Cap One approval.....***UPDATE*** You need to read this !!!!

[JOHNINAZ]

So I had posted about IF I could still get a Ford loan because I sold my shares in a business and didnt currently have income. Anyway...... never got a real response but I got that stupid letter from Cap One in the mail two days ago about the bla bla bla pre approval. I decided to see if they would approve or deny me. So I opted to add my wife (new to the US, no credit record, 3 months of job income of not that much) and did the online aps for each of us. Got a, we will email or call you in 2 days reply....... oh well I thought at least I tried.

Lone behold I get a email today saying I need to call them to confirm some information. After calling it was actually my wife they needed to confirm, and did, at which time they inform US, we were approved for up to 40K. Provided I found a vehicle by May 15th and used one of there approved dealers.

Now I will say that I put on the ap that I was self employeed (which I am, launching new company tomorrow) and do have income (structured payments for the next 6 months as part of my buy out). I am actually thrilled because now my wife can start to build her credit.

In closing, we have a 2015 Mustang convert on order, well it arrived today. Its well under the 40K max but...... now I dont know if I want it or not now. I had mentioned to the dealer that I sold my business and had to refile a credit ap with them also (same time as Cap One actually). Haven't heard back from them but its all about payments now and if I cna find something nice for 25K that would serve me as well as the 35K I was going to spend on the Mustang.

I do like Cap One's APR/payment calculator and am curious if its actually true or does it change once you get your loan. Like the whole bate and switch thing like offer me 4.85% then after I get the loan and they change it too 9.99 or something. Anyone have any thoughts on this ? 

[JOHNINAZ]

I am really kind of shocked that not one person on this forum can tell me about there experience with a Cap One auto loan. When I searched this most postings were from 2012 or so and I was looking for something more current. I love this forum and it has answered numerous questions but those where in other catagories. I am rather shocked that not one person has had been pre approved and cannot give me some insite. I guess this is more of a BUMP than anything.

[Anonymous]

I know Cap One has recently changed their guidelines to their auto lending. Before it was basically a blank check that they sent out that you would take the the dealer and now it's not. You basically still need to go to the dealer and let them run your credit again (after capital one does online) to finalize the deal and while the dealer does that they will also run it for other banks to see what they can offer you. I think because of that less people are going through capital one or if they did the dealer got them a better rate and ended up not using capital one.

I just bought a car in mid March and first applied with my credit union. I wanted to rate shop and wanted to try Cap One since I had 3 CCs with them and a checking account but because of the way they do things and not finding recent experiences with them I decided to stay with my credit union. They sent a blank check that I could take to any dealer. I gave the dealer my check signed some papers and that was it. They never even runned my credit or asked for my social. Like I said I really wanted to apply just to see what they could do but couldn't find much info myself.

I might in the future look into refinancing with them if I come across more info about it. Good Luck on your auto loan and after you complete your purchase with Cap One please come back and share your story.

[Anonymous]

Sorry I don't have a experience to share myself! But there just really isn't much info on them these days and the info/experiences that you find from previous years all have to do with their blank check program which they no longer offer.

I did, however receive a pre approval in the mail from them a few days after buying my car lol. It said I was preapproved for up to 35K and to take the letter, pay stubs, proof of residence to a Local delaership. There was only 1 local dealership I could use that pre approval at and their Info was printed on the pre approval and I only had 30 days to use it.

If I went online to fill out a actual credit app then i could go to any of their dealerships and I would use that approval instead of my preapproval (what I read on cap ones website) so the pre approval letter is different then going online and being approved but either way the dealer still runs your credit again at the dealership

[JOHNINAZ]

Thanks for your reply. I did hear back from the Ford dealer this morning and what a joke that is. First off he tells me I can finance the whole 35K + TTL with just the $1000 deposit I left as a down payment. 72 months, $681 a month @ 7.75%. Whats funny is Cap One on that same car for this amount was 4.5%. When I tell the F&I guy at the dealer thats crazy and I would never spend 681 a month on a new Mustang he says well let me see what I can do then got it to 621 I think if I go 84 months. 84 MONTHS !!!!!!! OMG who in there right mind would do that. Then he says well let me see what I can do on the interest rate and with that he re calculates it at 5.9%....... so basically they were hosing me for almost 2 points !!!!!!! Still the monthly amount was well out of what I WANT to pay so thats a dead deal.

Anyway, I think I will use Cap One on a used car purchase and yes I will post the process. I will take docs with me to the dealer since they might want to see that, along with the approval. This way I can be done and out the door hopefully in a quicker than normal time table. Plus on the used car I kinda want for 5 years the rate was 6.0, 4 years was 5.5 which I am pleased with. A long way from 10 years ago and paying 17.99%. Plus Cap One will add my wife (she builds credit) I add a another part to me credit file and away we go. 

[Anonymous]

That is crazy! I'm so glad that you have that Cap One approval because if anything, the dealer will try to beat that rate (that's something the Ford dealer should of done after you told him about the Cap One approval) going into a delaership with any preapproval (even with cap one) is a great thing becuase then you know what exactly you qualify for with the dealer not rate jacking you. You go in empty handed the dealer is going to make you think that the APR that they give you is the best they can do when they added 2-3 points to it.

I agree with you, I went used. I couldn't justify a new car payment at this time. The minivan (we are a large family) that we wanted new was the Chrysler Town and Country (really really wanted a Honda Odessey lol) a 2015 base model is about 26K-30K with all the right rebates and we were looking at a payment in the high 300's/400's and If I would of took the special APR I wouldn't get most of the rebates. By going used we were able to get a more fully loaded minivan then the base model town and country. We got 2 rear DVD players, heated seats, power pedals, spare tire, and navigation (some of the things that the base model town and country doesn't come with) for about half the price and $280 a month and the mileage wasnt bad at all and it only had one owner and no accidents (per the Carfax and also taken care of) this is my first car loan ever and it's def a learning experience! Thanks for coming back to share your experience. I know it will def help me!!

When it's time to get something new when we are done with this car then I will reevaluate our situation and see if we are in the place to buy new but I doubt we will then as well. We will probably just buy 1-2 year old used with low miles to save money. when I bought our car I told the dealer I was okay with the rate the CU gave me and wanted it to stay with them to build a relationship with them for in the future. The F&I guy was cool. He said "u know I could probably beat their rate by 1-2% but I agree with you that building a relationship with your CU is better then anything" he said he belonged to a CU since he was little and they were the only ones there for him when he was going through a rough patch and no one else would touch him. Congrats and good luck on finding the perfect car!!

[JOHNINAZ]

So I wanted to update this and given what happened I think anyone dealing with Cap One on a pre approval should read this. 

I found the dealer and car I decided to buy using the Cap One approval. I gathered all the documents ahead of time and proceed to the dealership. Upon viewing and test driving the car I decided to move forward. So the pre approval for this car was 6.0% for 48 months, remember this. Anyway, we go though the whole upsell crap with the sales guy, finally get to the number and I provide the information from Cap One. He asked the rate which I told him and he said (as Cap One told me they would) that if they used there bank they might get me a better percentage. I told them no, its ok, I just want to use Cap One and we proceeded forward. At this point he takes the deal into the finance office and about 20 minutes later comes back and tells me that that pre approval is just and estimate and not the actual amount. That when they input all the info into the computer Cap One came back with 7.6%. Needless to say I wasn't thrilled at which time I said, yeah that's not going to work. I personally know dealers can add up to 3% onto whatever the bank is lending percentage wise. I felt that the 7.6 was a long way from 6 and he was changing it on the back end to make more money.

I had already been there an hour and a half so I said, let me think about it and I will call you later and left. I went to my office and proceeded to call Cap One....... who were great on the phone. They pulled the deal up on there computer and I was informed that the rate had changed to 6.6 because of the age of the car (06). So you can clearly see they did bump me 1%. Remember car dealers HATE when you bring your own financing and especially if you refuse all the upsell BS (clear guard, leather conditioner, warranty on the window tint, bla bla bla) that are pure profit for them.

So I call the dealer and get the sale manager on the phone then explain how I knew they were screwing me and they could basically shove the car up there butt. At which point he backpeddled said he thinks maybe they called there bank and didn't talk to Cap One (they did, Cap One said so). But said he wanted to sell me the car and would offer free oil changes for 2 years (up to 6) and free car washes for that same period. We then agreed he would lower the rate to 6.6 and I would buy the car which I did.

In the end I say if you have a pre approval, using Cap Ones percentage calculator then go to the dealer and get told a higher one, just say, let me call Cap One to confirm that. See what happens then and how they squirm. Also, even though I had this pre approval and knew that the dealer would do a hard pull (required by Cap One) watch your alerts. That dealer did 3 pulls from 3 different financial institutes. Though all those pulls in one day (plus Ford Motor Credit the day before) didn't effect my CS at all.

Just wanted to provide me into for those in the future.

[TRC_WA]

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@JOHNINAZ wrote:

. When I tell the F&I guy at the dealer thats crazy and I would never spend 681 a month on a new Mustang he says well let me see what I can do then got it to 621 I think if I go 84 months. 84 MONTHS !!!!!!! OMG who in there right mind would do that.

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The bigger question is who in their right mind would buy a 2015 Mustang?  The only thing uglier is the Camaro.

[pipeguy]

So let me see, Ford, Chevy or "powered by Fiat-Mopar"..... mmmm, let me think about it..... Next up you'll be dropping a 318 into a Fiat 500 and going Mopar's rock !

As someone that was there during the real muscle car wars I just couldn't resist tweeking the Mopar guy 

Add Edit - the original Challenger TA with the piipes that exited in front of the rear tires has to be one of my all time favorite factory cars, although I never owned one (always a Chevy guy)

[TRC_WA]

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@pipeguy wrote:

So let me see, Ford, Chevy or "powered by Fiat-Mopar"..... mmmm, let me think about it..... Next up you'll be dropping a 318 into a Fiat 500 and going Mopar's rock !

As someone that was there during the real muscle car wars I just couldn't resist tweeking the Mopar guy 

Add Edit - the original Challenger TA with the piipes that exited in front of the rear tires has to be one of my all time favorite factory cars, although I never owned one (always a Chevy guy)

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Hahah... It's all good. 

I've driven them all... and test drove all 3 in January.  The Mustang felt like being inside a sardine can... the Camaro had too many blind spots... with the Challenger being the most comfortable of the 3.

Considering the fact it's also the best looking of the 3 it was an easy choice to make.

The Hellcat was a little out of my price range and didn't want to pay the extra for the 6.1 either when the 5.7 is plenty fast and can be modded to reach 6.1 stock HP anyway.  It's a fun ride and turns heads wherever I go.