Cap One approval.....***UPDATE*** You need to read this !!!!

[Anonymous]

Congrats on not letting the dealer screw you!! And congrats on the new car. Did Cap one send anything in the mail to you to take with you to the dealership? And did you have to bring any other documents with you like paystubs or residence verification? Seems like the process was pretty easy besides the dealer trying to rate jack you and I'm glad you caught them.

[SamsungHDTV]

Sadly, dealerships do this all day long. Thanks for sharing your experience.

[Anonymous]

I wonder when a dealer beats a pre-approval offer that you bring in to them if they still rate jack you (I guess that depends whether they can or not depending on what their lender offers you) for instance when I went into the dealership with my Navy preapproval the F&I guy said he could probably beat Navy by 1-2% IIRC. So I wonder if I would of let him beat Navy of that new rate that was 1-2% lower would still have a extra 1% added on for the dealer.

It's crazy I never knew of dealerships doing that before I became a member here. I always thought they only made money on cars....how naive

[Anonymous]

Ha, Congrats! Love to see people give it to the dealership! My girlfriend that has an 830 Fico went to the dealer and they offered her 3% on her loan when any bank would be happy to give her money period. She told them 1.49% or pack sand. Which of course was the real rate. They caved as soon as they saw she wasn't clueless. I can imagine the billions a year the industry makes from this scam.

My favorite is buying cars from the factory through the military overseas direct program. They hate and I mean hate it when you just show up to pick up your 70k car that the factory delivers to them just so they can unwrap it for you. All they get is the destination fee. It's second only to the enjoyment I get from the car its self.

Enjoy it in good health! 

[flan]

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@Anonymous wrote:
I wonder when a dealer beats a pre-approval offer that you bring in to them if they still rate jack you (I guess that depends whether they can or not depending on what their lender offers you) for instance when I went into the dealership with my Navy preapproval the F&I guy said he could probably beat Navy by 1-2% IIRC. So I wonder if I would of let him beat Navy of that new rate that was 1-2% lower would still have a extra 1% added on for the dealer.

It's crazy I never knew of dealerships doing that before I became a member here. I always thought they only made money on cars....how naive

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Depends on the lender.  Not all lenders will let the dealership change the rates, and not all dealerships do this, even when they'd be allowed to.  But, yes, if the dealership does this, it's a good bet that they do it when they can.  A 25 basis points is $5 per $1000 financed on a four year loan, so even a little padding on an expensive car can make them a decent amount of free money.  There's a reason the financing part of the dealership makes more money than the sale of the vehicle. 

[Anonymous]

Did Cap one send anything in the mail to you to take with you to the dealership? And did you have to bring any other documents with you like paystubs or residence verification? Seems like the process was pretty easy besides the dealer trying to rate jack you and I'm glad you caught them.

So do you have an answer to this document verification system at Capital One? what kind of documents were asked of you? what else was asked to bring with you?

[JOHNINAZ]

No, all I got was a letter stating I was pre approved in the mail, I called and they confirmed the amount (40 or 45K whatever I mentioned earlier) then they forwarded a link to all the dealerships in my area (arizona) that will accept there pre approval. I then followed the other directions (gather pay stubs, bank statement, proof of ins, phone or elect bill) and went to the dealership. After negotiating the price I told them I had the pre approval (which I had already found the car I wanted in there link of dealers so I knew the rate and payment amount). For me this is where it got crappy but in the end worked out.

I got an email from Cap One about 3-4 days after we bought the car asking my opinion, I gave it, regard to them and the dealership, because I felt they should know. I then got a letter in the mail from them Monday stating in detail what my interest rate was (what I was told by them), payment amount and terms and that I would get a payment statement in the mail 15 days before my payment is due. 

At this point I am 100% pleased with them and would look at them again in the future for another purchase. I will also say I was approved at 4.5% on the new Mustang (which I had ordered but decided to pass on- see my other post on this) and the dealer shot me a 6.5% rate after the car arrived. If I had the 6-8K to put down like I had planned in Feb when I ordered the car I would have used Cap One for this also.

[Anonymous]

if i m not mistaken i understand you mentioned being self-employed? at any stage of the application were you asked for tax returns/financial statements like Profit/Loss on your business ?

I am glad all worked out for you. That is awesome. 

I did receive a email from Cap1 for $35,000 Pre-approval with a particular dealership. i being self-employed was hesitant in taking a hard-pull on my credit bureau for them. Besides, the particular dealership they selected for me to go, wasn't atleast within 50 mi of me and i live in a big metro city.

[JOHNINAZ]

So a couple things here. First, I had been and am still getting preapproval letters from Cap One for a locate Nissan dealer. This is NOT what I applied to/for. I got a seperate general preapproval which I then called them on. 

As far as self employeed. I actually sold my interest in a body shop I was a partner in months ago so I actually do not have a job at all (though I do get structured payments for the next few month) and am launching a new business next month. What I did bring were my last 3 months of bank statements and I brought my W2 from this year (company taxes werent done yet). W2 proved my income last year, bank statements (Jan/Feb/Mar) proved I still have income at or near that same yearly amount if multiplied by 12. I did also add my wife to the loan so I can get her started on her credit score here ( in the US, 10 months, working as a waitress the last 3 months part time) though her income was minor compared to mine. 

They never asked me for a tax return but proving you have had income and currently have income is, I believe, most important.

****On another note, I got a letter today from some bank in CA telling me I was approved for my car loan at the place I did buy the car but the offer expired because I did not accept it. I am pretty PO'ed they ran my credit through another source since I had the Cap One preapproval and told them I ONLY wanted to use Cap One. Typical butthole car dealer always trying to screw the customer over more. Oh and get this the CA bank had my credit score listed as 752........ yeah, look at my scores in my sig..... I dont care what company they use there is no way I was a 752.. but hey its nice to know and I will be there in the future !

[Anonymous]

thanks so much for detailed explanation for self employed people who want to finance car with pre-approval.

I m in the same boat but have commissions income only and wife doesn't work; I get 1099 v/s W-2 from my business and file Sch C taxes.

I have Bank statements to show income, however it varies so much that i prefer not to have to show it that way. If averaged over three months its kinda good.

Did you have a blank Check to take it to the dealership and write them a check; Is that still possible with any bank.

I like the idea of showing myfico score on whichever bureau they tell me they will choose at the dealership and tell them, given this score i m qualified unless you tell me otherwise.

I would sincerely love to see a bank/CU/Dealership make decision solely based on FICO/Credit Scores. The idea of Stated Income and years in business is IMHO GONE for good.