So on Monday, I found that I was preapproved for a Capital One Blank Check with interest rates at the following:
10.58% - New
10.58% - 2011
11.16% - 2009-2010
12.39% - 2005-2008
I was thrilled to be approved at all because a few years ago, I had several late payments on my old vehicle loan but common sense kicked in and I decided to try for an auto loan with my local credit union as well and that came back approved too for:
2.49% - New
2.99% - Used
Any ideas as to why the rates between the two are so different? My scores are in my siggy. Capital One pulled all three credit bureau reports and the credit union only pulled experian.
Starting Score: 686 TU / 683 EQ 01/17/2013
Oh I'm definitely going with the CU. They approved me for $200 more than Capital One. I mean $200 isn't a lot but heck, it's still more. That takes care of processing fees.
Depends on the lender. Could've polled a different bureau, and I can state nearly for certain that a bunch of CU's are trying to put money in the field, on auto loans specifically. Even with my report / scores I'm getting on average one CU a week sending promotional emails to refinance my car with them.
As a result their rates are likely going to be lower... I don't know what Cap One's policy is with auto loans, though they weren't looking to loan to me anyway 
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@Sweets8E wrote:So on Monday, I found that I was preapproved for a Capital One Blank Check with interest rates at the following:
10.58% - New
10.58% - 2011
11.16% - 2009-2010
12.39% - 2005-2008
I was thrilled to be approved at all because a few years ago, I had several late payments on my old vehicle loan but common sense kicked in and I decided to try for an auto loan with my local credit union as well and that came back approved too for:
2.49% - New
2.99% - Used
Any ideas as to why the rates between the two are so different? My scores are in my siggy. Capital One pulled all three credit bureau reports and the credit union only pulled experian.
Great rate! May i ask which credit union as DW is looking to by a car.
My local credit union is Tower Federal. They are in Maryland. I would have tried for a vehicle loan through Navy Federal but the rate I got here was more than sufficient.
cap one gives you rates on and avrage of all three scores
so the CB your CU pulled may have been the HIgh with the other two saggie
also i am sure your rate will be larger with the CU as well the older the car is
the older the higher risk it is for you and the underwriter
I am a finance manager at a Dealership, for the past 5 years. i worked on the buyer side for WFDS and Cap one for each about a year then decided to jump to the dealer side in early 07
We still have a DA with cap one, we send about 15-25 contracts each month to them.. i am well versed in their guidelines and how they buy.
i also know the rates you got are pre approval rates you may have a check and packet from them but if you find a diamond dealer or 2 diamond dealer the rates and terms will be more favorable to you
the higher diamond a dealer the more "pull" a dealer has with cap one IE they send more contracts to them so it means more money for cap one in turn they get better approvals
we normaly only send prime to cap one so i dont have a subprime rate break down but see below some of the guidelines
i removed the bottom, it had the contact info of my buyer.
