Capital One Auto Financing

[Anonymous]

has anyone gone through this process with capOne while using a car as trade-in?

[Dj4Money]

 Try Fighting Chance ($39 per report), Truecar, Roadster ($295), Checkbook.org ($250), Costco ($55 annually).

  Basically find out the invoice of the vehicle your looking at. For domestic cars/trucks/etc there's about a 3% holdback. So even if they told you a car for invoice, there's a little more savings to be had if you can get it out of them.

 Best way to make tha happen is to detail exactly what you want, plus the altenatives for color, packages, etc. Don't get too fine because that will put you in a box for a car that's rarely ordered and knowing how bad you want it, puts you at a disadvantage.

 Contact 8-10 dealers, talk to the internet dept and tell them what your doing. Even try a few dealers up to a few hours away (80-100 miles or more), tell them you want their best offer and that you and that all dealers have a fair shot at your business.

 If all this is too much trouble for you, then Truecar is a decent option but you should know that is not the best possible price, but a good one.

 Costco Auto Buying Program usually is under invoice, now much is determine by the dealers in the program (they pay for access to get leads). I've heard a few negative outcomes (IE not a good deal, no sale) but typically people get very good deals if not the best deal then additional perks like free oil changes.

 Roadster and Checkbook.org do all the leg work and talking for you. They will work the lowest price possible by working with the fleet manager usually because they have built up relationships.

 Basically if your getting a car under invoice your doing pretty good, but with unpublished direct to dealer incentives, who knows if you could have knocked another $200-$300 off?

 That said, it totally depends what car. You can get huge discounts on luxury cars, typically $2K-$5K off in some cases. Other huge discounts will come from body on frame trucks and SUV's, these are cheap for automakers to build. So they can put big rebates on the hood and knock thousands off the price to get you to buy it and still generate a profit.

 Where you still get deals but not much movement is with performance cars.

[Dj4Money]

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@Anonymous wrote:

has anyone gone through this process with capOne while using a car as trade-in?

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 Pre-Approval has little to do with trade-ins. Your trade is to be handled separately from the other transactions. Your approval from Cap One will come with a ceiling and a range of APR's depending on the overall amount you borrow. Generally the more you borrow the higher your interest.

 If you have negative equality in the trade IE you owe more than it's worth at wholesale bluebook value then you'll be rolling what's left into your next loan. Generally this is viewed as a bad idea, but honestly life is too short and you spend way too much time in your car not to be driving something you really want to drive.

  Anyway, pre-approval is best because your not depending on the dealer to financing you, making you a cash buyer. The trade-in will should be discussed after a price is agreed on and not before. If the salesman or sales manager whine it clouds the deal because they will be forced to give take a hit somewhere, they rather not take a hit at all, you can always get up and leave.

 But this is why you do all your initial contact via EMAIL....

[Anonymous]

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@Dj4Money wrote:

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@Anonymous wrote:

has anyone gone through this process with capOne while using a car as trade-in?

---

 Pre-Approval has little to do with trade-ins. Your trade is to be handled separately from the other transactions. Your approval from Cap One will come with a ceiling and a range of APR's depending on the overall amount you borrow. Generally the more you borrow the higher your interest.

 If you have negative equality in the trade IE you owe more than it's worth at wholesale bluebook value then you'll be rolling what's left into your next loan. Generally this is viewed as a bad idea, but honestly life is too short and you spend way too much time in your car not to be driving something you really want to drive.

  Anyway, pre-approval is best because your not depending on the dealer to financing you, making you a cash buyer. The trade-in will should be discussed after a price is agreed on and not before. If the salesman or sales manager whine it clouds the deal because they will be forced to give take a hit somewhere, they rather not take a hit at all, you can always get up and leave.

 But this is why you do all your initial contact via EMAIL....

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thanks for the info DJ! I will most like see how much Carmax will appraise my car for me first before seeing what the dealership will offer it for; my car has been paid off already for the last few years, so I'm good there.

I was approved from CapOne Auto, and looking into the cars from the participating network of dealerships under CapOne; now it's a matter of finding the available new/cert used car from these dealerships and start e-mail what their best/out-the-door price is, right? And you mentioned the price should be discussed and finalized first before dicussing a possible trade-in, correct?

This is my first time is buying a car by myself btw... kind of nervous and would rather have everything communicated in e-mail and only go to the dealership to test drive/finalize paperwork. I think if anyone would suggest how the e-mail communication process would work, I'd really appreciate it!

I went with CapOne based on the peace of mind (i'm assuming) of having the loan in-hand, going to the dealership with it, them looking at my loan and processing the paperwork, and I'm done. But I realize (tell me if i'm wrong appraching this), I should actually communicate in e-mail for best price of cars from their dealer network for the car in mind, finalizing (i don't know what terminology would consider the paperwork/offer as a legitimate quote of price so they don't flip the price on me when I visit) paperwork, to mention (or not) that I have a loan from CapOne in e-mail, then go in, test drive and sign docs... right?

Thanks!

[Anonymous]

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@Dj4Money wrote:

 Try Fighting Chance ($39 per report), Truecar, Roadster ($295), Checkbook.org ($250), Costco ($55 annually).

  Basically find out the invoice of the vehicle your looking at. For domestic cars/trucks/etc there's about a 3% holdback. So even if they told you a car for invoice, there's a little more savings to be had if you can get it out of them.

 Best way to make tha happen is to detail exactly what you want, plus the altenatives for color, packages, etc. Don't get too fine because that will put you in a box for a car that's rarely ordered and knowing how bad you want it, puts you at a disadvantage.

 Contact 8-10 dealers, talk to the internet dept and tell them what your doing. Even try a few dealers up to a few hours away (80-100 miles or more), tell them you want their best offer and that you and that all dealers have a fair shot at your business.

 If all this is too much trouble for you, then Truecar is a decent option but you should know that is not the best possible price, but a good one.

 Costco Auto Buying Program usually is under invoice, now much is determine by the dealers in the program (they pay for access to get leads). I've heard a few negative outcomes (IE not a good deal, no sale) but typically people get very good deals if not the best deal then additional perks like free oil changes.

 Roadster and Checkbook.org do all the leg work and talking for you. They will work the lowest price possible by working with the fleet manager usually because they have built up relationships.

 Basically if your getting a car under invoice your doing pretty good, but with unpublished direct to dealer incentives, who knows if you could have knocked another $200-$300 off?

 That said, it totally depends what car. You can get huge discounts on luxury cars, typically $2K-$5K off in some cases. Other huge discounts will come from body on frame trucks and SUV's, these are cheap for automakers to build. So they can put big rebates on the hood and knock thousands off the price to get you to buy it and still generate a profit.

 Where you still get deals but not much movement is with performance cars.

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The 8-10 dealers would be the dealers only within the CapOne auto network, right?

[Anonymous]

btw Dj, well put on that part about buying a car you'll want.. I know frugal buyers won't understand (or do), but I spend a lot of time driving in my car (traffic sucks in socal) and having a nice interior has been a factor in my next purchase... or at least an interior that doesn't look sad lol.

[Dj4Money]

 Your welcome, a couple of things -

 1) Using the Cap One pre-approval is up to you. You have 30 days and current manufacturer interest rates will not be beat by Capital One. You are just using it as a bargaining tool unless you get a rate quote higher than the dealer will give you then you are welcome to take it.

 As a bargaining chip, it doesn't matter then which dealer you contact. Just tell them you have financing already, no need to tell them where you got it from.

 2) I have about $3,000 in negative equity and while I like my Hyundai, I miss my life as an automotive enthusiast. I can return to that lifestyle without it costing me more money monthly. Sure I would be winding the clock back eight and have to pay eight additional payments or about $2900.

  Here's what I would do with your pre-approval.

 Contact dealers as far as your willing to go and I bought my Hyundai up in Washington, so I'm willing to go pretty far. Again outline the colors you want (primary, first choice, second choice or it doesn't matter), packages and options.

 Add up the price including invoice + package/options and destination.

 Tell them you are ready to buy as soon as price is agreed upon. If they are far from you ask  if delivery is possible.

 Once the price is agreed on, then tell them you want to trade. If they whine, then say look these transactions are not connected. If they want to raise the price of the new car to compensate, tell them thank you for your time and that you'll be contacting the second place dealership.

 You should only thank the dealers you contact after you have purchased.

  Good Luck, be sure to post a picture...

[Anonymous]

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@Dj4Money wrote:

 Your welcome, a couple of things -

 1) Using the Cap One pre-approval is up to you. You have 30 days and current manufacturer interest rates will not be beat by Capital One. You are just using it as a bargaining tool unless you get a rate quote higher than the dealer will give you then you are welcome to take it.

 As a bargaining chip, it doesn't matter then which dealer you contact. Just tell them you have financing already, no need to tell them where you got it from.

 2) I have about $3,000 in negative equity and while I like my Hyundai, I miss my life as an automotive enthusiast. I can return to that lifestyle without it costing me more money monthly. Sure I would be winding the clock back eight and have to pay eight additional payments or about $2900.

  Here's what I would do with your pre-approval.

 Contact dealers as far as your willing to go and I bought my Hyundai up in Washington, so I'm willing to go pretty far. Again outline the colors you want (primary, first choice, second choice or it doesn't matter), packages and options.

 Add up the price including invoice + package/options and destination.

 Tell them you are ready to buy as soon as price is agreed upon. If they are far from you ask  if delivery is possible.

 Once the price is agreed on, then tell them you want to trade. If they whine, then say look these transactions are not connected. If they want to raise the price of the new car to compensate, tell them thank you for your time and that you'll be contacting the second place dealership.

 You should only thank the dealers you contact after you have purchased.

  Good Luck, be sure to post a picture...

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so for (1), but if the dealer would try to beat the rate/loan I have with CapOne, wouldn't they run a credit check on me? Wouldn't want another hard inquiry on my report from that though? Unless there is a way the dealer can for sure offer a better rate/loan amount w/o a hard pull?

oh ok cool, I can even look outside the CapOne network.. but I'm assuming this is for certain they can beat my loan offer & w/o running hard inq, correct? Also, throughout the whole process (e-mailing & in person), i don't have to disclose who my loan is from, just that I already have a loan already? I feel that once I'm in the dealership, they would try to pry that info from me. In my e-mails for the dealer bidding for my purchase, I can disclose that I have a loan already, correct?

(2) would i have the right though in terms of outlining some of the options when my budget would only call for a certified used car (though my other car i have in mind would be brand new, so I would follow your plan)? 

when you wrote "add up the price, etc etc" do you mean I outline that in my e-mail communication with them initially when i list out my car preferences/options? do I come clean with them if they ask if i have a trade before they agree in the price?

thank again for the advice so far! for sure i'll post a pic!

[Wovenyarn]

I used cap one over 10 years ago for auto financing.  It was the blank check process and it went super smooth.  Unfortunately I ended up burning them about 2 years into the deal so I know I won't be able to use them again but the process was seamless back then.  

[Dj4Money]

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@Anonymous wrote:

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@Dj4Money wrote:

 Your welcome, a couple of things -

 1) Using the Cap One pre-approval is up to you. You have 30 days and current manufacturer interest rates will not be beat by Capital One. You are just using it as a bargaining tool unless you get a rate quote higher than the dealer will give you then you are welcome to take it.

 As a bargaining chip, it doesn't matter then which dealer you contact. Just tell them you have financing already, no need to tell them where you got it from.

 2) I have about $3,000 in negative equity and while I like my Hyundai, I miss my life as an automotive enthusiast. I can return to that lifestyle without it costing me more money monthly. Sure I would be winding the clock back eight and have to pay eight additional payments or about $2900.

  Here's what I would do with your pre-approval.

 Contact dealers as far as your willing to go and I bought my Hyundai up in Washington, so I'm willing to go pretty far. Again outline the colors you want (primary, first choice, second choice or it doesn't matter), packages and options.

 Add up the price including invoice + package/options and destination.

 Tell them you are ready to buy as soon as price is agreed upon. If they are far from you ask  if delivery is possible.

 Once the price is agreed on, then tell them you want to trade. If they whine, then say look these transactions are not connected. If they want to raise the price of the new car to compensate, tell them thank you for your time and that you'll be contacting the second place dealership.

 You should only thank the dealers you contact after you have purchased.

  Good Luck, be sure to post a picture...

---

so for (1), but if the dealer would try to beat the rate/loan I have with CapOne, wouldn't they run a credit check on me? Wouldn't want another hard inquiry on my report from that though? Unless there is a way the dealer can for sure offer a better rate/loan amount w/o a hard pull?

oh ok cool, I can even look outside the CapOne network.. but I'm assuming this is for certain they can beat my loan offer & w/o running hard inq, correct? Also, throughout the whole process (e-mailing & in person), i don't have to disclose who my loan is from, just that I already have a loan already? I feel that once I'm in the dealership, they would try to pry that info from me. In my e-mails for the dealer bidding for my purchase, I can disclose that I have a loan already, correct?

(2) would i have the right though in terms of outlining some of the options when my budget would only call for a certified used car (though my other car i have in mind would be brand new, so I would follow your plan)? 

when you wrote "add up the price, etc etc" do you mean I outline that in my e-mail communication with them initially when i list out my car preferences/options? do I come clean with them if they ask if i have a trade before they agree in the price?

thank again for the advice so far! for sure i'll post a pic!

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 If you take all your inquries in the same 30 days, it will only count as one or about 2-3 points on your FICO score. It's not a big deal, it will recover sometime after your car loan appears on your report as paid and current.

 Only take the OEM's rate IF it's lower than Cap One. Example Ford, Nissan and Toyota have some form of 0% for up to 72 months. For Ford the threshold is 660 EX FICO to get Tier 1 assuming you don't have other issues on your credit. You can get 0% from Toyota or Nissan with less than 700 score as well. 

 Don't let them pull your credit all your doing is shopping for price at that moment. You shouldn't be visiting dealerships until one has offered you the lowest price, you get it in a written quote, print it and take it with you.

 Once you have a quote in witting, email a copy to the Internet dept of the Cap One In-Network dealer and ask if they will match it. If they won't and the dealer that will give you the price is out of network, then agree to their price and let them run your credit again to see if the captive bank can beat it or another lender like Chase or even a CU.

 That would be two HP pulls, maybe three total, all within the last 10 days or so or less. I would be thinking less if your trying to get in on the labor day deals out there.

 The only difference between used cars and new cars is the inspection process. If you are looking at CPO's the dealer has already done it's multi-point check already, usually a car off lease anyway. At that point it's focusing on price and pitting dealerships against each other for your business.

 Correct, outline what you want in the initial email. As for keeping the trade close to your vest do whatever you feel comfortable with. I've had dealers try to increase the price or threaten too because I wanted max wholesale value on my trade.

 Agree on price for the new car first I what is would do and keep the salesman on-topic. Just say your not ready to talk about trade yet. You can take your current car to Car Max for a appraisal so you'll know and have it in writting so they can't try to low ball you.

 BTW what are you trying to get anyway?