Capital One- too good to be true?

[Kaycee213]

This is my first time financing a car. As usually I just buy with cash outright. Capital One preapproved me for up to $18,303. Fine for me as i just need a car to get work. I found two types of cars I liked in their dealer eligible network. One is a little under $12k and the other is a little under $14k. I did fill out financing applications for both. I feel like the one dealership may be trying to push me into their financing. She emailed me a list of documents I needed to bring with me even though I told her I had a preapproval with Capital One already.

I did speak with Capital one and the rep really didn't answer my questions as to how much I need as a down payment and how much insurance coverage is required, etc. As I'd like to have quotes and be able to go and get what I need. I'm very skeptical now being as though the rep was unable to answer questions.

So, is my down payment based on what the dealership asks for or Capital One terms?

What level of insurance coverage do they require?

Capital one only required me to upload 2 recent pay stubs and my drivers license so I'd have them on hand at the dealership. Why is the dealership asking me to bring bank statements,  references, paystubs, blank check etc? If I say no, does that affect my Capital one finance certificate?

Could I possibly be denied once I'm at the dealership?

The rep made it seem all too easy. I wanna know what the catch is. Lol

[elim]

My GF was preapproved for Cap One last year and got a car.  No down payment was required.  She put some $ down anyway to lower her payments.

She needed no documents other than her DL (and the approval document we printed from Cap One) when she bought the car.  We looked at several dealers until we found a deal.  Drove out in about an hour.

7% with 620 EQ

[Appleman]

Did CapitalOne give you a rate for the loan amount? I have not had a Cap1 car loan previously but other pre-approvals I have received (USAA) has listed the amount approved and interest rates (varied by length of loan term selected).

And yes, the finance person at the dealership is likely trying to get you into one of their lenders. Financing can be a big source of profit for a dealer. If you belong to a credit union or have a good relathionship with a bank, they should be able to give you an auto loan where you will know the amount and interest rate. This appears to be the best strategy to ensure you are getting competitive financing at a dealer. (Basically you bring your financing, if the dealer can beat the rate and terms great otherwise use the financing you have with the bank/cu)

Good luck and let us know how things work out. 

[cartwrna]

To cover what other posters have not, you will need full coverage insurance (comprehensive and collision), and the deductible can be no more than $500-1000 but it varies from lender to lender. You will need to show proof of insurance prior to being able to take the car from the dealership.

[txbusted]

Got a car last week. I tried the pre-approval about 4 weeks ago just messing around since there wasn't a hard pull. Turns out it was a godsend because my car kicked the bucket and I needed a car ASAP. I plugged some VIN's in online to see what I would qualify for. I got approved for 9.5% (TU was 577) because it was for a little over 60 months (Cap One's doing). I have only been out of default for a little over a year so YEAH... so glad it wasnt 18%. 

As others have stated you will need full coverage. I added it on my phone at the dealership and emailed them the cards. I was in and out of the dealership in about 2 hrs. 

[Kaycee213]

*****update***** went into the dealership same day I posted. Walked out with the car a few hours later. Thanks everyone!

[Anonymous]

So what did you need to close the loan?  Did you go with Cap 1?   What APR did you get?

[Kaycee213]

I went with Capital one. All they wanted to see was bank account info, paystubs, drivers license, and insurance. I called an insurance company right there and had my insurance info emailed to the F&I manager. I didn't need to put any money down but put down $1k. My APR 11% but I will refinance at the end of this year.

[Anonymous]

Thank you for the info.  I'm preapproved with them and I'm wondering how the process works. 

[Kaycee213]

You're welcome. I wish Capital one would make it a little bit more clear on how the process works. I did use their auto calculator thing on the navigator on their website to give me a better idea of what the terms and payments would be. If you dor use capital one make sure you let the dealership know right away and that's who you will be using for your financing. Let us know how things go!