topic Update: The Tale of 4 Auto Lender: DCU, PNC, Cap One and Wolkswagen credit in Auto Loans

Update: The Tale of 4 Auto Lender: DCU, PNC, Cap One and Wolkswagen credit

Anonymous — Sun, 12 Jul 2015 01:04:16 GMT

Long story short: I need a vehicle ASAP so I went loan shopping even though my score is not yet optimized.

Current scores: EQ 699 TU 713 EX 709

Income: $24,000

Vehicle: $25,000

I called DCU first because it seems to be the go to place of almost everyone. After a few minutes waiting, an egent picked up, asked me a few questions, then ran credit check. I asked for $25,000, but their UW countered $18,000 at 1.74%, citing low income. The phone call took me a toal of like 20-30 minutes. DCU requires me to upload driver license, paycheck and purchase order before sending me the check.

Then I visit a PNC branch with 2 paystub, 2 years of W2. The banker there helped me calculate the terms, payment, etc... She was super helpful. Then she applied for $22,500 for me. And.. BAM, I was declined, and even if I was approved it would have been tier 2 at 5.xx% APR. She said it was due to DTI and lack of credit ("huh? I have $33,000 in available credit"). She said she was sorry and she was going to call UW to ask them to reconsider, and that I was a 7 year customer so she would try her best to get me approved and she would call me back later.... okay.... I guess.... their bankers was super helpful but I still left PNC pretty unhappy.

Going back home, I decided to apply for Cap One just because I was mad at PNC. 2 minues filling the short application, a minute waiting for them to process, another minute verify my identity, another minute of processing.. and APPROVED FOR UPTO $40,000 (1.99-8.11% depends on actual vehicle, loan amount and term). The best part: no additional documents needed. Cap One ROCKS. I have never had their credit card nor I intend to, but their auto loan products is surely awesome!

Verdict: Cap One, for my case, win by far and large.

Runner up: DCU. Low interest rate and easy process. Their loan amount is low but pretty understandable.

Last place: PNC ...stingy....

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Fri, 10 Jul 2015 19:12:07 GMT

My story almost exactly, except DCU denied me as well.

Just make sure that the dealership you go to does accept CAP 1 - also make it exceedingly clear that you do not want them to try to beat Cap 1's rate, they most likely cant, unless you are gettin 0% on a new. The dealership does have you fill out a credit app to sign. I met with the finance manager in person and told her I under no circumstances wanted my rate shopped.

The auto navigator tool on the website is great, just pop in a VIN, and slide the circle thing around, or enter a final price to see your APR. I was able to use this as a negotiation tactic because I need the car to be a certain price before I could get 1.99, and I didn't want to put anything down.

Congrats!

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Fri, 10 Jul 2015 20:02:31 GMT

Thank you!! I am torn though... for the vehicle I am planning to get (2012 Audi A4 Premium Plus AWD), the lowest APR Cap One is going to give me is 4.27% (financing $19,000). I am planning to take the 5.24% APR (financing $24,000) and refi with DCU or someone else later. However, a very close friend of mine who buy cars a lot told me the dealership can probably beat 5.24% and under no circumstances should I take a loan with that high APR. So ... I don't know.

@Anonymous wrote:
My story almost exactly, except DCU denied me as well.

Just make sure that the dealership you go to does accept CAP 1 - also make it exceedingly clear that you do not want them to try to beat Cap 1's rate, they most likely cant, unless you are gettin 0% on a new. The dealership does have you fill out a credit app to sign. I met with the finance manager in person and told her I under no circumstances wanted my rate shopped.

The auto navigator tool on the website is great, just pop in a VIN, and slide the circle thing around, or enter a final price to see your APR. I was able to use this as a negotiation tactic because I need the car to be a certain price before I could get 1.99, and I didn't want to put anything down.

Congrats!

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Fri, 10 Jul 2015 20:09:51 GMT

If you add more down, does that change the rate, or are you at the lowest rate for that year car with that mileage?

When you put in the mileage, that also affects the APR, lower mileage and age lower APR, more down or lower price lower APR.

We were looking at 2012 vans with 32,000 mi and about $18,000 and the apr was about 4 ish, it just didn't make sense not to get new when the payment was about the same for a 2015 with zero miles and a $23,000 price tag.

I bet if you find a newer/ less mileage one, the rate will go down when you put the VIN and mileage in, in fact I am sure of it. When I put in 2012 models my APR was around 4, 2015 - 1.99 - made a huge difference.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

pipeguy — Fri, 10 Jul 2015 20:12:08 GMT

Thats the problem with Cap-1 they quoted you a range not a set APR and the difference can be a lot in overall interest paid between 1.74% and 5.xx percent. If it was me, I'd go back to DCU and say I'm approved for the full amount with Cap-1 but I'd rather develop a relationship with DCU as I've heard very good things about DCU - maybe they counter maybe they don't, but it's worth a call.

I'm not "slamming" Cap-1, but I've taken "blank checks" from Capital One 3 times to buy a car, all three times the dealer or another lender beat their APR and terms.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Fri, 10 Jul 2015 20:20:18 GMT

Now, Cap one tells you exactly what the APR will be when you enter the VIN and mileage of the car. This is new and is part of their new website, they don't use the "blank check" any more. You get access once you are approved and can put in and save as many cars as you like to see the difference. This was extremely helpful when I was shopping online, I just entered the vin, made some assumptions on tax, title, down payment (if any) etc and what I thought I could buy the car for, or in some cases what the dealer quoted me via email.

It's only a range because most used car financing is driven by year and mileage. New, my rate was the lowest of the range, 1.99.

In my case the dealer flat out told me there was no way they could beat 1.99 for 72 months on a new purchase.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Fri, 10 Jul 2015 21:02:37 GMT

2013 Audi A4 is like $30,000, and 2014 & 2015 are $40,000. I would say your van holds up value pretty well there. Good investment. Too bad that I am set on the Audi (and I can't shop around for much longer)

DCU gave me $18,000 at 1.74% (they won't bugde, I tried), and I can't put much more down. So what I have now are basically $18,000 at 1.74% with DCU or $25,000 at 5.24% with Cap One. I don't know where else to shop for a better deal. Maybe I will let the dealer shop for me, I don't plan to obtain more credit for a little while so a few inquiries won't hurt (and I can explain with the UW that the inquiries are for auto loan shopping). Between those two deals above, I would probably take Cap One's then refi with DCU sometime later. Putting $7-8,000 down is going to empty my checking, and my savings are in investments.

@Anonymous wrote:
If you add more down, does that change the rate, or are you at the lowest rate for that year car with that mileage?

When you put in the mileage, that also affects the APR, lower mileage and age lower APR, more down or lower price lower APR.

We were looking at 2012 vans with 32,000 mi and about $18,000 and the apr was about 4 ish, it just didn't make sense not to get new when the payment was about the same for a 2015 with zero miles and a $23,000 price tag.

I bet if you find a newer/ less mileage one, the rate will go down when you put the VIN and mileage in, in fact I am sure of it. When I put in 2012 models my APR was around 4, 2015 - 1.99 - made a huge difference.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Sat, 11 Jul 2015 12:35:10 GMT

I also wanted to add that with Cap 1 I had no "stips" which is no proof of income etc. I basically applied, figured my apr and payment on the new "Auto Navigator" system to the specific car I wanted, showed up to the dealership, signed and drove away. Everything was electronic , no checks, no waiting. Still can't believe how easy it was.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Sun, 12 Jul 2015 01:03:15 GMT

Update: The dealer told me if I let them apply for Audi Financial Service (Wolkswagen Credit) then they would pass on to me a $500 discount. They said it would only be 1 HP and if I was approved it would be 1.9%. So I gave them the permission to apply for credit. Wolkswagen Credit approved me for $22,000 with $5000 down payment at 1.9%. They didn't ask for proof of income, just driver license. Not too bad at all! Seems to be a good and honest dealer.

Final Results:

DCU: $18,000 at $1.74%. 1 EQ Pull

PNC: denied. 1 EX Pull

Cap One: upto $40,000 at 1.99-8.xx%. For the vehicle I wanted, it would be $25,000 at 5.24% 3 Pulls, 1 each CRA

Audi Financial: $22,000 with $5,000 down at 1.9%. 1 TU Pull

Verdict: I got the car, the dealer got their money (I paid for down payment with a credit card even though the dealer wanted a check), and Audi Financial will get the money back eventually.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Sun, 12 Jul 2015 03:19:04 GMT

Sounds great! Did you decide on the 2012 Audi A4 Premium Plus AWD? I got a new Allroad (Premium Plus) about a month ago and I'm loving it. First Audi. I'm sad to no longer have a diesel (came out of a Sportwagen) but I'm getting over it.

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Sun, 12 Jul 2015 14:43:12 GMT

@Anonymous wrote:
Sounds great! Did you decide on the 2012 Audi A4 Premium Plus AWD? I got a new Allroad (Premium Plus) about a month ago and I'm loving it. First Audi. I'm sad to no longer have a diesel (came out of a Sportwagen) but I'm getting over it.

Yes, it's the A4 Premium Plus AWD with Navigation and Audi Advanced Key. The only weird thing that I found annoyed is that the 2012 Model doesn't support bluetooth music streaming but I found a $100 accessories on amazon that let me do that instead of spening $3,000 more on the 2013 model and lose the extra options. I love the ride! It's has been really sweet so far. I can't wait until the winter (lol ) and see how much the AWD will help with the snowy hills here

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Sun, 12 Jul 2015 19:17:04 GMT

Great deal all around!

I didnt know Audi Financial would lend on a used Audi, good to know, and good rate too.

Car sounds great.

Re: Update: The Tale of 4 Auto Lender: DCU, PNC, Cap One and Wolkswagen credit

Anonymous — Sun, 12 Jul 2015 20:15:56 GMT

Did Audi do 72 months?

Re: The Tale of 3 Auto Lender: DCU, PNC and Cap One

Anonymous — Mon, 13 Jul 2015 03:11:36 GMT

I had no idea either. Before I went to the dealer I thought they would shop around. But according to http://www.audiusa.com/certified-pre-owned "9. We've made owning an Audi Certified pre-owned vehicle even better.: With special financing and extended vehicle service contracts, you can add ease and certainty to your Audi Certified pre-owned experience". So yeah, Audi finances their CPO.

@Anonymous wrote:
Great deal all around!

I didnt know Audi Financial would lend on a used Audi, good to know, and good rate too.

Car sounds great.

Re: Update: The Tale of 4 Auto Lender: DCU, PNC, Cap One and Wolkswagen credit

Anonymous — Mon, 13 Jul 2015 03:12:30 GMT

I didn't ask so I don't really know. They probably do as most lenders do.

@Anonymous wrote:
Did Audi do 72 months?