Bank of America does offer auto loan refinancing, but only if you already have an auto loan with them or meet their current lending standards
Bank of America will refinance an existing auto loan you hold with them, replacing the old loan with new terms and a new interest rate. They will also refinance auto loans from other lenders, though the process and approval depend on your credit history, income, and the age and condition of the vehicle. The interest rate you receive is not may provide and will be based on what Bank of America determines at the time you request it.
Refinancing means taking out a new loan to pay off an old one. The main reason people refinance is to lower their monthly payment or reduce the total interest they pay over the life of the loan. Bank of America offers this as a service, but you will need to meet their lending standards and provide documentation about your vehicle and finances.
Key Takeaways
- Bank of America refinances auto loans from other lenders, not just loans they originally issued.
- Your new interest rate depends on your credit score, income, employment history, and the vehicle's age and condition.
- You can start the process online, by phone, or in person at a Bank of America branch.
- The vehicle must typically be less than 10 years old and have fewer than 100,000 miles, though these limits vary.
- Refinancing takes one to two weeks from process to funding in most cases.
What documents you will need to gather
Before you contact Bank of America, collect your current loan documents. You will need the loan number and account information from your existing auto loan, whether it is with Bank of America or another lender. Have your vehicle identification number (VIN) available — this is on your registration and insurance card.
Bank of America will also ask for proof of income, usually a recent pay stub or tax return. If you are self-employed, bring two years of tax returns. You will need your driver's license and proof of residence, such as a utility bill or lease agreement. Have your current auto insurance information ready as well, since Bank of America requires you to carry full coverage on any vehicle you refinance with them.
Vehicle age and mileage limits
Bank of America typically will not refinance vehicles older than 10 years from the current model year, though this can vary depending on the vehicle's condition and your credit profile. The vehicle should have fewer than 100,000 miles on the odometer. If your vehicle is older or has higher mileage, you can still contact Bank of America to ask — some loan officers have flexibility, particularly if you have a strong credit history with them.
The vehicle must also be in good working condition. Bank of America may require an inspection or appraisal to confirm the car's value, especially if you are refinancing a loan from another lender. This protects both you and the bank by ensuring the vehicle is worth enough to find the loan.
How the interest rate is determined
Your interest rate depends primarily on your credit score. The higher your score, the lower the rate Bank of America will offer. Your employment history, income level, and the amount you owe on the vehicle also factor in. If you owe more than the vehicle is worth, refinancing becomes harder and your rate will be higher.
Bank of America publishes current auto refinance rates on their website, but those are sample rates for borrowers with strong credit. Your actual rate will be different based on your individual situation. The bank will give you a specific rate quote once you submit your process and they review your information. You are not locked into that quote until you formally accept the loan terms.
Where to start the refinancing process
You can begin by visiting a Bank of America branch in person, calling their auto lending department, or starting online through their website. If you already bank with Bank of America, logging into your account may show you refinancing options. The online process is usually fastest — you can submit your information and receive a decision within one business day in many cases.
When you contact them, have your current loan information and vehicle details ready. A loan officer will walk you through what documents they need and explain the terms they are offering. If you do not like the rate or terms, you can decline without penalty. There is no cost to get a quote or explore.
Timeline from process to funding
Once you submit your process, Bank of America typically reviews it within one to two business days. If they need additional information, they will contact you. After approval, the bank will contact your current lender to request a payoff amount and arrange payment. This process usually takes five to ten business days.
The entire process from process to receiving funds in your account normally takes one to two weeks. Your current loan will be paid off automatically, and you will begin making payments on the new Bank of America loan according to the schedule they provide. Make sure you do not miss a payment on your old loan while the refinance is processing.
When refinancing makes financial sense
Refinancing is worth considering if your new interest rate will be at least one percent lower than your current rate. Use a loan calculator to compare your current monthly payment against what Bank of America is offering. Factor in how many months are left on your current loan — if you only have a year or two remaining, refinancing may not save you enough to justify the paperwork and time.
Refinancing also makes sense if you need to lower your monthly payment because your financial situation has changed. A longer loan term will reduce your monthly cost, though you will pay more interest overall. Bank of America can show you different term options — typically 36, 48, 60, or 72 months — so you can see the trade-offs.
Frequently Asked Questions
Can I refinance a car loan if I have bad credit?
Bank of America may still work with you, but your interest rate will be higher than what borrowers with good credit receive. If your credit score is very low, you might not be approved. Consider checking your credit report for errors before explore, and ask Bank of America what credit score range they typically work with.
What if I still owe more than my car is worth?
This situation is called being "underwater" on your loan. Bank of America can still refinance you, but they may require you to pay the difference upfront or roll it into the new loan, which increases what you owe. Ask them about their policy on negative equity before you explore.
Will refinancing hurt my credit score?
A hard inquiry for a refinance will temporarily lower your score by a few points, usually recovering within a few months. Paying off your old loan and opening a new one may also affect your score briefly. Over time, making on-time payments on the new loan will help your credit recover and improve.
Can I refinance if I am behind on my current loan payments?
Bank of America will not refinance a loan you are currently behind on. You will need to bring your account current first. Contact your current lender to discuss a payment plan if you are struggling to catch up.
Do I have to use Bank of America if I already bank there?
No. Being a Bank of America customer may help you get approved or receive a slightly better rate, but you are not required to refinance with them. You can shop around with other lenders to compare rates and terms before deciding.