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Valued Member
dhrren
Posts: 40
Registered: ‎06-14-2012
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CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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

Regular Contributor
Steelersfan904
Posts: 150
Registered: ‎05-04-2012
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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)



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Valued Member
dhrren
Posts: 40
Registered: ‎06-14-2012
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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.

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steffiejoe
Posts: 80
Registered: ‎09-22-2007
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

 

 

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.

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urbex
Posts: 34
Registered: ‎06-25-2012
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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.

Valued Member
dhrren
Posts: 40
Registered: ‎06-14-2012
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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.

Established Member
Stocks1101
Posts: 17
Registered: ‎12-10-2011
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?


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 =)

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slkenn2009
Posts: 1
Registered: ‎08-04-2012
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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?

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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

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.

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StartingOver10
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Registered: ‎03-06-2010
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Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

[ Edited ]

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. 


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