Capital One interest rates

[Anonymous]

I did the prequalification on Capital One and was approved for up to $57k. That was a pleasant surprise.  Another surprise was the interest rates were lower than I thought they would be.  After looking at several cars, I noticed that the interest rates varied from 5.79% up to 8.17%.   It seems that newer cars have higher rates than used ones. It also appears that some dealerships have higher rates than others.  Does anyone know what goes into their interest rate calculations?

[4sallypat]

According to Cap 1, they said that interest rates vary from car to car - they said they take algorithms from over 200 variables to arrive at that rate.

Only dealers that participate in the program receives a Cap 1 Auto rate.

You can also shop for new cars too.

It's a great way to go into the dealership and know what is the highest rate (Cap 1) you have and see what they can do to shop around for the best rate.

[Shooting-For-800]

The rates vary dramatically depending on how good the deal is.

A Honda Accord is going to depreciate a lot less than a Range Rover.

When comparing dealerships, if the rates go up, the deal is not as good.

Try putting in $10k for 48 months and looking at brand new Honda or Toyota or Lexus.

This should give you the realistic lowest APR available to you right now.

Then you can adjust to $5k down for 60 months

Then $0 down for 72 months, etc. to get some realistic ideas.

Cap One gets a bad rap but they have treated me like a king.

I got 2.49% for 72 months with $0 down 5 years ago.

The entire process could not have been easier on a brand new car.

DW just got preapproved for $75K at 2.6% or 2.7%

I just got preapproved for $75k at 3.1% so they are competitive.

GL!

[Countrygirl]

I think the dealer matters too, as far as interest rates go.When I got preapproval with Capital One, I looked at the exact same car at 2 different dealers, and the interest rate was different. The one dealer had overall lower interest rates that the other. However, be prepared for the dealer to push their financing. I wasn't ready for that and I caved. I regret it now and am going to try to get refinanced with Capital One. Like a previous person said, Capital One has been great to me.

[arealswellgirl]

Agree with everyone. I'm not surprised Cap1 said they take over 200 variables into their equations. I've used their Navigator many times and I've noticed at least these things contribute (other than the duh reasons like year and miles): cpo status, newer cars tend to have lower apr, depreciation schedule, amount down, sales price compared to a standard selling price (nada, kbb, etc), options, dealership (I noticed this too, some dealerships I didn't qualify without a stupid high down payment). I think they may also have access to recent selling prices in your area for that specific make and model so definitely add zip code and the economy of your area to that list. 

I've used the Navigator 3 times to buy cars; Cap1 has also been very good to me too and agree some give them a bad rap. I do believe your relationship can play a part in your rate. I say this because I've had a checking, Savings, 3 credit cards, and 4 car loans with them opened in the last 6 years. With my scores and history, its not possible to beat the rates I get from them.

Some of my DPs:

2016: Bk7 discharged

2017: Cap1 new car loan for $27k @3.49% for 72 mo (fico 660s, income $65k)

2018: Cap1 new car loan for $27k @3.93% for 67 mo (fico 670s, income $105k)

2021: Cap1 CPO used car loan for $26k @2.78% for 84 mo (fico 690s, income $125k).

@Countrygirl
After getting really screwed by dealerships in my life, I get the preapproval before I ever set foot in a dealership and I take a screenshot of the offer I put together (I think my phone knows when I'm under stress and never seems to work when I need it!). I tell them they can only run an app for Cap1. So far I haven't had an issue with this approach. If they ever ask to run for other banks, I give a very firm no and I've gotten really good at this! Also, my very first contact with Cap1 was a refinance and it was a very smooth process, I highly recommend it.

@Anonymous Navigator is fun to play with. A strategy I use is to not check the "show only cars with payment" or something like that (after I narrow down to the makes and models I want) if you have some play in your down payment. I do this because you may miss out on seeing cars you like and you can just go into it and build your offer with a down payment you're comfortable with and see how it goes from there. Good luck 😊