Capital One Auto Finance Review 2023 – While Capital One is renowned for its credit card offerings, it also extends its services to encompass a wide range of banking solutions, including car purchase and refinancing loans. This comprehensive review aims to assist you in determining whether Capital One auto finance loans are a viable option for you.
Our team has conducted a thorough analysis of 24 prominent auto loan companies, taking into consideration various scenarios such as new car loans, refinancing, and used car loans. When evaluating Capital One’s auto loan program, we scrutinized 35 key data points, including factors like availability, preapproval or prequalification options, loan types, and associated fees. Additionally, we conducted a survey among 2,000 auto loan customers to gain insights into their priorities. To ensure the relevance of our recommendations, we periodically update our rating methodology.
If your objective is to secure a loan with low-interest rates, we encourage you to read our comprehensive review of the best auto loan providers. In this review, we compare interest rates, loan terms, availability, customer service, and reputation. Continue reading to discover how Capital One performs in these specific categories.
Capital One Auto Finance Review And Methodology
Capital One offers a hassle-free prequalification process for auto loans that doesn’t involve a hard credit check. With reasonable loan terms, it can be a suitable choice for individuals with poor credit. Based on our assessment, we rate Capital One auto loans with 4.1 stars.
Whether you’re in the market to buy a car or refinance an existing vehicle, it’s worth considering Capital One for auto financing. Their prequalification process for auto loans won’t impact your credit, making it a convenient option to explore.
| Motor1 Rating | 4.1 |
|---|---|
| Industry Standing | 4.7 |
| Availability | 4.5 |
| Loan Details | 4.2 |
| Rates and Discounts | 3.4 |
| Customer Service | 3.5 |
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How We Rate Capital One Auto Loans
Here’s a deeper look at the methodology we use to rate Capital One along with other auto loan providers.
Industry Standing
To begin our evaluation, we examined Capital One’s industry reputation. As a prominent national bank, Capital One excels in this aspect with a rating of 4.7 out of 5.0. This rating takes into account the bank’s long-standing presence in the industry since 1996, as well as its A- rating and accreditation from the Better Business Bureau (BBB).
Availability
When evaluating auto loan options, it’s important to consider the availability and eligibility criteria. This includes factors such as state availability, age restrictions, vehicle restrictions, minimum credit score requirements, and the ease of the application process. Additionally, we take note of whether a company offers preapprovals or not. Capital One receives a rating of 4.5 out of 5.0 in this category because it is available in all states and does not have a minimum credit score requirement.
Loan Details
When assessing the types of loans offered, loan amounts, term lengths, and additional benefits, Capital One receives a rating of 4.2 out of 5.0 in this category. Capital One provides a range of loan options, including new car loans, used car loans, and refinancing loans, with flexible terms to suit different needs.
Rates And Discounts
When evaluating the starting APRs, fees such as prepayment and application fees, as well as discounts for automatic payments or bundled services, Capital One receives a rating of 3.4 out of 5.0 in this category. While Capital One does not offer discounts or provide detailed information on APRs, it is worth noting that the company does not impose any fees, which is a positive aspect.
Customer Service
Lastly, our team thoroughly examines the customer service reputation of each company. This assessment considers customer ratings and complaints on platforms like BBB and Trustpilot, as well as the accessibility of phone and chat services. We also review the company’s mobile app and its ratings, if applicable. In this category, Capital One receives a score of 3.5 out of 5.0. The company offers 24-hour customer service and a well-designed app. However, it does have lower-than-average customer satisfaction ratings on BBB and Trustpilot.
Capital One Auto Finance Pros And Cons
Here are some of the advantages and disadvantages of getting a Capital One auto loan or refinancing loan.
| Capital One Auto Loan Pros | Capital One Auto Loan Cons |
|---|---|
| Easy to prequalify | Not available in Alaska or Hawaii |
| No hard credit checks for prequalification | Excludes several vehicle types and brands |
| Low minimum credit requirements | Average customer service |
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About Capital One
Founded in 1994 and based in McLean, Virginia, Capital One is a prominent bank in the United States with a wide reach. It boasts over 700 branch locations across the country, positioning it as one of the largest banks in terms of presence. As an auto finance company, Capital One holds the second position in the nation, trailing only Ally Financial. While its auto loan services are not accessible in Alaska and Hawaii, Capital One remains a highly regarded option among consumers. Our consumer survey revealed that Capital One ranked among the most popular choices for auto loan providers according to respondents.
Capital One Auto Loan Details
A Capital One auto loan provides the flexibility to finance the purchase of a new or used vehicle, as well as the option to refinance an existing auto loan. Whether you choose to apply for the loan individually or jointly, Capital One offers both options. If you have a poor credit score, applying jointly with a co-signer who has good credit can be a wise decision. In fact, having a co-signer with good credit may even help you secure a lower annual percentage rate (APR) for your loan.
Capital One Auto Loan Details
| Loan Amount Range | $4,000 minimum for purchase loans or $7,500 to $75,000 for loan refinancing |
| APR | Depends on credit profile |
| Loan Term Length | Varies |
| Prepayment Penalty | None |
| Application Fee | None |
Capital One Auto Financing Restrictions
Certain brands and types of vehicles aren’t eligible for a Capital One auto loan. These include:
- Oldsmobile
- Daewoo
- Saab
- Suzuki
- Isuzu
- Commercial vehicles
- Motorcycles
- Recreational vehicles (RVs)
- All-terrain vehicles (ATVs)
- Boats
- Camper vans
- Motor homes
- Vehicles with a history of chronic malfunctions
- Branded title vehicles
- Lease buyouts
- Vehicles with no vehicle identification number (VIN) or title
Capital One auto loans have specific vehicle age restrictions. For purchase loans, the vehicles must be within the last 10 model years and have fewer than 120,000 miles. However, there are exceptions where older vehicles or those with up to 150,000 miles may still be eligible for financing.
When it comes to refinancing loans, Capital One only offers them for vehicles up to 10 years old that have an “established resale value.” It’s important to note that if you want to refinance, your current loan must not be with Capital One. Your current lender needs to meet one of the following requirements:
- Reports your loan to a major credit bureau
- Is insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA)
- Is accredited by the Better Business Bureau (BBB) and is a state-registered lender or auto dealer
Capital One Auto Loan Availability
Not every vehicle is eligible for a Capital One auto loan. However, once you prequalify with Capital One, you gain access to a network of 12,000 participating dealerships nationwide through the Capital One Auto Navigator program. This program allows you to browse the inventory of these dealerships in your area.
It’s important to note that prequalification can only be done online. The finalization of your Capital One auto loan occurs when you visit a dealership in person. This means that the exact APR and payment amounts may not be determined until you go to the dealership.
Capital Auto Loan Credit Score Requirements
Capital One does not impose minimum credit score requirements, making it a viable option for individuals with poor credit. However, applicants are required to have a minimum monthly income of $1,500.
While Capital One does not set a minimum credit score, it’s important to note that approval is not guaranteed for individuals with low credit scores. Capital One does not specifically target borrowers with bad credit in its advertising.
How Your Credit Score Affects Your Capital One Auto Loan
Individuals with low credit scores should anticipate higher interest rates when considering Capital One auto financing. However, the advantage is that you can obtain prequalification without negatively impacting your credit score. We recommend comparing these prequalifications with those offered by other lenders. According to our survey, approximately 62 percent of respondents opted for prequalification before submitting a complete auto loan application.
Below, you will find the average auto loan rates based on different credit score ranges, sourced from Experian’s Q3 2022 State of the Automotive Finance Market report. Even a small improvement in your credit score over a few months can significantly reduce the total amount you pay for an auto loan.
| Credit Score | Average New Car APR | Average Used Car APR |
|---|---|---|
| 781 to 850 | 3.84% | 3.69% |
| 661 to 780 | 4.90% | 5.47% |
| 601 to 660 | 7.25% | 9.81% |
| 501 to 600 | 10.11% | 15.86% |
| 300 to 500 | 12.93% | 19.81% |
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Other Factors That Affect Capital One Auto Loan Rates
Your credit score is perhaps the most influential factor in your auto loan rates from Capital One and other lenders, but it isn’t the only one. The following factors also affect the rates you’ll get from a creditor:
- Loan terms: Choosing a longer loan term can result in lower monthly payments, but it often leads to higher interest rates as well.
- Down payment: The amount you contribute as a down payment, whether in cash or through a trade-in, impacts the loan-to-value (LTV) ratio. This ratio compares the amount you borrow to the value of the vehicle. A lower LTV ratio generally allows you to secure a lower interest rate.
- Vehicle details: The age, make, model, and mileage of the vehicle you intend to finance can influence your interest rates. Loans for older vehicles or those with high mileage typically come with higher interest rates.
Capital One Auto Loan Application Process
Securing an auto loan through Capital One is a simple and streamlined process. To begin, you can use Auto Navigator to select your desired car and obtain prequalification. Afterward, you will visit the dealership in person to proceed with the loan application.
Choose Your Vehicle Or Dealership
To initiate the process of obtaining a Capital One auto loan, you can begin by exploring the Auto Navigator website, where you can browse through available vehicles and dealerships in your local area. If you have a specific vehicle in mind, you can proceed to that page and get prequalified for an auto loan directly. Additionally, you have the option to view the inventory of dealerships in your vicinity and identify the ones that collaborate with Capital One.
Capital One Auto Loan Prequalification
Capital One provides the option to prequalify for an auto loan online. To complete the prequalification process, you will need to fill out a brief questionnaire regarding details such as your vehicle, income, and housing situation.
It’s important to note that prequalification differs from preapproval. Preapproval guarantees a loan offer, while prequalification serves as a preliminary indication that you meet certain loan criteria. Capital One also offers preapprovals, meaning you can obtain a comprehensive financing offer before visiting a dealership.
Upon prequalification, you will receive specific loan offer information, including APRs, monthly payment amounts, and a list of vehicles available through participating dealerships. Notably, Capital One does not perform a hard credit check during the prequalification process, allowing you to review loan offers without impacting your credit score.
Visit A Dealer To Finalize The Auto Loan
The final step involves visiting a dealer within Capital One’s network to select your desired vehicle and complete the loan process. During this step, you will be required to submit a full credit application, which will include providing your Social Security number. It’s important to note that Capital One will conduct a hard inquiry on your credit report as part of the application process, which may temporarily lower your credit score.
You’ll need to supply the following required documents to complete the process:
- Proof of income
- Proof of residence
- Proof of insurance
- Proof of employment
- Title and registration if you’re trading a vehicle in
- Prequalification letter
It is important to note that there may be slight differences in the final auto loan terms offered by Capital One compared to the prequalification stage. Additionally, in rare instances, there is a possibility of not being approved for a new loan even after completing a full credit application.
Capital One Refinance Process
Capital One also offers the option to refinance your existing auto loan. With this option, Capital One will pay off your current loan, and you’ll obtain a new loan with them. Refinancing is typically beneficial if you can secure a lower APR, resulting in long-term savings. Some individuals choose to refinance to lower their monthly payments, even if it doesn’t lead to overall savings.
Here’s the basic process:
- Prequalify: Begin by accessing the online platform and providing basic details about your vehicle and current auto loan. This step allows you to determine your eligibility without impacting your credit score.
- Submit an application: If you are satisfied with the rates offered by Capital One, proceed with a complete application, understanding that this will have an impact on your credit score.
- Sign the contract: Upon approval, you will receive a contract that can be conveniently signed online. Additionally, you will need to verify your existing lender information with Capital One.
- Finalize the process: Once you have signed the contract, Capital One will handle the necessary updates to your title documents in most cases. If any further information is required, a representative from the company will reach out to assist you.
Once you’re all done, you’ll begin making your new auto payments to Capital One.
Capital One Auto Finance Customer Reviews And Ratings
Capital One has established a strong reputation within the financial services industry, evidenced by its accreditation and A- rating from the BBB.
However, it’s worth noting that Capital One’s online customer reviews are relatively average. On the BBB website, it has received an average rating of 1.1 out of 5.0 stars from customers, and on Trustpilot, it holds an average score of 1.2 out of 5.0 stars.
It’s important to consider a few factors regarding these low ratings. Firstly, many customer reviews primarily focus on Capital One’s banking services rather than its auto loans. Secondly, while auto loans are only a small portion of Capital One’s overall business, complaints from banking customers may still reflect the overall quality of the company.
It’s essential to recognize that Capital One is a large corporation with numerous products, services, millions of customers, and significant revenue. While there are thousands of complaints online, they represent only a fraction of Capital One’s vast customer base.
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Positive Capital One Auto Loan Reviews
Customers who have had positive experiences with their Capital One auto loans often highlight the excellent customer service they received and their satisfaction with the loan terms. Some customers with poor credit express gratitude for being able to obtain loans through Capital One.
“I recently obtained approval for a Capital One auto loan and purchased a new car. This experience has been the most remarkable one I’ve ever had. Despite having extremely poor credit, Capital One has helped me get on the right path, and my credit score continues to improve.”
– Susie Moore Young via Trustpilot
Negative Capital One Auto Loan Reviews
Several customers of Capital One have expressed dissatisfaction with not being able to secure the same offers they were initially quoted during the prequalification process when they visited a dealer or financial institution affiliated with Capital One.
“I strongly advise against applying for an auto loan with them. It’s an absolute nightmare. They essentially harm your credit, and when you visit the dealership with the approval, you’ll encounter completely different figures.”
– Creative Geek via Trustpilot
“During the COVID-19 pandemic, I had to take time off from work. I requested to defer one payment until the end of my loan so that it wouldn’t impact my credit or cause me undue stress. Unfortunately, they refused my request, stating that I needed to find a way to make the payment and hoping that it wouldn’t be reported to the credit bureaus.”
– L.T. via Trustpilot
Capital One Car Finance Review: Conclusion
Based on our review, Capital One car finance received a rating of 4.1 stars due to its user-friendly auto loan prequalification process and favorable loan terms. Overall, Capital One is a reliable choice for car loan financing. However, we recommend comparing different providers to find the best auto loan option that suits your needs before making a final decision.
FAQ’s Capital One Car Finance Reviews
- Below are frequently asked questions about Capital One auto finance loans.
Does Capital One offer good auto loans?
In our evaluation of Capital One auto loans, we have awarded the company a rating of 4.1 out of 5.0 stars. Capital One is a highly regarded lender with widespread availability at numerous car dealerships across all states, except Alaska and Hawaii.
What credit score do you need for Capital One auto loans?
Capital One does not provide specific information about a minimum credit score requirement for their auto loans. However, it is important to note that a minimum monthly income of $1,500 is necessary to meet the eligibility criteria for auto financing or refinancing with Capital One.
What is the Capital One auto loan limit?
When it comes to purchasing a new or used car, Capital One sets a minimum loan amount of $4,000. On the other hand, for those looking to refinance their current auto loan, the loan amount range provided by Capital One is between $7,500 and $75,000.
What is the phone number for Capital One auto loans?
Existing customers of Capital One auto finance can contact the company at 1-800-946-0332. For those in need of assistance during the application process for a purchase loan, whether it’s for a new or used car, customer service can be reached at 1-800-689-1789. If you’re specifically looking to refinance your auto loan, you can call 1-833-292-8336.
Can someone take over my Capital One auto loan?
Unfortunately, transferring a Capital One auto loan is not an option. However, if you have a co-signer on the loan, they can assist you in making the loan payments. Alternatively, you can explore selling the vehicle for a price higher than the remaining loan balance and use the proceeds to pay off the loan.
What is the grace period for a Capital One auto loan?
Capital One auto loans offer varying grace periods based on the loan terms. It is important to review the terms of your contract to determine the specific grace period applicable to your loan. By familiarizing yourself with the grace period, you can ensure timely payments and avoid making a payment after the grace period has expired.