Capital One Prequalification ..

[CivalV]

3 years ago I was on the market for a car. I tried using Capital One's Auto Navigator prequalification tool and was prequalified for up to $7K. I decided to wait... Now my scores are much higher and I tried the prequalify tool but this time I am prequalified for $35K... WHAT A DIFFERENCE! I was asked to upload paystubs to avoid the dealers asking for income so I uploaded my documents yesterday. They said it is being reviewed and should update with final word in 2 business days. 

I am curious if anyone has had a positive experience using Capital One? I have Penfed CU and NFCU. NFCU send me an "invite to apply" in the "my offers" section but I assume it is just marketing? I have also read that NFCU preapproval results in a hard pull?

I searched for some cars that I am interested in and my lowest APR depending on the vehicle is 4%. Is this a good APR rate? The monthly payments somewhere around $380-580 for a 36-48 month term with $1000 downpayment for vehicles that cost around $20K

I spend around $600 a month on car rentals alone. Not included gas, tolls and getting to and from the rental company via cab. So a $300+ car payment plus insurance does not feel unrealistic. I def. do not want to purchase a car that cost more than $25K. I "want" a Jeep because it handles so well for the crappy roads here in NYC but the payments are outrageous starting at $700 a month for a $30k vehicle without insurance. But my wants have to be put to the side for now. 

What are your thoughts in regards to Capital One Auto Navigator and is it possible that a different company might give a lower APR rate? 

[TattnallTrio]

I was prequalified for an auto loan and when I got to the dealer they pulled my credit and so did Toyota Financial along with CapOne and Ally. Toyota's rate was better but not by much. If I had the option of a credit union I would just use them and avoid the hard pulls. 
I used CapOne in the past, you can prepay but can't pay months in advance to skip the next payment. Also when I was a few days late they would text but never called. Capital One was "ok" and I'd use them again

[Jannelo]

Are you looking at new cars or late model used cars?

[Girlzilla88]

I had Capital One for the first year of my vehicle loan they aren't bad just don't become late.    When I had the chance to refinance with my CU I did.     But they aren't 'horrible' for vehicle like some people make them out to be.     Maybe if you get behind, but for me I would use them again if I HAD to, but I would definitely try with my CU's first

[CivalV]

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@Jannelo wrote:

Are you looking at new cars or late model used cars?

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I am looking for new and late model used cars. I really would like a Jeep but the payments are about $6-700 without insurance smh

[Girlzilla88]

Jeeps are not cheap vehicles, so you would be looking at Truck/SUV pricing 

[Jannelo]

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@CivalV wrote:

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@Jannelo wrote:

Are you looking at new cars or late model used cars?

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I am looking for new and late model used cars. I really would like a Jeep but the payments are about $6-700 without insurance smh

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I commend you for sticking within a budget and not going crazy because you are approved for more.  I had to be realistic too.

My scores were in the high 500s.  I was approved by Cap One.  It was the easiest car-buying experience I've ever had.  Now that you know what you are approved for with Cap One, go to one of your CUs and apply and see what you are given.  Someone can chime in on here with more knowledge, but I think within a month all hard pull inquiries during car shopping will be looked at as one in FICO scoring.  Pick the best APR offer and use that when you go to buy a car.  I didn't tell them I had my car loan in place until I told them I was buying the car.  I bought a used car.  So my car loan with Cap One hit a year old last month.  They've been easy to deal with, and I've paid in a lot of extra principal every month.  I become motivated to keep paying more every time online it shows me my new payoff date on their website as I pay extra.  I pay three to three-and-a-half weeks before my due date, so I've never had to ask for assistance regarding a late payment.  I can't speak to that.

Cap One is a soft pull now.  But once you go to purchase your car, that loan offer will then turn into a HP -- actually, three HPs. Cap One pulls all these.  But the rate they give you is solid.  Nothing changed the APR or car payment estimated a month, except the GAP insurance added.  The dealership GAP was high.  I was gouged on that and didn't research before.  Check with the CU about GAP insurance also or your car insurance company.  I had already added everything else on when estimating payment, taxes, dealer's fee, if applicable (I called the dealership and asked before I went there).

[Dj4Money]

I was offered some very favorable rates on various SUV's from Toyota & Chevy.

I wouldn't worry too much about HP because you might get a better rate. Not sure how Capital One works with dealers, IE do they get a kick back for meeting a sales target or is just a referral generator? Captives I know give dealers direct incentives for meeting sales targets. So if you aren't like me and recently discharged from BK, a captive will likely beat Capital One. I would also recommend going to a credit union (CU) as well. 

 It's a very good time to buy. Some thought (including me) that there would be some sort of fire sale since car sales were predicted to be the lowest since the 2008 crisis before the pandemic. That didn't happen, but there is growing concern from the states that are heavily dependent on car sales, that the car industry will need a bail out.

 If you already went through pre-approval, go ahead and buy. For those who don't need a car I'd hold out a little longer to see if Congress does what I think it will which is not a Cash for Clunkers program like last time but to give people a tax credit or direct cash incentive to go out and buy a vehicle.

[Shooting-For-800]

Bought my wife a new car and the paperwork was effortless.

Cap One gave me prequal for $40k at 2.49% for 72 months with no money down and no POI few years ago.

My scores were under 700 at the time.

I had spent a TON with my Cap One cards and had a lot of credit with them.

I am currently prequaled at $50k at 4.4% which is higher than NFCU or PenFed right now.

My Fico 8s are over 700.

GL!

[CivalV]

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@Shooting-For-800 wrote:

Bought my wife a new car and the paperwork was effortless.

Cap One gave me prequal for $40k at 2.49% for 72 months with no money down and no POI few years ago.

My scores were under 700 at the time.

I had spent a TON with my Cap One cards and had a lot of credit with them.

I am currently prequaled at $50k at 4.4% which is higher than NFCU or PenFed right now.

My Fico 8s are over 700.

GL!

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My scores are in the high 600's. I call it the yellow range lol 

I am able to see my APR which for most vehicles my APR is 5%-7%. NFCU preapproved me for 8% but then stated it can go as high as 17% after the application is reviewed so I said no thanks and did not submit the app. I chatted with a Cap One rep and she stated to upload 3 of my most recent bank statements. Now my bank statements have a much higher deposit amount than my income alone. Hopefully they will verify my income that way and let me know what the final decision is. I won't be upset if it this does not work out.