Bank of America Auto Loans: Rates and Benefits in 2025

Bank of America Auto Loans one of the largest financial institutions in the United States, offers a robust suite of auto loan products designed to meet the needs of car buyers and owners in 2025.

With competitive rates, a streamlined online application process, and flexible financing options, Bank of America stands out as a top choice for financing new and used vehicles, refinancing existing loans, or buying out a lease.

This article provides a comprehensive overview of Bank of America auto loan offerings, including current rates, eligibility requirements, application steps, and additional benefits like the Preferred Rewards program.

Whether you’re shopping for a new car or looking to lower your monthly payments, understanding these options can help you make informed financial decisions.

Overview of Bank of America Auto Loans

Bank of America Auto Loans provides a variety of auto loan products tailored to different financing needs. These include loans for purchasing new or used cars from dealerships, refinancing existing auto loans, and lease buyout loans.

Notably, as of August 24, 2025, the bank no longer offers loans for private-party vehicle purchases, focusing instead on dealer-based transactions and partnerships with authorized dealers like Carvana, CarMax, and Enterprise Car Sales.

The bank’s auto loans are characterized by competitive rates, no application fees, and a 30-day rate lock guarantee, ensuring borrowers can secure their rate without immediate pressure to finalize their purchase.

Types of Auto Loans

• New Car Loans (Dealer): Financing for new vehicles purchased through Bank of America’s network of authorized dealerships.
• Used Car Loans (Dealer): Loans for used vehicles bought from approved dealers, offering slightly higher rates than new car loans.
• Refinance Loans: Options to refinance an existing auto loan to potentially lower monthly payments or interest rates.
• Lease Buyout Loans: Financing to purchase a leased vehicle at the end of the lease term.
• Access Loans: Specialized loans for wheelchair-accessible vehicles or mobility-modified cars, vans, and light-duty trucks.
• Business Auto Loans: Financing for business-purpose vehicles, with terms ranging from 12 to 60 months.

Each loan type comes with flexible terms of 48, 60, or 72 months, with the possibility of discussing other term lengths with a loan officer post-application.

The minimum loan amount is $7,500 ($8,000 in Minnesota), with a maximum of $1,000,000, accommodating a wide range of vehicle prices.

Current Auto Loan Rates in 2025

As of August 2025, Bank of America Auto Loans offers competitive annual percentage rates (APRs) for its auto loans, assuming excellent borrower credit history.

Rates vary by loan type and are subject to change based on credit score, loan amount, term, state of residence, and applicable discounts. Below are the rates as of August 21–25, 2025, for a 60-month term, as reported by the bank:

• New Car (Dealer): 5.49% APR
• Used Car (Dealer): 5.69% APR
• Refinance: 6.09% APR
• Lease Buyout: 6.09% APR

These rates do not include the Preferred Rewards interest rate discount, which can reduce the APR by up to 0.50% for eligible members. For example, a 5-year, fixed-rate new car loan for $49,000 at 5.49% APR results in 60 monthly payments of $936.

A used car loan for $32,000 at 5.69% APR yields payments of $615, while a $29,000 refinance loan at 6.09% APR requires $562 monthly payments. A lease buyout loan for $26,000 at 6.09% APR results in $504 monthly payments. These examples assume excellent credit and no additional fees, though title and state fees may apply.

Preferred Rewards Program

The Preferred Rewards program offers interest rate discounts based on tier, determined by the combined balance in eligible Bank of America deposit and Merrill investment accounts over the past three months. The tiers and discounts are:

• Gold Tier ($20,000–$50,000): 0.25% discount
• Platinum Tier ($50,000–$100,000): 0.35% discount
• Platinum Honors Tier and Higher ($100,000+): 0.50% discount

For a $49,000 new car loan at 5.49% APR, a Platinum Honors member could secure a 4.99% APR, reducing monthly payments and total interest.

Discounts are applied upon loan approval and are not available for loans sourced through dealerships or third-party relationships.

Eligibility Requirements

Bank of America Auto Loans eligibility criteria ensure that loans are accessible to a broad range of borrowers while maintaining responsible lending standards. Key requirements include:

• Minimum Loan Amount: $7,500 ($8,000 in Minnesota).
• Credit History: Excellent credit is assumed for the lowest advertised rates, though applicants with lower scores may qualify at higher rates.
• Vehicle Restrictions: Loans are limited to vehicles purchased from authorized dealers. Commercial vehicles, salvaged, lemon law, or branded title vehicles are ineligible.
• Applicant Criteria: Applicants must provide accurate financial information, including income and employment details. Discrepancies with credit reports or identity theft alerts may affect approval.
• State of Residence: Rates and terms vary by state, so applicants must specify their banking location for accurate quotes.

Prequalification is available, allowing customers to estimate borrowing capacity without impacting their credit score. This process, requiring a Bank of America login for some users, takes minutes and provides confidence when shopping for a vehicle.

How to Apply Online for a Bank of America Auto Loan

Bank of America Auto Loans online application process is fast, user-friendly, and designed to deliver quick decisions, often within 60 seconds. Here’s a step-by-step guide to applying online in 2025:

1. Visit the Bank of America Website: Navigate to the auto loans section at www.bankofamerica.com. Select the loan type (purchase, refinance, or lease buyout).
2. Prequalify (Optional): Use the prequalification tool to estimate loan terms without a hard credit inquiry. Enter your ZIP code and basic financial details.
3. Complete the Application: Provide personal information (name, address, Social Security number), employment details, income, and vehicle information (if applicable). Select a term length (48, 60, or 72 months).
4. Submit and Receive a Decision: Most applicants receive a decision instantly. If approved, the rate is locked for 30 days, giving time to finalize the vehicle purchase.
5. Finalize at the Dealership: For purchase loans, work with an authorized dealer to complete the transaction. For refinance or lease buyouts, coordinate with your current lender or leasing company.
6. Set Up Payments: Use Bank of America’s online banking or mobile app to manage payments, with options for autopay to ensure timely payments.

No application or documentation fees apply, though title and state fees may be required. Applicants can also apply by phone (844.892.6002), at a financial center, or through authorized dealers.

Benefits of Bank of America Auto Loans

Bank of America Auto Loans offer several advantages that make them appealing in 2025:

• Competitive Rates: Starting at 5.49% APR for new cars, rates are among the lowest for borrowers with excellent credit.
• No Prepayment Penalties: Pay off the loan early without additional costs, saving on interest.
• Fast Decisions: Approvals in as little as 60 seconds streamline the financing process.
• 30-Day Rate Lock: Secure your rate for 30 days, providing flexibility to shop for the perfect vehicle.
• Preferred Rewards Discounts: Save up to 0.50% on interest for eligible members, reducing overall loan costs.
• Authorized Dealer Network: Access over 1 million vehicles through partnerships with dealers like Carvana and CarMax, simplifying the car-buying process.
• Auto Loan Calculator: Estimate monthly payments and compare loan options using the bank’s online tool.

The bank’s integration with Dealertrack allows customers to shop for vehicles and apply for financing in one place, enhancing convenience. Additionally, the absence of application fees and the option for same-day funding make Bank of America a practical choice.

Considerations and Limitations

While Bank of America Auto Loans are competitive, there are some limitations to consider:

• No Private-Party Loans: As of August 24, 2025, loans are restricted to dealer purchases, limiting options for private sales.
• High Minimum Loan Amount: The $7,500 minimum ($8,000 in Minnesota) may exclude buyers of lower-cost used cars.
• Dealer Restrictions: Financing is only available through authorized dealers, which may not include all local dealerships.
• Credit Requirements: The lowest rates require excellent credit, and actual APRs may be higher based on individual factors.
• Potential Fees: While there are no application fees, title and state fees can increase borrowing costs.

Borrowers should compare rates with other lenders, such as credit unions or online platforms, to ensure they secure the best deal. Using Bankrate’s auto loan calculator or exploring credit union options may reveal lower rates for those with average credit.

Additional Tools and Resources

Bank of America Auto Loans enhances the auto loan experience with tools and resources to support borrowers:

• Auto Loan Calculator: Estimate monthly payments based on loan amount, term, and interest rate. For example, a $49,000 loan at 5.49% APR for 60 months results in $936 payments.
• Prequalification Tool: Check eligibility without impacting your credit score, ideal for planning purchases.
• Learning Center: Offers articles on financing, refinancing, and car-buying tips to inform decisions.
• Financial Center Support: Schedule appointments at local branches for personalized guidance.
• Mobile Banking: Manage loans, make payments, and track accounts via the Bank of America app.

These resources empower customers to make informed choices and manage their loans effectively.

Customer Feedback and Market Position

Bank of America Auto Loans has earned a 4.4/5 Bankrate Score in 2025, praised for its all-in-one financing experience through dealerships. Customers appreciate the fast application process and competitive rates, particularly for Preferred Rewards members.

However, some reviews note that the high minimum loan amount and dealer restrictions can be limiting. The bank’s nationwide coverage and partnerships with thousands of dealerships make it a strong contender, though those seeking private-party loans or lower minimums may need to explore alternatives.

Conclusion

Bank of America Auto Loans in 2025 offer a compelling option for financing new or used vehicles, refinancing, or buying out a lease.

With competitive rates starting at 5.49% APR, a seamless online application, and benefits like the Preferred Rewards program, the bank caters to borrowers seeking convenience and value.

While limitations like the lack of private-party loans and high minimums exist, the 30-day rate lock, no prepayment penalties, and extensive dealer network enhance its appeal. By leveraging tools like the auto loan calculator and prequalification, borrowers can confidently navigate the financing process.

For those shopping through authorized dealers or looking to refinance, Bank of America remains a top choice in 2025.