Bank of America: 2023 auto loan review

Bank of America auto loans are best for those financing through the dealer

If you plan to finance through a dealership rather than fully online, check out Bank of America. While the loan itself is handled at the dealership, the funding itself comes from the bank. But while the rates offered are competitive, to truly benefit you would have to be a preferred rewards member — which requires you to hold a high deposit or investment balance. 

If you’re looking to skip the dealership and don’t have $20,000 to keep in the bank for a rate discount, you may find better deals elsewhere.

Bank of America pros and cons

Bank of America offers the security of a nationally recognized bank — but consider all sides before taking out a loan.

Bank of America works directly with authorized dealers across the country to provide financing for over two million available vehicles. An extensive network isn’t the only benefit it boasts, either — qualifying preferred rewards members can receive a rate discount.

Applications are available online and at any one of its over 4,000 brick-and-mortar locations. The process is also quick, with most applicants receiving a credit decision in 60 seconds. Following the decision, your rate is locked for 30 days following approval — giving you time to shop around before signing a loan agreement.

Do you qualify? 

You must be a U.S. citizen or permanent resident and be at least 18 years old in order to finance a vehicle with Bank of America. Along with that, there are some specific requirements for the vehicle itself.  

According to Bank of America’s FAQ page, the following vehicles are not eligible for vehicle financing:

Bank of America versus Regions Bank

Another bank-backed auto loan option, Regions Bank is another solid option for borrowers that prefer in-person assistance and the reliability of a long-standing financial institution. Securing funding from Regions Bank is an especially good lender for those looking to finance a more expensive vehicle, as the bank has a $100,000 maximum. But unlike Bank of America, Regions only serves drivers in the Southern and Midwestern United States. 

Bank of America versus Fifth Third Bank

Fifth Third Bank boasts the same in-person convenience as Bank of America with a wider range of repayment terms — up to 84 months. This makes it an attractive choice for borrowers who plan to extend their loan term. But the Cincinnati-based bank only provides direct loans in 10 states.

What we like and what we don’t like

Bank of America has name recognition, but you’ll need to be a preferred member to see the greatest benefits.

What we like 

• Long shopping window. Bank of America locks in your rate and allows you to shop around for 30 days after qualifying. 
• Available in all 50 states. Auto financing is available to drivers in all 50 states and the District of Columbia. 
• Minimal fees. Borrowers don’t pay application fees or penalties for paying off their loans early.

What we don’t like 

• High minimum loan amount. $7,500 is on the higher side compared to other lender options.  
• Discount for members only. Rate discounts are only available for preferred members with at least $20,000 in a deposit or investment account. 
• No prequalification. You’ll have to take the couple-point hit to your credit if you want to know potential rates.

How to contact Bank of America 

If you prefer in-person communication, a loan with Bank of America can serve you well. Customer questions can also be answered on its website via live chat or by phone. Following loan approval, you will be matched with a loan specialist to directly assist your needs.  

Bank of America customer assistance can be reached via phone Monday to Friday from 8 a.m. to 8 p.m. ET.

Auto loan types offered 

Bank of America offers loans for new and used vehicle purchases along with refinancing loans. It also provides lease buyout loans with rates from 7.19 percent and terms from 48 to 72 months, though you’ll have to contact the lender for detailed information.

New and used vehicle loans 

• Amounts: Starting at $7,500
• Terms: 48-72 months
• APR: From 6.29% (new) or 6.49% (used)

Financing for a new or used vehicle loan through Bank of America has a minimum loan requirement of $7,500 ($8,000 in Minnesota) and can be done online or in person. Loan decisions can be made within a minute of application if no additional details are needed. You can also fund a purchase from a private seller, with slightly higher starting rates.

Refinance

• Amounts: Starting at $7,500
• Terms: 48-72 months 
• APR: From 7.29% 

A refinance loan with Bank of America must be a minimum of $7,500 and can be done either online, on the phone or at a Bank of America branch office. It is a great option for drivers who previously hold a loan with Bank of America, or any other lender, and for those who can benefit from member rate discounts.  

How to apply for a loan with Bank of America 

There is no application fee when applying for an auto loan with Bank of America, and you can fill one out online, over the phone or in person at one of its branch offices.  

The process is simple and only takes a few steps to complete. You don’t even need to have your vehicle fully picked out when you apply. 

1. Provide details about yourself and the loan. The first step to financing your vehicle with Bank of America is to fill out its online application with the loan amount and term you want, your personal and income details and whether you’re adding a co-applicant.  
2. Lock in your rate. Bank of America has a 30-day rate lock which will enable you to shop around while having an idea of how much you can afford. 
3. Finalize the deal. After you find a vehicle at an approved dealer, you can finalize the loan and walk out with your new keys and without the hassle of waiting in a finance office all day.   

Features and additional perks 

Borrowers who are Preferred Rewards members with Bank of America will be offered additional discounts. Gold tier members will receive a .25 percent discount, platinum tier a .35 percent discount and platinum honors tier or higher will receive a .50 percent discount. 

Bank of America also offers specific EV financing. Although you can finance an electric car with any loan, Bank of America is unusual in that it lets you finance a residential vehicle charger along with your EV. Make sure to take advantage of the EV charger tax credit to offset the cost.

Fees and penalties  

There is no fee to apply for an auto loan and no prepayment penalties are enforced if borrowers pay off their loans early. However, Bank of America may charge late payment penalties and other fees — read your loan agreement’s fine print before signing.

Bank of America FAQs 

How Bankrate rates Bank of America

Methodology 

Bankrate considers 18 data points when selecting top auto loans. Acceptance criteria, whether rates and fees are available and APR range all influence lender scores. These scores are broken up into four categories.

• Availability: Loan amounts, repayment options, dealership requirements and state availability all contribute to this category.
• Affordability: This section houses APR ranges, acceptance criteria, fees and discounts. 
• Customer experience: How long you have to shop, customer service availability, whether there’s an app and autopay availability are accounted for in this section.
• Transparency: This category accounts for the availability of fees and rates along with whether prequalification is available.

Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.