Bank of America auto loans do not have a prepayment penalty, so you can pay off the loan early without extra fees. Paying early saves you interest over the life of the loan. Contact the bank to confirm the exact payoff amount before sending a final payment.