2024 Bank of America Auto Loan Review

Bank of America auto loans at a glance

Bank of America doesn’t deviate from the pack when it comes to how its auto loans work. Like most other large banks, it works with a network of partner dealerships that allow you to finance a new or used car purchase. It pulls ahead in the race when it comes to its financing costs, however; Bank of America auto loan rates are some of the lowest you’ll find among major banks out there today.

• Wide range of loan options: Bank of America offers loans for new cars, used cars, handicap-accessible cars, electric vehicles (EVs) and even EV chargers. You can also refinance an existing auto loan or buy out an auto lease.
• Authorized partner dealerships: You can shop for cars available for financing at Bank of America partner dealerships online and even prequalify for a specific vehicle before you head out for a test drive.
• Easy auto loan application: You have the option to apply for an auto loan in person or over the phone, but it’s easier to apply online. You can also prequalify for a loan if you’re not sure yet whether it’s the right time to buy.
• Best for current high-balance Bank of America customers: Current customers who keep at least $20,000 in their BofA accounts can tap into a rate discount ranging from 0.25% to 0.50% off — a pretty sweet deal.

Bank of America auto loan requirements

You’ll need to meet certain qualifications in order to apply for a Bank of America auto loan:

• Age: 18 years or older
• State of residency: All 50 states and Washington, D.C.
• Citizenship status: U.S. citizen or permanent or non-permanent resident

Bank of America auto loans can only be used to buy a vehicle through a partner dealership, and only certain types of vehicles are eligible for financing. If you’re looking for a newer-model passenger vehicle, you’ll probably be just fine, but keep these limitations in mind:

• Mileage: Less than 125,000 miles
• Age: Models 10 years old or less
• Vehicle worth: Valued at more than $6,000
• Title: No salvaged or branded-title vehicles
• Use: Must be for personal use only; not for business purposes
• Type: No commercial or heavy-duty vehicles such as 450-series trucks or vans

In addition, Bank of America does not offer financing for airplanes, boats or motorcycles. It does finance RV purchases, but only via its partner RV dealerships.

Bank of America pros and cons

Bank of America car loan rates and features work in most buyers’ favor, but not all — particularly if you’re on a very limited budget and looking to buy a car from a private seller.

Bank of America caters more to the mainstream car buyer: Someone who’s looking to buy either a new car or a newer used car from a dealership. It’s widely available across the country, and Bank of America auto loan rates are some of the lowest you’ll find among large national bank chains — or at least among the ones who advertise their rates.

If you’re like many buyers on a shoestring budget, however, Bank of America may not be the best option for you. A good way to save money is by buying a privately owned used car directly from the previous owner. You can find private sellers on sites like Craigslist or other websites offering classified ads. But since Bank of America only finances cars bought from a dealership, it skips over many limited-income car buyers.

Bank of America company overview

Bank of America is the second-largest bank in the U.S. It’s gone through several changes over the years, starting all the way back in 1904 when it opened its doors as — interestingly enough — the Bank of Italy, in San Francisco. It changed its name to the now-familiar Bank of America in 1930, and today it’s based out on the opposite coast in Charlotte, N.C.

Bank of America offers a full suite of banking services for individuals as well as small businesses and corporations. It’s a middle-of-the-road lender when it comes to its auto loans; the company was ranked as near average in terms of customer satisfaction in both the luxury auto and mass-market auto financing categories by J.D. Power in a 2023 study.

Bank of America auto loan types offered

One of Bank of America’s strengths over your other options for auto financing is the wide range of loan types offered, including:

• New cars
• Used cars
• Refinances
• Lease buyouts
• EVs and EV chargers
• Disability-adapted cars

Bank of America offers lease buyout loans at 6.99% APR. Financing for this type of loan is only available to consumers with the lease registered in their name. If the vehicle is being leased by another individual, you won’t be able to buy out the lease with Bank of America.

How to get an auto loan with Bank of America

You can apply for a car loan from Bank of America in a few different ways. The easiest way is to do it online. It only takes a few minutes, and you’ll get a decision within 60 seconds, according to the company. If online applications aren’t your thing, you can also apply over the phone or by visiting a local Bank of America branch location. Bank of America also offers prequalification for its loans, so you can check your odds of approval and potential loan options before committing to a full application.

You’ll need to provide the following information on your Bank of America auto loan application:

• Name
• Email address
• Mailing address
• Citizenship status
• Social Security number
• Employment information

In addition, you’ll need to provide some or all of the following documents, depending on your situation:

• Proof of sale, such as a purchase agreement
• Car information, including the vehicle identification number (VIN), make, model, model year, mileage, registration, title and/or lease contract
• Proof of income, such as recent W-2s, pay stubs or tax returns

If you’re approved, you’ll receive an approval letter that you can print and take with you to an authorized dealership, which you can locate on Bank of America’s website (if you haven’t already found a car, that is). When you find the vehicle you want and negotiate the car price, you can hand the letter over to the finance liaison, who will use it to arrange the payment for the car.

You can also shop from franchise dealerships (think brand names, such as Ford or Kia) or three different independent dealerships: Carvana, CarMax and Enterprise Car Sales. If it’s not a franchise dealership or one of these three options, then you’ll be unable to use your Bank of America-approved loan to buy a car.

Is a Bank of America auto loan right for you?

A Bank of America auto loan can be a great choice if you’re already an established customer and looking to buy a new or used car from a dealership. It’s also useful in some of the rarer instances where you might want to finance a charger with your new EV purchase or you’re looking to buy a car outfitted for a disabled person.

Current customers with large balances stashed away with Bank of America can benefit from discounts on top of already-low rates, although don’t forget to shop around. It’s always possible that another lender will offer even lower rates still, but you won’t know that unless you check.

How Bank of America auto loans compare

Bank of America offers a dealership-centric car-buying experience similar to other large banks. However, it’s much more customer-friendly because it offers a wider range of loan types, and it at least gives you information to go on when it comes to deciding if it’s the right option for you.

Here is how Bank of America compares with two other major banks if you’re looking to finance a new car purchase:

Wells Fargo and Chase, by contrast, don’t provide any meaningful details unless you commit to getting a rate quote. While that’s not a bad thing, it isn’t too helpful for upfront comparison purposes.