Bank of America does not refinance car loans through a standard refinancing product
Bank of America stopped offering auto refinancing as a standalone service. If you have a car loan with another lender and want to refinance it, Bank of America will not take over that loan. However, Bank of America does offer new auto loans for people buying or leasing vehicles, and you can use that loan to pay off an existing car loan from another bank — which is a workaround that functions like refinancing, though it requires you to go through the full loan application process again.
The distinction matters because true refinancing (where one lender takes over your existing loan and adjusts the terms) is different from taking out a new loan to pay off the old one. Bank of America only does the second thing. If you already have a Bank of America auto loan, you cannot refinance it with them either — you would need to pay it off in full and apply for a new loan if you wanted different terms.
Key Takeaways
- Bank of America does not offer auto refinancing; they only make new auto loans for vehicle purchases or leases.
- You can use a new Bank of America auto loan to pay off an existing car loan from another lender, but this requires a full new application and credit check.
- If you have a Bank of America auto loan and want to change the terms, you must pay it off and apply for a new loan — there is no modification option.
- Other lenders like LendingClub, Lightstream, and some credit unions actively refinance existing auto loans and may offer better rates or terms than Bank of America's new loan products.
How to use a Bank of America auto loan to pay off another lender
If you want to lower your monthly payment or interest rate on a car loan from another bank, you can apply for a new Bank of America auto loan. The process works like this: you borrow money from Bank of America, use it to pay off the existing loan in full, and then make payments to Bank of America instead. This achieves the same result as refinancing, but Bank of America treats it as a new loan, not a modification of an existing one.
You will need to provide Bank of America with your current loan details, including the outstanding balance, the lender's name, and your account number. Bank of America will run a credit check and verify the vehicle's value through their appraisal process. The loan approval typically takes three to five business days, though this varies based on how quickly you submit documents and how straightforward your application is.
The catch is that you pay closing costs on a new loan — usually between $0 and $500 depending on the loan amount and your credit profile. You also start a new loan term, which resets your payment schedule. If you had two years left on your original loan and take out a five-year Bank of America loan, you will be paying for five years, even though you could have been done in two. The monthly payment might be lower, but the total interest paid could be higher.
When Bank of America's new auto loan makes sense
A Bank of America auto loan works best if your current loan has a significantly higher interest rate and you are early in the loan term. For example, if you took out a car loan at 8% interest three years ago and now have five years remaining, and Bank of America offers you 5%, the savings over the remaining life of the loan might justify the closing costs and the reset of your payment schedule.
Bank of America's rates depend on your credit score, the age and mileage of the vehicle, and the loan term you choose. You can check their current rates on their website without a hard credit inquiry, though you will need to submit a full application to see your actual rate. Their rates are competitive but not always the lowest available — credit unions and online lenders often beat them, especially for borrowers with good credit.
Bank of America also offers rate matching in some cases, meaning if you find a lower rate elsewhere, they may match it. This is not may provide and depends on the lender and the specific loan, so ask about it when you apply.
Why other lenders refinance and Bank of America does not
Bank of America's decision to stop offering auto refinancing reflects a shift in their business strategy. Refinancing is less profitable than originating new loans because the lender has less control over the borrower's credit risk — the borrower has already proven they can make payments to another bank. New auto loans, by contrast, let Bank of America assess the full risk profile and charge accordingly.
Lenders like LendingClub, Lightstream, and most credit unions continue to refinance auto loans because it is a core part of their business model. These lenders compete on rate and terms, and refinancing is how they attract borrowers away from other banks. If you are looking to refinance an existing car loan, you will have better luck with these lenders than with Bank of America.
What to do if you want to lower your car payment
Start by checking your current loan terms: your interest rate, remaining balance, and how many months are left. Then get quotes from at least three lenders that offer auto refinancing. LendingClub, Lightstream, SoFi, and most credit unions will give you a rate quote with a soft credit inquiry, meaning it does not affect your credit score. Bank of America will require a hard inquiry, which does affect your score.
Compare the new interest rate against your current rate, the monthly payment difference, and any closing costs. Use an auto loan calculator to see the total interest you would pay over the life of the new loan. If the new loan saves you money even after closing costs, and you can afford the new monthly payment, refinancing makes sense. If the savings are less than $50 per month, the closing costs might not be worth it.
If your credit score has improved since you took out your original loan, you are more likely to may have access to for a better rate. If your credit score has dropped, refinancing may not be possible, or the rate offered might not be much better than what you already have.
Bank of America auto loans for new vehicle purchases
Bank of America does actively make auto loans for people buying new or used vehicles. If you are in the market for a car and want to finance it through Bank of America, you can apply online or at a branch. Their rates are competitive, and they offer terms from 36 to 84 months. You can also get pre-approved before you shop, which tells you how much you can borrow and locks in a rate for a set period (usually 30 to 60 days).
If you already have a car loan with Bank of America and want to refinance it, you would need to pay it off in full first, then apply for a new loan. There is no way to modify the terms of an existing Bank of America auto loan without paying it off.
Frequently Asked Questions
Can I refinance my Bank of America car loan with Bank of America?
No. Bank of America does not offer loan modifications or refinancing for existing auto loans. If you want different terms, you must pay off the loan in full and apply for a new one. Most borrowers in this situation refinance with a different lender instead.
What if I use a Bank of America auto loan to pay off my current loan — will my credit score drop?
Yes, temporarily. Bank of America will run a hard credit inquiry, which lowers your score by a few points. The new loan will also show up as a new account, which can lower your score further. However, your score typically recovers within a few months as you make on-time payments on the new loan.
How long does it take Bank of America to approve an auto loan?
Approval usually takes three to five business days if you submit all required documents upfront. The actual funding and payoff of your old loan can take an additional five to seven business days. During this time, you are responsible for payments on both loans until the old one is paid off.
Are there closing costs when I refinance with Bank of America?
Yes. Bank of America charges closing costs on new auto loans, typically between $0 and $500 depending on the loan amount and your credit. These costs are usually rolled into the loan, meaning you pay them over time with interest.
What lenders actually refinance car loans?
LendingClub, Lightstream, SoFi, Upgrade, and most credit unions refinance existing auto loans. Many of these lenders offer rates competitive with or better than Bank of America's new loan rates, especially if your credit score is good.