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Capital One Auto Loan Never Works.

FMC
Frequent Contributor

Capital One Auto Loan Never Works.

I put 16k down tonight on a new car costing 21602 OTD. Had Auto Navigator approval for 35K. Dealer said only approval they can get for that amount being so small , $5602, was @17.44%.with Ally for 72mo.  Don't understand why since I thought CapOne finances amounts that small. I called CapOne last night and said dealer submitted deal to them yesterday and it was approved with 13k down. Not sure what happened today but I was tired of waiting around, could not get through to CapOne myself  so just signed that loan and left with the car. I will refi ASAP. Not worth it over a few days of interest on a very small loan. My question is the loan too small for CapOne on a new purchase and why did CapOne pre approval not work. It never has worked for me, my reasoning is you still have to have dealer run credit with CapOne. My score are between 560 and 592 depending on model, bureau ect. My 16k DP was a loan from my uncle, I will pay him back at 4% so good deal for both of us since he can't get that interest from any bank. 

 

Message 1 of 15
14 REPLIES 14
Ficoproblems247
Valued Contributor

Re: Capital One Auto Loan Never Works.

JMO, but it sounds like you may have been taken advantage of by a shady dealer. They get kickbacks when financing through certain lenders more so than others. I've read other stories about people telling dealers that they want to finance through Cap1 and the dealer shotguns their reports anyway. I'm not looking forward to buying my next vehicle, but when I do I'm going to look around at loans and get a pre-approval first, then tell the dealer that I'm watching my reports in real time and if I have a single inq elsewhere than from where I stated I wanted financing from that I'm walking out of the door with no car. 




FICO 8 Jan '22 EX 756 EQ 750 TU 741
Message 2 of 15
Shooting-For-800
Senior Contributor

Re: Capital One Auto Loan Never Works.

Why not put less down?

Its simple interest.

You could send them $10k in a week if you wanted.

Dealer probably lying.

 

I got 2.49% for 72 months with Cap One on a new car.

Used my Cap One Venture to put $5k down at the dealership.

I was not required any down payment.

Entire process could not have been easier.

 

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2021.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

5% Rotating - Discover                         5%-20% - Amazon & Lowes                   3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl            4% Dining & Entertain - Savor               3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything - Flagship, Synchrony, Evergreen, & Venture


Message 3 of 15
4sallypat
Established Contributor

Re: Capital One Auto Loan Never Works.

Based on my experience & feedback from dealers about the Cap 1 Auto Navigator is that they can not upcharge or mark up the APR on top of what another bank offers.

 

So Cap 1 is essentially an honest rate that the dealer has to offer you without markup.

 

They prefer to use their captive lender for % of each month's payment, volume kickbacks, acquisition rebates, and other money making tools the dealer uses.

 

I would re-fi with a CU - they are more honest.

Message 4 of 15
FMC
Frequent Contributor

Re: Capital One Auto Loan Never Works.

Called CapOne myself this am. Told me I was approved with 13k down at a rate of 10.51% for 60 or 10.95 for 72. I just checked online CapOne refinance out of curiosity and the minimum is 7500 so I think even though CapOne does do loans as low as 4k, minimum amount could be 7500  since car is new. In any event, either I will refinance this small amount ASAP or just pay it off when I can make my first payment. 

 

Message 5 of 15
Loquat
Moderator

Re: Capital One Auto Loan Never Works.

Sounds like you were indeed dealing with a dealer who was a bit shady. As for the refi, for such a little amount I wouldn't even bother taking another HP (or several) and another new account hitting for $5600. I'd pay it off as soon as possible. No way would I carry that sucker to term.

Best thing about you paying the balance off within a very short period of time is the dealer will get what's called a chargeback. It'd take a bit more than necessary to explain it but when a customer cancels a product, refi, or pay off within a very short window after the close of the deal, the dealer experiences a chargeback whereas the shady dealer/finance manager doesn't make anything on the products they upsold the customer.
Message 6 of 15
FMC
Frequent Contributor

Re: Capital One Auto Loan Never Works.


@Loquat wrote:
Sounds like you were indeed dealing with a dealer who was a bit shady. As for the refi, for such a little amount I wouldn't even bother taking another HP (or several) and another new account hitting for $5600. I'd pay it off as soon as possible. No way would I carry that sucker to term.

Best thing about you paying the balance off within a very short period of time is the dealer will get what's called a chargeback. It'd take a bit more than necessary to explain it but when a customer cancels a product, refi, or pay off within a very short window after the close of the deal, the dealer experiences a chargeback whereas the shady dealer/finance manager doesn't make anything on the products they upsold the customer.

 

Message 7 of 15
FMC
Frequent Contributor

Re: Capital One Auto Loan Never Works.

Bottom line is I got a car I like at a price I like. It just seems with CapOne it still leaves you in the dealers hands and is not the same as securing financing on your own with a CU ect.  POS dealer didn't even give a full tank of gas,half tank only.

Better yet they tried to get me to only put down 3k instead of 16k and said they could get me a rate around 10% if I went that route and then I could just pay off the loan instead of paying mostly cash for the car that day. I asked who the lender would be and they told me Americredit. I'm sure that loan would have a pre payment penalty, no way I was doing that. Looking forward to them having a charge back in a few weeks. 

 

Message 8 of 15
Loquat
Moderator

Re: Capital One Auto Loan Never Works.

@FMC Good for you.  CapOne used to do things a bit differently years ago.  They had this "blank check" program that sort of works how some credit unions go about business.  You'd apply with them and they'd approve you for a certain amount and then mail you a blank check.  All of the identifying information needed was done before going to the dealer and it was directly with them. 

The dealer had very little they needed to do.  They were to collect your driver license, no additional credit checks were conducted, the you'd pick your car and the dealer would submit the BO and present the check.  CapOne would approve online or over the phone while you waited and you were in your way.  Too bad they got rid of that program because it allowed a customer to shop as a cash buyer and it was great. 

HSBC used to have a similar program as well but it went away right about the time CapOne ditched their blank check program.  

Congrats again on your new vehicle and for reminding the dealer via early payoff that not everyone will stand for extremely shady practices.  

Message 9 of 15
Shooting-For-800
Senior Contributor

Re: Capital One Auto Loan Never Works.

FTR - I just SP Cap One Nav to see if anything has changed.

I was approved at $75k @ 3.1% for 60 months with no money down.

Cap One is pretty straight forward. 

I think one just has to find a honest dealer.

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $400k unsecured credit in 2021.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!

5% Rotating - Discover                         5%-20% - Amazon & Lowes                   3-6% Groceries - NFCU & Amex Preferred
3-5% Gas - NFCU & Ducks Unl            4% Dining & Entertain - Savor               3% Travel & Hotels - Flagship, Propel, & Uber
2% Everything - Flagship, Synchrony, Evergreen, & Venture


Message 10 of 15
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