I applied for a car through the cap one auto navigator tool and was approved for a $35,000. The APR range was 4.67 - 13.72. No idea who they pulled for scores. but my scores are: EQ : 598; TU: 611; EX: 613. I really would love to lease instead because I want to have the option to change cars every 3 years. Should I want to get better scores for leasing. Thanks for the help
If you are not in desparate need of a new car, I would wait for your scores to improve. That's a 9% spread they gave you - payments would be anywhere from $500-700 per month - assuming 72 month loan at $35k ish.
I suggest waiting till your scores improve to about 620ish. I would then apply with a credit union, Capital One is great but good credit unions can cosistantly beat them on rates. DCU, Penfed and NFCU are all excellent. Capone gave me 8.5% when my scores were low 600's less than a week later NFCU gave me 4.29%.
I got pre-approval from CapitalOne Auto Navigator, and it showed me a 7% rate on the specific vehicle I wanted. When I went to purchase that exact vehicle, CapitalOne came back with a rate over 9%. Luckily, the dealership ran my credit with Alphera/BMW Financial and they offered 6%, so I consider that a win!!
The reason that Capital One can sometimes display a different rate than what the dealer get's through Capital One is for many reasons. For example let's say you found a dealership and you found a specific vehicle you want from that dealership. You log in on the Auto Navigator portal select that vehicle, Cap One "estimates" the book value for that given vehicle. Once you get to the dealer and they submit you to Cap One there is often a difference between the estimated book value from cap one and the real book value the dealership has. So let's say Cap One estimates the book value at 25k and the real NADA clean trade value is 24,350, this difference results in a higher LTV which can push the interest rate up.
In addition, You may have plugged in numbers on Cap One Auto Navigator such as a sales price you hope to negotiate to, or sales tax amount that isn't exactly correct, or if you are trading, perhaps you think your vehicle is worth 5k and you owe 2500 on it and at the dealership you agree to 4500 trade value and your real pay off is 2900. All of these changes in structure cause fluctuation's in APR based on LTV, term, etc.
Typically customer's who apply for the auto navigator program on a specific vehicle and structure don't necessarily walk out of the dealership at the exact structure they submitted to cap one.
if you apply through the auto-navigator program and finance through Cap One at the dealership the interest rate is exactly what Cap One offered the dealer as they do not allow a "rate bump" on pre-approvals. Dealers are simply paid a 1% flat of the total amount financed (customer finances 19,300 out the door, the dealership recieves a $193 flat)