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Capital one auto refinance ?

Hutchman92
Valued Member

Capital one auto refinance ?

Hello, I have recently received my first auto loan. I've never had an auto loan before so my interest rate through cap one on a new car was around 10%. In June it will be 12 months of in time payments and I always pay an extra $100-200 a month. Should I try and refinance with a local credit union? My credit is still only around 650 but 10% interest seems high on a new car. My $500 payment monthly is over $200 in interest. Would cap one be willing to lower my interest rate or do I have to refinance? Thank you for any input. 

14 REPLIES 14
dunn2500
Frequent Contributor

Re: Capital one auto refinance ?

i would find out your actual auto fico scores (if you dont already know) and match a credit union up with your highest score.....665 i received 7% for 84 months and probably would have been 6% for 72......obviously the shorter the term the lower the rate, you may want to wait til your scores are bit higher and do everything to get them there.......fico scores cn vary by quite a bit between bankcard, auto, mortgage, etc.......but yeah find out your actual fico 8/9 auto scores from all 3 and match lenders to the highest ones.......this is what i did and it did help me quite a bit .......

 

however on one of my refinances in last few years i should have waited a bit longer to get the next tier up as i was on the bubble.....

 

matching lenders to scores saved me alot of hard pulls, rather than just shooting apps blindly.......my scores varied by 50 pts or more depending on bureau and model.....

 

pen fed, navy, DCU are all good contenders for low rates and even seen small local ones match or beat them depending.......

 

hope my experience helps and good luck

Message 2 of 15
alessandrom
Contributor

Re: Capital one auto refinance ?

Cap 1 won't refinance their own loans unfortunately. I would definitely try with a local credit union. Good luck!




Current Score: Walmart TU 694 - Credit karma 679 - Credit Sesame 671- VantageScore 695 MyFico ?
Goal Score: 750
Message 3 of 15
Hutchman92
Valued Member

Auto loan refinance after 12 months?

Hello, I received an auto loan for a 2020 Honda Accord last June. I've since paid off around 4500 principal reducing total owed to around 22k from 26.500. My interest rate is 10% as my credit was likely 620s when pulled with some baddies and  no auto loan previously. I joined a local Florida credit union, Achieva, about 8 months ago and was told to pay 12 months before looking to refinance. Also they said if I refinance this year it would still be classified as a "new" car as it only has 13k miles and my LTV should be less than 90%. I got a great deal on the total price but interst is killing me. I also recently joined navy fed but have only been there a week and haven't deposited funds into accounts yet but they did  approve me for a 1000 credit card. In the last week my score went up from 640 to around 680 TU and EQ and experian shows an auto 8 score of 675. I've technically only made 11 payments but I always pay an extra 200 or so half way through month. So really made over 20 payments but only 11 monthly. I suppose I could pay June early and that would be the 12th payment and around a year since inception. Should I apply for refinance now? I could potentially have some more baddies come on report as I've received some debt letters  but I could also have some fall off. Still have a few older baddies that will fall off in 2022/2023. What should I do? I could apply for refinance now or try and resolve the old charge offs and possible increase to 700+ but not positive and on the flip side I could actually go down as I've recently increased by over 30 points. I would love to refinance my 73 month loan ($494/mo) to 36 months and pay off sooner for 650-700$ a month if I could get less than 5% interst but I don't know if I meet those thresholds or if I should hold off until better score and risk  1. More baddies coming up and 2. The car not being considered new any longer?

Message 4 of 15
Morehouse3000
Frequent Contributor

Re: Auto loan refinance after 12 months?


@Hutchman92 wrote:

Hello, I received an auto loan for a 2020 Honda Accord last June. I've since paid off around 4500 principal reducing total owed to around 22k from 26.500. My interest rate is 10% as my credit was likely 620s when pulled with some baddies and  no auto loan previously. I joined a local Florida credit union, Achieva, about 8 months ago and was told to pay 12 months before looking to refinance. Also they said if I refinance this year it would still be classified as a "new" car as it only has 13k miles and my LTV should be less than 90%. I got a great deal on the total price but interst is killing me. I also recently joined navy fed but have only been there a week and haven't deposited funds into accounts yet but they did  approve me for a 1000 credit card. In the last week my score went up from 640 to around 680 TU and EQ and experian shows an auto 8 score of 675. I've technically only made 11 payments but I always pay an extra 200 or so half way through month. So really made over 20 payments but only 11 monthly. I suppose I could pay June early and that would be the 12th payment and around a year since inception. Should I apply for refinance now? I could potentially have some more baddies come on report as I've received some debt letters  but I could also have some fall off. Still have a few older baddies that will fall off in 2022/2023. What should I do? I could apply for refinance now or try and resolve the old charge offs and possible increase to 700+ but not positive and on the flip side I could actually go down as I've recently increased by over 30 points. I would love to refinance my 73 month loan ($494/mo) to 36 months and pay off sooner for 650-700$ a month if I could get less than 5% interst but I don't know if I meet those thresholds or if I should hold off until better score and risk  1. More baddies coming up and 2. The car not being considered new any longer?


I had a BK 13 on my report when I got a car from Carmax.  Cap 1 gave me an interest rate of about 12%.......I had bad credit.   Joined Navy and waited about 2 weeks when I refinanced with them for that car and got it down to like 8%.  My scores were lower than yours probably low 600's.   Had my loan with them for over a year then found out about DCU and refinanced with them and got my rate down to 2.74% still with the BK13 showing (it was about 6 years old by then) and greatly reduced my payments.  DCU rates are far better than Navy and I love Navy but DCU saved me a ton of money.

Message 5 of 15
Morehouse3000
Frequent Contributor

Re: Capital one auto refinance ?


@Hutchman92 wrote:

Hello, I have recently received my first auto loan. I've never had an auto loan before so my interest rate through cap one on a new car was around 10%. In June it will be 12 months of in time payments and I always pay an extra $100-200 a month. Should I try and refinance with a local credit union? My credit is still only around 650 but 10% interest seems high on a new car. My $500 payment monthly is over $200 in interest. Would cap one be willing to lower my interest rate or do I have to refinance? Thank you for any input. 


Not many places will refinance their own loan except maybe a credit union.  I doubt Cap 1 would.  I would try your Credit Union to refiance.

Message 6 of 15
Hutchman92
Valued Member

Re: Auto loan refinance after 12 months?

How long ago was the DCU refinance? I'm not a member but have 2 credit unions that I belong to. Is membership required?

Message 7 of 15
aj2121
Contributor

Re: Auto loan refinance after 12 months?

Capital One Auto Navigator allows for soft pull refinance prequalification. It will give you various terms and rates to choose from. While that may not be your best rate, it should give you an idea of what you qualify for. If their rates come back around 10% or with no approval, then you know it should be in your best interest to wait a little longer. If the rates are close to what you are hoping to be at, then you should look at your Local CU and any federal CUs, if those rates aren't better you can always accept the Capital One rate. As long as all of the apps are within 2 weeks of the first one, you should only have the one inquiry impacting your score.

FICO8 as of 4/9/21:
Message 8 of 15
Hutchman92
Valued Member

Re: Auto loan refinance after 12 months?

The original loan is through cap one and I was told they don't refinance their own loans but a good idea for an idea of approval. 

Message 9 of 15
aj2121
Contributor

Re: Auto loan refinance after 12 months?

I believe you are correct about them not refinancing their own loans. I am not sure if they will give you a refinance preapproval then since the original loan is through them.

FICO8 as of 4/9/21:
Message 10 of 15
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