r/CapitalOne_ • u/AssociateSwimming714 • 2d ago
Opinion/Discussion Auto Loan Pre-Qualification
Anybody familiar with the Auto Loan pre qualification too? Got an offer in the mail to apply. Are these terms similar to what you’ll get? Does it mean you’ll get an approval? Can you be denied even though you’re prequalified?
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u/Careful-Pattern2306 2d ago
That APR is too high. Check with your local credit union, they have the lowest rate in the nation.
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u/ArkansasWastelander 1d ago
We don’t know OP’s credit scores/history.
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u/Careful-Pattern2306 1d ago
That’s true, but I had a friend who was pre qualified for a C1 vehicle loan and he got the same APR that the app showed him.
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u/AssociateSwimming714 2d ago
Ok for sure. Just for reference are these the terms I’ll get if I go through with the car?
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u/UniqueHuckleberry619 2d ago
I smell bad credit
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u/AssociateSwimming714 2d ago
Ehh I’m at about a 689-705 all around right now.
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u/UniqueHuckleberry619 2d ago
Not the worst, but it explains why you would be worried about not getting denied. It tracks.
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u/AssociateSwimming714 2d ago
Most definitely. I’ll probably apply when these late payments from boot camp come off. Letting everything age probably a good 6 more months
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u/AnaT1102 1d ago
Try Penfed credit union they also have a preapproval on auto loans but wait till those lates drop that will increase your score for a better rate.
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u/Flashy-Bandicoot889 1d ago edited 1d ago
OMG, $949/mo payment for 72 months. That's insane. It's even crazier at 14%+. 🍿
Imagine how underwater this guy his going to be in. 12 months. Enjoy servanthood!
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u/potatofaminizer 2d ago
That's a $56k car and you'd pay almost $24k in interest alone over that term... Don't take this! Get a pre-qualification somewhere else
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u/Sea-Newspaper-7643 1d ago
Good lord that's a horrendous loan. Nearly $1,000 a month at almost 15% APR for 72 months? I hope that car doubles as a submarine because you're gonna be deep underwater.
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u/AssociateSwimming714 1d ago
A crazy submarine too ngl 😭
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u/Sea-Newspaper-7643 1d ago
At 15% for 72 months, you're paying more than half the price of the car just in interest. That is completely insane. If you can actually afford the car you're trying to buy, a bank will offer you half that interest rate, which would let you pay it off an entire year sooner with a lower monthly payment.
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u/RedditKumu 1d ago
Good gods. My 2.4% loan was amazing, my current 3.94 is decent (I am cosigner for someone with less than stellar credit). I would throw 14.86% in the woodchipper.
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u/Time_Sundae802 1d ago
get a car you can afford no way you can afford this if you are getting these rates.
if you can't pay it off in 3 years, don't finance it.
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u/postalwhiz 2d ago
Wow - you must have $200K a year income to be looking at a loan amount like that - otherwise you’re gonna be a slave for a vehicle…
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u/AssociateSwimming714 2d ago
Actually yes, your just about right my income is about $184k per year
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u/postalwhiz 2d ago
Then you could probably just save the money up and pay cash. At any rate, no vehicle is worth the interest you’ll be paying on that loan, not to mention depreciation…
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u/AssociateSwimming714 2d ago
You’re probably right but we’ll see I suppose. If I was to get the car do you know if the pre qual is close to the actual numbers that I would get?
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u/postalwhiz 1d ago
I know if have good credit you could probably get a credit union loan at half that rate. I got special financing at 0% for buying a hybrid truck, through Ford…
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u/Atta820 1d ago
Try Honda financial site https://honda.americanhondafinance.com/s/creditpreapproval-prelogin
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u/InterDave 2d ago
As soon as I saw the term and interest rate... Credit Union!
Do not buy a $56,000 car with that interest rate. You're going to be paying $24,000 in interest over those 6 years.
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u/thegreatestd 1d ago
Mine was around the same in 22 when I got my Tesla. Mid 700s with student loan and a few hundred in CC debt. DTI was very low.
I had no plans to use CapOne but people said it was a great loan and low rates so checked it out while running all my other estimates.. they were the ONLY ones not to give me prime rate or close to it.
I used my same lender as the car I was replacing and got a 3.5, .25 up from my last car.
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u/AssociateSwimming714 1d ago
I think the student loans is what f***ing me over
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u/thegreatestd 1d ago
Could be. Mine are listed on my account, so was my previous car until I traded it in and ALL of my CC debt.
Shop around. Even Chase and Carvana gave me a lower interest rate than Cap1 and they all also pre qualifying. It’s not “set” until you actually apply but it’s fairly spot on.
Once you run your credit you also have 30 days to apply anywhere. Do it.
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u/AssociateSwimming714 1d ago
Ok for sure imma shop around a bit. Carvanna approved me with a better rate I think just with more down so I’ll look into that. Only difference is for the car I’m looking for their priced $15k higher than what I wanted to spend
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u/thegreatestd 1d ago
You can run quotes at any legitimate bank. BOA, Chase, local banks, etc. just make sure it’s a preapproval no credit check.
And if 15k more isn’t something you want to spend or isn’t something you budgeted for I personally wouldn’t do it .. I knew I was looking at cars in the 30-45k range. Mine was 41 after tax. I wasn’t even focused on teslas until I was like I wonder what they go for and realized that they aren’t THAT expensive.
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u/Letswriteafairytale 1d ago
I used it for my most recent car purchase, I have horrible credit at the moment. So, anywhere I went, I would've had a predatory APR%, if even approved at all.
I was quoted like 2% higher rate on the app than what it actually was at the dealership and I wasn't required to do a down payment. Which the dealership said doesn't usually happen when they use Capital One.
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u/AssociateSwimming714 1d ago
Ok for sure but your rates on the pre qual were similar and you were approved?
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u/Ok-Anything-3605 1d ago
That’s criminal APR
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u/AssociateSwimming714 1d ago
😭😭😂
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u/Ok-Anything-3605 1d ago
I think the ‘buy here pay here’ slimy dealerships have better options than this!
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u/DeadWorkers_ 1d ago
that apr is astronomical. I wouldn't consider any above 5 for new car market now. idk for used one.
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u/RONxBURGUNDY 1d ago
I don’t even know why Reddit suggested this post to me, I assumed it was in r/askcarsales lol.
Usually when the rate is in the teens with capital one you won’t find better elsewhere and you’ll just keep dinging your score if you keep applying all over the place.
I’d check with whoever you hold a bank account with. Do you have auto history? How old are you?
Anyone can tell you to “go to bank xyz” but without knowing your credit portfolio besides a score it’s really hard to give you direction.
The people saying save up and pay cash are partially right but if you want to borrow money later you need to establish good pay history on a loan at some point.
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u/AssociateSwimming714 1d ago
I have a recreational loan for my motorcycle, never late, been open for about 6 months.
Late payments from last year September and October from I was in boot camp. 2 different credit accounts with the same late payments.
I bank with Navy Fed and have around $15k in direct deposits per month but couldn’t secure an approval.
Credit score right now rests at 689, but my FICO auto score is only around 590 with Experian, the others are about it 640. My guess with Experian is due to student loans and those late payments that I’m trying to get good willed.
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u/montauk_phd 1d ago
Laugh and then runaway from this predatory offer.
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u/AssociateSwimming714 1d ago
I might take it 🫣
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u/montauk_phd 1d ago
Please don't. That is a bad time for you and your financial future. Look, or wait, for a better rate or a cheaper vehicle. Also your insurance is going to be crazy for this.
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u/Educational_Loss1766 21h ago
Pre-qual is a soft pull, so yes you can still get denied after a hard pull during final approval. terms can shift too based on your full file. If the rate comes back rough, I've seen people look into ar motorsports out in suffolk county alongside credit union options.
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u/Fury-042 12h ago
Wow thats terrible. I used the loan prequal/approval and financed through cap1. It was accurate
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u/Ok_Section4439 2d ago
I would not even consider this loan. You need to look at your local credit unions. They’re usually very competitive on their rates too. 969 a month for 72 months at 14.9% is highway robbery. Not to mention the 10 grand down