Approved for Cap1 blank check..will dealer know my interest rate?

[wyattm]

Wondering if the dealership I decide to go to will know what my interest rate is? Can they find that info out? I'm hoping to use it as a negotiating tool as the rate they gave me is pretty high, but I don't want them to know that. Anybody have experience with the blab check program and negotiating? Thank you!

[Remember0]

I don't know for sure, but I'm going to guess off hand no. There's a small chance it'll be in their system when they run your credit application through their lenders. Another thing you can do is to just pretend the approval came from a smaller CU (like DCU) from another state. Dealer definitely won't be able to tell either way then. Just be careful not to use an interest rate over 16% if you say it's from a CU (which is why I prefer saying local bank).

[Slim1Der]

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@wyattm wrote:
Wondering if the dealership I decide to go to will know what my interest rate is? Can they find that info out? I'm hoping to use it as a negotiating tool as the rate they gave me is pretty high, but I don't want them to know that. Anybody have experience with the blab check program and negotiating? Thank you!

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When we get Capitol One black check customers, we never know the rate they have unless they tell us. Even though Capitol One is one of our lenders, they wont tell us either since they want them to use the blank check and not finance through us. You really don't have to do anything with that blank check except endorse it and put the VIN number on it.

From my experience though, those Capitol One black checks come with a very conservative rate that we can usually beat. The dealership, depending how long they've been in business, usually has great relationships with lenders that only do auto financing so if they needed to ask for a favor to beat a rate in order to capture financing, they can usually get it. Go ahead and use it to negotiate, they're going to do anything and everything to earn your business. I know we do!

[pipeguy]

I always and I mean always have pre-approved financing in my pocket when I get ready to sign on the line for a new car - and I've bought a lot of cars over my lifetime. I've used Capital One Blank Checks, I've used "pre-approved" quotes from my bank and I've used pre-approved loans from PFCU and other CU's.

I also always tell the dealer, and back it up with a printed copy of the approval or blank check (Cap-1) what the rate is with the offer to let the dealer beat the rate and take the financing or if they can't beat it to know my deal with go through so they do't have to worry about me wasting their time. I also understand that the dealer will make money if they finance, but I don't really care as long as I get a lower rate or at least the lowest possible rate.

This system works - my last new car was 5/2013 and the dealer beat the Blank Check (Cap-1) by 1.75% which sealed the deal for me since I was not as happy as I wanted to be with the trade offer they made and I'd pushed as far as I could in making the deal. My truck had 263,000 miles on it and I really needed a new car which ended up going through Ally (GMAC) which I already had a history with - we made the deal at 8:30 at night on a friday night at the end of the month (floor plan and bonus time, but that's another story). 

Less than 10% of the time the dealer has not been able to beat my pre-approved rate (my credit has not always been sterling, so a 1.95% PFCU rate was not always an option). Bottom line is use your pre-approved status to your advantage because if you don't you are leaving money on the table.