I'm deciding between two EVs - either a Tesla Model 3 or a Ford Mach E. For the latter, I decided to go through the Capital One Auto Navigator pre-qualification process today. For some background, I went through a Chapter 13 that was filed in 2015 and discharged in December 2020. Capital One was burned in that bankruptcy through a credit card. Currently, my gross income is $270K, and FICO scores are:
EQ: 678 (Auto 5/4/2 687; Auto 8 707; Auto 9 726)
TU: 654 (Auto 5/4/2 683; Auto 8 661; Auto 9 724)
EX: 687 (Auto 5/4/2 708; Auto 8 706; Auto 9 723)
Capital One prequalified me for a $35K loan at 5%. The APR doesn't shock me, but considering my income the loan amount is lower than what I expected and would require a larger downpayment than I'd like to do.
My question - is the fact that I burned Capital One in the Chapter 13 affecting the loan amount? Am I likely to do better with Ford Motor Credit, both in terms of loan amount and rate? For anyone who has sought financing through Tesla (I believe they use Chase and Wells Fargo) same question.
Cap 1 may be limiting their overall risk by limiting to $35K - last time I got 50K at 2-3% pre-qual on used cars...
I'd go with FMCC they have historically have done 110% LTV loans in the past with me and are much more risk taking...
As for Chase, I recently used them for Land Rover and they were very competitive.
Next time though, I would go the CU route as CUs tend to be a lot more competitive.
Your income is great at 270k per year, but Cap1 (and MOST other lenders) look at more than that. They'd rather have a well established rebuild and 100k per year income with low DTI. I'm not saying getting more than a 35k loan is impossible (maybe even with Cap1) but be prepared for the "We'll start with this/we're capped at this" etc unless/until a rebuild is established...especially when it comes to auto credit.
Best of luck!
I'm planning to buy a truck this summer. I ran the auto navigator and was pre-approved for 35k. This interest rates were all over the place