Cap One Blank Check process

[giants1986]

 I was approved on Saturday for the Capital One blank check and it should be arriving tomorrow. I already have a deposit ($500) on the car but I am waiting to hear from the dealer on whether or not they can beat the rate Cap One gave me. I received a call today and it sounded like the dealer was saying that even with the Cap One check they may want more down on the car.

Is this something normal or is the dealer trying to get more cash out of me when it is not needed? I would think that since the price of the car is well under what Cap One approved me and they haven't asked me to put anything down I shouldn't have to put any more money down unless I wanted to. 

Can anyone shed some light here?

[coreyb80]

The only reason I can think for them wanting more money is them assuming that the car costs more than the amount you were approved for w/ Cap one.  If your check covers the car then there would be no reason for anymore funds to exchange hands.  I could be wrong though.

[lovelylisa84]

You don't need a down payment as long as the check covers the car. Before you shop make sure to email or fax all the necessary documents so they can activate the check. I just purchased my new car with a cap 1 check on Saturday. It was pretty painless.

[giants1986]

I'm thinking the dealer may have pulled a bit of a quick one on me then. In the end i ended up with a .02 increase in rate by financing through the dealer with Cap One. When I went in to speak with the finance manager to see if he could beat the Cap One blank check, he told me they (Cap One) would not finance the full amount with the blank check unless I put $1,500 more down. (Car was 18,300 I was approved for 25k) He went on to explain that because it was used they did not value the car at the full amount. Car was is a 2012 with 600 miles on it. The used models with more miles are selling for 3k more than what I got this car for. 

In the end it worked out because I was able to pick up the car the next day and the small increase in rate only raised the monthly like $2 bucks. I plan on refinancing at the beginning of 2014 once a few baddies drop off and I get my util down anyway but I thought I would let you all know my experience.

[MikeFromKeller]

I used a Capital One check to purchase my last vehicle too.  You have to completely read the fine print and instructions.  The loan that I got had stipulations attached to the check.  I did have to put money down because the loan (check) would only cover a used car to  a certain % of the value or something like that.  I recall it didn’t say specifically I had to put money down but the check instructions were such that it did require money down in my circumstance.  Just read through the check instructions thoroughly as well as any fine print.  As always – it’s in the details!

[SamsungHDTV]

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@MikeFromKeller wrote:

I used a Capital One check to purchase my last vehicle too.  You have to completely read the fine print and instructions.  The loan that I got had stipulations attached to the check.  I did have to put money down because the loan (check) would only cover a used car to  a certain % of the value or something like that.  I recall it didn’t say specifically I had to put money down but the check instructions were such that it did require money down in my circumstance.  Just read through the check instructions thoroughly as well as any fine print.  As always – it’s in the details!

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One of the stipulations on the capital one blank check is that your LTV has to be below a certain threshold. 

For example lets say you are approved for a capital one blank check for $11,000 and  a the LTV cannot exceed 110%. (your terms are different)

So you can go buy any car less than 11K, but keep in mind your car has to be worth more than 10K. 11,000 / 10,000 = 110% LTV. If your car is worth less than 10K then your LTV is more than 110% and you can no longer use the capital one blank check.

Sometimes the car is actually worth 8K, and the dealer is marking up the car price to make a profit. The capital one check would not work so then the dealer asks you to pay the difference to make the LTV less than 110%. 

Other things that cause the LTV to go up is the TT&L fees. 

In my opinion, you are most likely paying too much for your car and should negotiate the price down more. Play hard ball, threaten to walk away. Or say you're going to go shop prices at other dealers. I think they'll bend.