Member
bluerazr
Posts: 9
Registered: ‎07-09-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?
I just used a blank check last week. I got a Ford Edge with all the options. The dealer suggested price was 31,900. NADA values were what I had to go by. My model on NADA was 25,500 for that vehicle with options. 25,500 x 110% is 28,050. 28,050 is the Max I could make the check out for my car. I haggled the price down to $25,500 with the dealer by showing them a similar car at a much lower price. Purchase price plus TTL was under the 28,050 Max so it was under the 110% LTV.

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Valued Contributor
j_casteel
Posts: 1,905
Registered: ‎06-21-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

dhrren wrote:

Good Morning,

 

First off I LOVE THIS BOARD.  Thanks to you all I went up 80 points in 2 months!

 

So yesterday I started the car trade in process.  I have 2 seemingly good offers.

In this thread I have questions about the CAPITAL ONE BLANK CHECK PROGRAM.

 

I applied at their website and had to fax in document but i was approved at a very low APR 5.09-8% depending on vehicle age and up to $30,000.

 

Can someone please provide me with as much information as possible on what exactly this approval mean and how i can use it?

 

The biggest concern is LTV.  They said mine is 110%.  What is that?  Something about wholesale?  Car dealer sell retail?!   I am really confused but i want this done by tomorrow.   HELP PLEASE!!! 

 

 

Any information is appreciated.

 

Thank you,

 

DRH


5.09-8 percent is definitely not a "very low APR"

 

Like others have stated: trading your vehicle in is causing to immediately have inequity in your new purchase. You can do what you want, but i would wait until you are able to sell your vehicle first and then make the new purchase, or just keep your vehicle pay it off and not have a payment.

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New Visitor
Nix
Posts: 1
Registered: ‎10-05-2011
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

I guess I am confused as I just got my blank check package from Cap1 and my LTV is only 90% of dealer invoice which is a challenge even with a trade in.  Anyone else experience this LTV?

Member
pinned388
Posts: 13
Registered: ‎09-20-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?
[ Edited ]

I was approved back in 2007 at my local credit union for 70% retail LTV and I had no credit history/no baddies. I was ready to put down a big chunk of money to make up the difference when I found a 2001 F250 XLT diesel crew for $17k with 150k miles, however (IM NOT RECOMMENDING THIS TO ANYONE, DONT TRY IT - ITS FRAUD) the dealer lied to my CU and faxed them a vehicle information sheet that said my truck was a '01 F350 king ranch dually with 50k miles (approx KKB was like $24k) in order for them to finance 100% of the loan for m $17k truck. I didnt find any of this out until I went in to the CU to sign paperwork!

 

Just sharing my personal experience with LTV

 

Just do your research before negotiation for a car loan and ALWAYS knock down the price on a car purchase, new or used. Its good to find a dealer DEMO with a few miles on it (less than 10k), those are the best cars to negotiate price. My friend bought a demo 2013 4Runner recently, dealer price was $32k but he argued it was USED and got them down to used retail, then further negotiated it down to about 22k...thats $10k off that he wouldnt have saved if he kept his mouth shut.

 

So if CAP one say 110% LTV, dont be discouraged or worried, haggle on the cars price and another option is to tell the dealer you have been approved with cap one and see if they can beat that financing...


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Frequent Contributor
Hammer23
Posts: 428
Registered: ‎01-21-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

StartingOver10 wrote:

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself  (higher rate or longer term or both) with the dealership finance guy. Since you  have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself. 


T


StartingOver10 wrote:

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself  (higher rate or longer term or both) with the dealership finance guy. Since you  have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself. 


Trading in a car is not always a big ripoff. 

 

In my state you are taxed on trading difference (Purchase price of t


StartingOver10 wrote:

webhopper wrote:
Trading in cars is a big rip off. If you can sell it yourself that is way better than trading it in and rolling negative equity into a new loan.

+1000

Why not sell the vehicle and pay off the loan rather than roll in $3k worth of negative equity?

Rolling in negative equity hurts for the short term and the entire time you have the loan. Also it sets you up for potentially worse terms on the loan itself  (higher rate or longer term or both) with the dealership finance guy. Since you  have the blank check your terms are set, but you definately lose out on negotiating power when you are upside down so you pay more for the same vehicle. Sell the old one yourself. 


Trading a car is not always a bad deal. In my state you are taxed on the trading difference (purchase price of the new car minus the trade in allowance on the trade) So if you are trading a vehicle worth $15000 you save $1200 in sales tax. 

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Frequent Contributor
jd5189
Posts: 470
Registered: ‎08-14-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

pinned388 wrote:

I was approved back in 2007 at my local credit union for 70% retail LTV and I had no credit history/no baddies. I was ready to put down a big chunk of money to make up the difference when I found a 2001 F250 XLT diesel crew for $17k with 150k miles, however (IM NOT RECOMMENDING THIS TO ANYONE, DONT TRY IT - ITS FRAUD) the dealer lied to my CU and faxed them a vehicle information sheet that said my truck was a '01 F350 king ranch dually with 50k miles (approx KKB was like $24k) in order for them to finance 100% of the loan for m $17k truck. I didnt find any of this out until I went in to the CU to sign paperwork!

 

Just sharing my personal experience with LTV

 

Just do your research before negotiation for a car loan and ALWAYS knock down the price on a car purchase, new or used. Its good to find a dealer DEMO with a few miles on it (less than 10k), those are the best cars to negotiate price. My friend bought a demo 2013 4Runner recently, dealer price was $32k but he argued it was USED and got them down to used retail, then further negotiated it down to about 22k...thats $10k off that he wouldnt have saved if he kept his mouth shut.

 

So if CAP one say 110% LTV, dont be discouraged or worried, haggle on the cars price and another option is to tell the dealer you have been approved with cap one and see if they can beat that financing...


Wow! Any the CU did not say anything when the title came in and did not match the original paperwork? Slick dealer!

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Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Member
pinned388
Posts: 13
Registered: ‎09-20-2012
Re: CAPITAL ONE Blank Check Approval 30,000...LTV? HUH?

Nope, and I was young and dumb so I just kept my mouth shut. These days I would point something like that out because doing whats right is the best thing a person can do in life, even if nobody is going to notice.


Starting Score: 467 Equifax - 507 Transunion - 510 Experian (all on 07/2012)
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