Capital One Blank Check Approval - Questions about pricing

[pritchardhallhokie]

Well, I woke up this morning and bit the bullet.  I applied with Capital One auto and got an email back saying they were reviewing my application.  I drove to work, logged in and had another email saying I was approved.  I requested 30000 but got 36000 at a decent APR (5.74).  The guy on the phone starts going over some details and said that the check would cover 110% of Dealer Invoice Price.  I asked him if this meant I'd have to make a down payment and he said it may but a lot of times people don't have to pay out of pocket.

Has anyone used this check and if so, did you have to come out of pocket?  This is for a new vehicle and I'm assuming if I negotiate the price of the car to 10% over what the dealer paid, then I'll get it without having to make a down payment.

THANKS!!!!!!!!!!

[Creditaddict]

I used it several years ago and I didn't have to put anything down... but if at all possible I would pay at least your taxes and fees... you already are upside down on a loan when you leave a dealership, at 30-35k that's over 3k in taxes and fees most likely... that's where the 10% over would be used if you didn't put anything down.

if your buying new be sure to see if the brand has a current apr special... you could end up with 0 vs your 5.74.

[Rvan1961]

Honda has 0.9% for 60 months also, not sure when that is going to end though

[pritchardhallhokie]

Do you know who Honda Pulls?  If only I could find a bank that ONLY pulls experian!!!!!!

[Rvan1961]

Honda pulled Experian V2 at my dealership, maybe you can give yours a call and speak to Finance Manager to see what they pull Good Luck

[pritchardhallhokie]

Well, I'm set on getting a Nissan Xterra and I don't think Honda Finance would work for that.....

[Anonymous]

in regards to the 110%. You need to find if that is from invoice price or MSRP?

if it is invoice you may need a downpayment.

if it is MSRP you should be good to go assuming you get some discounts/rebates on the car and such.

Do not go all I am rich and use the full value. those type of checks make people crazy and they suddenly buy the highline model when they were looking at the base model.

Also, The check you will be using can be used to see if the dealership can negotiate a lower rate.

But understand it is not a true check, it cannot be TELECHECKED or guaranteed. So the dealership may want to "dual contract" you- that is write two contracts one based on the check the other based on a conventional finance rate so if the dealership does have some problems with the CAP One Check they will invoke the alternative contract.

its really not as bad as it sounds.

BTW GAS IS $4.00+ a gallon. And you have credit issues, do you really need a SUV?

[Anonymous]

Honestly, they are the worst of the worst to deal with.  Won't go into all the problems but know they were out to **bleep** me - After finally getting through this awful process, I refinanced with someone else and got a better rate.  Goes to show ya you can't be too careful.

[pritchardhallhokie]

Please, tell me why you had such problems with them!!!!  I'm about to go tomorrow to pick up my car!