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Capital One: 2022 Auto Loan Review

2022-05-24 07:45:00

At a glance

4.0
Rating: 4 stars out of 5

Bankrate Score

  • Availability
    Rating: 4 stars out of 5
  • Affordability
    Rating: 3.2 stars out of 5
  • Customer Experience
    Rating: 4.6 stars out of 5
  • Transparency
    Rating: 4 stars out of 5
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About Capital One

  • Moneybag

    Loan amount

    $4,000 to $50,000

  • Credit Good

    Min. credit score

    Not specified

  • Rates

    APR from

    Not specified

  • Funds available in

    As soon as the same day

Pros and cons of Capital One auto loans

While there are perks to Capital One auto loans, there are also downsides to keep in mind. 

PROS

  • Checkmark

    Prequalification Available

  • Checkmark

    Personalized financing options

  • Checkmark

    Perfect credit not required

CONS

  • Close X

    Two applications required

  • Close X

    Limited to cars from approved dealerships

  • Close X

    Not available in all states

Capital One offers auto loans for new and used car purchases at select dealerships. The lender also provides refinancing on current auto loans.

The entire loan process is handled online through the Auto Navigator. You can view real rates and monthly payment quotes on specific vehicles available for sale through participating dealers.

Pros and cons of Capital One auto loans

Here are some of the benefits and drawbacks of Capital One auto loans.

Pros:

  • Get prequalified. You can use the Auto Navigator to get prequalified in minutes with no hard pull to your credit.  
  • Personalized financing options. The mobile app lets you view the monthly payment and interest rate on specific vehicles.  
  • Perfect credit not required. Capital One may approve you for an auto loan with a lower credit score, but you can expect to pay higher interest rates.  

Cons:

  • Two applications are required. You must complete a credit application when you arrive at the dealership, even if you’re already preapproved with Capital One.  
  • Limited to cars from approved dealerships. You’re only permitted to finance vehicles from dealerships that work with Capital One. 
  • Not available in all states. Auto loans are not offered in Alaska and Hawaii. 

Who is Capital One best for?

Capital One is best if you want to view your approval odds and loan rates before formally applying for an auto loan. You can compare the loan quote you receive to estimates from other lenders to determine if you’re getting a good deal.  

It’s also a good fit if you want to shop for cars online before heading to the dealership. You’re given the option to search for vehicles in your local area by the year, make and model and view actual rates and monthly payments without affecting your credit. This feature alone can help you decide if you can afford a particular vehicle or if you should hold off on a new car purchase.

Types of auto loans offered

Capital One features auto loan purchase and refinancing options.  

New and used car loans 

Capital One offers financing for new and used car purchases at over 12,000 participating dealerships. You can prequalify online and know what terms you’re eligible for before you start shopping for the perfect ride. Furthermore, the Auto Navigator lets you adjust terms to build a car loan that works for your budget.

Auto loans refinancing

Auto loan refinancing from Capital One is ideal for individuals who want to lower their monthly payments or APR. Both options will help you save money, either monthly or over time, as you work towards paying off your auto loan. You can also refinance through Capital One to shorten your loan term and pay off your auto loan faster.

Interest rates and terms

Capital One does not specify interest rates on its website. However, it offers flexible loan terms to ensure your monthly payment works for you. Terms for both purchases and refinancing range from 24 to 84 months.

How to apply for an auto loan with Capital One

You can start your application by getting prequalified without a hard credit pull. If there’s a match, you can view the monthly payment and interest rate on specific cars you’re considering. You will also have the luxury of changing the loan term or down payment to create a deal that works for you.

The next step is to visit the dealership and complete a credit application. Capital One will pull your credit report and score to issue a final approval. The last step is to upload any requested documents and e-sign your contract to seal the deal.  

You could also be asked by the lender or Capital One to provide these documents during the application process:  

  • Copy of your current driver’s license. 
  • Proof of residence, such as a utility bill within 60 days that’s in your name, bank statements, insurance billing statements or current lease agreement. 
  • Proof of income, such as your most recent pay stub, an offer letter for new W-2 employment income or three months of personal bank statements if you are self-employed. 

Auto loan refinancing requirements

If you’re buying a used car, the amount you want to finance must be at least $4,000. Furthermore, the vehicle cannot be older than 10 years or have more than 120,000 miles.  

To refinance, your outstanding loan amount must be between $7,500 and $50,000 and you must be current on it. Your car must also be no more than seven years old, and your current loan servicer cannot be Capital One. If you own a vehicle that’s no longer being manufactured, it’s ineligible for refinancing. 

Customer service

Support from Capital One is available by phone or online chat. Representatives are available Monday through Friday from 9 a.m. to 9 p.m. ET, and Saturday from 10 a.m. to 7 p.m. ET. 

How Bankrate rates Capital One

Overall score 4.0  
Availability 4.0 The minimum loan amounts offered by Capital One are fairly middle of the road, but it has a number of options for repayment terms and has wide state availability.
Affordability 3.2 Captial One's minimum and maximum APRs aren't available, and it doesn't advertise a discount for autopay.
Customer experience 4.6
Prequalification rates are valid for 30 days, and Capital One offers an online chat function once you sign up. It also has an app, and customer service is available six days a week.
Transparency 4.0 While it does offer prequalification, Captial One doesn't offer a ful APR range before you hand over your information.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
Written by
Allison Martin

Allison Martin’s work began over 10 years ago as a digital content strategist, and she’s since been published in several leading financial outlets, including The Wall Street Journal, MSN Money, MoneyTalksNews, Investopedia, Experian and Credit.com.