Ever had Cap 1 pull or rescind a prior approval?

[BallBounces]

I am approved via Cap 1 Auto navigator for new car financing at close to 100% LTV, 72 months. 

In other words, I have made the application, got accepted, built a loan on the navigator using the actual car  VIN, and generated a "reference number". 

The interest rate, as I expected, is poor.  I am at the beginning of rebuilding from some horrific circumstances, so the rate I have is not a suprise, and I can accept it.

I applied as well through DCU and also my long relationship C.U. with which I had two prior spotless auto loans.  Both DCU and my CU said "NOT A SNOWBALLS CHANCE".  I talked to loan reps at both places.  They were cordial but frank.  DCU did at least say "try for a re-fi with us in 12 months", you will be a candidate.

The fact that they were both so point blank has me concerned that the Cap 1 offer may be a paper tiger.

So, question one, has anyone ever walked in to the dealer with what they thought was Cap1 pre approval only to find it was not?

Secondary topic:  I have already negotiated the cash price of the vehicle out the door with the dealer under the assumption I was bringing cash and financiing.  Once that was done, I broached this topic    At this point, he of course offered to try and get me financed with TFS.  In fact, he said he thought he could beat the rate I told him Cap 1 was giving me.  Another HP will be the least of my worries so I am letting him try and beat Cap 1.  If he can ... good for both of us it can only help me and he gets his 'participation' and fee.   Fortunately I have an old Toyota Financial Services loan that was paid on time and paid off early.  Maybe that will help mitigate the dismal scores and significant baddies that are under repair.

Thoughts?

[jim44]

Looks like you're on the right track and you've done your homework. Yes Cap 1 can recind their preapproval and I've only seen that happen once with Roadloans. The applicant couldn't prove his income and he couldn't come up with the required down payment.  If the dealer can beat Cap1's apr with TFS then by all means you should consider it. Under some circumstances dealers are not allowed to make points off certain loans and they can't legally charge you any acquision fee the lender charges the them. They make their money off GAP, credit life, extended warranties and other add ons they try to sell you.  You are stuck with the dealer fee but hey if there is one they are required again by law to charge it to every customer.... they can't pick and choose. 

Good luck and let us know how it goes if you decide to buy the car.!

[BallBounces]

Thanks for the reply Jim. I have loads of experience buying cars, but am usually opperating from a position of power,  (Cash or tier 1) and I always negotiate on price not payments.  Having to jump through a lot of hoops before I even got to beat up the salesman is a little annoying in this case.

If they want to charge me a fee for going with TFS, we will revisit the sale price. 

As I told the manager, if TFS lets us both win, I will do my part. 

Otherwise I sure hope Cap1 is in the bag.  I can prove I make what I said I make.  Same employer over 20 years.  I am a great customer ..... except that abysmal credit report right now ..... 

[Jeff532003]

Cap one preapprovals are pretty solid. They will definitely work with sub prime where other banks will not. I wouldn't worry to much about the approval not going through. If you read the approvals you'll see lots of poor credit applicants being approved with them.
DCU is very strict in their requirements for an origination loan.
I was rejected for a checking account because I have one collection from 2010. Paid mind you. I was floored. I've never been denied a bank account even when my credit was in the crapper.
Re-fi is always easier with any bank once you prove your willing and able to pay the loan. I'd see what your local CU will offer after a year. Cap One also my refi you in order to keep you on as a customer.
Good luck!