Capital One Auto

[backtoschool]

Yea I am unsure if I would trade in my car for this deal either... Its kind of a hassle trying to get a new car and bargining on trade in values etc etc... all for a little bit reduced payment.

The more interesting thing.... I bet if you took the blank check into the capital one approved dealership the dealership would do something to try and beat the capital one deal. Before I filed, when I would go in with my own financing... the dealership would always beat it so they could get the business.

So, I'm wondering if on a whim I could go in and see if I could get something even better than 6.31%. I of course don't really "need" a new car and the one I have is fine and affordable but if it was possible for me to save 100+ a month on another car with an even lower interest rate (keeping the same terms or maybe even lowering the term) then it might be worth it. If I could get my car payment down to like 300 a month that would be super awesome.

But again, doing all the paperwork and negotiations etc drives me bonkers.

I am in total agreement with you. I hate buying cars and doing all the paperwork and negotiations. As a woman i feel that the manager and salespeople are all patronizing me, and there are so many minefields. Once you haggle the price to what it should be to begin with, then they try to cheat you on the trade in, and once you negotiate that, then they try to force all this extra crap on you, etc....

You would think the car industry would change now that the internet gives buyers some info and some negotiating power, but buying a car is still like getting a root canal without anesthesia. Bleh.

[Amy26]

Yup yup.... its a pain in the ass. And I hate the "internet sales" .... its not really internet sales! They practically won't do anything for you on the internet. You can barely get them to give you a price without coming in. Basically, you go to their site, and try to get their "internet sale" and its just a form you fill out and then they call you and say "come in to the store". Its such crap.

Why can't the process be more automated? Why can't I find the car I want, get the best price through email or online means, fill out all the stupid financing papers and then all I gotta do when I get there is sign the dotted line and get my keys. And even if you go to Ford's website or whomever and fill out their "preapproval" for financing ....guess what? The dealership still checks your credit again when you get there... its like what is the fricken point of even having the preapproval thing on the web....

Anyways... it was nice to know I could get another loan...but I really don't feel like it! Kelly blue book says my car is worth almost 5k more than I owe on it but I bet as soon as I got in there they would offer me 5k less than I owe... lol.

[dspii]

Improving your car buying experience

In many cases today, the true dealer cost of the vehicle and the MSRP are actually fairly close....a lot closer than years past. Profit isn't a bad word, but I clearly understand the buyers remorse...been down that road. The money/profit for most dealers is in financing, trade-ins and extra's like contracts. Remember some dealers won't deviate very far from the MSRP on hot and popular cars, as with many imports.

Capital One limits the LTV (loan to value) to about 110% on their loans. The way this works is the dealer must fax Capital One a copy of their invoice (not the MSRP), and your loan cannot be more than 110% of the invoice price i.e...a car with an invoice amount of $20,000 cannot be financed for more than $22,000 including taxes, title, docs and the other small stuff. This helps limit the dealers ability to take advantage of the consumer. This also gives you, the consumer, a little extra power in negotiating the out-the-door price. If your loan can't be more than 110% the invoice price, you can give the dealer cash to make up the difference or negotiate the price farther south so you fit under the cap. If they say they can't move, get up and go somewhere else...remember you have a check, which is like having cash, stand tall and proud.

To maximize you buying experience, I suggest the following for those who feel like their getting the shaft as soon as they walk onto the dealer lot. This is from my experience only.

- If you have the Capital One check, tell them so they know up front that your loan cannot be more than the LTV ratio. This way you'll know real soon if they are going to want a cash down payment. And if your unwilling to give up the cash, go elsewhere, believe me, someone in your town would be happy to take your money within your terms.
- Research, research, research......and research all aspects of buying a car, consumer reports is a good investment
- Seperate your needs from your wants, tough but doable
- Set a max on your monthly payment, don't forget your insurance costs will likely go up adding to the monthly payment factor
- If you have a trade-in, research the private party value and compare to what you owe, then sell your car, release the lien and use any extra money as a down payment.
- Everyone knows someone that works for a car company or a supplier, use this as a way to get a great deal with no negotiating. Friends and family, employees, supplier and vendors are all offered some type of discounting. In most cases the price is set on the dealers invoice. No negotiating.

In my case, I finally had a chance to have all the cards in my favor. I had a check from Capital One, I utilized the Ford A-Z plan and I sold my old car. Basically, with my discount I was given a set price (well below dealer invoice), no negotiations what-so-ever. I wrote the dealer a check and blew of all his extra's, refused to have him try and find me a lower rate (3.8% is low enough considering my BK). It took more time to set up the SYNC than to do the paperwork.

How can you sell your car and not use it as the trade-in? Trading your old car at the dealer is convenient and easy, but it will cost you, sometimes big money. If your not underwater on your loan, maybe it is an acceptable cost for the ease. If you are underwater on your loan, the oh-shit factor is inserted here.....you might be stuck or if your willing to pay more, but someone has to take the loss and believe me it won't be the dealer. If you know what your car is worth, you stand a better chance of getting more, but not much more using it as a trade-in. They have to make a profit somewhere.

Explore the possibilities, if you sell your car, can you find a ride for a few days or borrow another car. Clearing liens and titles takes some time, if the dealer has to do it, expect them to be paid for their time. If you own your car outright, all the better, sell it and buy another.

Just because you see the perfect car today doesn't mean you have to jump on it, that will cost you money. Trust me, if you have the Capital One check, the dealer will find you your perfect car after you sell yours, albeit, you may have to wait a few days, but they will find it.

I knew exactly the model, color and package that I wanted that utilized the biggest rebates and lowest cost-of-ownership, the salesman work hard for several days, but found exactly what I expected. If he couldn't, I had a check and was free to go elsewhere....I was in the drivers seat, finally.

The best advice is know exactly what you can afford, a car off the dealers lot is not an investment, your uncles '68 Corvette is. Maximize your buying power and remember knowledge is power. If you can, sell your own car to maximize your return. Focus on the cash rebates....popular this time of year for current or last years models. Just because you can get a $30,000 car with that check doesn't mean you have to use all of it....remember the less you use, the less that payment will be.

If you have your ducks in a row, your experience will be much better and you will come out knowing you got a fair deal. The dealer has to make a profit or they will close their doors. What you can do is to minimize the amount of profit they stand to make from you.

Research, research and more research will provide the knowledge you need to make a good buying decision and maximize your dollar.

[Amy26]

Actually the LTV for Capital One Auto is 120%.

[dspii]

Actually the LTV for Capital One Auto is 120%.

Mine was 110%, it is probably applicant specific.

[backtoschool]

Mine is 110%.

[backtoschool]

In many cases today, the true dealer cost of the vehicle and the MSRP are actually fairly close....a lot closer than years past. Profit isn't a bad word, but I clearly understand the buyers remorse...been down that road. The money/profit for most dealers is in financing, trade-ins and extra's like contracts. Remember some dealers won't deviate very far from the MSRP on hot and popular cars, as with many imports.

Capital One limits the LTV (loan to value) to about 110% on their loans. The way this works is the dealer must fax Capital One a copy of their invoice (not the MSRP), and your loan cannot be more than 110% of the invoice price i.e...a car with an invoice amount of $20,000 cannot be financed for more than $22,000 including taxes, title, docs and the other small stuff. This helps limit the dealers ability to take advantage of the consumer. This also gives you, the consumer, a little extra power in negotiating the out-the-door price. If your loan can't be more than 110% the invoice price, you can give the dealer cash to make up the difference or negotiate the price farther south so you fit under the cap. If they say they can't move, get up and go somewhere else...remember you have a check, which is like having cash, stand tall and proud.

To maximize you buying experience, I suggest the following for those who feel like their getting the shaft as soon as they walk onto the dealer lot. This is from my experience only.

- If you have the Capital One check, tell them so they know up front that your loan cannot be more than the LTV ratio. This way you'll know real soon if they are going to want a cash down payment. And if your unwilling to give up the cash, go elsewhere, believe me, someone in your town would be happy to take your money within your terms.
- Research, research, research......and research all aspects of buying a car, consumer reports is a good investment
- Seperate your needs from your wants, tough but doable
- Set a max on your monthly payment, don't forget your insurance costs will likely go up adding to the monthly payment factor
- If you have a trade-in, research the private party value and compare to what you owe, then sell your car, release the lien and use any extra money as a down payment.
- Everyone knows someone that works for a car company or a supplier, use this as a way to get a great deal with no negotiating. Friends and family, employees, supplier and vendors are all offered some type of discounting. In most cases the price is set on the dealers invoice. No negotiating.

In my case, I finally had a chance to have all the cards in my favor. I had a check from Capital One, I utilized the Ford A-Z plan and I sold my old car. Basically, with my discount I was given a set price (well below dealer invoice), no negotiations what-so-ever. I wrote the dealer a check and blew of all his extra's, refused to have him try and find me a lower rate (3.8% is low enough considering my BK). It took more time to set up the SYNC than to do the paperwork.

How can you sell your car and not use it as the trade-in? Trading your old car at the dealer is convenient and easy, but it will cost you, sometimes big money. If your not underwater on your loan, maybe it is an acceptable cost for the ease. If you are underwater on your loan, the oh-shit factor is inserted here.....you might be stuck or if your willing to pay more, but someone has to take the loss and believe me it won't be the dealer. If you know what your car is worth, you stand a better chance of getting more, but not much more using it as a trade-in. They have to make a profit somewhere.

Explore the possibilities, if you sell your car, can you find a ride for a few days or borrow another car. Clearing liens and titles takes some time, if the dealer has to do it, expect them to be paid for their time. If you own your car outright, all the better, sell it and buy another.

Just because you see the perfect car today doesn't mean you have to jump on it, that will cost you money. Trust me, if you have the Capital One check, the dealer will find you your perfect car after you sell yours, albeit, you may have to wait a few days, but they will find it.

I knew exactly the model, color and package that I wanted that utilized the biggest rebates and lowest cost-of-ownership, the salesman work hard for several days, but found exactly what I expected. If he couldn't, I had a check and was free to go elsewhere....I was in the drivers seat, finally.

The best advice is know exactly what you can afford, a car off the dealers lot is not an investment, your uncles '68 Corvette is. Maximize your buying power and remember knowledge is power. If you can, sell your own car to maximize your return. Focus on the cash rebates....popular this time of year for current or last years models. Just because you can get a $30,000 car with that check doesn't mean you have to use all of it....remember the less you use, the less that payment will be.

If you have your ducks in a row, your experience will be much better and you will come out knowing you got a fair deal. The dealer has to make a profit or they will close their doors. What you can do is to minimize the amount of profit they stand to make from you.

Research, research and more research will provide the knowledge you need to make a good buying decision and maximize your dollar.

This is an excellent post! I am in the process of negotiating on several cars now, and it is not easy, especially as a woman. The dealer keeps trying to add extras in, and/or lowballing me on my trade in. I have walked away twice and am willing to keep doing so until I get a price I am comfortable with.

[dspii]

Kudos to you...knowledge is power...keep walking away from the table, they'll learn how to negotiate soon enough.

[Amy26]

Mine was 110%, it is probably applicant specific.

Hmm perhaps then. Maybe not same for new or used as well.

[pris72]

My husband got a letter in the mail from capital one auto finance, stating due to being a card holder in good standing he is pre approved for an auto loan for up to $30,000. I am very skeptical about it, but will go look at a car with the preferred dealer tomorrow to see if it is true. They have a mazda CX7 on the lot that I really like, for $18,000. It's a 2007 with only 35,000 miles on it. His score with eqifax is a 592 right now. My score with equifax right now is 635. Our chapter 7 was discharged on June 14,2010. His score 3 days after the discharge was only 509, so it has come up a good bit in just a few months time. Right now our goal is to both get up to 660 atleast. My 2 yr goal is to get to 720. That will put us in a good spot in 2 yrs to purchase a home.

[cj0203]

In many cases today, the true dealer cost of the vehicle and the MSRP are actually fairly close....a lot closer than years past. Profit isn't a bad word, but I clearly understand the buyers remorse...been down that road. The money/profit for most dealers is in financing, trade-ins and extra's like contracts. Remember some dealers won't deviate very far from the MSRP on hot and popular cars, as with many imports.

Capital One limits the LTV (loan to value) to about 110% on their loans. The way this works is the dealer must fax Capital One a copy of their invoice (not the MSRP), and your loan cannot be more than 110% of the invoice price i.e...a car with an invoice amount of $20,000 cannot be financed for more than $22,000 including taxes, title, docs and the other small stuff. This helps limit the dealers ability to take advantage of the consumer. This also gives you, the consumer, a little extra power in negotiating the out-the-door price. If your loan can't be more than 110% the invoice price, you can give the dealer cash to make up the difference or negotiate the price farther south so you fit under the cap. If they say they can't move, get up and go somewhere else...remember you have a check, which is like having cash, stand tall and proud.

To maximize you buying experience, I suggest the following for those who feel like their getting the shaft as soon as they walk onto the dealer lot. This is from my experience only.

- If you have the Capital One check, tell them so they know up front that your loan cannot be more than the LTV ratio. This way you'll know real soon if they are going to want a cash down payment. And if your unwilling to give up the cash, go elsewhere, believe me, someone in your town would be happy to take your money within your terms.
- Research, research, research......and research all aspects of buying a car, consumer reports is a good investment
- Seperate your needs from your wants, tough but doable
- Set a max on your monthly payment, don't forget your insurance costs will likely go up adding to the monthly payment factor
- If you have a trade-in, research the private party value and compare to what you owe, then sell your car, release the lien and use any extra money as a down payment.
- Everyone knows someone that works for a car company or a supplier, use this as a way to get a great deal with no negotiating. Friends and family, employees, supplier and vendors are all offered some type of discounting. In most cases the price is set on the dealers invoice. No negotiating.

In my case, I finally had a chance to have all the cards in my favor. I had a check from Capital One, I utilized the Ford A-Z plan and I sold my old car. Basically, with my discount I was given a set price (well below dealer invoice), no negotiations what-so-ever. I wrote the dealer a check and blew of all his extra's, refused to have him try and find me a lower rate (3.8% is low enough considering my BK). It took more time to set up the SYNC than to do the paperwork.

How can you sell your car and not use it as the trade-in? Trading your old car at the dealer is convenient and easy, but it will cost you, sometimes big money. If your not underwater on your loan, maybe it is an acceptable cost for the ease. If you are underwater on your loan, the oh-shit factor is inserted here.....you might be stuck or if your willing to pay more, but someone has to take the loss and believe me it won't be the dealer. If you know what your car is worth, you stand a better chance of getting more, but not much more using it as a trade-in. They have to make a profit somewhere.

Explore the possibilities, if you sell your car, can you find a ride for a few days or borrow another car. Clearing liens and titles takes some time, if the dealer has to do it, expect them to be paid for their time. If you own your car outright, all the better, sell it and buy another.

Just because you see the perfect car today doesn't mean you have to jump on it, that will cost you money. Trust me, if you have the Capital One check, the dealer will find you your perfect car after you sell yours, albeit, you may have to wait a few days, but they will find it.

I knew exactly the model, color and package that I wanted that utilized the biggest rebates and lowest cost-of-ownership, the salesman work hard for several days, but found exactly what I expected. If he couldn't, I had a check and was free to go elsewhere....I was in the drivers seat, finally.

The best advice is know exactly what you can afford, a car off the dealers lot is not an investment, your uncles '68 Corvette is. Maximize your buying power and remember knowledge is power. If you can, sell your own car to maximize your return. Focus on the cash rebates....popular this time of year for current or last years models. Just because you can get a $30,000 car with that check doesn't mean you have to use all of it....remember the less you use, the less that payment will be.

If you have your ducks in a row, your experience will be much better and you will come out knowing you got a fair deal. The dealer has to make a profit or they will close their doors. What you can do is to minimize the amount of profit they stand to make from you.

Research, research and more research will provide the knowledge you need to make a good buying decision and maximize your dollar.

Thank you for this post. We just got approved with Cap One and the LTV thing was confusing me. I get it now

[calgirl67]

Interesting stuff... I just applied with them to see if they would refinance my current vehicle which I have with my credit union at 9.7%. I was approved for the refinance, same term at 7.31%... only would change my monthly payment by like 35 dollars though... so, won't be doing that. But was curious if I did their "new car" application to see what that would be and they approved me for up to 30,000 at 6.31% ...

I'm quite astounded that we as bankruptcy survivors are getting rates as low as 4 and 6%. Everyone kept saying our credit was hosed for years and expect rates in the teens and 20's... good to know that we can still get good deals.

Yes I agree. The biggest byth out there is "you're finished once you file BK". "Your credit will be destroyed for 10 YEARS". "You will never be able to get a loan again". We were discharged 3 mths ago and our scrores are in the 660 range, after credit report cleanup.

[calgirl67]

My husband got a letter in the mail from capital one auto finance, stating due to being a card holder in good standing he is pre approved for an auto loan for up to $30,000. I am very skeptical about it, but will go look at a car with the preferred dealer tomorrow to see if it is true. They have a mazda CX7 on the lot that I really like, for $18,000. It's a 2007 with only 35,000 miles on it. His score with eqifax is a 592 right now. My score with equifax right now is 635. Our chapter 7 was discharged on June 14,2010. His score 3 days after the discharge was only 509, so it has come up a good bit in just a few months time. Right now our goal is to both get up to 660 atleast. My 2 yr goal is to get to 720. That will put us in a good spot in 2 yrs to purchase a home.

Don't pay $18000 for that car, pay about $16,200

[wmunn]

I filed in April 2010, and was discharged in august 2010. I filed a motion to redeem via 722 redemption financing, and paid a local expert $500 to appraise my old car 2008 Mazdaspeed3 GT

My loan was seriously upside down, owed 26k on a car worth 15k as shown by appraisal. For various reasons it kept getting postponed in court, and I have been driving the car all this time. Now we are getting to an end point where the mazda attorney will accept nothing less than 17k for the car, now sitting with 70k miles on it. At my last discussion with my attorney, I asked him what my options were if I didn't agree on the pricing, he said I could certainly still let this car go back to mazda The terms on the 722 redemption loan would be 25% interest which is just crazy.

All this said, I decided after seeing folks experience with cap one blank check to try and apply to see what happens. Well, I was approved for up to 30k / 10.09 interest. I am currently expecting my check package to arrive early this week.

In the meantime, I started looking around at cars, and I really like the 2011 hyundai sonata. I can get the model and trim I like for 25k plus TTL. So running some quick numbers, it looks like to keep my current car w/ 70k miles on it for around $577 a month. Or I can step into this brand new sonata for $508 a month and have a roomier brand new car that gets 7mpg better. I think this is an easy decision isn't it?

[mikemike]

congrats! everyone is getting approved for the capone blank check except me :-( i tried twice..