Capital One Car Loan

[imported_vr6]

My g/f is considering getting a new car. This will be her very first car and we don't have much experience with loans. I was recommended by a friend to go to capital one. Their website doesn't offer much details.

So we are trying to get a new mazda3 or a honda civic for 14-17k. Planning on putting ~2000 down. She works full time so making the payment shouldn't be a problem. I used to be her transportation but i just started a new job and our hours don't work out anymore, so we need this asap.

We looked at used cars also, but don't really have the time to find the right one without worrying about getting a bad car.

Whats your opinion on this? Honda is running a special on a lease, 1000 at signing and 199 a month for a 04 civic, not bad if you ask me, but its a lease.

 

[StageLeft]

Capital one should be nuked off the planet. Why can't she get a loan with Honda? If it's because her credit sucks, well tell her to wait until its' better. She doesn't need a new car. She can easily find a used one still under warranty from any number of car lots for a fraction of the cost.

Forget the lease. If she can't make payments on a car she's _buying_, then she shouldn't buy it.

 

[imported_vr6]

she can make the payment, i have always heard that it is better to finance a car from someplace other then the dealer. Shes 20, only had her credit card for < 1 year, so her credit really isn't sufficient (7points) Even if she gets a used car, she still needs to finance it.

 

[RossMAN]

Originally posted by: Skoorb
Capital one should be nuked off the planet. Why can't she get a loan with Honda? If it's because her credit sucks, well tell her to wait until its' better. She doesn't need a new car. She can easily find a used one still under warranty from any number of car lots for a fraction of the cost.

Forget the lease. If she can't make payments on a car she's _buying_, then she shouldn't buy it.

Agree on both accounts.

Capital One sucks BUT if they're the only lender who will approve her (without raping you on the % APR) then go for it.

Otherwise contact a credit union in your area to see what their current offers are. Usually new cars are around 2.99 - 5.99%

Call a few Honda dealers and ask if they ever have "loss leader ads" during the weekends? Where they have a few cars on sale below invoice. You don't have a choice on color, trim, or options but the prices are amazing.

 

[imported_vr6]

we were approved by toyota for a car loan, its not that she CAN"T get a car loan, its we are looking at ALL the available options. I said capital one just cause a friend have heard good things about it. I am sure we can get a loan thru honda too, but people keep telling me go to other places, get a loan, and then go to the dealer as if you are paying cash.

 

[RagingBITCH]

Capital One Auto Finance (COAF) sucks only if your credit sucks. It's kind of a double edged sword - it's an alternative if your credit is good, but it's just as bad as the dealer if your credit sucks.

I've worked for COAF last year and I processed contracts on a daily basis. I saw APR's as high as 25%, which is absolute anal rapeage. I saw a few high teens spread out over 7 years (yep, you read that right) so the person could have their "montly" payment that they desired.

But like others have mentioned - check your local credit union. I'll be honest - my credit union flat out denied me at a rate higher than COAF authorized me for. (5.75% at the credit union as opposed to the 5.25% I got authorized with COAF, although I suppose it helped that I worked for them)

You also may want to check with Honda - if you can get approved through them (if you're getting a Honda) it should be a great APR as long as you have a cosigner with solid credit history - I got a 1.9% APR (non-lease) on my 04 Accord b/c my dad co-signed. My dad also got 1.9 on his a few months back on his new car as well.

 

[Zee]

Originally posted by: Kwan1
we were approved by toyota for a car loan, its not that she CAN"T get a car loan, its we are looking at ALL the available options. I said capital one just cause a friend have heard good things about it. I am sure we can get a loan thru honda too, but people keep telling me go to other places, get a loan, and then go to the dealer as if you are paying cash.

That's part of the story. People do that so that they only get liability insurance when buying the new car and not full mandatory coverage. On the internet, that sounds stupid to do, but in real life, it's widely done.

 

[StageLeft]

I'd just stay away from CO because they are peepee whackers.

There is nothing wrong with a manufacturer's finance department if the rates are good. A credit union is generally your best bet though. I'd rather make payments to toyota, for instance, than capital one though. It's ALL about interest rates. Make sure it's not too high.

 

[RossMAN]

Originally posted by: RagingBITCH
I've worked for COAF last year and I processed contracts on a daily basis. I saw APR's as high as 25%, which is absolute anal rapeage. I saw a few high teens spread out over 7 years (yep, you read that right) so the person could have their "montly" payment that they desired.

That's a common ploy which most people unfortunately fall for 🙁

"What monthly payment can you afford"?

7 years later they've paid around $24k on a $15k Nissan Sentra, lol.

 

[StageLeft]

BTW a car salesman rarely cares if you'er paying cash or financing through his manufacturer. In the latter case it's got nothing to do with him, so he will see cash immediately at time of sale anyway, so the whole "pay with cash" is a bit misleading.

 

[StageLeft]

Originally posted by: RossMAN

Originally posted by: RagingBITCH
I've worked for COAF last year and I processed contracts on a daily basis. I saw APR's as high as 25%, which is absolute anal rapeage. I saw a few high teens spread out over 7 years (yep, you read that right) so the person could have their "montly" payment that they desired.

That's a common ploy which most people unfortunately fall for 🙁

"What monthly payment can you afford"?

7 years later they've paid around $24k on a $15k Nissan Sentra, lol.

And then we laugh about them on ATOT 😀

 

[RagingBITCH]

Originally posted by: RossMAN

Originally posted by: RagingBITCH
I've worked for COAF last year and I processed contracts on a daily basis. I saw APR's as high as 25%, which is absolute anal rapeage. I saw a few high teens spread out over 7 years (yep, you read that right) so the person could have their "montly" payment that they desired.

That's a common ploy which most people unfortunately fall for 🙁

"What monthly payment can you afford"?

7 years later they've paid around $24k on a $15k Nissan Sentra, lol.

lol yep, it's amazing. You know I saw a few contracts that caught my eye. One guy made $20,000 a month and had to take out a $30,000 loan on a car to buy a Hummer H2. I don't see how someone with that much disposable income needs to take out a loan. The worst part was, the loan was at 15% for like 5 years.

 

[imported_vr6]

we are not trying to get her parents involved, and for as much as i care about this girl, i am not cosigning anyone. We will stop by the dealer and see what they say, i doubt she'll get 1.9% with less then one year of credit history.

 

[StageLeft]

lol yep, it's amazing. You know I saw a few contracts that caught my eye. One guy made $20,000 a month and had to take out a $30,000 loan on a car to buy a Hummer H2. I don't see how someone with that much disposable income needs to take out a loan. The worst part was, the loan was at 15% for like 5 years.

Frivolous spending. I know somebody older than me who's been working longer and always had a higher income, but I have more money than him saved up with less debt, and more possessions!

 

[RagingBITCH]

Originally posted by: Kwan1
we are not trying to get her parents involved, and for as much as i care about this girl, i am not cosigning anyone. We will stop by the dealer and see what they say, i doubt she'll get 1.9% with less then one year of credit history.

It would be smart not to cosign with a GF. You're fvcked if she defaults. And she will be lucky with less than one year of credit history to get less than like 15%.

 

[StageLeft]

Yeah do not cosign no matter what she says. If she loves you she won't press the issue!

 

[RossMAN]

Originally posted by: RagingBITCH

Originally posted by: Kwan1
we are not trying to get her parents involved, and for as much as i care about this girl, i am not cosigning anyone. We will stop by the dealer and see what they say, i doubt she'll get 1.9% with less then one year of credit history.

It would be smart not to cosign with a GF. You're fvcked if she defaults. And she will be lucky with less than one year of credit history to get less than like 15%.

Smart thinking Kwan1.

 

[isekii]

instead of leasing, why not just get a used civic or a corolla ?

You get to own the vehicle in the end, and you can always sell it if you want a diff car.

 

[StageLeft]

Originally posted by: isekii
instead of leasing, why not just get a used civic or a corolla ?

You get to own the vehicle in the end, and you can always sell it if you want a diff car.

20 year olds don't think that way 🙂

 

[imported_vr6]

well if we get a used car, we would still get it at a dealer which means wewill still be financing, we're probably gonna talk to capital one just to see what kind of apr she can get, then we gonna go to the honda dealer and see what they offer her and then go from there.

 

[imported_vr6]

Originally posted by: Skoorb

Originally posted by: isekii
instead of leasing, why not just get a used civic or a corolla ?

You get to own the vehicle in the end, and you can always sell it if you want a diff car.

20 year olds don't think that way 🙂

I am totally against leasing, unless i am making 200k a year and want something new every 6 months 🙂
We are kinda in a rush to get a car, i know its bad to rush, but its either that or she had no way to get to work which means no income = a broke ass 20yr old sitting at home without a job AND no car.

 

[isekii]

Originally posted by: Skoorb

Originally posted by: isekii
instead of leasing, why not just get a used civic or a corolla ?

You get to own the vehicle in the end, and you can always sell it if you want a diff car.

20 year olds don't think that way 🙂

😛 i'm only 23~!

 

[Freejack2]

Originally posted by: Skoorb
BTW a car salesman rarely cares if you'er paying cash or financing through his manufacturer. In the latter case it's got nothing to do with him, so he will see cash immediately at time of sale anyway, so the whole "pay with cash" is a bit misleading.

The salesman may not care but trust me the F&amp;I office does not like it when the customer doesn't finance through the dealership. They can't make a profit on the back end if the customer doesn't finance there. I'd say go prepared though. Know what the credit union and other independent auto financiers will give you. If you can go in and tell the F&amp;I person you can get x% from the credit union he/she will do anything they can to beat that rate.

As for Capital One, what's so bad about them? I was thinking about seeing what they would approve me for when I get my next car in a couple of years.

 

[StageLeft]

Originally posted by: Freejack2

Originally posted by: Skoorb
BTW a car salesman rarely cares if you'er paying cash or financing through his manufacturer. In the latter case it's got nothing to do with him, so he will see cash immediately at time of sale anyway, so the whole "pay with cash" is a bit misleading.

The salesman may not care but trust me the F&amp;I office does not like it when the customer doesn't finance through the dealership. They can't make a profit on the back end if the customer doesn't finance there. I'd say go prepared though. Know what the credit union and other independent auto financiers will give you. If you can go in and tell the F&amp;I person you can get x% from the credit union he/she will do anything they can to beat that rate.

As for Capital One, what's so bad about them? I was thinking about seeing what they would approve me for when I get my next car in a couple of years.

They slighted me some years ago, but more importantly they generally cater to the "lower classes" of credit worthiness, I think, which means that you're going to get a raw deal from them comparitively.

 

[isekii]

Originally posted by: Skoorb

Originally posted by: Freejack2

Originally posted by: Skoorb
BTW a car salesman rarely cares if you'er paying cash or financing through his manufacturer. In the latter case it's got nothing to do with him, so he will see cash immediately at time of sale anyway, so the whole "pay with cash" is a bit misleading.

The salesman may not care but trust me the F&amp;I office does not like it when the customer doesn't finance through the dealership. They can't make a profit on the back end if the customer doesn't finance there. I'd say go prepared though. Know what the credit union and other independent auto financiers will give you. If you can go in and tell the F&amp;I person you can get x% from the credit union he/she will do anything they can to beat that rate.

As for Capital One, what's so bad about them? I was thinking about seeing what they would approve me for when I get my next car in a couple of years.

They slighted me some years ago, but more importantly they generally cater to the "lower classes" of credit worthiness, I think, which means that you're going to get a raw deal from them comparitively.

My first student card was with CapitalOne. Started out with 300limit, and over 2 years they raised it to like 1500. Cancelled the card tho because I really didn't need it.
If you have no credit at all, CapitalOne would be the first bank I'd look at for an unsecured credit card.