Overview of Capital One Auto Loans
Capital One is a large national bank that offers auto loans for new and used car purchases, as well as auto refinancing loans.
Loan Amounts
For new and used car purchase loans, Capital One offers loan amounts from $4,000 up to $75,000. The minimum loan amount is on the lower end compared to other top lenders.
For refinancing loans, the minimum is $7,500 and the maximum is also $75,000.
Loan Terms
Loan terms for new, used, and refinanced auto loans range from 24 to 84 months (2 to 7 years). This provides multiple options to fit different budgets and goals.
Interest Rates
Specific interest rate ranges are not provided upfront by Capital One. Rates are determined individually based on each applicant’s credit history and other factors.
Availability and Eligibility
Capital One auto loans are available online to residents of most states, with the exception of Alaska and Hawaii. Applicants must:
- Be at least 18 years old
- Have a monthly income of at least $1,500
- Have a valid U.S. address
For used vehicles, the car cannot be more than 10 years old or have over 120,000 miles.
Pros of Capital One Auto Loans
Some of the key benefits of getting an auto loan from Capital One include:
Prequalification Available
You can get prequalified to see potential rates and terms through Capital One’s Auto Navigator without impacting your credit score. Prequalifications are valid for 30 days.
Personalized Financing Options
The online experience allows you to view customized payment quotes and comparison shop potential vehicles. You can adjust variables like loan length, interest rate, and down payment.
Low Income Requirements
The $1,500 per month minimum income requirement is lower than many competitor lenders, making these loans accessible to more borrowers.
Fast Funding
Capital One has a reputation for fast approvals and funding. In many cases loans can be approved and funded on the same day.
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Cons of Capital One Auto Loans
Some potential drawbacks to weigh include:
Two Applications Required
Even after getting preapproved, you’ll need to complete a second application when visiting the dealership. This can be inconvenient.
Limited to Approved Dealerships
You can only finance vehicles from one of Capital One’s 12,000+ approved dealerships across the country. This restricts flexibility.
Limited Availability
Auto loans are not offered by Capital One to residents of Alaska, Hawaii, or Puerto Rico due to state regulations.
How Capital One Compares to Other Top Lenders
Capital One has some distinct differences as well as similarities to other top national auto lenders like PNC Bank and U.S. Bank:
Compared to PNC Bank:
- PNC provides more pricing transparency upfront before prequalification
- PNC has branch locations nationwide, unlike Capital One’s online-only model
- PNC does not restrict you to certain dealerships
Compared to U.S. Bank:
- U.S. Bank has no dealership restrictions and higher maximum loan amounts
- U.S. Bank offers lease buyout financing, which Capital One does not
- But U.S. Bank requires extremely high credit for its best rates
Overall, Capital One strikes a nice balance between flexibility, pricing, requirements, and service. It’s a great option for borrowers who value the ability to prequalify and want a smooth digital loan process.
What We Like About Capital One Auto Loans
Here are some of Capital One’s standout features as an auto lender:
Easy Online Prequalification
The Auto Navigator allows you to prequalify in minutes without impacting your credit score. Prequalified terms are valid for 30 days.
View Real Rates on Actual Vehicles
Through the Auto Navigator you can view personalized quotes, rates, payments on vehicles available for purchase.
Low $1,500 Monthly Income Requirement
The income threshold to qualify for financing is lower than many competitor lenders.
Available Loan Amounts as Low as $4,000
The minimum loan amount starts at just $4,000, allowing financing even lower cost used vehicles.
Chat and Phone Support 6 Days a Week
Customer service is available Monday to Saturday over phone and online chat for current and prospective customers.
What We Don’t Like About Capital One Auto Loans
Some of the limitations or potential frustrations include:
Two Application Process Adds Hassle
Completing a dealership application on top of online prequalification inserts extra steps.
Car Shopping Limited to Approved Dealerships
Shopping flexibility takes a hit due to the 12,000 dealer network restriction from Capital One.
Details on Rates and Fees Not Readily Available
More transparency on what rates you can expect for different credit tiers would be helpful.
Eligibility Requirements for Capital One Auto Loans
While Capital One does not share specific credit score requirements, you must meet the following criteria to qualify for auto financing or refinancing:
- Monthly income of at least $1,500
- Minimum age of 18 years old
- Valid U.S. address (unavailable in AK, HI, PR)
For used cars, vehicles cannot be older than 10 years or have over 120,000 miles.
Refinancing eligibility requires your existing auto loan to have at least $7,500 remaining and 12 months left on the term. Commercial vehicles do not qualify for refinancing.
Types of Auto Loans Offered by Capital One
Capital One provides financing for the following auto purchase scenarios:
New Car Loans
- Loan amounts from $4,000 up to $75,000
- Terms from 2 to 7 years (24 to 84 months)
- For purchasing brand new vehicles
Used Car Loans
- Loan amounts from $4,000 up to $75,000
- Terms from 2 to 7 years (24 to 84 months)
- For used vehicles up to 10 years old with under 120,000 miles
Refinancing Loans
- Loan amounts from $7,500 up to $75,000
- Terms from 2 to 7 years (24 to 84 months)
- For refinancing existing auto loans from other lenders
While lease buyouts are not offered, traditional financing works well if you plan to purchase your leased vehicle once the term ends.
Auto Loan Rates Offered by Capital One
Exact auto loan rates from Capital One depend on each applicant’s individual details, so aggregate ranges are not advertised. Rates are higher for those with lower credit scores and lower for those with excellent credit.
According to customer reports, buyers with good credit (FICO scores over 720) have recently been offered rates between 4% and 7% APR for new auto loans from Capital One. But your actual rate may vary higher or lower based on your full credit profile.
Those looking to refinance may qualify for even lower rates by meeting Capital One’s refi requirements and having strong credit scores.
How to Apply for an Auto Loan with Capital One
Here is an overview of the process to apply for auto financing from Capital One:
- Prequalify Online: Enter basic personal details through the Auto Navigator to view estimated terms and rates you may qualify for, with no credit check required.
- Shop for Your Vehicle: If happy with the prequalification terms, start shopping for a car at one of Capital One’s 12,000+ approved dealers.
- Apply at the Dealership: Complete a full application with the dealer to allow for credit checks and final underwriting.
- Sign Your Loan Contract: Once approved, review and electronically sign your finalized auto loan contract.
- Drive Off with Your New Ride! Finish any final paperwork and drive home your new financed vehicle.
After prequalifying it takes most buyers about 2 weeks or less to complete the process. Funding and possession of the vehicle may happen on the same day in many cases.
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Fees, Penalties, and Fine Print for Capital One Auto Loans
Review Capital One’s current lending disclosures and account agreement for full details on fees, but here are some things to be aware of:
- No origination fees or prepayment penalties
- Late fees around 5% of the unpaid installment amount
- Returned payment fees of up to $37 per returned payment
- Possible repo fees if you default on payments
As with any lender, read all loan terms carefully so you understand the fees and penalties associated with late or missed payments before signing your contract.
Customer Service Options for Capital One Auto Loans
Existing Capital One auto loan customers can contact representatives by phone Monday through Friday from 9am to 8pm Eastern Time.
For prequalification and new applications questions, phone support is also offered Monday through Saturday from 9am to 9pm ET.
An online chat function provides another convenient way to get assistance from Capital One’s customer support team.
Contact options are more robust than some competitors who lack weekend or chat support.
Conclusion: Who Are Capital One Auto Loans Best For?
In conclusion, Capital One auto loans stand out as an excellent financing choice for certain types of borrowers, including:
Borrowers with Average Credit:
Capital One offers competitive rates across a wider range of credit profiles beyond just flawless scores. Preapproval odds are good even if your score is average.
First-Time Auto Financing Applicants:
The prequalification process makes it easy for first-timers to safely check potential terms. Minimum loan requirements are beginner friendly.
Used Car Buyers on a Budget:
The low minimum loan amount of $4,000 accommodates purchasers of older used vehicles. Payment quotes assist with affordability planning.
While restrictions around dealership choice and state availability present some limitations, Capital One delivers a stellar digital experience that makes getting approved for financing predictable and painless. Prequalification, combined with rapid approvals and funding, cement it as a top choice for your next auto loan or refi.
Frequently Asked Questions (FAQs) About Capital One Auto Loans
How hard is it to qualify for a Capital One auto loan?
Specific credit or income requirements are not disclosed, but the $1,500 monthly minimum is lower than competitors. Those with average credit scores have a strong chance of approval after the company’s prequalification process.
Can I get preapproved for one car but buy a different one?
Yes, Capital One’s preapproval hold rates and terms, not ties you to any particular car. As long as you complete purchase financing from an approved dealer before the 30-day preapproval expires, you can buy any vehicle you prefer.
How long does it take Capital One to fund an approved auto loan?
Capital One has a reputation for fast funding – many customers report getting funded the exact same day upon approval. Even complex deals rarely take longer than 3 days at most.
What direct fees or costs are associated with a Capital One auto loan?
Capital One does not charge origination fees or prepayment penalties. The only direct fees to be aware of are late payment fees or returned payment fees disclosed in your loan agreement.
Can I get prequalified for a Capital One auto refinance loan?
Yes, Capital One’s refinancing prequalification process allows you to see if you may qualify to refinance your existing auto loan and get better rates or terms. You can evaluate whether pursuing the full application makes sense for your loan situation.
More About Capital One
Founded in 1988 and headquartered in McLean, Virginia, Capital One Financial Corporation is a financial services holding company specializing in credit cards, auto loans, banking, and savings accounts services.
With over $400 billion in assets as of January 2023, Capital One is the third largest credit card issuer and eighth largest bank in the U.S. by assets.
The company has also made major investments in recent years in digital capabilities and online customer experiences – making it a perfect fit to handle auto loans completely over the internet.
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