Capital One: 2023 Auto loan review

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. 

Capital One offers auto loans for new and used car purchases. 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. 

Refinancing is also available, but your vehicle — and your current loan — will need to meet a few requirements in order to qualify.

Do you qualify?

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

To refinance, your outstanding loan amount must be at least $7,500 and have 12 months remaining. Your car must also be less than 10 years old — though there is no maximum mileage — 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. 

What we like and what we don’t like

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

What we like

• 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.  

What we don't like

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

How to contact Capital One

Auto loan types offered

New and used auto 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.If you plan on buying a used vehicle, it must have less than 120,000 miles and be within 10 model years. There are some exceptions, but you will need to discuss your vehicle choice directly with Capital One.

Refinance

Auto loan refinancing from Capital One is ideal if you want to lower your 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.

How to apply for a loan with Capital One

You can start your application by getting prequalified without a hard credit pull. If you are preapproved, 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.

How Bankrate rates Capital One

Methodology

Bankrate considers 18 data points when rating auto loan lenders. Acceptance criteria, whether rates and fees are available and APR range all influence lender scores. These scores are broken up into four categories.

• Availability: Loan amounts, repayment options, dealership requirements and state availability all contribute to this category.
• Affordability: This section houses APR ranges, acceptance criteria, fees and discounts. 
• Customer experience: How long you have to shop, customer service availability, whether there’s an app and autopay availability are accounted for in this section.
• Transparency: This category accounts for the availability of fees and rates along with whether prequalification is available.