I have 2 auto loans with Capital One, each with an interest rate of 8.75%, both with auto pay, so no delinquencies. One is due to be paid off in May of 2012, the other in January 2013. Both vehicles have 6-7K of positive equity.
I would like to trade the gas guzzling truck in for a more economical car. Car price is $17,300. Trade in value $13.500 with $6600 owed, so needing to finance 11K for new vehicle, and want to do a 36 month loan (which are the terms of one of my current loans, which was 11K to start with as well).
Capital one approved me, but at a rate of 13.5%..........what the heck? My credit is better than when I purchased the last car, and my income/debt ratio is unchanged. Straight up FICO score is 650, with discharged bankruptcy 7 years ago, and the bankruptcy was not discharged when I qualified for the loan at 8.75% with Capital One.
I would assume the higher interest rate is based on the fact that Capital One does not know that I will be paying one of the current loans off - is there a way to circumvent this, or will Capital One accept documentation from the dealer in regards to the trade in/payoff amount and lower the rate?
Any info would be much appreciated! Want to avoid asking the dealer for financing, since they certainly could potentially not be upfront with a good financing deal.
