Capital One, together with Chase Bank, Wells Fargo and Bank of America, is one of the largest banks in the United States. Today, this financial institution is known for having a wide range of banking products, credit cards, and personal or business loans. It is worth studying Capital One auto loans, which are designed to buy new cars or used models.
In short, there is no doubt that Capital One Auto Finance is an option to consider to renew your vehicle (or perhaps refinance the one you already have). After all, offers attractive rates without affecting users’ credit score, whenever they wish to buy a car within their allied dealer network.
Do you want to know all the details? Join us for the full review of Capital One auto loans! We will tell you everything you need to know about it.
- 1 Capital One Auto Loans: Review
- 1.1 Advantages and Disadvantages of Capital One Auto Loans
- 1.2 General features of Capital One auto loans
- 1.3 What is the average interest rate on Capital One auto loans?
- 1.4 How to apply for a Capital One auto loan?
- 1.5 Capital One Auto Loan Restrictions
- 1.6 How does the Capital One auto loan compare to others in the industry?
- 2 Should I apply for a Capital One auto loan preapproval?
Capital One Auto Loans: Review
First of all, you should know that Capital One can be a good alternative for those who prefer to opt for a recognized lender. The good part is that, with this bench, you can verify the interest rates of the loan before requesting it in order to compare them with other options in the market. In addition, this pre-screening has another positive side, and that is that it will not affect your credit score.
How much credit should you have to access Capital One auto loans? Although we will delve into this topic later, suffice it to say – at least for now – that this bank accepts borrowers with FICO scores ranging from 300 to 629. However, in order to qualify for a Capital One auto loan with bad credit, you need to prove that you have a high monthly income..
If you don’t meet this requirement, don’t worry! Capital One also allows the inclusion of co-signers on the loan, which could improve the conditions and, of course, get rid of the requirement to show such a high level of financial solvency.
Advantages and Disadvantages of Capital One Auto Loans
Before we dive into the subject, let’s see what advantages and disadvantages Capital One could offer you with its vehicle loans and refinancing:
- You can prequalify for the loan without affecting your credit score.
- Applicants are allowed with credits ranging from moderate to poor.
- Capital one admits co-signers on the loan. This will allow you to access a better rate and, of course, lower the personal income limit.
- Not available in all states of the country
General features of Capital One auto loans
Now that we know what the advantages and disadvantages of Capital One auto loans are, it’s time to learn about some of their main features. In summary, we could say that this financing option is characterized by:
- Require no minimum credit score. You will be able to request the loan with a poor FICO Score, as long as you can demonstrate that you receive a monthly income high enough to be able to pay the loan payments without delays.
- Loans are typically subject to an approximate APR of 2.99%At least that’s how it is if you have good credit. This rate is quite attractive if you compare it with other similar banks.
- The loan amount varies between $4,000 and $75,000. The better your credit score and income level, the more likely you are to access the maximum loan amount and the best APR.
- Capital One auto loans will allow you to buy a new or used car, as long as it does not exceed 120,000 miles and is 7, 10 or 12 years old (the year of the car varies according to the state of residence).
Note: Although not official, our research shows that to access a Capital One auto loan you should have an average monthly income of $1,650.
What is the average interest rate on Capital One auto loans?
Capital One interest rates can be attractive, but will vary depending on several factors. The best APRs are only available to consumers with a stellar credit score of 720 points or higher.
If your credit is less than this, the interest rate will be higher and this will impact 1) about the monthly fee and 2) on the amount of total interest that you will pay during the term of the loan.
To give you an idea, Capital One’s lowest auto loan interest rate is 2.99%. However, the highest ones can easily reach 24.99%.
How to apply for a Capital One auto loan?
Capital One works with a network of vehicle dealers. Therefore, you will not have to visit the banking institution to request a pre-approval. All this procedure can be done from the agency of your choice, as long as it belongs to the network of allies of Capital One.
We are happy to say that the application process is quite easy to complete. Once you’ve identified the car you like, fill out the forms at the dealership. The prequalification of the loan will arrive in about 24 hours and will show you the following:
If the conditions of the Capital One car loan seem convenient to you, you can officially apply for the loan. In this case, the bank will do a hard inquiry on your credit report, so be careful! Depending on the financial evaluation, it is possible that the conditions announced in the loan pre-approval may vary.
Now we could say that There are certain aspects that you must take into account before applying for your car loan:
- The pre-approval offer has an expiration date. Preconditions will only be available for 30 continuous days.
- At the time of officially requesting the loan, Capital One will do a thorough investigation of your finances which could hurt your credit by a couple of points.
- The APR or final interest rate will depend on this last evaluation and also the conditions of the vehicle you have chosen.
- You will not have to pay an origin fee for applying for the loan. However, other charges remain (such as late fees).
Another important factor of these loans is that you can use an online tool to find the car of your dreams, Capital One Auto Navigator. There you’ll find the prequalification terms and features of the car you want. This could help you a lot, as it will show you a reference rate before you visit the dealer.
Therefore, you can prepare a budget that fits your pocket and choose a model that, in addition to covering your mobility needs, adapts to what you can pay.
Capital One Auto Loan Restrictions
Despite its benefits, there are some restrictions on Capital One auto loans.
- Loans are not available in Alaska and Hawaii.
- Loan terms are limited 24 to 84 months.
- Capital one excludes some brands: Oldsmobile, Saab, Daewoo, Isuzu and Suzuki.
- You can only access 12,000 dealers, who are the network participants.
How does the Capital One auto loan compare to others in the industry?
If you want to know if Capital One is a good option for you, it would be enough to review the conditions offered by other lenders. Let’s see examples:
|Characteristics||Capital one||SunTrust Bank LightStream||Ally Clearlane|
|Minimum credit score||300||660||580|
|Average APR||From 2.99% to 24.99%||From 2.99% to 9.99%||From 4.24% to 7.99%|
|loan amount||From $4,000 to $75,000||From $5,000 to $100,000||From $10,000 to $80,000|
Should I apply for a Capital One auto loan preapproval?
According to our research, You may want to get pre-approved for a car loan with Capital One if:
- You prefer to apply for a loan with a recognized bank.
- You don’t mind buying your next car from a dealer in the Capital One network.
- You want to use the loan preapproval to negotiate a better price with the dealer.
- You want to check what interest rates it offers you preliminarily in order to compare them with those of other banks.