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Capital One Auto Finance After Total Loss

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Capital One Auto Finance After Total Loss

I literally just refinanced my high interest rate loan with another lender to Captial One Auto Financing. Two days ago I was in a no fault accident where my car was totaled. I haven't even made my first payment to Capital One! I owe just over $19k to Capital One. Of course my insurance company won't probably give me that value of my car, but I have a plan in place to get the rest of it paid off and get that loan paid off as soon as I can (We will be borrowing from family and I intend to sue for the remainder if the other drivers insurance company doesn't cover the rest of the payoff).

 

Here is my problem and hopefully you all could steer me in the right direction. This was our only car. My insurance, once they declare a total loss, will only cover my rental car for 7 days. This is not nearly enough time for them to get the money to Capital One for pay off. Does anyone know or can direct me on how to find out, how I can work with Capital One to finance another used car while the insurance claim is still processing their payment? Would I just call their regular customer service or should I be attempting to contact higher up the food chain. I know that those front line reps are not going to be able to really assist me. I am confident they will finance me again as I literally was appoved just over a month ago and my scores are actually a bit better, it's just the timing of it all.

 

I haven't called Capital One yet, but plan to within the next day or so. My insurance has not declared total loss yet, but from the pics I sent, my agent said that they would most likely. We really would not be able to afford a rental every day after the 7 days and don't have the kind of money needed to just buy a decent used car outright (can't just buy a cheap car that runs, my commute would tear a car like that up in no time).

Message 1 of 10
9 REPLIES 9
Frequent Contributor

Re: Capital One Auto Finance After Total Loss

Sorry about the accident hope everyone is OK.

 

First off did you happen to get GAP insurance with Capital One?  Gap covers the difference between what you owe and what insurance pays.

Fingers crossed that you did.

 

Next what are your scores.  I am guessing they are not terrible if you just refinanced with Capital One.

Knowing your scores ad what scores are pulled by particular lenders is very important.  If your Equifax FICO score is much higher than your others look for a lender that pulls Equifax....

 

What are your negatives, any repos, bankruptcy and if so how long ago?  What about collections?

 

You might be able to try Capital One Auto Navigator to see if they pre-approve without a hard pull but if you post your scores, income and info on the negatives we can give better advice if there is a better lender to try.

Message 2 of 10
Valued Member

Re: Capital One Auto Finance After Total Loss


@njcobra10tha wrote:

Sorry about the accident hope everyone is OK.

 

First off did you happen to get GAP insurance with Capital One?  Gap covers the difference between what you owe and what insurance pays.

Fingers crossed that you did.

 

Next what are your scores.  I am guessing they are not terrible if you just refinanced with Capital One.

Knowing your scores ad what scores are pulled by particular lenders is very important.  If your Equifax FICO score is much higher than your others look for a lender that pulls Equifax....

 

What are your negatives, any repos, bankruptcy and if so how long ago?  What about collections?

 

You might be able to try Capital One Auto Navigator to see if they pre-approve without a hard pull but if you post your scores, income and info on the negatives we can give better advice if there is a better lender to try.


I had a recent BK that was discharged in February. My Exeperian FICO is 610 and my Equifax Fako is 645 (don't have the actual FICO on that one). I have a couple lates from years ago on my student loans that still show up, but I dont think they are impacting as bad anymore. Everything recent is in good standing. Probably only thing that is holding me back right now is a 60% utilization due to having to use my Cap 1 card for emergency cat surgery, but that should be paid down by next month, but not in time to make a difference for this issue.

 

No GAP... I don't think Cap 1 offered it. I realized that two weeks ago and had actually started looking into getting GAP coverage sepreratly since I found out that my previous GAP insurance doesn't go with the car... it went with the loan. Busy with work all last week and this week and BAM... accident. I'm not too worried about it though as I should be able to cover the remainder of the loan and will most likely look at legal options to recover that if possible. From my research I will probably have to pay out around $2k and will fight very hard to make sure they pay out the max value of my vehicle. It was in excellent condition and ran perfectly.

Message 3 of 10
Valued Contributor

Re: Capital One Auto Finance After Total Loss

As you have already mentioned, you will be on the hook for the difference for what you owed and at the very most, the blue book value.  I would be concerned that your first payment is coming due soon while your insurance company is evaluating.

 

I don't know who your insurance company is but many(but not all) offer some sort of GAP or loan/lease payoff. IMO, this is the way to go rather than buying overpriced GAP from a dealership and having them roll that into the financing. 

 FICO 8
Message 4 of 10
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Valued Member

Re: Capital One Auto Finance After Total Loss


@Overmedicated wrote:

As you have already mentioned, you will be on the hook for the difference for what you owed and at the very most, the blue book value.  I would be concerned that your first payment is coming due soon while your insurance company is evaluating.

 

I don't know who your insurance company is but many(but not all) offer some sort of GAP or loan/lease payoff. IMO, this is the way to go rather than buying overpriced GAP from a dealership and having them roll that into the financing. 


Thankfully, I am not to concerned about difference since I'm not to far under what my vehicle is worth and I have family who will be willing to help with the remaining amount. My car payment is already sitting in my bank just waiting for the auto pay to hit August 1. Yup, totally going to suck having to make a car payment with no car to show, but this will almost assuradly not be cleared up before then. 

 

I will absolutely check with my insurance company if they have that sort of coverage. Never even thought that could be a thing. Hindsight being 20/20 and all. Lesson also learned to not drag your feet thinking you have time to do something!

 

I'm really just hoping that Capital One will work with me on new auto financing. I really just do not want to go to a dealership and them "shotgunning" my application to tons of places that are probably just going to deny me since I already have an exisiting auto loan.

 

My debt to income is actually really low now and I could possibly even get a small loan for a small car to tide me over, but honestly, I just don't want to do that. I feel like that would be a dumb financial move as when this is all cleared up, I would need to get back into an SUV and there would be no way I would get a trade in value on a car like that that would cover the full payoff of that loan.

Message 5 of 10
Valued Contributor

Re: Capital One Auto Finance After Total Loss

Glad you're ok and that is the most important part.  It really is just some bad luck.  Let us all know what Capital One says.  I'm hoping they can work something out to accomodate your situation.  GL!

 FICO 8
Message 6 of 10
Valued Member

Re: Capital One Auto Finance After Total Loss

I will let you all know! At this point I plan to wait until I know if the car is a loss and then call Cap1.
Message 7 of 10

Re: Capital One Auto Finance After Total Loss

Glad to hear everyone is okay.

 

I just went through a similar situation as far as having an auto loan with Capital One and the car getting totaled.  My insurance company actually paid out more than the cost of the loan so a made a little money.  Anyway, Capital One didn't have any special program to quickly get me into a new loan even after the insurance payment cleared their account.  Per a Cap1 rep, I had to apply for a new loan as if I were a new customer.  I did and got declined.  Here's the kicker, I found the replacement vehicle I wanted and applied for financing at the dealership and guess who approved me?  Yep, Cap1.  Totally ridiculous that I was declined a few days before and the only changes to my credit reports were inquiries as I applied for financing with others.

 

The dealer contacted me a week or so later telling me we're going to tear up the contract because the finance manager found an even better deal with Ally with a lower rate than my original loan with Cap1.  It's honestly the first time in my life I felt like I made out better depending on the dealership for financing rather than walking in with my own approval.

 

Finance managers can work directly with lenders to get things done that we can't on our own, but the problem is finding honorable ones that will actually get you the best savings.  This dealership didn't have to keep working for me, but they did and for that I'll give them first shot the next time I'm in the market for a car.

 

Good luck!

Message 8 of 10
Valued Member

Re: Capital One Auto Finance After Total Loss

Yup... it seems like Capital One really won't work with you on financing until they are squared away. The loan rep I spoke with said that their system is 100% automated now and I would have to apply once my loan was paid in full. I even figured to try the pre-qual link and got a solid no on that one, most likely due to already having an auto refinance with them. 

 

Luckily we will have a car to borrow for at least a few weeks! Now we can be a little picky and find a good deal.

 

Of course now my concern is will I be able to get financing so soon after paying off the loan if that loan still shows up on my credit reports. The whole situation just sucks. I absolutely did not want to have to worry about dealing with a car dealership/more subprime lending with a recent BK discharge still so fresh (Feb). The best laid plans and all I guess. When I got the orginal car loan right after filing, I knew I was going to get hosed on interest, but I was so on track with refinancing. Now I just can't stomache having to go into a dealership and deal with this. 

Message 9 of 10
Valued Contributor

Re: Capital One Auto Finance After Total Loss


@Ge_Gi29 wrote:

Yup... it seems like Capital One really won't work with you on financing until they are squared away. The loan rep I spoke with said that their system is 100% automated now and I would have to apply once my loan was paid in full. I even figured to try the pre-qual link and got a solid no on that one, most likely due to already having an auto refinance with them. 

 

Luckily we will have a car to borrow for at least a few weeks! Now we can be a little picky and find a good deal.

 

Of course now my concern is will I be able to get financing so soon after paying off the loan if that loan still shows up on my credit reports. The whole situation just sucks. I absolutely did not want to have to worry about dealing with a car dealership/more subprime lending with a recent BK discharge still so fresh (Feb). The best laid plans and all I guess. When I got the orginal car loan right after filing, I knew I was going to get hosed on interest, but I was so on track with refinancing. Now I just can't stomache having to go into a dealership and deal with this. 


Sure you can get financed.  You may have to wait until the loan is marked closed on the bureaus but a big part of that depends on your DTI.  Sorry to hear that Capital One couldn't help you out with your situation.  You could always try their prequal again after everything gets updated.  

 FICO 8
Message 10 of 10
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