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What is a loan from a bank

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Auto Loan FAQs

Get the answers you need to common questions about new, used and refinance auto loans

Bank of America offers a variety of auto loan types:

  • Dealer purchases (when you purchase a new or used car at a dealership)
  • Refinancing of current auto loans
  • Lease buyouts (when you decide to purchase your leased vehicle)
  • Private party (when you purchase a vehicle from another individual). You can apply for a private party loan by visiting a financial center.

Yes. The following vehicles are not eligible for financing:

  • Vehicles older than 10 calendar years
  • Vehicles with 125,000 miles or more
  • Vehicles valued at less than $6,000 (based on franchise dealer invoice for new vehicles or the wholesale value from an official used car value guide such as NADAguides layer for used vehicles)
  • Vehicles used for commercial and/or business purposes (we do offer small business auto loans through our Business Advantage product)
  • Commercial vehicles
  • Salvaged or branded-title vehicles
  • Gray market or lemon law vehicles
  • Conversion or delivery vehicles
  • Motorcycles, recreation vehicles (RV), boats or aircraft

The applicant (and any co-signer) must be at least 18 years of age (19 in Alabama or Nebraska) and must live in the U.S. as a U.S. citizen, resident alien or non-resident alien.

Yes. Bank of America car loans are available in all 50 states and the District of Columbia.

Specific terms for your auto loan are determined by a variety of factors, but you should be aware of the following:

  • The minimum amount we finance is $7,500 ($8,000 in Minnesota)
  • Term limitations may apply
  • Loan-to-value restrictions apply
  • A down payment may be required
  • Title and state fees may apply
  • A loan fee may apply in Indiana and Ohio

No — Bank of America does not enforce prepayment penalties for automobile financing accounts that it services.

Vehicle is considered new when it meets both of the following criteria:

  • Never been titled or registered with the DMV or any other appropriate agency
  • Odometer (if applicable) has less than 6,000 miles

Note – Prior year untitled vehicles must be considered used as of March 1 of the current year (Example: a 2017 model is considered used as of March 1, 2018)

You can apply for your auto loan online in just a few minutes. There’s no fee to apply and most decisions are available in about 60 seconds. In cases where applications require a more detailed review, we’ll send you an email when the decision is ready.

You can also schedule an appointment at your local financial center to meet with us at your convenience or contact us at 844.892.6002 to apply over the phone.

You can also schedule an appointment at your local financial center to meet with us at your convenience or contact us at 844.892.6002 to apply over the phone.

No. Bank of America does not charge you an auto loan application fee.

When you apply for an auto loan with Bank of America, you’ll be asked to provide personal information such as your name, address, Social Security number, employment information, income, U.S. citizenship status and email address.

Depending on the specifics of your loan request, the following documents may be required prior to closing: purchase agreement/bill of sale, registration, title, lease buyout instructions, proof of income, federal tax returns, W-2s and financial statements.

For refinance loans and lease buyouts, we require specific vehicle information such as make, model, year, mileage and vehicle identification number (VIN).

If you have frozen your credit report due to security concerns, you will need to temporarily unfreeze with all three credit bureaus (Equifax, TransUnion and Experian) to proceed with an auto application. Please refer to the instructions provided when you froze your report or contact the individual bureaus for more information.

You can access your saved application for 30 days. If you’re already a Bank of America Online Banking customer, you can also access your saved application when you sign in.

Most decisions are available in about 60 seconds. In cases where applications require a more detailed review, we’ll send you an email when the decision is ready.

Your loan approval and interest rate are locked in for 30 calendar days from the date of your original loan submission.

You can securely check the status of your car loan application anytime. We will also send you an email when a decision about your application has been made.

Yes. Your purchase loan approval and interest rate are locked in for 30 calendar days from the date of your original loan submission, which means you know before you shop exactly how much car you can afford.

As a Preferred Rewards client, you are eligible to receive an interest rate discount on a new Bank of America ​auto purchase or refinance loan.

  • Gold – 0.25%
  • Platinum – 0.35%
  • Platinum Honors – 0.50%

You must be enrolled in Preferred Rewards at the time of application to receive the discount. The discount will be reflected in the interest rate presented to you upon loan approval.

You have a few options when using Bank of America to buy a car:

    Franchise dealers

Franchise dealers sell new and used cars for auto manufacturers such as Ford В® , General Motors В® , Chrysler В® , Honda В® and others.
Approved independent dealers

Independent dealers are not affiliated with auto manufacturers. Bank of America only finances vehicles purchased from the following independent dealers: CarMax В® , Hertz Car Sales В® , Enterprise Car Sales and Carvana.
Private party

You can purchase a vehicle from another individual via a private party loan. Online Banking customers may apply online for a private party loan. If you’re not currently enrolled in Online Banking, please visit a financial center or schedule an appointment to apply for your loan. Please be aware that there are additional requirements for private party loans including:

  • The seller(s) must be the same as the registered owner(s) listed on the vehicle title
  • The vehicle must be purchased directly from the seller/owner (consignment sales are not eligible for financing)

Regardless of who you purchase your car from, be sure to review what to do once approved.

You can save time and effort when you shop for your next vehicle online through our extensive participating dealer network . Choose your car and financing online, then visit the dealership to take a test drive and finalize the paperwork. You can even change your mind at any time about the vehicle you want. (Not available in all states.)

Special rate programs can be very attractive if they’re offered for the specific car you want and they provide you with appropriate loan terms, but sometimes the terms are too restrictive or you may want different terms.

Dealers often offer cash rebates as an alternative to low interest rates. Choosing the cash rebate and financing with us may be a better option for you: By choosing the rebate, applying it to your down payment and combining that with low-rate financing from us, you can maximize your total savings.

Refinancing your existing auto loan may offer you 1 of 2 potential benefits. First, refinancing may reduce your monthly payment through lowering your interest rate, extending your loan term, or both. Or, refinancing may help you to reduce the overall amount of interest paid .

Yes, and you can refinance your existing auto loan whether it’s through Bank of America or another financial institution.

Yes, but if your current loan’s payoff balance is more than the car’s current value, you may be asked to pay the difference as a requirement for getting your auto loan refinanced.

A lease buyout is a purchase of the vehicle that you are currently leasing.

Customers purchasing a vehicle that they’re currently leasing in their name are eligible for a lease buyout. Financing is not available for customers who wish to finance a vehicle leased by another individual or if the lease buyout request involves a name change.

A lease buyout allows you to keep driving the car that you know. It also may allow you to avoid end-of-lease fees such as mileage and/or excess wear and tear. Refer to the terms of your lease agreement, which can be obtained from your current leasing company, for details regarding any fees upon termination of your lease.

You may not have to wait until the end of your lease to do a lease buyout. Refer to the terms of your lease agreement, which can be obtained from your current leasing company, for details regarding any fees upon termination of your lease.
Get more information on lease buyout loans

Purchasing from a Bank of America authorized dealer can help streamline your car buying process.

  1. Find an authorized dealer near you.
  2. Choose your car and present your printed approval letter at the dealership. Your approval letter can be accessed at bankofamerica.com/loanstatus. Contact a loan specialist using the phone number provided to you with your approval if it does not appear.
  3. Sign documents and drive home in your new car.
  4. Don’t hesitate to contact a loan specialist using the phone number provided to you with your approval if you have questions at any point in the process.

You can also purchase a vehicle from a dealer that’s not part of our authorized dealer program if the dealer sells cars for auto manufacturers such as Ford ® , General Motors ® , Chrysler ® , Honda ® and others.

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist, including your dealer purchase agreement.
  3. Coordinate payment of funds to dealer with a loan specialist.
  4. Drive home in your new car.

Independent dealers are not affiliated with auto manufacturers. Bank of America only finances vehicles purchased from the following independent dealers: CarMax В® , Hertz Car Sales В® , Enterprise Car Sales and Carvana.

Purchasing from CarMax В® or Hertz Car Sales В® ?

  1. Choose your car and present your printed approval letter at the dealership. Your approval letter can be accessed at bankofamerica.com/loanstatus. Contact a loan specialist using the phone number provided to you with your approval if it does not appear.
  2. Sign documents and drive home in your new car.
  3. Contact a loan specialist using the phone number provided to you with your approval if you have questions at any point in the process.

Purchasing from Enterprise Car Sales or Carvana?

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist, including your dealer purchase agreement.
  3. Coordinate payment of funds to dealer with a loan specialist.
  4. Drive home in your new car.

You can purchase a vehicle from another individual using a private party loan. Online Banking customers may apply online for a private party loan. If you’re not currently enrolled in Online Banking, please visit a financial center or schedule an appointment to apply for your loan.

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist, including title or registration and the seller’s payoff letter from the seller’s existing financing source (if applicable).
  3. Receive a check made payable to the seller. (Any outstanding lien balance will be paid to the lien holder and any remaining funds will be sent by check or direct deposit for Bank of America checking customers.)
  4. Provide check to the seller to take delivery of your car.

We will provide you detailed next steps on how to complete the title process once the loan is complete.

Please be aware that there are additional requirements for private party loans including:

  • The seller(s) must be the same as the registered owner(s) listed on the vehicle title
  • The vehicle must be purchased directly from the seller/owner (consignment sales are not eligible for financing)

Did you find your car through our online car shopping process ? Here are the next steps:

  1. Connect with the dealership – they will call once they receive your information, or you can contact them using the dealership information provided with your loan approval.
  2. Provide the dealership with a copy of your printed approval letter. Your approval letter can be accessed at bankofamerica.com/loanstatus. Contact a loan specialist using the phone number provided to you with your approval if it does not appear.
  3. The dealership will have your information, including the car you’re interested in, and can make any updates instantly. This even includes changing your mind about the car you want to take home.
  4. Sign the documents and drive home in your new car.

If you have any questions, or if you choose to purchase a car at another dealership, contact one of our loan specialists using the number provided to you with your approval.

Not available in all states.

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist, including current registration and 10 day payoff letter.
  3. Payment will be sent to lien holder.

We will provide you detailed next steps on how to complete the title process once the loan is complete.

  1. Speak with one of our loan specialists using the phone number provided to you with your approval.
  2. Submit documents requested by the loan specialist, including current registration and lease buyout package obtained from your current leasing company.
  3. Payment will be sent to your current leasing company.
  4. You may need to speak with your current leasing company to finalize the termination of your lease.

We will provide you detailed next steps on how to complete the title process once the loan is complete.

Note: Customers purchasing a vehicle currently being leased in their name are eligible for a lease buyout. Financing is not available for customers who wish to finance a vehicle leased by another individual or if the lease buyout request involves a name change.

Within 10-15 business days after your closing date, you’ll receive a welcome package containing the following:

  • A letter welcoming you to Bank of America
  • Information about your account including your account number, the date your first payment is due and confirmation of your monthly payment amount
  • Instructions on how to sign up for automatic payments
  • Information about Online Banking features and benefits
  • Contact information for auto loan customer service

You can enroll in Online Banking in just a few minutes. You may also want to consider downloading the top-rated Bank of America Mobile Banking app so you can easily manage your auto loan on the go.

Your paper statement is mailed each month 20 days prior to your due date, unless you decide to set up automatic payments through Online Bill Pay, in which case you won’t receive monthly paper statements. With Online Bill Pay, you can schedule recurring or one-time bill payments from your checking or money market accounts.

You can also sign up for electronic bills by signing in to Online Banking and selecting eBills from the Bill Pay navigation menu.

Yes. Simply sign in to Online Banking and select the Automobile Loan link provided under the Personal accounts heading on your accounts overview page. On your loan overview page, select the Statements & Documents tab. You can access up to 18 months of loan statements.

You have multiple auto loan payment options:

  • Pay using Bill Pay: If you’re an Online Banking customer, you can sign in to set up payments through Bill Pay. With Bill Pay, you can schedule recurring or one-time bill payments from your checking or money market accounts.
  • Pay by phone: You can call 800.215.6195 to pay by phone 24/7. Please note that same-day payments cannot be canceled.
  • Pay by mail: You can mail your car loan payment to: Bank of America, N.A., PO Box 15220, Wilmington, DE 19886-5220. Be sure to include your loan account number along with your payment.
  • Pay in person: You can always pay your auto loan in person at one of our financial centers.

If you don’t have a Bank of America deposit account, you may be able to set up electronic payments to your auto loan from your account at another financial institution.

If you’re an Online Banking customer, you can sign in to set up payments through Online Bill Pay. With Online Bill Pay, you can schedule recurring or one-time bill payments from your checking or money market accounts.

You can also use the paper signup form included with your welcome package. Include a voided check and mail or fax it to the location indicated on the form.

After signing up, you’ll receive a letter in the mail within 3-4 weeks confirming the start date for your automatic payments to be made. In order to avoid any late charges, please continue to make your payment as usual until you receive the confirmation letter.

Important note: When scheduling automatic payments, you only need to enroll using one method (either the paper signup form or Online Banking). Submitting the paper form and also signing up in Online Banking can result in multiple payments being made from your account each month.

There are 2 easy ways to obtain a letter detailing the interest you paid last year on your car loan:

  • Sign in to Online Banking and select the Automobile Loan link provided under the Personal accounts heading on your accounts overview page. Then, in the column marked Manage your loan at the top of the page, select the Last year interest paid letter link. This will open the letter in your browser and you can print it for your records.
  • Contact us at 800.215.6195 and ask for a faxed or mailed copy of your interest paid last year information

Interest on your loan accrues daily. It is for this reason that the portion of your monthly payment allocated to interest may fluctuate to match the number of days in each month. To calculate the interest due on your loan, follow these steps:

  1. Obtain the new principal balance of your loan from your Online Banking Account Services page or the automated phone service.
  2. Multiply your principal balance by your interest rate. Divide your answer by 365 days (366 days in a leap year) to find your daily interest accrual or your per diem.
  3. Multiply this amount by the number of calendar days that have elapsed since the date of your last payment to find your interest due.

Here is an example:

  1. $10,000 principal balance.
  2. $10,000 multiplied by 8.5% interest divided by 365 days in the year = $2.33 per diem.
  3. $2.33 multiplied by 33 days elapsed since the date of your last payment = $76.85. This portion of your payment will be allocated to interest accrued.

Sign in to Online Banking and select the Contact us link from the Help & Support navigation menu.

Sign in to Online Banking and select the Automobile Loan link listed under Personal accounts on your accounts overview page. You can also select the Quick View link beneath the automobile loan listing on your accounts overview page.

You have multiple loan payoff options:

  • Pay using Bill Pay: If you’re an Online Banking customer, you can sign in to make a payment through Online Bill Pay.
  • Pay by phone: You can call 800.215.6195 to pay by phone 24/7. Please note that same-day payments cannot be canceled.
  • Pay by mail: You can mail your car loan payoff amount to: Bank of America, N.A., PO Box 15220, Wilmington, DE 19886-5220. Be sure to include your loan account number along with your payment.
  • Pay in person: You can pay off your auto loan in person at one of our financial centers.

If you don’t have a Bank of America deposit account, you may be able to set up an electronic payoff of your auto loan from your account at another financial institution.

In most situations you can expect to receive your lien release, paid-in-full letter and title (if the title is available) within 7-10 business days after we receive and process your payoff. If the title is electronic or other conditions apply, our letter will detail the process to obtain the title and ensure that the lien release is properly recorded.

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SOURCE: http://www.bankofamerica.com/auto-loans/auto-loan-faq/

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