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DirtyRaceGirl
Posts: 6
Registered: ‎01-17-2011
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Auto interest rates with Capital One - need input!

I have 2 auto loans with Capital One, each with an interest rate of 8.75%, both with auto pay, so no delinquencies.  One is due to be paid off in May of 2012, the other in January 2013.  Both vehicles have 6-7K of positive equity.

 

I would like to trade the gas guzzling truck in for a more economical car.  Car price is $17,300.  Trade in value $13.500 with $6600 owed, so needing to finance 11K for new vehicle, and want to do a 36 month loan (which are the terms of one of my current loans, which was 11K to start with as well). 


Capital one approved me, but at a rate of 13.5%..........what the heck?  My credit is better than when I purchased the last car, and my income/debt ratio is unchanged.  Straight up FICO score is 650, with discharged bankruptcy 7 years ago, and the bankruptcy was not discharged when I qualified for the loan at 8.75% with Capital One.


I would assume the higher interest rate is based on the fact that Capital One does not know that I will be paying one of the current loans off - is there a way to circumvent this, or will Capital One accept documentation from the dealer in regards to the trade in/payoff amount and lower the rate?

 

Any info would be much appreciated!  Want to avoid asking the dealer for financing, since they certainly could potentially not be upfront with a good financing deal.

"You think you know, but you have NO idea......."
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ibmrad7
Posts: 617
Registered: ‎12-11-2010
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Re: Auto interest rates with Capital One - need input!

Does Capital one give you any special treats like gifts and free dinners? lol...

 Just try your local CU, you will get much much much better rates... possibly less than 4%


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DirtyRaceGirl
Posts: 6
Registered: ‎01-17-2011
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Re: Auto interest rates with Capital One - need input!

Ha Ha on the gifts and dinner!  Truthfully, I don't have the best credit, and I would have been happy with the same rate I have now, but my gosh, I have ONE late car payment on my credit from December 2007 (only 30 days) and 6 paid off auto loans, some WITH Capital One and I didn't expect to have an approval with an interest rate that increased by 5%!

"You think you know, but you have NO idea......."
Established Contributor
ibmrad7
Posts: 617
Registered: ‎12-11-2010
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Re: Auto interest rates with Capital One - need input!

I think you will easily get an approval from CU. Time to say buh bye to CAP ONE.

Did you run your FICO score here? How much is it?


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DirtyRaceGirl
Posts: 6
Registered: ‎01-17-2011
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Re: Auto interest rates with Capital One - need input!

Can you join a credit union and then apply for a loan right away, or join in conjunction with the loan application?

"You think you know, but you have NO idea......."
Established Contributor
ibmrad7
Posts: 617
Registered: ‎12-11-2010
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Re: Auto interest rates with Capital One - need input!

It works both ways I guess. depends on CU though, I joined mine only to get my 14.99% APR loan refinancing... applied same day and got approved. 


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DirtyRaceGirl
Posts: 6
Registered: ‎01-17-2011
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Re: Auto interest rates with Capital One - need input!

FICO was 603.........Terrible because of my student loan balance - it's killing my DTI ratio I guess.

 

Maybe a better choice to hold off on purchasing a new vehicle right now and using income tax return to pay off small credit cards and pay the remainder on student loan.  I just worry that gas will keep going up, and that it will be harder for me to get a good trade offer on a truck, with the economy being so bad.

"You think you know, but you have NO idea......."
Established Contributor
ibmrad7
Posts: 617
Registered: ‎12-11-2010
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Re: Auto interest rates with Capital One - need input!

603 is little low but CU's would definitely take a shot on you.. Do you race? :smileytongue:


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DirtyRaceGirl
Posts: 6
Registered: ‎01-17-2011
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Re: Auto interest rates with Capital One - need input!

Raced powerboats for awhile, but I'm strictly a spectator now :smileytongue:  Anything on dirt is fun to watch......lol!  Perhaps if I can get my new Zoom Zoom I can turn it into a drifter.....haha!

"You think you know, but you have NO idea......."
Established Contributor
ibmrad7
Posts: 617
Registered: ‎12-11-2010
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Re: Auto interest rates with Capital One - need input!

Ahhh Thats nice :smileyhappy:

I got my Zoom Zoom last week only :smileyhappy:


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