topic Re: capital one pre approval in Auto Loans

capital one pre approval

Anonymous — Thu, 19 May 2016 02:30:48 GMT

First post and first time buyer here. So after 14 years of driving the same toyota t100 (RIP) I need a new car and upgrade.

I've been pre approved with submitted pay stubs for up to 25 at 9-14% APR. I know the APR is high due to my high 580s credit score.I bring in about 5k a month at a job ive been at for 4 years and just have about 1200 of CC/collection balances.

Will I have any trouble at the dealer with the pre-approval certificate I have once they run my credit? I live on an island and the nearest dealerships are a 45 minute boat ride follwed by a 45 minute car ride to even talk to a finance person. I'd hate to take a whole day and long trip to be shut down thinking im preapproved. I've serached a bunch of forums and most seem to get off track and can't really get any concrete answers/ same experience as me. Below is the fine print that has me skeptical

Product Terms

Pre-qualification does not guarantee that you will receive financing or any particular financing terms, which are subject to change based on our evaluation of your credit application submitted at the dealer and any required documents. Auto Navigator terms expire 45 days from the date you pre-qualify.

To pre-qualify, you must be at least 18 years old, have a valid street address within the United States or an APO/FPO address. Minimum monthly income is $1,500 or $1,800 depending on credit history. Any existing Capital One accounts must be in good standing.

Any help or info would be much appreciated

Re: capital one pre approval

Anonymous — Thu, 19 May 2016 07:44:32 GMT

@Anonymous wrote:
First post and first time buyer here. So after 14 years of driving the same toyota t100 (RIP) I need a new car and upgrade.

I've been pre approved with submitted pay stubs for up to 25 at 9-14% APR. I know the APR is high due to my high 580s credit score.I bring in about 5k a month at a job ive been at for 4 years and just have about 1200 of CC/collection balances.

Will I have any trouble at the dealer with the pre-approval certificate I have once they run my credit? I live on an island and the nearest dealerships are a 45 minute boat ride follwed by a 45 minute car ride to even talk to a finance person. I'd hate to take a whole day and long trip to be shut down thinking im preapproved. I've serached a bunch of forums and most seem to get off track and can't really get any concrete answers/ same experience as me. Below is the fine print that has me skeptical

Product Terms
Pre-qualification does not guarantee that you will receive financing or any particular financing terms, which are subject to change based on our evaluation of your credit application submitted at the dealer and any required documents. Auto Navigator terms expire 45 days from the date you pre-qualify.
To pre-qualify, you must be at least 18 years old, have a valid street address within the United States or an APO/FPO address. Minimum monthly income is $1,500 or $1,800 depending on credit history. Any existing Capital One accounts must be in good standing.

Any help or info would be much appreciated

With capital one auto finance if u been approved it will say max amount and a range of interest which seems like u have for 25k 9-14% which means max u can borrow is 25k and interest will depend on amount u borrow. When I was rebuilding I got a cap one auto loan too and was 35k 8-18%. So if u submitted u pay stub and all can pretty sure say u been approved for the 25k already and u can go shop for ur car. U can go buy any car u want at whatever price. Any amount over 25k u need to pay out of pocket. Remember ur also like a cash buyer so make sure u know what incentives being offer for vehicle ur buying as cash offer

Re: capital one pre approval

Anonymous — Thu, 19 May 2016 17:56:26 GMT

I used Cap One prequal a couple of months ago. Terms were solid once I got to the dealership. Make sure you find a dealer that Cap One has listed in their system that they normally work with. This should make things easier for you and not waste a boat ride and drive to a dealer that may not take your pre-approval

Re: capital one pre approval

RonM21 — Thu, 19 May 2016 22:28:43 GMT

A lot of good reviews on Cap 1 preapprovals lately. Seems like a good option for anyone to consider.

Re: capital one pre approval

Anonymous — Fri, 20 May 2016 12:27:40 GMT

@jpotter0135 Just a word of caution when you are at the dealer. Be very very careful and read ALL documents before you sign them. The dealer's F&I ( Finance and Interest Department ) tried to load me up with a 6.9% rate when Cap One Prequalified me for 2.9%. He said "the terms they shwed you are only a example". I called Cap One Auto right in front of him on speaker and they stated "even though we say the terms are estimated they are dead on". LOL the dealer got so mad. Cause they hate a educated and informed consumer. So if they try and sell you a rate higher they probably added in a ton of extras that you do not need. Do not get anything extra like VIN etching or seat spray or all this other crap. The GAP they tried to sell me for $600 I got from Geico for $19.

Remember read everything BEFORE you sign and fight tooth and nail so they do not scam or take advantage of you. Cause trust me they will try.

Re: capital one pre approval

Anonymous — Fri, 20 May 2016 13:32:04 GMT

Thanks for the replies. I've already checked with my insurance about GAP coverage through them at a much cheaper price. I won't be getting roped into any paint/interior protection stuff. My main concern is having the pre qualified offer just laughed at when my credit application goes through

Re: capital one pre approval

Anonymous — Fri, 20 May 2016 16:49:31 GMT

Just remember if they give you the run around which they prolly will use your personal cell phone and call capital one auto on speaker so they can hear the truth. Do not let them get one up on you. It is so sad just to buy a car you have to go through all this. These dealers get away with highway robbery.

Re: capital one pre approval

Anonymous — Fri, 20 May 2016 19:39:37 GMT

Not so much highway robbery as most people think, (un)fortunately. Many of the products you're offered in the finance office have a lot of value, you just have to cherry-pick. Also check your state's extended warranty guidelines - some make dealers use strictly indexed pricing matrices for aftermarket product, but others give a range. If you are in a range state, you can haggle over pricing.

With that said, Cap1 campaigns typically are generated at a dealer level. They specifically target consumers in a certain credit bracket, with specific histories or vehicle types. IE: customers 550-640, bankrupcy discharged at least one year prior.

Just because you get a pre-qual from Cap1 doesn't mean it's the best thing out there, either. I've seen Cap1 prequals at 13%~ end up with the customer gets bought at 4.9. Even holding a point or two of rate, the customer's still enjoying half the interest charges thanks to a dealership's relation with a financer and eye for knowing what to submit, where to submit it, and how to structure it to be approved.

Dealers aren't all crooks. Those who perpetuate that myth on both sides of the fence make it less and less friendly to do straightforward business.

Re: capital one pre approval

Anonymous — Fri, 20 May 2016 19:45:01 GMT

Where do you add the pay stubs to?

Re: capital one pre approval

Anonymous — Sat, 21 May 2016 13:21:50 GMT

Once i prequalified the auto navigator site gives you an option to either upload your last pay stub or fax it to them. Once they receive them they will contact your employer to confirm your work history eith them and income

Re: capital one pre approval

Anonymous — Tue, 24 May 2016 09:09:05 GMT

@Anonymous wrote:
Where do you add the pay stubs to?

Not everyone is require one. Some is just stated. So whatever u say it's based on that

Re: capital one pre approval

Anonymous — Tue, 24 May 2016 09:20:05 GMT

@Anonymous wrote:
@Anonymous wrote:
Where do you add the pay stubs to?
Not everyone is require one. Some is just stated. So whatever u say it's based on that

WIth your scores you can pretty much bet you will need to prove income. Just bring the last two pay stubs with you and the dealer can submit them for you with the contract. If you have the income the dealer will get your financed either with Cap One or someone else, the issue is going to be APR. Know that dealers mark up interest rates so don't be afraid to push back on interest. Ask them straight up to show you the buy rate so you can see if they are marking it up. I would suggest you give a credit union a crack a preapproving you, they will almost always beat Capital One. Buy smart and when your credit improves you can refinance. I went from 12.57% to 4.29% in 7 months, saves me thousands in interest. I will likely refinance again once we close on our mortage. Let us know how things work out.