If you’re shopping for a car and already have a relationship with Bank of America, their auto loans might offer convenient financing with potential relationship-based benefits. As one of the nation’s largest banks with over 67 million customers, Bank of America provides auto financing with competitive rates for qualified borrowers, especially those enrolled in their Preferred Rewards program.
But is a Bank of America auto loan the right choice for your vehicle purchase? This comprehensive guide breaks down everything you need to know about BofA auto financing—including rates, Preferred Rewards discounts, requirements, the application process, and how they compare to other lenders in 2026.
Whether you’re a longtime Bank of America customer or considering them for the first time, this guide will help you make an informed decision about your auto financing options.
Overview of Bank of America Auto Loans
Bank of America offers auto financing through their Consumer Lending division, providing loans for new and used vehicles, as well as refinancing options for existing auto loans. As a full-service national bank, they integrate auto lending with their broader banking relationship.
Key features of Bank of America auto loans:
- Loan amounts: Typically $7,500 to $100,000
- Loan terms: 12 to 75 months (up to 6.25 years)
- Vehicle types: New cars, used cars, and refinancing
- Preferred Rewards discounts: Rate reductions up to 0.50% for qualified members
- Relationship benefits: Integration with existing BofA accounts
- Digital experience: Apply online, manage through mobile app
- Nationwide availability: Lending in most states
- Direct dealer payment: Streamlined purchase process
Bank of America Preferred Rewards
The Preferred Rewards program is Bank of America’s tiered relationship rewards system. Members can earn rate discounts on auto loans based on their tier:
Gold Tier: 0.25% rate discount (requires $20,000+ in combined balances) Platinum Tier: 0.375% rate discount (requires $50,000+ in combined balances) Platinum Honors Tier: 0.50% rate discount (requires $100,000+ in combined balances)
This relationship-based pricing can make Bank of America significantly more competitive for existing customers with substantial deposits and investments.
Bank of America Auto Loan Rates and Fees
Understanding rate structures and fees helps evaluate the true cost of borrowing from Bank of America.
Interest Rates
Bank of America auto loan rates vary based on credit score, loan amount, loan term, vehicle age, and Preferred Rewards status. While BofA doesn’t publicly advertise specific rate ranges, auto loan rates from major banks typically fall within these ranges for 2026:
New Car Loans (Before Preferred Rewards Discount):
- Excellent credit (740+): Starting around 6.49% – 9.49% APR
- Good credit (680-739): Approximately 9.49% – 13.99% APR
- Fair credit (620-679): Around 13.99% – 17.99% APR
Used Car Loans:
- Rates typically 1-2% higher than new car loans
- Vehicle age and mileage affect rates
- Older vehicles (5+ years) may have higher rates or restrictions
Refinance Loans:
- Competitive rates for refinancing existing auto loans
- Rate depends on current loan details and vehicle value
- Potentially lower existing payment and interest
With Preferred Rewards Discounts:
- Gold: Subtract 0.25% from base rate
- Platinum: Subtract 0.375% from base rate
- Platinum Honors: Subtract 0.50% from base rate
Your actual rate will depend on your individual credit profile and relationship with Bank of America.
Fees to Consider
When evaluating total borrowing costs, be aware of potential fees:
Origination Fee: Typically none for most borrowers
Application Fee: None
Late Payment Fee: Charged if payment received after grace period (typically 10 days)
Returned Payment Fee: Applied for insufficient funds
Prepayment Penalty: Bank of America generally allows early payoff without penalty
Document/Title Fees: Standard state fees apply regardless of lender
Always request complete fee disclosure before accepting a loan offer to understand total costs.
Bank of America Auto Loan Eligibility Requirements
To qualify for a Bank of America auto loan, you’ll need to meet several criteria.
Credit Score Requirements
Bank of America typically serves borrowers with good to excellent credit, though they may consider applicants with fair credit on a case-by-case basis.
Recommended minimum: 650-680 credit score Best rates: 740+ credit score Credit history: Established credit with positive payment history Recent issues: Recent bankruptcies, foreclosures, or multiple late payments may impact approval
Income and Employment
Bank of America verifies stable income sufficient to repay the loan:
- Steady employment: Typically 2+ years with current employer or in same field
- Sufficient income: Ability to afford monthly payments plus existing obligations
- Debt-to-income ratio: Preferably below 40-43%
- Income verification: Recent pay stubs, W-2s, or tax returns
- Self-employed applicants: May need additional documentation (tax returns, business financials)
- Additional income sources: Can include investment income, retirement benefits, or rental income
Other Requirements
- Age: At least 18 years old (19-21 in some states)
- Citizenship: U.S. citizen or permanent resident
- Bank account: Active checking account (preferably with Bank of America)
- Valid driver’s license: Current and unexpired
- Auto insurance: Full coverage required for financed vehicles
- Down payment: May improve approval odds and rates
- Vehicle requirements: Must meet age, mileage, and value criteria
How to Apply for a Bank of America Auto Loan
Bank of America offers multiple application channels, with preference given to existing customers.
Step 1: Check Preferred Rewards Status
If you’re already a Bank of America customer:
- Review your current account balances
- Determine if you qualify for Preferred Rewards tiers
- Consider consolidating accounts to reach higher tier
- Enroll in Preferred Rewards if not already enrolled
Step 2: Get Pre-Qualified
Bank of America offers pre-qualification to help you understand potential rates:
Online Pre-Qualification:
- Log in to online banking (or apply as new customer)
- Navigate to auto loans section
- Complete pre-qualification form
- Receive estimated rate range
- Pre-qualification valid for 30 days
Benefits:
- Know your rate range before shopping
- Helps establish budget
- Initial soft inquiry (minimal credit impact)
- Shop with confidence
Step 3: Shop for Your Vehicle
With pre-qualification in hand:
Where to Buy:
- New car dealerships
- Certified pre-owned dealers
- Used car dealerships
- Private party sales (if Bank of America finances these)
Research:
- Use Bank of America’s auto buying resources
- Check market values and pricing guides
- Review vehicle history reports
- Compare dealer pricing
Step 4: Complete Full Application
Once you’ve found your vehicle:
Submit Application:
- Provide vehicle details (VIN, year, make, model, mileage)
- Upload purchase agreement or sales contract
- Submit additional documentation if requested
- Provide down payment information
Application Methods:
- Online through Bank of America website
- By phone with auto loan specialist
- In-branch at local Bank of America location
- Through participating dealer
Step 5: Review and Accept Terms
After approval:
- Review final APR and monthly payment
- Understand loan term and total interest
- Check for any fees or charges
- Confirm payment due date and method
- Review insurance requirements
Step 6: Finalize and Drive Away
After accepting the loan:
- Bank of America pays dealer directly
- Complete dealership paperwork
- Register and insure vehicle
- Set up online account access
- Enroll in automatic payments for convenience
Pros and Cons of Bank of America Auto Loans
Understanding both benefits and limitations helps you make an informed decision.
Advantages
Preferred Rewards Discounts:
- Up to 0.50% rate reduction for qualifying members
- Significant savings over loan life
- Rewards existing banking relationship
- Tiered benefits encourage consolidation
Established Banking Relationship:
- Integrated with existing Bank of America accounts
- Convenient payment management
- Single banking relationship
- Potential for future relationship benefits
Nationwide Presence:
- Nearly 4,000 branches across the U.S.
- Access to in-person service
- ATM network of over 15,000
- Recognized and trusted brand
Digital Banking:
- Robust online and mobile banking
- Easy payment management
- Account alerts and notifications
- 24/7 access to account information
No Prepayment Penalties:
- Pay off loan early without fees
- Make extra payments anytime
- Financial flexibility
Range of Loan Amounts:
- $7,500 to $100,000 loan amounts
- Covers wide variety of vehicles
- Flexible for different budgets
Disadvantages
Higher Rates for Non-Preferred Members:
- Base rates may not be as competitive
- Need significant balances for best rates
- Without Preferred Rewards, other lenders may offer better rates
Credit Requirements:
- Typically requires good to excellent credit
- May not approve fair or poor credit applicants
- Stricter than credit unions or some online lenders
Minimum Loan Amount:
- $7,500 minimum excludes less expensive vehicles
- Some competitors offer lower minimums
- May not work for older, budget vehicles
Relationship Pressure:
- Best rates require maintaining high balances
- May not be ideal if you prefer diversified banking
- Could feel obligated to keep money at Bank of America
Customer Service Concerns:
- Large bank service can feel impersonal
- Wait times for phone support
- Less personalized than credit unions
Bank of America Auto Loans vs. Competitors
Understanding how Bank of America compares helps determine if they’re the best choice.
Bank of America vs. Credit Unions
Credit unions often provide the most competitive auto loan rates:
Credit Union Advantages:
- Lower interest rates (often 1-2% less)
- Fewer fees
- More flexible underwriting
- Personalized service
- Member-focused approach
Bank of America Advantages:
- No membership requirement
- Larger branch network
- More robust digital banking
- Higher loan amounts available
- Preferred Rewards can close rate gap
Verdict: Credit unions typically offer better rates, but Bank of America with Platinum Honors can be competitive.
Bank of America vs. Other Major Banks
Banks like Wells Fargo, Chase, and Capital One offer similar products:
Similarities:
- Comparable base rates for qualified borrowers
- Relationship bonuses for existing customers
- Online application processes
- Nationwide availability
Bank of America Advantages:
- Structured Preferred Rewards tiers (up to 0.50% discount)
- Large branch network
- Established reputation
Competitor Advantages:
- Capital One: Auto Navigator pre-qualification tool
- Chase: Competitive rates without requiring high balances
- Wells Fargo: Flexible approval criteria
Verdict: Similar offerings, choice depends on existing relationships and Preferred Rewards status.
Bank of America vs. Dealer Financing
Dealerships offer manufacturer-backed financing:
Dealer Financing Advantages:
- Special promotional rates (0% APR offers)
- Manufacturer rebates and incentives
- One-stop shopping convenience
- Negotiable terms
Bank of America Advantages:
- Pre-qualified rate provides negotiating power
- Independent of sales pressure
- Consistent rates (not promotional)
- Better long-term relationship
Best Strategy: Get pre-qualified with Bank of America, then compare against dealer financing to ensure best deal.
Bank of America vs. Online Lenders
Online lenders like LightStream, LendingClub, and Clearlane:
Online Lender Advantages:
- Highly competitive rates for excellent credit
- Fast, fully digital process
- Minimal fees
- Quick funding
Bank of America Advantages:
- Physical branches for in-person service
- Established brand trust (since 1904)
- Integration with other banking services
- Preferred Rewards benefits
Verdict: Online lenders may offer lower rates for excellent credit, but Bank of America provides more comprehensive banking relationship.
Tips for Getting Approved and Best Rates at Bank of America
Maximize your approval chances and secure the lowest possible rate:
Improve Your Credit Score:
- Check credit report for errors
- Pay down credit card balances below 30% utilization
- Make all payments on time for 6+ months
- Don’t apply for new credit before auto loan
Build Bank of America Relationship:
- Open checking and savings accounts
- Move investments to Merrill Edge
- Consolidate accounts to reach Preferred Rewards tiers
- Maintain accounts for several months before applying
Maximize Preferred Rewards:
- Gold: $20,000+ in combined balances (0.25% discount)
- Platinum: $50,000+ in combined balances (0.375% discount)
- Platinum Honors: $100,000+ in combined balances (0.50% discount)
- Include deposits and investments in calculation
Save for a Down Payment:
- 10-20% down improves approval odds
- Reduces loan amount and monthly payment
- May qualify for better rates
- Shows financial responsibility
Choose Shorter Loan Terms:
- 36-60 month terms typically get better rates
- Lower total interest paid
- Build equity faster
- Reduces risk for lender
Reduce Debt-to-Income Ratio:
- Pay down existing debts before applying
- Increase income if possible
- Avoid taking on new debt
Choose Newer Vehicles:
- New cars get best rates
- Late-model used cars (1-3 years old) get favorable rates
- Older vehicles have higher rates or restrictions
Provide Complete Documentation:
- Have pay stubs, tax returns, bank statements ready
- Respond quickly to any requests
- Accurate information speeds approval
Consider Auto Pay:
- Set up automatic payments from BofA account
- Never miss a payment
- Builds positive payment history
Frequently Asked Questions
What credit score do I need for a Bank of America auto loan?
While Bank of America doesn’t publish minimums, they typically approve borrowers with credit scores of 650-680 or higher. Best rates go to those with 740+ scores.
How much can I save with Preferred Rewards?
Preferred Rewards members save 0.25% (Gold), 0.375% (Platinum), or 0.50% (Platinum Honors) on their interest rate. On a $30,000 loan, that’s $400-$800 in total savings.
Can I get pre-approved without a hard credit inquiry?
Bank of America offers pre-qualification, which uses a soft inquiry. The hard inquiry happens when you complete the full application for a specific vehicle.
Does Bank of America finance used cars?
Yes, Bank of America finances both new and used vehicles, though used cars typically have slightly higher rates.
Can I refinance my existing auto loan with Bank of America?
Yes, Bank of America offers competitive refinance rates, especially for Preferred Rewards members. You can refinance loans from other lenders.
How long does the approval process take?
Pre-qualification decisions come within minutes. Full approval after submitting vehicle information typically takes 24-48 hours, though it can be faster.
What’s the minimum loan amount?
Bank of America’s minimum auto loan amount is typically $7,500.
Are there prepayment penalties?
No, Bank of America generally does not charge prepayment penalties. You can pay off your loan early or make extra payments without fees.
Final Thoughts: Is a Bank of America Auto Loan Right for You?
Bank of America auto loans can be an excellent choice for existing customers who qualify for Preferred Rewards benefits, particularly those in Platinum or Platinum Honors tiers. The relationship-based rate discounts can make Bank of America competitive with credit unions and other low-cost lenders.