topic Re: Capital One Auto Loan Never Works. in Auto Loans

Capital One Auto Loan Never Works.

Anonymous — Sat, 27 Mar 2021 04:42:44 GMT

I put 16k down tonight on a new car costing 21602 OTD. Had Auto Navigator approval for 35K. Dealer said only approval they can get for that amount being so small , $5602, was @17.44%.with Ally for 72mo. Don't understand why since I thought CapOne finances amounts that small. I called CapOne last night and said dealer submitted deal to them yesterday and it was approved with 13k down. Not sure what happened today but I was tired of waiting around, could not get through to CapOne myself so just signed that loan and left with the car. I will refi ASAP. Not worth it over a few days of interest on a very small loan. My question is the loan too small for CapOne on a new purchase and why did CapOne pre approval not work. It never has worked for me, my reasoning is you still have to have dealer run credit with CapOne. My score are between 560 and 592 depending on model, bureau ect. My 16k DP was a loan from my uncle, I will pay him back at 4% so good deal for both of us since he can't get that interest from any bank.

Re: Capital One Auto Loan Never Works.

Ficoproblems247 — Sat, 27 Mar 2021 11:45:10 GMT

JMO, but it sounds like you may have been taken advantage of by a shady dealer. They get kickbacks when financing through certain lenders more so than others. I've read other stories about people telling dealers that they want to finance through Cap1 and the dealer shotguns their reports anyway. I'm not looking forward to buying my next vehicle, but when I do I'm going to look around at loans and get a pre-approval first, then tell the dealer that I'm watching my reports in real time and if I have a single inq elsewhere than from where I stated I wanted financing from that I'm walking out of the door with no car.

Re: Capital One Auto Loan Never Works.

Shooting-For-800 — Sat, 27 Mar 2021 12:55:54 GMT

Why not put less down?

Its simple interest.

You could send them $10k in a week if you wanted.

Dealer probably lying.

I got 2.49% for 72 months with Cap One on a new car.

Used my Cap One Venture to put $5k down at the dealership.

I was not required any down payment.

Entire process could not have been easier.

GL!

Re: Capital One Auto Loan Never Works.

4sallypat — Sat, 27 Mar 2021 16:17:57 GMT

Based on my experience & feedback from dealers about the Cap 1 Auto Navigator is that they can not upcharge or mark up the APR on top of what another bank offers.

So Cap 1 is essentially an honest rate that the dealer has to offer you without markup.

They prefer to use their captive lender for % of each month's payment, volume kickbacks, acquisition rebates, and other money making tools the dealer uses.

I would re-fi with a CU - they are more honest.

Re: Capital One Auto Loan Never Works.

Anonymous — Sat, 27 Mar 2021 16:21:19 GMT

Called CapOne myself this am. Told me I was approved with 13k down at a rate of 10.51% for 60 or 10.95 for 72. I just checked online CapOne refinance out of curiosity and the minimum is 7500 so I think even though CapOne does do loans as low as 4k, minimum amount could be 7500 since car is new. In any event, either I will refinance this small amount ASAP or just pay it off when I can make my first payment.

Re: Capital One Auto Loan Never Works.

Loquat — Sun, 28 Mar 2021 05:01:46 GMT

Sounds like you were indeed dealing with a dealer who was a bit shady. As for the refi, for such a little amount I wouldn't even bother taking another HP (or several) and another new account hitting for $5600. I'd pay it off as soon as possible. No way would I carry that sucker to term.

Best thing about you paying the balance off within a very short period of time is the dealer will get what's called a chargeback. It'd take a bit more than necessary to explain it but when a customer cancels a product, refi, or pay off within a very short window after the close of the deal, the dealer experiences a chargeback whereas the shady dealer/finance manager doesn't make anything on the products they upsold the customer.

Re: Capital One Auto Loan Never Works.

Anonymous — Sun, 28 Mar 2021 11:22:28 GMT

@Loquat wrote:
Sounds like you were indeed dealing with a dealer who was a bit shady. As for the refi, for such a little amount I wouldn't even bother taking another HP (or several) and another new account hitting for $5600. I'd pay it off as soon as possible. No way would I carry that sucker to term.

Best thing about you paying the balance off within a very short period of time is the dealer will get what's called a chargeback. It'd take a bit more than necessary to explain it but when a customer cancels a product, refi, or pay off within a very short window after the close of the deal, the dealer experiences a chargeback whereas the shady dealer/finance manager doesn't make anything on the products they upsold the customer.

Re: Capital One Auto Loan Never Works.

Anonymous — Sun, 28 Mar 2021 12:19:36 GMT

Bottom line is I got a car I like at a price I like. It just seems with CapOne it still leaves you in the dealers hands and is not the same as securing financing on your own with a CU ect. POS dealer didn't even give a full tank of gas,half tank only.

Better yet they tried to get me to only put down 3k instead of 16k and said they could get me a rate around 10% if I went that route and then I could just pay off the loan instead of paying mostly cash for the car that day. I asked who the lender would be and they told me Americredit. I'm sure that loan would have a pre payment penalty, no way I was doing that. Looking forward to them having a charge back in a few weeks.

Re: Capital One Auto Loan Never Works.

Loquat — Sun, 28 Mar 2021 18:50:27 GMT

@Anonymous Good for you. CapOne used to do things a bit differently years ago. They had this "blank check" program that sort of works how some credit unions go about business. You'd apply with them and they'd approve you for a certain amount and then mail you a blank check. All of the identifying information needed was done before going to the dealer and it was directly with them.

The dealer had very little they needed to do. They were to collect your driver license, no additional credit checks were conducted, the you'd pick your car and the dealer would submit the BO and present the check. CapOne would approve online or over the phone while you waited and you were in your way. Too bad they got rid of that program because it allowed a customer to shop as a cash buyer and it was great.

HSBC used to have a similar program as well but it went away right about the time CapOne ditched their blank check program.

Congrats again on your new vehicle and for reminding the dealer via early payoff that not everyone will stand for extremely shady practices.

Re: Capital One Auto Loan Never Works.

Shooting-For-800 — Sun, 28 Mar 2021 22:36:30 GMT

FTR - I just SP Cap One Nav to see if anything has changed.

I was approved at $75k @ 3.1% for 60 months with no money down.

Cap One is pretty straight forward.

I think one just has to find a honest dealer.

GL!

Re: Capital One Auto Loan Never Works.

Loquat — Sun, 28 Mar 2021 23:44:12 GMT

@Shooting-For-800 You nailed it. One must find a good dealer. The problem is once you give the dealer a signed credit app they'll run you even if you don't want them to and there's not much power one has to stop them once you sign such application. This is why I hate that CapOne now requires that the dealer does a pull as well. It just allows them to shop you even if you say that you absolutely want to move forward with CapOne.

My advice to anyone who is worried that the dealership is going to shotgun them without their permission and use the CapOne criteria as a reason for running credit to begin with, I suggest locking your credit reports. Ask them which one they need to pull to comply with CapOne's requirements...unlock it and after they see the initial pull from the actual dealer, lock it back right away.

Most of the credit bureau's have apps or websites that consumers can use which allows for the quick locking and unlocking of reports. Don't let the dealer make the false claim that because of the Patriot Act that need to pull your credit because they're lying. If they insist I would suggest move on to another dealership.

Re: Capital One Auto Loan Never Works.

Shooting-For-800 — Mon, 29 Mar 2021 01:00:58 GMT

I told my dealer that I get instant CR alerts and I will walk out the door if he runs it for anyone other than CapOne.

He did not run it for others.

He was an excellent sales person from the start.

I negotiated everything via email before I even test drove.

Emailed every dealer in the state before visiting the dealership.

LOL.

Re: Capital One Auto Loan Never Works.

Loquat — Tue, 30 Mar 2021 21:40:31 GMT

@Shooting-For-800 Kudos to you for setting your expectations and holding them to it. If more folks would do this then a lot of the shady practices would cease.

The sad part is that shady practices doesn't have to happen in order to make a living. In my time as a Finance Manager I quickly learned that just about every customer I encountered wanted to spend money...I just had to give them a good enough reason to spend it with me and the dealership.

It's as simple as asking questions, listening to your customers, tailor your menu, then present and close. Simple enough. But if you discover via fact finding that the customer never keeps a vehicle more than 2 years or certainly not outside of the 3/36 or 5/60 warranty and you try selling them a service agreement that you know dang well they don't need, then your boat will have sank before even leaving the dock.

Re: Capital One Auto Loan Never Works.

Anonymous — Tue, 30 Mar 2021 22:57:09 GMT

From my experiences, just seems like using CapOne auto finance requires an honest dealer as was said above.

At least there was one good thing, I think, that came out of this. I was on the Ally Financial Auto website since they are my lender for now and I see extended warranty. Called the number, got transferred, and purchased a 10 year bumper to bumper warranty for $20 a month plus tax. It's their flex plan. With a Nissan CVT/Infotainment system I may need it if I keep the car long enough.

Re: Capital One Auto Loan Never Works.

Loquat — Wed, 31 Mar 2021 23:25:49 GMT

@Anonymous Good deal on thinking ahead and getting a service agreement on your car. I know a lot of folks don't care for them but I buy one with every car I purchase. About a month ago I purchase a new 2021 and I added a service agreement as well.

Things break and in newer cars even the little things cost a lot to replace.