Cap 1 Blank Check, waiting for funds to clear

[BGinVA]

I was doing some surfing, just trying to get a general feel for what the public thinks about the Cap 1 Blank Check auto financing and found an interesting thread on another board.  Several people reported that their dealers were reluctant to take the checks at all becuase some have "bounced" or the loan was pulled after the deal was made.  A few others reported that they had to wait until the check cleared sometimes up to 10 days to take delivery of their new vehicle.  Anyone have any experience with this?  Seems to me that if they have a list of dealers that you are required to use, obviously they have some sort of business arrangement and it shouldn't be that difficult for the dealer to verify the funds with Cap 1 before sending the purchaser out the door in their new car.  Or is this maybe a ploy to get them to use in-house financing?  Or maybe since I found it all on one board there were competing lender representatives trying to make Cap 1 look bad?  Thoughts? 

[pizzadude]

That's interesting.....I've never used the blank check from Cap1, but I wonder is it a Actual Negociable Check ?  Or simply an instrument that states that you are approved to borrow up to $$$$.

Of course dealers are always more interested in having you finance with them, since they make money off the financing as well, so it could also be sour grapes...

[Anonymous]

Back in August 2011, My wife used a Capital One Blank Check to purchase our 2011 Hyundai Sonata GLS. Our application took awhile to get approved mostly because my wife doesn't work and she was using my income to purchase the car -- and oddly enough they didn't require any of my information nor did they verify my employement. Either way, from application to approval it was about a week. There was a holiday in there so that wasted a day. We got the check Next Day Air from FedEx and bought the car that night. The dealership treated it as a "Cash Sale" even though the dealer has a lot of things they have to do for Capital One... this might be where you find people having issues. First, you HAVE to go to an approved dealership. Second, you HAVE to fill out all of the paperwork. Dot your I's, cross your T's. Finally, the dealership has to do their part. We didn't have to wait to take the car home. They said it was a cash deal and we took it home that night. A few days later we got a packet in the mail with all of the loan info and 30 days later we got our first statement.

Just a few months prior we bought our van and we financed it through a credit union.That process was about 100x more difficult than the Capital One check.

[Anonymous]

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@pizzadude wrote:

That's interesting.....I've never used the blank check from Cap1, but I wonder is it a Actual Negociable Check ?  Or simply an instrument that states that you are approved to borrow up to $$$$.

Of course dealers are always more interested in having you finance with them, since they make money off the financing as well, so it could also be sour grapes...

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Pizzadude,

The check is actually a blank check. It looks like one out of your check book with your name in the top left. There is a letter attached that you have to give to the dealership. It basically says your name and says you're approved to write this check for UP TO $xx,xxx.xx and that your rate is xx.xx% incase they want to try and beat it. There is also a little packet to give the dealership so they can submit everything correctly. Pain free.

[pizzadude]

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@Anonymous wrote:

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Pizzadude,

The check is actually a blank check. It looks like one out of your check book with your name in the top left. There is a letter attached that you have to give to the dealership. It basically says your name and says you're approved to write this check for UP TO $xx,xxx.xx and that your rate is xx.xx% incase they want to try and beat it. There is also a little packet to give the dealership so they can submit everything correctly. Pain free.

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Cool !!   Thanks for letting me know, it sounds like it is fairly pain free....which is great.   Were you pleased with the rate they offered on your financing ?

[Anonymous]

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@pizzadude wrote:

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@Anonymous wrote:

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Pizzadude,

The check is actually a blank check. It looks like one out of your check book with your name in the top left. There is a letter attached that you have to give to the dealership. It basically says your name and says you're approved to write this check for UP TO $xx,xxx.xx and that your rate is xx.xx% incase they want to try and beat it. There is also a little packet to give the dealership so they can submit everything correctly. Pain free.

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Cool !!   Thanks for letting me know, it sounds like it is fairly pain free....which is great.   Were you pleased with the rate they offered on your financing ?

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We were VERY happy with the rate. They came in at 5.78%. My wife has a very young credit file (she is only 23) and it was her first car loan. The Toyota dealership said they would beat it.. none of their banks even made an offer. We were very happy, aside from it taking a week to get the approval.., which in hindsight was understandable. She has poor credit and no income and she didnt have a co-signer.. it worked well.

[pizzadude]

Wow, that's a good rate, given that she is starting out with her credit and never had an auto loan !!