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Preapproved- but confused! Help Please!

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Bella1980
Established Contributor

Preapproved- but confused! Help Please!

I decided to apply for preapproval this morning to see what sort of rates I could get and was happy to see that Capital One approved me for up to $30,000 with a 2.54 APR on a car 2012 and newer.

 

I also got preapproved on the Honda Financing Show for up to $26,000 but there was no APR listed.

 

I am looking to buy a 2013 Honda CRV and want to pay it off within 3 years.

 

What should I do? Should I go into Honda and see if they can match or better the rate capital one gave me or should I just use the Cap 1 check and purchase the whole car on the check and pay it off quickly?

 

Does anyone know if Capital One has any prepayment penalties?

 

Thanks!

 

Also, if I use the CAP 1 check, should I tell the dealer or should I wait to negotiate the price first?? 



Starting Score: TU- 682, EQ- 698, EX- 713
Current Score: TU- 723, EQ- 747, EX- 737
Goal Score: 760 PLUS FICO's


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1 REPLY 1
ds3
Regular Contributor

Re: Preapproved- but confused! Help Please!

Use the Cap 1 as leverage at the dealership. I have used both blank checks and dealer financing. A blank check gives you the ability to negotiate as a cash buyer, and a dealer will do everything they can to either match or beat the rate. The advantage to dealer financing is the deal is done and you're driving away in a couple of hours, whereas you may have to wait for the dealership to verify with Cap 1, which is more of a stall tactic than anything, but it may take days to get it done.

 

Good luck!

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