topic Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH? in Auto Loans

CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

dhrren — Thu, 28 Jun 2012 13:12:34 GMT

Good Morning,

First off I LOVE THIS BOARD. Thanks to you all I went up 80 points in 2 months!

So yesterday I started the car trade in process. I have 2 seemingly good offers.

In this thread I have questions about the CAPITAL ONE BLANK CHECK PROGRAM.

I applied at their website and had to fax in document but i was approved at a very low APR 5.09-8% depending on vehicle age and up to $30,000.

Can someone please provide me with as much information as possible on what exactly this approval mean and how i can use it?

The biggest concern is LTV. They said mine is 110%. What is that? Something about wholesale? Car dealer sell retail?! I am really confused but i want this done by tomorrow. HELP PLEASE!!!

Any information is appreciated.

Thank you,

DRH

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

Steelersfan904 — Thu, 28 Jun 2012 14:43:44 GMT

Loan-to-Value is the maximum amount you are able to finance for a specific vehicle based on that vehicle's actual value. This may be different than your overall maximum loan amount.

LTV is calculated based on the total amount financed divided by Invoice for new vehicles or the NADA or Kelley Blue Book (based on state) wholesale/trade-in value for used vehicles. For example, if you want to purchase a vehicle that is valued at $20,000, and the LTV advance percentage is a 130%, then the maximum allowed check amount would be $26,000.

Googled capital one LTV that is what I came up with, sounds like they will give you a loan for up to 110% of the value of the car (NADA or KBB)

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

dhrren — Thu, 28 Jun 2012 15:02:40 GMT

Thank you for the info. This kinda sucks cause no one sells vehicles at KBB trade in value. This means I will have to put major $$$ down.

Before anyone does a chime in of **well you should put down 20-25%..i know but i won't.*** Any other thoughts? I am guessing I should

probably use my NMAC/Infiniti approval.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

steffiejoe — Thu, 28 Jun 2012 15:13:32 GMT

Are you purchasing a new or used vehicle?

I read on their site they loan up to 30,000, on used cars and 40,000 on a new vehicle.

I would look online for a used vechicle and print out the suggested cost from NADA to see how much mark up they may have in the car. It's hard to know but everything I have researched says dealers make the most money selling used cars. I ended up backing out of my first deal because the dealer was selling the car for way over clean retail.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

urbex — Thu, 28 Jun 2012 16:06:47 GMT

The problem that I see with this is that it's based on the TRADE-IN value, not the suggested retail price of the vehicle. As in what a dealer would offer you for the car if you were to trade it in, which will always be less than what they're selling it for. The dealer will almost always incur some level of cost in preparing a trade in vehicle for sale, so I don't see how the blank check program could be used for a zero or low down purchase, unless the dealer is going to sell the vehicle for less than they paid for it.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

dhrren — Thu, 28 Jun 2012 20:26:58 GMT

Thanks all for the replies. So I did some more googling and it says the wholesale is not the trade in value but its a dealer accessable wholesale value and not a consumer one? This is insane. If it really is trade in value most people would need a 130-150% LTV LOL. ****Can someone who has actually used this please chime in? Thank you.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

Stocks1101 — Thu, 28 Jun 2012 21:17:48 GMT

dhrren wrote:
Thanks all for the replies. So I did some more googling and it says the wholesale is not the trade in value but its a dealer accessable wholesale value and not a consumer one? This is insane. If it really is trade in value most people would need a 130-150% LTV LOL. ****Can someone who has actually used this please chime in? Thank you.

We used the Cap One Blank Check last fall and it was a pain-free, easy process! We live in Nevada so we were allowed 110% of the dealer wholesale value on a used vehicle. As far as our process went (and a friend who used it in Colorado) a trade in value had nothing to do with it. I do know that one of the Cap One reps told me it depends on the state you live in as to whether or not they use wholesale or KBB value. The dealer should be able to give you a wholesale value on a vehicle you are interested in. Good luck =)

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

slkenn2009 — Sun, 05 Aug 2012 03:37:38 GMT

I have a few questions and maybe I missed the answers to these. I'm just chimming in in addition to the question already asked. I have been approved for $19k with cap. one. I already have a vehicle being financed with them and the dealership I bought it from is trying to trade me out for $7200, but another dealership offered me $11500 on their lot and they don't even sell these cars..funny....The $11500 includes rebates or as the original dealer of purchase is telling me the company doesn't have rebates and it's dealer cash, but I'm only going by what the sales guy told me from the dealer that is offering $11500. I have $3K bad equity that has to be rolled over to new vehicle. I guess what I'm trying to find out if someone could explain this to me in layman terms. What does it all mean because they're trying to get me to make a $3 to $4K downpayment. . This is how I'm viewing it and if someone could tell me I'm wrong I would appreciate it or show me how to tackle it when going in to purchase. I see it this way and tell me if I have it all wrong....I have a check for 19K the dealer is taking my vehicle on trade and pays off $11500...So, what they are telling me I only have $16K to spend. So my thing is. If this is the case...I can just sell my car on my own and pay off current loan since car still has good mileage and in great condition for the year, make, and model. I can get $15K on my own to pay it off in the sell. Then take my $19K check which I could probably get more since I only applied for $20K and purchase a car on my own. Would that make more since?

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

webhopper — Sun, 05 Aug 2012 04:17:49 GMT

Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

StartingOver10 — Sun, 05 Aug 2012 14:07:23 GMT

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself (higher rate or longer term or both) with the dealership finance guy. Since you have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

bluerazr — Tue, 07 Aug 2012 01:04:22 GMT

I just used a blank check last week. I got a Ford Edge with all the options. The dealer suggested price was 31,900. NADA values were what I had to go by. My model on NADA was 25,500 for that vehicle with options. 25,500 x 110% is 28,050. 28,050 is the Max I could make the check out for my car. I haggled the price down to $25,500 with the dealer by showing them a similar car at a much lower price. Purchase price plus TTL was under the 28,050 Max so it was under the 110% LTV.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

j_casteel — Tue, 07 Aug 2012 07:13:03 GMT

dhrren wrote:
Good Morning,

First off I LOVE THIS BOARD. Thanks to you all I went up 80 points in 2 months!

So yesterday I started the car trade in process. I have 2 seemingly good offers.
In this thread I have questions about the CAPITAL ONE BLANK CHECK PROGRAM.

I applied at their website and had to fax in document but i was approved at a very low APR 5.09-8% depending on vehicle age and up to $30,000.

Can someone please provide me with as much information as possible on what exactly this approval mean and how i can use it?

The biggest concern is LTV. They said mine is 110%. What is that? Something about wholesale? Car dealer sell retail?! I am really confused but i want this done by tomorrow. HELP PLEASE!!!

Any information is appreciated.

Thank you,

DRH

5.09-8 percent is definitely not a "very low APR"

Like others have stated: trading your vehicle in is causing to immediately have inequity in your new purchase. You can do what you want, but i would wait until you are able to sell your vehicle first and then make the new purchase, or just keep your vehicle pay it off and not have a payment.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

Nix — Tue, 02 Oct 2012 00:02:40 GMT

I guess I am confused as I just got my blank check package from Cap1 and my LTV is only 90% of dealer invoice which is a challenge even with a trade in. Anyone else experience this LTV?

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

pinned388 — Tue, 02 Oct 2012 13:23:42 GMT

I was approved back in 2007 at my local credit union for 70% retail LTV and I had no credit history/no baddies. I was ready to put down a big chunk of money to make up the difference when I found a 2001 F250 XLT diesel crew for $17k with 150k miles, however (IM NOT RECOMMENDING THIS TO ANYONE, DONT TRY IT - ITS FRAUD) the dealer lied to my CU and faxed them a vehicle information sheet that said my truck was a '01 F350 king ranch dually with 50k miles (approx KKB was like $24k) in order for them to finance 100% of the loan for m $17k truck. I didnt find any of this out until I went in to the CU to sign paperwork!

Just sharing my personal experience with LTV

Just do your research before negotiation for a car loan and ALWAYS knock down the price on a car purchase, new or used. Its good to find a dealer DEMO with a few miles on it (less than 10k), those are the best cars to negotiate price. My friend bought a demo 2013 4Runner recently, dealer price was $32k but he argued it was USED and got them down to used retail, then further negotiated it down to about 22k...thats $10k off that he wouldnt have saved if he kept his mouth shut.

So if CAP one say 110% LTV, dont be discouraged or worried, haggle on the cars price and another option is to tell the dealer you have been approved with cap one and see if they can beat that financing...

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

Hammer23 — Tue, 02 Oct 2012 13:55:56 GMT

StartingOver10 wrote:
webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.
+1000
Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?
Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself (higher rate or longer term or both) with the dealership finance guy. Since you have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself.

Trading in a car is not always a big ripoff.

In my state you are taxed on trading difference (Purchase price of t

StartingOver10 wrote:
webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.
+1000
Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?
Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself (higher rate or longer term or both) with the dealership finance guy. Since you have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself.

Trading a car is not always a bad deal. In my state you are taxed on the trading difference (purchase price of the new car minus the trade in allowance on the trade) So if you are trading a vehicle worth $15000 you save $1200 in sales tax.

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

jd5189 — Tue, 02 Oct 2012 14:51:18 GMT

pinned388 wrote:
I was approved back in 2007 at my local credit union for 70% retail LTV and I had no credit history/no baddies. I was ready to put down a big chunk of money to make up the difference when I found a 2001 F250 XLT diesel crew for $17k with 150k miles, however (IM NOT RECOMMENDING THIS TO ANYONE, DONT TRY IT - ITS FRAUD) the dealer lied to my CU and faxed them a vehicle information sheet that said my truck was a '01 F350 king ranch dually with 50k miles (approx KKB was like $24k) in order for them to finance 100% of the loan for m $17k truck. I didnt find any of this out until I went in to the CU to sign paperwork!

Just sharing my personal experience with LTV

Just do your research before negotiation for a car loan and ALWAYS knock down the price on a car purchase, new or used. Its good to find a dealer DEMO with a few miles on it (less than 10k), those are the best cars to negotiate price. My friend bought a demo 2013 4Runner recently, dealer price was $32k but he argued it was USED and got them down to used retail, then further negotiated it down to about 22k...thats $10k off that he wouldnt have saved if he kept his mouth shut.

So if CAP one say 110% LTV, dont be discouraged or worried, haggle on the cars price and another option is to tell the dealer you have been approved with cap one and see if they can beat that financing...

Wow! Any the CU did not say anything when the title came in and did not match the original paperwork? Slick dealer!

Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

pinned388 — Fri, 05 Oct 2012 21:46:41 GMT

Nope, and I was young and dumb so I just kept my mouth shut. These days I would point something like that out because doing whats right is the best thing a person can do in life, even if nobody is going to notice.