Capital One is an auto finance company that offers financing services to new and used vehicles. This financing is only for those dealers who are listed on Auto Navigator and the participating dealer is subject to change. This financing is not for non-participating dealers, private party sellers, or auto brokers.
About Capital One Finance Corporation
Capital One Financial Corporation is an American-based bank company that provides auto loans, banking services, savings accounts, and credit cards and mainly it operates in the United States. This is a very big bank in the United States which is number 12 in the banking world of United States. It is one of the largest finance companies in the United States which has issued the maximum number of MasterCard and Visa Credit cards and this company operates in three divisions: consumer banking, commercial banking, and credit cards. The company’s one part is Capital One Auto Finance which provides automobile loans.
Richard Fairbank is the founder of Capital One and started it in 1987. He believed that technology and data could completely change the way banking works.
Capital One gives three types of auto financing loans-
- New car loan
- Used car loan
- Auto refinance
The main condition of Capital One is that you get the car from a participating dealer only then they will approve your loan but this is not a matter of concern because they have many participating dealers approximately 1000 dealers are available in the States. However, if there is another dealership near you or you wish to take the car from another dealer, or there are limited participating dealers in your area and you do not find the best option for you, then this loan is not for you.
You can apply for prequalification and shop online Capital One’s auto navigator is an online tool that makes it easy for you to pre-qualify for a new or used car loan and this online tool also suggests vehicles according to your budget in your area.
The first thing you do to start the process is to make a credit inquiry with a Capital One auto finance company and within a few minutes, you will be told whether you are prequalified or not. It has the option of an auto navigator so that you can find the car of your choice keeping in mind a few things like model, distance of the dealer from your place, and mileage. In this, you can estimate the payment term and annual percentage rate.
If you qualify then you can pass the prequalification offer to your participating dealer within 30 days so that your car buying process can start but this loan approval is not yet done till its final rate, terms, and conditions are decided as it is subject to change. You can submit a prequalification application online for refinance and typically receive your refund within 24 hours.
The terms of the prequalification loan and the final loan offer may differ. This means that whatever monthly payment you are thinking might be different than what you are expecting, but it will not hit your tab until you are ready to buy the car at the dealership.
You have to submit a formal loan application to the dealer. The dealer in Capital One searches for a financer for you and sends your application to several financial institutions including Capital One Finance if your dealer is different from the information you have provided then the prequalified terms of your loan can be different
Things to keep in mind before applying for the loan:-
- Your income should be a minimum of $1500.
- This loan is not available in Alaska and Hawaii.
- You are required to make a down payment for this loan.
- For this loan, your car model should not be older than 10 years and should not be driven more than 1,20,000 miles.
- For refinance, the car model should not be older than 7 years.
- You cannot get the loan approved on specific cars and commercial vehicles.
To apply for Capital One auto finance, you have to keep in mind that the loan will be available only for your personal car. For this, you must have the address of the United States, Fleet Post Office, or Army Post Office and your age must be more than 18 years.
Before submitting the final loan application, you should check your credit score and compare it with other loan offers to give you an idea of whether you will have to pay a higher interest rate if your credit score is low.