topic Re: Capital One Auto Navigator and down payment in Auto Loans

Capital One Auto Navigator and down payment

Kit5 — Wed, 01 Jun 2022 22:27:21 GMT

I was approved for up to 50k. Just started rebuilding my credit so interest rate is very high, as expected. Looks like it's averaging 15-16% depending on the vehicle I choose to review the possible offer. My plan is to refinance with NFCU after I increase my score.

My issue is the down payment. It is showing at least 3-5k for almost every vehicle that is 2019 or newer. I have about 2k to put down but I would prefer no down payment. Does Capital One or dealership determine down payment amount?

Also, the dealer is determined to run my credit to look for a better rate. That will be multiple hard pulls and I doubt anyone will come with a lower interest rate. Should I let them run my credit to look for a better rate? They are telling me they have to run it.

Re: Capital One Auto Navigator and down payment

Jnbmom — Thu, 02 Jun 2022 00:27:19 GMT

@Kit5 wrote:
I was approved for up to 50k. Just started rebuilding my credit so interest rate is very high, as expected. Looks like it's averaging 15-16% depending on the vehicle I choose to review the possible offer. My plan is to refinance with NFCU after I increase my score.

My issue is the down payment. It is showing at least 3-5k for almost every vehicle that is 2019 or newer. I have about 2k to put down but I would prefer no down payment. Does Capital One or dealership determine down payment amount?

Also, the dealer is determined to run my credit to look for a better rate. That will be multiple hard pulls and I doubt anyone will come with a lower interest rate. Should I let them run my credit to look for a better rate? They are telling me they have to run it.

You don't mention what your credit scores are so it's hard to advise. That rate is really high so I am assuming you have derogatory items reporting . If that's the case you will probably need a down payment . Do you need a car or want a car? If you want a car you might want to work on what is holding your scores down first to improve your chances and get a lower rate .

Re: Capital One Auto Navigator and down payment

Shooting-For-800 — Thu, 02 Jun 2022 10:06:21 GMT

The dealership does NOT have to run it.

Check a CU and find a different dealer.

Scores? Derogatories? Repos?

Cap One decides down payment for their financing.

I got 2.49% with $0 down for 72 months with Cap One 5 years ago on a new Honda that I got $6k off sticker price.

The car deal matters, the better the deal, the better the terms (within your credit range).

Terrible time to buy a car BTW.

Car prices are sky high and rates are climbing fast.

GL!

Re: Capital One Auto Navigator and down payment

Kit5 — Thu, 02 Jun 2022 11:30:30 GMT

Scores are between 500-544 so it's a miracle that I was even approved. I have derogatory items, all credit cards debt. NFCU would not approve me for a car loan. My car is 11 years old and needs about $2-3k in repairs, probably more soon. I hate to put that money into an old car if I'm more than likely going to need a down payment regardless. I would rather try to get a car before I actually need one and have to take whatever I can get.

The credit cards debt is with collection agencies. I've always heard that settling debt shows as negative. I can't afford to pay the full amount.

Re: Capital One Auto Navigator and down payment

Shooting-For-800 — Thu, 02 Jun 2022 11:49:44 GMT

@Kit5 wrote:
Scores are between 500-544 so it's a miracle that I was even approved. I have derogatory items, all credit cards debt. NFCU would not approve me for a car loan. My car is 11 years old and needs about $2-3k in repairs, probably more soon. I hate to put that money into an old car if I'm more than likely going to need a down payment regardless. I would rather try to get a car before I actually need one and have to take whatever I can get.

The credit cards debt is with collection agencies. I've always heard that settling debt shows as negative. I can't afford to pay the full amount.

You have to make your own decisions, BUT...

I would think twice about buying a new/used car at those terms.

Even if you car needs $5k in repairs...

That is $400 per month for 1 year.

I assume it is paid off?

A new/used car over $20k will cost you $2k-$3k in taxes, fees, etc.

Then you have depriciation of at least $3-5k in the first year.

Then you have the interest on the loan of at least $3k the first year.

God forbid, you have a repair that is out of warranty on your new car.

Your new/used car could literally cost you $5k-$10k in the first year and you will have a $400-$800 payment for the next 4 or 5 or 6 years.

The car bubble will pop and you will lose even more money on it in the future.

I drive a paid off 15 year old SUV that was $53k new and is now $80k to replace (Honda is the Wife's).

I know how its been treated and I know the repairs that have been done.

I smile when I have to write a check for a repair, tires, batteries, etc.

I have not had a repair that costs more than 2 car payment for a new one.

JMO. GL!

Re: Capital One Auto Navigator and down payment

Mdowning30 — Thu, 02 Jun 2022 17:26:12 GMT

Find a newer car, not a brand new car, preferably a used Toyota. With a clean carfax and decent miles, $10K-20K.