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Posts: 9
Registered: ‎04-12-2017
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Denied after preapproved (Cap1 Auto Navigator)

I was approved for $15,100 at 3.9-13.6% though Auto Navigator. Found a car (came out to $12.6k or so, 10.6% with $2k down), printed the letter. Sales person says he's got a lot of these types of preapprovals lately and it's simple. Fast forward to the finance office, and they tell me Cap 1 denied me, showed me the screen. I told finance manager that I had a pre approval and asked about the letter. He didn't know anything about it. I told him I think he needs to use the referral number, since it's an approval based on my history with Cap1, not just my credit. Dealer wanted 18% to use their bank.

My questions is, does this make sense? Do they need to do more than run my application through Cap1, or do they need to bring up my pre-approval? They asked about my overtime and such earlier in the day, I think trying to help my income numbers. I never report OT on these types of things because it's not consistent. Maybe the numbers didn't match what I filled out? Maybe they are just lying and wanted me to use their bank? It was too late in the day to call Cap1. They gave me the car and said they have to wait til Monday to see if I can get better than 18%, because banks are closed. My fear is that it will be taken away completely. I can manage the payment no problem until I can refinance, but paying 18 after expecting 10 is rough. Finance guy said there was no place to put in a reference number when they submit. Did he run it wrong?

I normally buy cars off the street with cash. This whole car dealership experience has been a nightmare, from dealers lying about what's in stock, wasting days of my time, now finding out that the preapproval seems to mean nothing.
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Current Score: 645
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Posts: 1,616
Registered: ‎12-16-2014
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Re: Denied after preapproved (Cap1 Auto Navigator)

I am afraid you likely made some mistakes here.  First never drive the car off the lot unless you have financing you can live with, I doubt you can live with 18% and the reality is by taking the car off the lot you took away all of the incentive for the dealership to get you a better rate.  I would suggest working directly with Capital One and also work with a credit union.  You don't post any credit vitals so its tough to say what your options are but with rare exception a credit union will give you the best rates.  DCU is one of the favorites here but of course every community has a credit union and many of them are excellent to work with.  I think you will have to take the initiative to get a better APR because the dealership has no incentive to do anything for you.

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MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Valued Contributor
Posts: 1,418
Registered: ‎01-31-2008

Re: Denied after preapproved (Cap1 Auto Navigator)

A pre-approval is not a guaranteed approval. You should pull all three credit bureaus today to see what they did pull.

 

The easiest and cheapest way to do this is to sign up for the free 7 day trial with Credit Check Total. It will tell you the current FICO 08 numbers and more importantly the recent inquiries made for your credit. See which bureau they pulled and if they sent your application to multiple banks.

 

Did you sign the financing paperwork? If so you are stuck with the 18% until you refinance with someone.

 

Hopefully with some additional details we can help with more advice. Many if not most of us on this board have been taken advantage of by a car saleman at some point in our lives.

 

Good luck

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Posts: 99
Registered: ‎11-28-2016
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Re: Denied after preapproved (Cap1 Auto Navigator)

Depending on your credit report situation, I would second the recommendation to check out DCU or your own credit union. I bought a car recently and immediately was able to refinance with a much lower interest rate through them than I got from the dealer. They have an online app and I received an instant approval. Let us know your data points so that you can get a better idea what you might be able to do. 
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Re: Denied after preapproved (Cap1 Auto Navigator)

[ Edited ]

So CapOne says they never recieved an application. Dealer gave me a reference number proving they did submit an app. The only other thing I could think of is that I need more down. In Auto Navigator, they wanted $1800 down for this car (every car had different down payment requirements regardless of price) with $10.7k financed, so i offered $2k down. After the warranty and stuff, the car came to $14,628 out the door, so $12.628 financed. Perhaps with the higher price, the $2000 down didn't satisfy the terms, despite the total financed still being less than the $15,100 approval?

 

Calling CapOne again.

 

Spoke to CapOne, gave them the reference number from the dealer for my denied application. CapOne said I need to wait for a letter to find out why I was denied. Dealership said they're having trouble trying to get me financed and to give them until Wednesday to get back to me. DCU approved me for a lesser amount, but they got me in at a lower rate than CapOne's "approval". After mentioning the CU, the dealership told me to let them try to get me approved, then if they can't do it or the rate isn't good, to give them the CU. If everyone denied me already, what exactly can the dealership to do push it through? Any deal they get after a denial will be at super high rate. How long do I have to provide outside financing after taking the car? I feel like they're trying to delay me until it's time for "return the car now or take our 18%". 

 

DCU wants me to send a purchase agreement. Can I go up there and ask for a new purchase agreement that would satisfy DCU's terms? I would need  to drop some paint work that they included in the financing and then put down another $600. After I do that, how long does DCU need to process it? I've been losing sleep stressing about all of this.

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Registered: ‎10-31-2011

Re: Denied after preapproved (Cap1 Auto Navigator)

[ Edited ]

You can have the dealer fax the purchase order to DCU - I would not even mess with the dealer at this point, just say send it to DCU. Last new car I purchased 3/2016 I told the dealer I was going through DCU - dealer said they never heard of DCU, I said fax the P.O to this number and they did I went home with the car but I knew I was good to go. It took 3-4 days to get a check from DCU (they mail it to YOU not the dealer and you can pay to have it overnighted) which I dropped off at the dealer - there was NO pressure to get the check to the dealer and the dealer did NOT run my credit but I suspose DCU confirmed to the dealer that the loan was approved. I purchaed my wife's "new used car" on 12/31/2014 (yes new years eve) - same thing DCU sent me a check which I dropped off at the dealer - no pressure from that dealer either and we drove that car home too the same day. 

 

Just call DCU they are very easy to deal with.

Valued Contributor
Posts: 1,418
Registered: ‎01-31-2008

Re: Denied after preapproved (Cap1 Auto Navigator)

Epic, as you may know, every part of the auto transaction can be a profit center for the dealer. That is why they are fighting to keep you in house for financing.

I would insist on going with DCU. If they are continuing to shop your loan you are likely picking up extra inquiries. Granted they should all count as one, but no reason to let them continue to pile on the inquiries.

 

As others have said, very easy to have the CU overnight you the check and you deliver it to the dealership. They will take the deal to save the sale.

 

Good luck and hope you can catch up on sleep soon.

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Posts: 563
Registered: ‎04-12-2014
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Re: Denied after preapproved (Cap1 Auto Navigator)

My bet is that your dealer screwed you.

 

Yes, the dealer pulls your credit for Cap One.

 

My experience with my dealer (new car) was flawless using Cap One. 

 

No paystubs, nothing.  2.49% for 72 months.

 

I warned my salesman before I came not to run my credit for ANYONE except Cap One.

 

All the dealer had to do was put in the wrong SSN or name, get a denial, then show you, then act like they are heros for getting your loan.

 

Check with Cap One about refinancing.

 

Start ..... $3,000 ................. $10,000 ................... $30,000 ...................$1,800 .............. $900 ........... $500 ..... $1,500 ...... $2,000

Now .... $25,500 ................ $23,750 ................... $30,000.....................$3,300 ............. $1,800 ...... $17,000 ... $6,000 ..... $2,000
Member
Posts: 9
Registered: ‎04-12-2017
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Re: Denied after preapproved (Cap1 Auto Navigator)

It's been 4 days and they still haven't got me financed. I got a co-signer (750 FICO Auto 8, $85k yearly gross) so I told them to stop with all the inquiries and sumbitted a new application with the cosigner. I told them to get it approved today with the cosign or I'm returning the car (I had 5 days/250 miles to return with no questions).

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Re: Denied after preapproved (Cap1 Auto Navigator)


Epic_Milk wrote:

It's been 4 days and they still haven't got me financed. I got a co-signer (750 FICO Auto 8, $85k yearly gross) so I told them to stop with all the inquiries and sumbitted a new application with the cosigner. I told them to get it approved today with the cosign or I'm returning the car (I had 5 days/250 miles to return with no questions).


It's not really their responsibilty to get you financed, its in their interest to do so but it's your responsibility.  I would go after a credit union loan, with your co-signer you should be able to get that done pretty easily if the loan to value is ok.   

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698

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