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Established Contributor
jcstarkey8826
Posts: 708
Registered: ‎06-01-2012
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If you've done Capital One Auto Financing. HELP PLEASE :)

I've decided to get new car. I've just used most of my savings to pay down debt and get into a new apartment so I dont have much for a downpayment. I've read people using capital one auto finance, and theyve been able to work with less than perfect credit.

 

I was wondering, say capital approves me for 10k, and I find a car and walk out the door paying exactly 10k for it. Does capital one require a DP for it or can you finance the full amount of your pre approval and do 0 down?

 

Help and advice with this would be greatly appreciated.

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Valued Contributor
tcbofade
Posts: 2,513
Registered: ‎09-26-2011
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

Hmm, I did this backwards, but when we purchased our last newer vehicle, it was financed through the dealer with Capital One with zero down.


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Regular Contributor
coreyb80
Posts: 107
Registered: ‎07-26-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

From what I've read on these forums and other forums is that a down payment is usually not required for this type of transaction.  

Established Contributor
jcstarkey8826
Posts: 708
Registered: ‎06-01-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

the question Im about to as is very vague and I dont expect an accurate figure, just a ballpark random guesstimate, but what price range would I be looking at with the following....

 

30k salary (18k commission, but cant use it)

13% DTI (including current car)

640 FICO, no auto loan history on credit report (just local bank docs)

no collections, no judgements, 4 good accounts w no lates in 2 years, 2 paid CO's from 5 years ago.

 

any price range guessers out there? :smileyhappy:

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL
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pozativelyliving
Posts: 237
Registered: ‎07-13-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

For your origional question, they approve you for "X" amount of dollars. The vehicle can only be purchased at dealers that are part of their "network" and it has to meet a certain criteria. If I remember correctly, no more than 70k miles, no work trucks and maybe a few other things. I know in my case, I didn't put any money down. Even financed tax and plates.

 

Based on your info, I'm just going to guess about $15k. You might end up with a rate around 10%. Mine was 17.1. They pull Experian.

EX 638 (Lender 9/1) TA 650(Walmart 9/1) EQ 655 (FICO - 9/17)
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riverbluffer
Posts: 14
Registered: ‎07-22-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

If you get approved for $10k then that is how much you are able to finance.  Of course if you see a $15k vehicle that you like, you will have to come up with $5k to put down to get the price down to what you were approved for.

 

If you have troubled credit, you may find it to be better to go into a dealership for financing.  Their finance directors get paid good money to get people approved and they have personal, direct relationships with lender representatives.

Regular Contributor
pozativelyliving
Posts: 237
Registered: ‎07-13-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

When I was shopping last year, the dealer that I bought my car from couldn't get me financed. I was in there about a month before looking at something else.  Cap 1 sent me the offer to apply and I was approved by them. Went back and told them that I was all set with the financing. It worked out in the end. Got a vehicle that is better suited for me. 

EX 638 (Lender 9/1) TA 650(Walmart 9/1) EQ 655 (FICO - 9/17)
Goal - 700 Club in '13!!!

My Wallet - Cap 1 - $300. Cap 1 - $750. Orchard - $950.
New as of 8/29 - Target - $3000. Barclay's - $2000. Merrick - $1000. Walmart $600. And as of 9/22 - JCP $200.
Valued Contributor
j_casteel
Posts: 1,918
Registered: ‎06-21-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)


jcstarkey8826 wrote:

the question Im about to as is very vague and I dont expect an accurate figure, just a ballpark random guesstimate, but what price range would I be looking at with the following....

 

30k salary (18k commission, but cant use it)

13% DTI (including current car)

640 FICO, no auto loan history on credit report (just local bank docs)

no collections, no judgements, 4 good accounts w no lates in 2 years, 2 paid CO's from 5 years ago.

 

any price range guessers out there? :smileyhappy:


based off your actual salary of $30 (not sure if the $18k commission is a guaranteed):

 

$30,000k annually is ~$2,500 gross per month. If you were to get a vehicle for $15,000 and say you financed it for 60mo at 10% that car is going to cost you nearly 13% of your gross monthly income. Depending on how many deductions you have taken out, taxes, etc. that could be closer to 20-25% of your Net income.

 

I'm not sure if you are wanting that info or not, but this is really something that only you can answer. You should look at all your monthly expenses vs. your income and see what's in your budget. I suggest starting a budget using a spreadsheet and/or program like Mint to track all transactions, bills, income, etc. Then you will be able to answer this question better than anyone else. Only you know what you can afford, and what pricerange you should be considering. There are so many more factors to consider other than the few you listed when wanting to make a large purchase, especially one with no return on your "investment" (which buying a new car is the complete opposite of an investment).

 

Good luck,

 

John

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Valued Contributor
j_casteel
Posts: 1,918
Registered: ‎06-21-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

Other considerations when purchasing a new car:

 

1. Insurance premiums

2. Taxes

3. Registration/Tag fee's

 

Also, just to give you an idea of what the"experts" at Consumer Report say...i read before that your total debt payment shouldn't exceed 36% of your total gross income.

 

So, for your gross income of $30,000:

 

36% is $10,800 per year in debt.

 

So say you add up all your monthly expenses for a year and they come to $10,800 without already purchasing the new car then they say you can't afford it, but say you add up all your expenses for a year and they total $6,000. That leaves you $4,800 left to budget on another anual expense. So based of that example that would be $400 per month on a car. Not sure how you would want to factor that $400? If you would want a $400 per month payment, or if the $400 would include the cost of insurance, etc?

 

Hopefully this helps.

 

 

| Walmart $5k | Amazon $5k | NFCU $20k | NLOC $15k | Lowes $17k | BoA $15k | Freedom $3k | IT $4.5k | CSP $5k | Marriott $5k | AMEX TE $9k | Alaska $5k |
Starting Scores: EQ:571 EX:??? TU:597
Current Scores: EQ:694 EX:714 TU:711
Goal Scores: 700
across the board
Established Contributor
jcstarkey8826
Posts: 708
Registered: ‎06-01-2012
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Re: If you've done Capital One Auto Financing. HELP PLEASE :)

[ Edited ]

My commission is sales based, but I average over 1k per month so I would feel comfortable increasing my bills by $100. My insurance company stated my ins. will not go up, and my annual expense (included rent, SLs, util bills, and car because I wasnt sure if it was just debt or bills too) including this car would be around $11,200, which is more than you suggested, however with my income I would feel fine with that as I keep the small things basic. No cable, no internet, cheap phone, didnt go crazy with SLs and only pay $60/mo. for those. I always wanted to keep the things I didnt care about i.e. fast internet, television shows, cell phones, etc. out of my finances so that the things i did care about, I  would have more $$$ to put towards.

 

 Like I stated, Im getting rid of a $50/mo student loan payment soon, and will be saving money in gas. Was just curious as to how much people with that income and relative score got approved via cap one blank check so Id know wether It was worth the inquiry to consider this option.

 

I might just wait out the winter and see how much the car value drops. It is a 2013 and Ive never bought a brand new car before because I hear when they leave the lot they drop value like crazy!!! The only reason I wanted a new car is because right now my car has a payment AND Ive put over 2k in repairs over the past 8 months (almost every month something breaks). To top things off, my window wont roll up and my gas cap fell off yesterday haha easy fixes I know, but its very frustrating and I liked the comfort of not having to pay both repairs and payments every month.

 

We'll see, but thanks for the help guys!

In my wallet: GCU Patinum Visa 1500 CL, Charter One Platinum Rewards 500 CL, Chase Freedom 800 CL, Wal Mart Discover Card 6300 CL, Kay Jewelers 3000 CL

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