04-19-2017 01:22 PM
Auto Navigator is soft pull for pre-qualification only. It's not a pre-approval. Those who get approved as a result would have been approved had they gone straight to the dealership and the dealer sent them through Capital One. That's why the instructions say to show the letter, then fill out the dealerhip's credit app. Their deal with member dealerships is as a lead generator with the hope that they'll be in the mix to earn the financing. Member dealers pay Capital One a flat for the right to have those leads generated.
Pre-qualification simply means the algorithm accepts the possibility that you'll be able to finance the car. Pre-approvals are much stricter and often require very specific criteria the algorithms identify such as previous car credit, DTI, not too many inquiries/new accounts, etc.
Bottom line is this: that Capital One pre-qualified you doesn't mean they pre-approved you. In fact, Capital One doesn't offer pre-approvals on auto loans. Most credit unions, some banks, and nearly all brand-captive lenders do, as will some of the other auto-specific lenders, but Capital One and the majority of other auto lenders only offer pre-qualification as a way to get you in the door.
The best advice is what many have already said: go through a credit union. Even if you have to show six consecutive payments (as compared to 6 months) before refinancing at DCU, PenFed, or another credit union, so be it. Drive the car, make your payments, and refinance it later.
04-19-2017 01:30 PM - edited 04-19-2017 01:32 PM
Here's the prequal my wife did the other day.
Notice that it's a prequalification and not a pre-approval.
As a soft pull, it made sense to have all our ducks in a row. They ended up going through GM Financial and didn't even send it to Capital One, which is fine by me. Now I have a reason to get a GM BuyPower card, after which I'll refinance with DCU.
04-20-2017 05:51 AM
I would argue that the Cap One Nav it is as close to a pre-approval as you can get.
Mine literally went up and down in APR depending on the VIN number and price of the car before I even went to dealership.
I knew exactly what I was getting, the terms, the APR, and documents needed (none) before I went to even drive the car.
I bought a new car and got a fantastic price so it bottomed out at 2.49% for 72 months.
Took 72 since it was same rate as 60, 48, 36, so why not. Simple interest loan anyway.
04-20-2017 12:41 PM - edited 04-20-2017 12:42 PM
*Update* After having 3 different people in the dealership tell me that CapOne never comes back declined if pre-qualified, someone finally looked into it. The first finance guy put in my SSN wrong. The finance manager grabbed it today, ran CapOne, and it came back with actually a slightly better rate (half a percent) than the pre-qualification paper. Approved in seconds. The past week of going back and forth with them was all because of a typo.
04-20-2017 02:07 PM
Well, glad that worked out for you. I would be hard pressed not to let them know a thing or two given what they put you through.
So, congrats on the good rate and getting the deal done!
04-21-2017 05:39 PM
You can believe it was a typo if you want...
04-21-2017 06:37 PM
Btw, that was NOT a typo!! It was a shady finance guy trying to make money!!
It's a trick thats pretty easy for them to pull on you... When my GF bought her truck last summer, and used CapOne, there was a question with the rate we had on the prequal... Called them on my cell from the finance office and everythng was fixed very very fast!
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.