The foundation of any sound financial product is a competitive interest rate.
Preferred Rewards members may receive valuable interest rate discounts.
The security and reliability that comes with a leading U.S. financial institution.
Solutions for new vehicles, used vehicles, refinancing, and lease buyouts.
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Acquiring a New or Used Asset from a Dealer+
The primary auto loan product facilitates the acquisition of new or used vehicles from authorized U.S. dealerships. From a strategic standpoint, Bank of America recommends clients apply for their loan online first. This allows you to lock in a competitive rate for 30 days, providing cost certainty as you shop. Approaching the negotiation for the vehicle’s price with your financing already arranged is a position of considerable strength.
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Optimizing Your Portfolio: Auto Loan Refinancing+
Periodically reviewing your liabilities is a key financial discipline. If you currently hold an auto loan with another institution, refinancing that loan with Bank of America may present an opportunity to optimize your terms. Securing a lower Annual Percentage Rate (APR) can directly improve your monthly cash flow and reduce the long-term cost of maintaining the asset, freeing up capital for other financial goals.
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Strategic Opportunities: Lease Buyout Financing+
The end of a vehicle lease presents a strategic decision point. If the predetermined purchase price—the residual value—of your leased vehicle represents a good value in the current market, securing a loan to purchase it can be a prudent move. Bank of America offers lease buyout loans to help you convert that expiring lease into a tangible, long-term asset within your personal portfolio.
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The Preferred Rewards Program: Maximizing Your Return+
For those enrolled in our Preferred Rewards program, one of the tangible benefits is a potential interest rate discount on a Bank of America auto loan, ranging from 0.25% to 0.50%. This is a direct return on your existing banking and investment relationship with them, enhancing the overall financial value of the transaction.
Top Auto Loan Options in the U.S.
- Bank of America Auto Loan – Offers fixed-rate financing for new and used vehicles, refinance options, lease buyouts, and perks like auto online prequalification and Preferred Rewards discounts.
- Capital One Auto Navigator – Lets you check your buying power with a soft credit pull and browse inventory from thousands of dealers.
- PenFed Credit Union – Known for low APRs to members, especially through its Car Buying Service.
- LightStream (Truist Bank) – Offers unsecured auto loans with no limit on provider or vehicle type.
- Carvana Financing – Fully online car buying and funding with home delivery of your vehicle.
Traditional Bank Financing
Bank of America blends classic bank stability with modern convenience. Through a network of authorized dealers, they provide a streamlined loan without you needing to walk into a branch. While local banks might offer similar rates, BofA shines by combining in-person financing with seamless digital management.
Bank of America Auto Loan Experience
Whether you’re buying new or used, refinancing, or buying out a lease, Bank of America makes the process easy. Start by prequalifying online—a soft inquiry that won’t affect your credit—and get access to fixed APRs that begin around 5.64% for a 60-month term . Their online portal lets you view documents, set up autopay, request payoff quotes, and manage everything from your account—no paper trail required.
Online Tools & Dealer Integration
Bank of America offers powerful digital support: you can lock in a 30-day rate via prequalification, search dealer inventory, apply through their platform, and get funded—all online. They work with over 11,000 dealers so once approved, you arrive ready to negotiate and sign.
GAP Protection & Add-On Services
At purchase, BofA offers Guaranteed Asset Protection (GAP) to cover the difference between your car’s value and remaining loan if it’s totaled; they also offer service contracts and insurance add-ons for peace of mind.
Unsecured Personal Loans vs. Auto Loans
If you’re buying from a private seller, BofA doesn’t offer loans for that—only through dealers . You could use a personal loan, but those usually have shorter terms and higher rates. Their dealer-backed vehicle loans tend to offer better APRs and structured repayment plans suited for car purchases.
Buy Here, Pay Here Dealerships vs. Bank of America
BHPH lots may offer quick in-lot financing but often with high interest, large down payments, or inflated terms. With Bank of America, your loan is transparent, backed by a reputable institution, and regularly reported to credit bureaus—helping you build credit with on-time payments.
How Auto Loans Impact Your Finances and Credit Score in the U.S.
Your BofA journey starts with a soft pull for preapproval—no impact to your FICO. Once finalizing the loan, they’ll do one hard pull. Auto loans help you build credit history when paid on time, and rewarding terms for Preferred Rewards members can reduce APR by up to 0.50% . Be mindful—missing payments hurt your credit and increase your debt-to-income (DTI). On the bright side, automating payments and responsibly managing your loan can help improve both your credit and long-term borrowing power.
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