Capital One: 2022 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 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 pre-approved 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?

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