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Buying a new or used car and finding the right auto loan can seem daunting, but the reality is that you've never had more options at your disposal. You can go to a local dealership and get financing there, you can apply for a loan at your local bank branch or credit union, or you can choose from many online lenders that specialize in auto financing. One of the best financiers might be right down the street from you – it’s Bank of America.

Bank of America auto loans are available nationwide, and they’re attractive for their low, competitive rates. You can also enjoy flexible terms and few restrictions. Read on to learn more about Bank of America car loans: the perks, the potential drawbacks, and the interest rates you may see.

  1. Current Bank of America Car Loan Rates
  2. Is Bank of America a Good Car Loan Company?
  3. Should I Get a Bank of America Car Loan?
  4. How to Apply for a Bank of America Car Loan
  5. What Income Do I Need for a Bank of America Car Loan?
  6. What Credit Score Do I Need for a Bank of America Car Loan?
  7. What Cars Can I Buy With a Bank of America Car Loan?
  8. What Down Payment Does a Bank of America Car Loan Require?
  9. Does a Bank of America Car Loan Have Prepayment Penalties?
  10. Bank of America Car Loan vs. LightStream Car Loan
  11. Bank of America Car Loan vs. Chase Car Loan
  12. Bank of America Car Loan vs. Capital One Car Loan

Current Bank of America Car Loan Rates

Credit Score

New Car Loan

Used Car Loan

Private Party Car Loan

Refinance Car Loan

Lease Buyout Loan

Excellent

2.69%

2.99%

5.79%

3.69%

3.69%

Good

Contact for rate

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Poor

Contact for rate

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Find Interest Rates As Low As

New Car Rates2.74%
Used Car Rates2.97%
Refinancing Rates2.49%

Intrest rate data provided by myAutoloan.com. Rates are for comparative purposes only; your rates may differ.

Bank of America provides financing to car shoppers with all kinds of credit. That said, the bank only advertises its lowest available rates, which are limited to those with excellent credit. Every lender has its own definition of excellent credit, but according to Experian, this typically translates to a score of between 781 and 850.

Are you an applicant with excellent credit that plans to buy your next vehicle from a dealership? With Bank of America, you could qualify for interest rates as low as 2.69% on a new car loan and 2.99% on a used car loan. These terms are lower than what other major lenders are currently offering.

Bank of America advertises rates as low as 5.79% for shoppers with excellent credit who are looking to buy a used car directly from a private individual. If you want to refinance an existing auto loan, you may see Bank of America rates as low as 3.69%. Finally, the bank has rates as low as 3.69% for buying out your leased vehicle.

These rates were found using Bank of America’s auto financing calculator, and they are for illustrative purposes only. The rates on this page are accurate as of publication, and we do update them regularly. However, auto loan rates fluctuate over time, so you may see different rates as you shop for an auto loan. The rates you qualify for may differ from these depending on your credit history, income, and selected loan terms.

Bank of America provides loan terms of 48, 60, and 72 months when applying online. Users can negotiate any terms from 12 months to 75 months later on in the application process.

Shoppers may qualify for interest rate discounts if they are current Bank of America Preferred Rewards clients. Gold tier members qualify for a rate deduction of 0.25 percent, Platinum tier members qualify for a deduction of 0.35 percent, and Platinum Honors members qualify for a rate deduction of 0.50 percent. To become a Preferred Rewards client you must maintain banking and investment account balances of at least $20,000 for the Gold tier, $50,000 for the Platinum tier, and $100,000 for the Platinum Honors tier.

Is Bank of America a Good Car Loan Company?

Yes, Bank of America is a great option if you need financing to buy a car or if you're looking to refinance a current auto loan. Bank of America’s advertised interest rates are some of the lowest among major lenders, but note that these are reserved for customers with excellent credit. Financing is available to customers in all 50 states and Washington, D.C., and there are other perks as well. The bank offers sizable rate discounts for its existing rewards customers, and there are no penalties if you pay off your loan early. In most states, you won’t pay a loan origination fee, either. 

Bank of America’s biggest perk is the flexibility of its loan program. The bank finances new and used cars purchased at dealerships, used cars purchased from owners (private party sales), and vehicles purchased at the end of their lease, also called lease buyouts. Some competing lenders, like Chase and Capital One, don’t finance private sales, and depending on where you live, that can really cut down on your used car options.

Key Bank of America Car Loan Info

 

New

Used

Refinance

Available APR

As low as 2.69%

As low as 2.99%

As low as 3.69%

Loan Length

12-75 months

12-75 months

12-75 months

Prepayment Penalty?

No

No

No

Income Requirements

N/A

N/A

N/A

Minimum Loan Amount

$7,500

$7,500

$7,500

Should I Get a Bank of America Car Loan?

You should definitely consider financing a car loan through Bank of America, especially if you have a very high credit score. Advertised rates, which are reserved for those with excellent credit, are very competitive compared to other major lenders. Overall, Bank of America's loan process is simple and there are relatively few restrictions.

That said, some aspects of Bank of America’s financing program may give customers reason to pause. If you’re looking to buy a car from a dealer, you’ll have to make sure it’s within the bank’s network. Additionally, Bank of America doesn’t offer price discounts on vehicles.

You might consider other top lenders that step up and offer perks to counteract where Bank of America comes up short. LightStream, a division of SunTrust Bank, has almost no limitations on the vehicles it finances, in contrast to Bank of America's dealership restrictions. Chase Bank can provide customers with a guaranteed discount on new vehicles for sale at participating dealers.

How to Apply for a Bank of America Car Loan

Bank of America makes it simple to finance your next car, truck, or SUV purchase. First, shop for the vehicle that you want. You can search through local classified ads and online listings for cars for sale by a private seller, or you can use Bank of America’s online inventory tools to find cars for sale at participating dealerships.

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You can also filter the inventory search results by make, model, age, price, mileage, and more. The listings include vehicle photos, features, and specifications. Each page also has a helpful calculator app, which provides an estimate of the financing terms for that specific vehicle.

After you find the ideal car for you, you’re ready to submit a loan application. You can apply online, over the phone, or at a local Bank of America branch. The application will ask for personal information like your name, home address, phone number, email, employer, and income. The bank will look into your credit history, which could affect your credit score. If all of it looks good, you’ll receive a loan offer, which is valid for up to 30 days. There is no application fee. Don’t like the offer? Don’t worry, you aren’t obligated to accept it.

Last but not least, it’s time to complete the purchase. If you’re buying a car from a dealership, you can head to the dealer with the loan offer to finalize the sale. If you’re buying from a private party, Bank of America will send you a check payable to the seller.

Bank of America also provides loans to shoppers who want to purchase their leased vehicle or refinance their current auto loan. The loan application process is similar in these instances, but you won’t have to use the inventory search tools. Unlike many institutions, Bank of America will refinance its own auto loans. Most lenders will only refinance loans originated by other financial institutions, like competing banks or credit unions.

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What Income Do I Need for a Bank of America Car Loan?

Bank of America does not list its income requirements for auto loan applications. This is partly for competitive purposes, but also because a borrower’s income may not indicate their ability to repay a loan.

A better calculation is the debt-to-income ratio, or DTI. You can find this by dividing your total monthly debt payments by your monthly income. For example, monthly debt payments of $1,900 with a monthly income of $5,000 equal a debt-to-income ratio of 38 percent. On the other hand, monthly payments of $800 and a monthly income of $3,300 yield a DTI of just 24 percent.

Lenders typically think twice about financing applicants with a debt-to-income ratio of 40 percent or more, because it indicates that they are financially overextended and may default on the loan.

What Credit Score Do I Need for a Bank of America Car Loan?

Bank of America does not disclose its credit score requirements. Again, this is partially due to competition between lenders.

Don’t worry if you have a mediocre credit score, though. You may still qualify for great financing because of other factors that lenders consider. These include your total income, the amount of debt you have, and the various kinds of debt like credit cards, a mortgage, and personal loans.

What Cars Can I Buy With a Bank of America Car Loan?

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Bank of America offers financing for three types of car purchases: new and used cars purchased at a dealership; private party sales, which are used cars purchased directly from the owner; and lease buyouts when you purchase a leased vehicle at the end of the contract. 

With these options, prospective Bank of America borrowers have a lot of flexibility shopping for their next vehicle. However, there are few key restrictions. Bank of America only finances vehicles from within the last 10 calendar years, and eligible vehicles must also have fewer than 125,000 miles. 

You can't get financing on certain vehicles, which are specifically excluded from Bank of America's lending program. Motorcycles, recreational vehicles (RVs), commercial or business vehicles, grey market imports, lemon law cars, and cars with a salvage or branded title all fall under that restriction.

If you’re buying from a dealership, it must be within Bank of America’s network of franchise dealers or one of four approved independent dealers (CarMax, Hertz, Enterprise, and Carvana). The company will not finance purchases made at other independent dealers.

Bank of America requires auto loan borrowers to finance a minimum of $7,500 (or $8,000 in Minnesota). The maximum amount is limited to $150,000, dependent on a customer’s income, credit score, and the vehicle.

What Down Payment Does a Bank of America Car Loan Require?

A down payment is not required for all Bank of America auto loans, but one may be required if an applicant has bad credit. In these instances, the down payment protects the lender from financial loss if the borrower stops paying off the loan. It’s a smart idea to make a down payment, even if you aren’t required to. Down payments reduce the amount of money you need to finance, which lowers the amount you spend on interest over the loan.

Does a Bank of America Car Loan Have Prepayment Penalties?

There are no penalties for paying off a Bank of America auto loan early. Borrowers can make one-time payments online, on the mobile app, over the phone, by mail, or in person at a local bank branch. Customers can also sign up for automatic payments by either enrolling via a mail application or using the “Online Bill Pay” tool.

As a general rule of thumb, you should opt for an auto loan with the shortest terms and largest monthly payments you can reasonably manage. That’s because an auto loan – a type of simple interest loan – accrues interest daily from the beginning of the loan until the day it’s paid off. This interest is based on the remaining balance of the loan, or the principal. As you pay the balance down over time, the percentage of your monthly payment spent on interest decreases as well.

If you decide to make small monthly car payments over long terms like six years or more, you may end up spending thousands of dollars more on interest alone.

Bank of America Car Loan vs. LightStream Car Loan

Bank of America and LightStream are both great options if you’re shopping for an auto loan. Both lenders finance vehicles in all 50 states and Washington D.C., and each has few limitations, which isn’t the case with all lenders. With either institution, shoppers can buy cars from dealerships or private sellers, refinance their own vehicles, or purchase their car at the end of its lease.

Deciding which is for you depends on if you think you'll qualify for the best rate from either lender, or your decision could be swayed by LightStream's less-restrictive qualifications on vehicles. 

Bank of America's advertised rates on new cars are almost a full percentage point lower (2.69% vs. 3.49%) than LightStream's. Additionally, that figure from LightStream only applies to loans between $10,000 and $25,000, and only for up to three years. You can likely get Bank of America's better offer on a wider variety of loan lengths and values. 

You might also consider a Bank of America auto loan first if you don’t have a high credit score. Bank of America tends to be more lenient when evaluating credit worthiness, whereas LightStream typically only finances applicants with good-to-excellent credit.

Go with LightStream if you want to buy something not covered by Bank of America's restrictions. LightStream loans have no vehicle or dealership limitations, so you can consider a much larger pool of vehicles for sale – including classic cars, motorcycles, and RVs. The funds from a LightStream loan are also deposited directly into your bank account, so you can shop for a car with all the freedom of a cash buyer. There are also no down payment requirements, in contrast to Bank of America, which may require money upfront when paying for a car with their loan.

 

Bank of America

LightStream

New Car Rates as Low as

2.69%

3.49%

Used Car Rates as Low as

2.99%

3.49%

Prepayment Penalties?

No

No

Minimum Monthly Income

N/A

N/A

Bank of America Car Loan vs. Chase Car Loan

Chase offers a different and more involved take on car buying and financing than Bank of America. The Chase Auto program helps shoppers find a car and even provides guaranteed discounts on new vehicles for sale at participating dealerships. This means you don’t have to haggle over pricing with the dealer – a perk that a lot of customers may enjoy.

Additionally, the Chase Auto program doesn’t require a down payment, while Bank of America does in some instances. Chase also has a lower minimum loan amount of $4,000; Bank of America requires shoppers to finance at least $7,500 or more.

It’s not a homerun for Chase, though. Bank of America offers lower advertised interest rates and steep rate discounts for its rewards customers. Unlike Chase, Bank of America finances vehicles bought from a private seller.

Ultimately, the choice between these financing programs may come down to their restrictions. Both programs have dealership limitations, as well as restrictions for certain vehicle makes and models. Test the inventory tools of both programs to see which offers more options in your area.

 

Bank of America

Chase

New Car Rates as Low as

2.69%

4.33%

Used Car Rates as Low as

2.99%

4.57%

Prepayment Penalties?

No

No

Minimum Monthly Income

N/A

N/A

Bank of America Car Loan vs. Capital One Car Loan

Capital One is another option for those in search of a car loan, though its lending practices aren’t as flexible as Bank of America’s. Capital One doesn’t provide loans for private party sales or lease buyouts, and it has higher advertised rates than Bank of America. Capital One doesn’t offer financing to customers in Alaska or Hawaii.

There are some similarities between these programs. Both limit shoppers to vehicles available at participating dealerships, and both programs may also require a down payment in certain cases. The bottom line? Bank of America’s fewer restrictions and lower rates make it the better choice for most shoppers. Still, you should try out the inventory search tools of both programs to see which offers more vehicle and dealership options in your area.

 

Bank of America

Capital One

New Car Rates as Low as

2.69%

3.59%

Used Car Rates as Low as

2.99%

4.23%

Prepayment Penalties?

No

No

Minimum Monthly Income

N/A

$1,500 - $1,800

Find Interest Rates As Low As

New Car Rates2.74%
Used Car Rates2.97%
Refinancing Rates2.49%

Intrest rate data provided by myAutoloan.com. Rates are for comparative purposes only; your rates may differ.