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Valued Member
Posts: 34
Registered: ‎07-26-2010
0

Capital One Blank Check & Reluctant Dealership

Hello everyone,

 

I was wondering if anyone has had experience with Capital One's Blank Check program. I'm looking at buying a 2008, Saab 9-3 with about 33,000mi from a dealer that is on Capital One's list of approved dealerships. I was pre-approved for up to $20,600 at a rate of 5.72% (or up to 6.22% if i don't use their auto payment program) APR @ 72mo with the caveat that the vehicle doesn't exceed 110% of the NADA clean trade-in value, be less than 7 years old, have less than 70,000mi, not an Oldsmobile, Daewoo, or Isuzu vehicle. That's what I could find reading the FAQs on Cap One's site about their used car loans.

 

When the dealer came up with his financing, they wanted to stick me 8.54% for 60mo. I said that I wouldn't do that and would go with my own financing instead unless they can come up with something that'll beat Cap One. He then said he'd speak to his manager and later told me that he's seen a lot of people try to use the blank check only for it to not "be what they expected and not cover the vehicle."

 

What is he trying to say? Does he know something I don't? According to the NADA, the "clean trade-in" value for a 2008 Saab 9-3 is $15,550. My LTV is 110% of NADA - That is $17,105. That's the most I can write my blank check for and have cap one honor it. So whatever the dealer and I agree to as the final price, I can write out the blank check for $17,105 and pay the rest in cash (which is no problem). That's how I see it. Am I missing something? Can they flat out say they won't accept the check (seems like bad business!) Is it that they really want me to use in-house financing?

 

I've never bought a vehicle before. This is my absolute first. I asked so many questions that I think the salesman figured that out. I just don't want to be taken for a ride. I have no problem walking away without buying, so I refuse to get a raw deal.

 

Thanks for any input. Anyone else use a Cap One blank check?


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New Member
Posts: 13
Registered: ‎10-15-2009
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Re: Capital One Blank Check & Reluctant Dealership

First, understand that you are buying a product that will depreciate in value...eventually down to $0.

 

2nd  You are buying a used car and trying to finance it over 72 months????  That is the maximum you should pay for a new car...a used car should be less...much less!

 

3rd.  The dealer is arranging financing for you with a third party, they get a commission out of it...there is nothing wrong with that...it is just another profit center for them!

 

4th.  My advice would be to look to see if you can join a local credit union...use them...then use them again when you sell that vehicle to verify you are getting real funds. (Think ahead at least one car)

 

5th  Finance companies ... all of them make big money to fincance their big buildings by extending the loans.  They win on this deal...You always pay more.

 

6th  For a used car, think around 48 months, even 36 months...then keep paying yourself after the loan is paid for and buy the next car with cash.

Valued Contributor
Posts: 1,668
Registered: ‎02-18-2009
0

Re: Capital One Blank Check & Reluctant Dealership

Look, the dealership wants to make  sale.

 

But those blank check things can be tricky, I have seen quite a few "denied" for odd reasons after the fact.


You are tendering it like a check and paying "cash' for the vehicle, yet the funds can easily be held or bounce as the instrument gets processed.

 

Here is what you need to do:

 

Assuming you want the vehicle

 

Tell the dealer you will accept a dual contract on the vehicle, one written with their financing/bank/rate and one at the capone check. if there is a problem with the check you will accept the contracted terms, if not they will rip up the second contract.

 

I have seen many a deal done that way.

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New Member
Posts: 2
Registered: ‎05-20-2007
0

Re: Capital One Blank Check & Reluctant Dealership

Tell the dealer that this is the only way you will pay for the vehicle.  And also tell them there is another car at a different dealer you were considering.  So if this doesn't work out make them think you have other options.

 

Don't be bullied into paying a higher rate.

 

Call cap one to clarify that you will get financing for them, tell them the car you are looking at.  

Established Contributor
Posts: 500
Registered: ‎05-11-2007
0

Re: Capital One Blank Check & Reluctant Dealership

I used the anck check several years ago and once I got the dealer to understand that I would NOT. use their financing nor would I buy their add one.. Their insurance products and such they push.. Then it was easy. If the dealer is giving you a hard time I would remind the that you have a check in your hand and that they are not the only dealer in town. Be ready to walk away. They are trying to make money off you. The overall blank check financing for me has been great and I would use it again in a heartbeat.
Valued Contributor
Posts: 1,668
Registered: ‎02-18-2009
0

Re: Capital One Blank Check & Reluctant Dealership


Chris123nTx wrote:
I used the anck check several years ago and once I got the dealer to understand that I would NOT. use their financing nor would I buy their add one.. Their insurance products and such they push.. Then it was easy. If the dealer is giving you a hard time I would remind the that you have a check in your hand and that they are not the only dealer in town. Be ready to walk away. They are trying to make money off you. The overall blank check financing for me has been great and I would use it again in a heartbeat.

Please remember it is NOT a CHECK.

 

it is a collateralized loan agreement in the form of a check,

 

Thats the misconception people have.

 

I have used pre approval checks as well.

 

And I had one I personally used bounce on me.

 

I had a purchase one from NFCU that I used to pay off and refi a CAC high interest loan. As it was not a refi instrument but an initial purchase NFCU bounced/denied it. Several phone calls later and a re application had them issue one for a refi, that they FEDEXED to Credit Acceptance Corp. 

 

Do dealerships have problems with all of them? No. could this dealerships have problems with some? Yes?

 

No one participating in this forum knows the exact check that was used or how it was offered.

you cannot secure ouside company "check approval" or guarantee on these.



 

Signature line begins:
Credit is not a right, but a business transaction, one that takes into account risk, and charges accordingly based on that risk.
Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
Contributor
Posts: 100
Registered: ‎02-02-2009
0

Re: Capital One Blank Check & Reluctant Dealership

I personally went through the Cap One Blank Check Program and it worked perfectly fine for me.  The dealership can call Cap 1 to verify the validity of the Blank Check during/prior to the transaction.  If that particular dealership doesn't want to honor the Blank Check, I suggest  going to another authorized dealership through Cap 1. Then notify Cap1 that the dealership listed under their program does not participate anymore!

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Frequent Contributor
Posts: 282
Registered: ‎03-26-2008
0

Re: Capital One Blank Check & Reluctant Dealership

Stick to your guns. Car dealers absolutely HATE when you get financing outside of their company. I went through this same nightmare myself. The problem isn't with your financing---it's with the dealer you're working with. The guy in my personal experience flat-out lied to me four times. First, he lied and said that he "had" to run my credit in order to sell me a car. This is a lie, and I told him so. He scurried out of the room, came back 20 minutes later and said that it was a Federal requirement under the 1099 regulations. I happen to know quite a bit about this particular regulation due to the work I'm in. I told him this and again told him he was lying. I DID say "lie"; I did not mince words because I knew he was lying; he knew he was lying. I wanted him to know that I knew. He didn't blink an eye; just scurried away and came back with an entirely new lie. I called him a liar again. This went on until the dealership closed and I had to come back the next day. (They want to wear your down.)

 

The next morning, brand new lie. This time he said that the finance company I'd chosen REQUIRED me to complete an application with the dealership. I said, "Really? Interesting. Let's call them, shall we?"  I called them with the salesman standing right there. The woman told me, "He said that to you? He's lying." I pulled the phone up from my mouth slightly and said, "Guess what? She says you're lying." Still unfazed by the barrage of insults, he wandered off again and then returned with his sales manager who told me flat-out, "We will not sell you  this car at this price unless you go through our financing." I left, with the salesman trailing behind asking me why I was leaving. lol.

 

I went to another Nissan dealer on the other side of town. They had absolutely no problem with the financing I had arranged and I signed and closed in about ten minutes.

 

They like to roll in all kinds of nonsensical hidden costs and fees into their financing. They make most of their money on the financing, not on the car sale. If you take that away from them, you find them reluctant to make the sale. Still, stick to your guns, find a good dealership to work with, and save yourself the money. It's well worth it.

Frequent Contributor
Posts: 282
Registered: ‎03-26-2008
0

Re: Capital One Blank Check & Reluctant Dealership


Red22 wrote:

I personally went through the Cap One Blank Check Program and it worked perfectly fine for me.  The dealership can call Cap 1 to verify the validity of the Blank Check during/prior to the transaction.  If that particular dealership doesn't want to honor the Blank Check, I suggest  going to another authorized dealership through Cap 1. Then notify Cap1 that the dealership listed under their program does not participate anymore!


Absolutely! Make sure that CapOne knows what you went through. Report the dealer. I mentioned my prior experience in another post. I also reported that dealership. That dealer also told me "these checks can bounce. It's happened before." When I finally found a reputable dealer and told him what the other salesman had said, he just laughed and told me that this is a common lie that dealers use. In his experience, the only time there is ever a problem with these transactions is if the Buyer/Borrower has misrepresented himself (ID theft) or fails to complete the paperwork. It's the dealer's responsibility to verify your ID and collect the paperwork.

 

If you have a commitment to lend, it takes a phone call from the dealer to the lender and about ten minutes to close the deal. I know. I've been through this personally.

Valued Contributor
Posts: 1,668
Registered: ‎02-18-2009
0

Re: Capital One Blank Check & Reluctant Dealership

[ Edited ]

Sorry I have seen them bounce. usually when the person using them was disengenious in some degree. As I said a reputable dealership that does have reluctance with the check would offer to dual contract the deal.

 

Lets say there is only a 1% failure rate with them, and a dealership takes about 25 a month. Thats 1 every four months on a $XX,XXX transaction.

As I said you cannot get check guarantee,

 

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Your credit score is an aspect of your credit profile. Important? yes but just an aspect. Contributing/supplemental information determines the finer point of the deal. Ask any question, respect me not to get mad if the answer is not the affirmation you are looking for,
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