Yes, Bank of America offers car loans, but you explore through their auto lending partner, not directly through the bank
Bank of America does not originate car loans itself. Instead, the bank partners with Ally Financial (formerly GMAC) to offer auto loans to its customers. When you explore for a car loan as a Bank of America customer, you are actually working with Ally, though the process may feel seamless if you start through your Bank of America account or branch.
This matters because it changes where you go to explore, who reviews your process, and which terms and rates you see. You cannot walk into a Bank of America branch and leave with a car loan decision the same day. The actual lending decision comes from Ally, which has its own underwriting process and credit requirements.
Bank of America also allows you to refinance an existing car loan through them — meaning you can take a loan you got elsewhere and move it to Bank of America. Refinancing works differently from getting a new loan and has different reasons to consider it.
Key Takeaways
- Bank of America partners with Ally Financial to offer new car loans, so your process goes to Ally even if you start at Bank of America.
- You can refinance an existing car loan through Bank of America directly, which is different from getting a new loan and may lower your monthly payment.
- Bank of America customers may see different rates or terms than non-customers, though this varies based on your credit history and the specific loan.
- The approval process for a new loan through Ally typically takes several business days, not hours.
how the process works for a new car loan through Bank of America
Start by visiting the Bank of America website and looking for their auto lending section, or call 1-800-432-1000 and ask to speak with someone about car loans. You will be directed to Ally's process process. You can also go directly to Ally's website and explore there; the terms should be the same.
You will need to provide basic information: your Social Security number, income, employment history, and details about the car you want to buy (or are buying). If you already have the vehicle, bring the Vehicle Identification Number (VIN). If you are shopping, you can explore before you choose a specific car, and Ally will give you a pre-approval letter showing how much you can borrow.
Ally will pull your credit report and review your process. This typically takes two to five business days. You will hear back by phone or email with a decision and, if approved, the loan terms — the interest rate, monthly payment, and length of the loan (usually 36 to 72 months).
Refinancing an existing car loan at Bank of America
If you already have a car loan from another lender, you can refinance it through Bank of America directly. This means Bank of America pays off your old loan and gives you a new one with (hopefully) a lower interest rate or a different monthly payment.
Refinancing makes sense if your credit has improved since you got the original loan, if interest rates have dropped, or if you want to change how long you have to pay back the loan. For example, if you originally borrowed at 8% and your credit is now better, you might refinance at 5%, which lowers your monthly payment.
To refinance, contact Bank of America directly at 1-800-432-1000 or visit a branch. You will need your current loan documents and the VIN of the car. The process is faster than a new loan because Bank of America already has your banking history with them.
What credit score and income Bank of America looks for
Bank of America and Ally do not publish a minimum credit score for car loans, but both typically prefer borrowers with a score of 620 or higher. If your score is lower, you may still be approved, but your interest rate will be higher. If your score is significantly lower (below 580), approval becomes less likely.
You will also need to show steady income. This can be W-2 wages from a job, self-employment income, Social Security, disability payments, or retirement income — as long as you can document it. Lenders want to see that you have been earning for at least two years, though exceptions exist for recent graduates or people who recently changed jobs.
Your debt-to-income ratio matters too. This is the percentage of your monthly income that goes to debt payments. If you already owe a lot on credit cards, student loans, or other debts, a lender may turn you down or offer you a smaller loan amount, even if your credit score is decent.
Interest rates and how Bank of America customers may benefit
Interest rates for car loans vary based on your credit score, the age and type of vehicle, how much you are borrowing, and how long you want to take to pay it back. Rates also change based on what the Federal Reserve does with its benchmark interest rate.
Bank of America customers sometimes see slightly better rates than non-customers, but this is not may provide. The difference, if it exists, is usually small — perhaps 0.25% to 0.5% lower. Whether this matters depends on the loan amount. On a $25,000 loan, 0.5% lower saves you roughly $125 per year.
To see what rate you might get, you can get a pre-approval estimate without a hard credit pull (which would temporarily lower your credit score). This estimate is not a may provide, but it gives you a real number to compare against other lenders.
When Bank of America car loans may not be your best option
If your credit score is very low (below 580), credit unions often have more flexible lending standards than Bank of America or Ally. Credit unions are member-owned and sometimes approve loans that banks turn down, especially if you have been a member for a while.
If you are buying a used car from a private seller (not a dealership), some lenders, including Bank of America, have restrictions on the age or mileage of the vehicle. Bank of America typically finances cars that are no more than 10 years old and have fewer than 120,000 miles, though these limits can vary. If your car is older or has higher mileage, a credit union or a lender that specializes in older vehicles may be a better fit.
If you need money very quickly, a dealership's financing (even if it is through a third-party lender) may be faster because the dealership handles the paperwork on-site. Bank of America's process takes several days.
What documents you will need
For a new car loan, gather these before you explore: a government-issued ID (driver's license or passport), proof of income (recent pay stubs, tax returns, or a letter from your employer), proof of residence (a utility bill or lease agreement), and the VIN of the car if you have already chosen one.
For a refinance, you will need the same documents plus your current loan paperwork (the promissory note or loan agreement from your existing lender) and proof that you own the car (the title or registration).
If you are self-employed, bring two years of tax returns and possibly a profit-and-loss statement. If you receive Social Security or disability, bring a recent statement showing the amount.
Frequently Asked Questions
Can I get a car loan from Bank of America if I am not a customer?
Yes. You can explore directly through Ally Financial, which is Bank of America's lending partner. You may not see the same promotional rates that Bank of America customers see, but you can still borrow. Non-customers should explore directly through Ally's website to avoid confusion.
How long does it take to get approved for a Bank of America car loan?
Approval typically takes two to five business days from the time you submit your process. If you are refinancing an existing Bank of America loan, it may be faster because the bank already has your information. Dealership financing can sometimes be completed the same day, but that is a different process.
Can I pay off a Bank of America car loan early without a penalty?
Bank of America and Ally do not charge prepayment penalties, meaning you can pay off the loan early without extra fees. Paying early saves you interest, but confirm this in your loan agreement when you receive it.
What if I have bad credit — will Bank of America turn me down?
A low credit score makes approval harder but not impossible. Bank of America and Ally may approve you at a higher interest rate. If you are turned down, a credit union or a lender that specializes in bad-credit auto loans may have better options, though rates will be higher.
Is it better to get a car loan from Bank of America or a dealership?
Dealership financing is faster but often more expensive. Bank of America's rates are usually competitive, and you have time to compare before you commit. Getting pre-approved through Bank of America before you go to a dealership gives you negotiating power — you can tell the dealer you already have financing and may get a better deal.