Are you looking for the ability to pre-qualify for an auto loan without a hard credit inquiry? A Capital One auto loan might be an ideal fit.
Want to make sure you get the best auto loan?
Capital One Auto Finance Overview
Capital One Auto Finance can be helpful if you want to comparison-shop and check rates before you’ve found a vehicle that you want to purchase. With a required minimum credit score of just 500, Capital One is an option whether you have poor credit or excellent credit.
Founded in 1988, Capital One has grown to become one of the largest banks in the United States. It offers credit cards, mortgages, auto loans, and more. So if you consider an auto loan from Capital One, you’ll be working with a known lender that’s already well-established in the auto industry.
Capital One Auto Finance Application Requirements
To qualify for a Capital One auto loan, you’ll need a minimum credit score of 500. Depending on your credit score, you will also need a minimum monthly income of at least $1,500 to $1,800. Capital One auto loans are available to residents of all states except Alaska and Hawaii. However, you can’t use these car loans to purchase Oldsmobile, Daewoo, Saab, Suzuki, and Isuzu vehicles.
When you’re ready to apply for a car loan, you’ll need to provide the following information:
- Personal information, including your address, email address, your driver’s license, and your Social Security number
- Financial information, including your annual gross income and contact information for your employer
- Proof of residence, like a copy of a utility bill or a mortgage statement
- Proof of income, like a copy of a pay stub or three recent bank statements (if you’re self-employed)
Capital One does allow cosigners, which can increase your chances of being approved if you have poor credit. If you are applying for a Capital One car loan with a cosigner, they will need to be prepared to provide all the above information, too.
Types of Auto Loans Available Through Capital One Auto Finance
Capital One provides several auto financing options that you can use only at participating dealerships. While choosing from a participating dealer can limit your car-shopping choices, Capital One’s network consists of 12,000 dealerships nationwide. You can find a participating dealership online.
New Car Financing Options
Capital One Auto Finance offers a variety of options for financing the purchase of a new car. Customers can choose from traditional loan options, as well as lease options. Capital One also offers a variety of flexible payment plans, including the option to make biweekly payments, which can help reduce the overall cost of financing a new car.
Used Car Financing Options
In addition to financing options for new cars, Capital One Auto Financing also offers financing options for used cars. Customers can choose from traditional loan options, as well as lease options for used cars. The company also offers a variety of flexible payment plans for used car financing, including the option to make biweekly payments.
Refinancing Options
Capital One Auto Finance also offers auto loan refinancing options for customers who are looking to lower their monthly car payment or improve the terms of their existing car loan. Customers can refinance their existing car loan with Capital One to take advantage of lower interest rates or to extend the loan term and reduce their monthly payments.
Lease Options
In addition to traditional loan options, Capital One also offers lease options for both new and used cars. You can choose from a variety of lease terms, ranging from one to four years. Capital One’s lease options include the option to purchase the car at the end of the lease term, as well as the option to trade in the car for a new one.
Getting Pre-Qualified
You can easily get pre-qualified for a new or used car loan with Capital One’s Auto Navigator. The process takes just a few minutes, and you don’t need to have already identified the vehicle you want to buy.
Instead, you just need to have an idea of how much you’ll want to borrow. Then, if you’re approved, your pre-qualification letter can help you bargain with a dealership. Plus, since there’s no hard credit inquiry required upfront, getting pre-qualified with Capital One can be a great option when you’re comparison-shopping for the best auto loans.
Capital One Auto Finance Restrictions
Keep in mind that auto loans from Capital One are available only for:
- New or used cars, trucks, minivans, or SUVs for personal use
- A model year within the last 10 years
- Vehicles with less than 120,000 miles
- Vehicles sold by participating dealers
Capital One Auto Financing has a minimum loan amount of $4,000. Pre-qualifications are good for 30 days, giving you time to shop. If you’re pre-qualified, that doesn’t guarantee that you’ll be approved for the loan. Your final loan terms may also change based on the hard credit pull performed when you officially apply for the loan.
In addition to car loans for new purchases, Capital One also offers to refinance for current auto loans. By refinancing your current loan, you may be eligible for a lower interest rate and lower monthly payment. According to Capital One, customers save an average of $50 per month by refinancing. Auto refinance loans range from $7,500 to $50,000. Refinance loan applications are usually processed in 24 hours.
To be eligible for an auto refinance loan, you must have a current auto loan that is being reported to a major credit bureau by your current lender. In addition, your current lender must be either federally insured or BBB accredited, and must be either a state-registered lender or a state-registered auto dealer.
Capital One Auto Finance Fees and Rates
Capital One offers competitive auto loan rates. Purchase loans have an APR as low as 3.39%, while refinance APRs vary from 4.07% to 24.99%. The better your credit, the better the interest rate you may qualify for. There are no application fees.
If you’d like to get an idea of your potential monthly payment, Capital One offers a car payment calculator that can help. The calculator can give you a sense of what your monthly payment will be based on your credit rating and corresponding APR.
You can use the following average interest rates for each credit score to help estimate your payments:
New Car Purchase
- 501-600: 11.71% APR
- 601-660: 7.77% APR
- 661-780: 4.96% APR
- Above 780: 4% APR
Used Car Purchase
- 501-600: 16.89% APR
- 601-660: 11% APR
- 661-770: 6.36% APR
- Above 780: 4.66% APR
Capital One Auto Finance Reviews
Customers have had varying experiences with Capital One Auto Finance loans. Some customers have reported positive experiences. They state that the customer service team was helpful and responsive, and that the car buying process was smooth and straightforward.
However, other customers have had negative experiences with the company. These include issues with the customer service team and difficulties with the financing process.
The Better Business Bureau (BBB) currently gives Capital One Auto Finance an ‘A,’ and they have very few complaints. You will find plenty of 4- and 5-star reviews of Capital One at several other review sites as well.
Capital One Auto Finance Loan Application Process
While you can apply for pre-qualification online, you’ll need to apply for a car loan through a participating dealership. You can bring your pre-qualification letter with you to streamline this process. Remember, it’s good for 30 days.
When you officially apply for a car loan through a dealership, Capital One will run a hard credit inquiry, which will appear on your credit report. Then, you will receive your official financing terms.
Capital One Auto Loans Special Features
Capital One offers a few distinct advantages over some other loan providers. The ability to get pre-qualified for a loan without a hard credit inquiry is a great perk. It will give you some bargaining power if you want to negotiate the price of a car. You can also potentially use it to see if the dealership can offer you a better financing deal through another one of their finance providers.
If you would like to qualify for an auto loan with bad credit, Capital One accepts credit ratings as low as 500. While you’ll pay higher interest rates and possibly have a higher required down payment, you may still be able to get auto financing from Capital One. Having a family member or close friend co-apply for the loan with you can increase your chances of loan approval and of getting a better interest rate.
Customer Service and Support
Capital One Auto Financing offers a range of options for customers to get in touch with the company, including phone, email, and online chat. The company also has a frequently asked questions section on its website that provides answers to common inquiries about its products and services. In addition, Capital One has a customer service team available to assist customers with any questions or issues they may have.
Bottom Line
A Capital One loan might be right for you if you:
- Want to get pre-qualified without a hard inquiry into your credit
- Plan to buy a vehicle from a participating Capital One dealership
- Need financing but have a low credit score that disqualifies you from some other finance options
- Have a high credit score and want to enjoy low-interest loan options
- Plan to apply for a loan with a co-applicant
It’s always important to make sure that you’re taking out a loan with the lender that’s right for you. With Capital One auto loans, you can quickly get a sense of the rates you might see so that you can compare this loan with other offers to find the best deal.
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