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Capital One Auto Finance: A Complete Guide

Capital One Auto Finance
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Capital One is a company famous for its wide range of banking and credit card products. In addition to these products, it allows you to refinance your current car loan.

To apply for Capital One Auto Finance you don’t need a massive advance payment. This means that the loan application will not impact your credit score. For this, Capital One Auto Finance can be a good option to apply for a car loan.

Capital One Auto Finance Review

Pre-qualification decisions are made by the company within 24 hours. By applying for the loan, the offer will show a new rate, term and monthly payment. If you like the offer, you can submit a complete credit application. At that point, you will need to enter a credit request.

  • Loan amount: $7,500 to $50,000.
  • Minimum monthly income: $1,500 – $1,800, depending on credit.
  • Maximum vehicle mileage: Not disclosed.
  • Maximum vehicle age: 7 years or newer
  • Maximum loan-to-value ratio: Not disclosed.

Capital One auto loan rates

It is important to keep in mind that the best rates offered by Capital One Auto Finance are only available if you have a loan in the high end of the excellent range. Usually, excellent credit is generally considered 720 or better, while 690 to 719 is generally considered good.

You must consider that if your credit is below the maximum level, the interest rate will certainly be higher. This equates to a higher monthly payment and an obviously higher interest payment.

>>> You may also: Guide to choosing the Best and Cheap Car Insurance

Capital One restrictions

  • Loan terms: You can extend your current loan term up to 12 months.
  • Excludes camper vans, RVs, salvage- and branded-title vehicles.
  • Excludes lease buyouts.
  • Available in all states except Alaska and Hawaii.
  • Excluded makes/models: Includes Oldsmobile, Daewoo, Saab, Suzuki and Isuzu vehicles.

Auto purchase loan review

Capital One auto purchase loan is suitable for those who:

  • They want to keep an eye on rates without impacting their credit score.
  • They prefer financing from a well-known lender with an established network of car dealerships.
  • They want to use their pre-qualified offer to set a base financing rate that the dealership must meet or beat.

>>> Learn more: Wells Fargo auto Complete guide

Capital One auto purchase loan Review

For the purchase financing request, Capital One offers you the possibility to use the automatic navigation tool which shows the terms of the pre-qualified offer and allows you to search for the car you want. While many lenders allow you to apply for financing without too many restrictions regarding the dealer where to buy the car, Capital One requires you to use the loan from a participating dealer.

Once you have applied for pre-qualification, you will need to complete a credit application at the dealership, not online. Remember that pre-qualification does not guarantee that you will receive funding. At that point, you can either use Capital One financing or accept another offer from the reseller.

The convenience of the process offered by Capital One lies in the fact that the pre-qualification process and Auto Navigator help car buyers by setting a base interest rate before the trip to the dealership. Assuming that the information initially provided is complete and accurate, then you shouldn’t get any unpleasant surprises when you’re at the dealership.

This way, you will also be able to estimate your car’s monthly payment and see what fits your budget before heading to the dealership.

Applying to Capital One

  • Co-applicants allowed.
  • A hard inquiry is required at the dealership.
  • No application fee; may charge late fees.
  • Final APR depends on credit application and vehicle.

Conclusions

Capital One Auto Navigator works with over 12,000 participating dealerships.

Remember that the prices of the vehicles on the dealership sites are simply the list price, so they can also be negotiated a minimum. Also remember that, in addition to the agreed price, resellers will typically charge a commission for documentation, sales tax, and registration fees.

We can therefore conclude that the main advantage of Capital One lies in its website, which allows you to calculate the hypothetical installment that you will have to pay in case you request the loan from the comfort of your home.

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