Capital One Auto Loans Review (2022)

Nov 22, 2023 By Susan Kelly

Capital One is a banking and financial services company based in the United States. It is one of the largest providers of auto loans in the United States. The company has a wide range of products and services to choose from, competitive interest rates, and no prepayment penalty. However, borrowers should know the company's minimum borrowing amount and origination fee before applying.


Capital One is a major player in the auto lending industry. They offer both new and used car loans and have very competitive rates in the market.


Features


Capital One also offers many features to make the borrowing process easier for borrowers. These include online applications, pre-approval letters, and fast processing times.


One thing that makes Capital One stand out from the competition is its variety of loan options. They offer loans for cars of all makes and models and loans for people with bad credit. This makes them a good choice for borrowers who may not qualify for a loan with other lenders.



Things to consider before applying for an auto loan


There are a few things to consider before applying for an auto loan with Capital One. The company has a minimum borrowing amount of $5,000, so it may not be suitable for those looking to finance a smaller purchase. Capital One also charges an origination fee of up to 2% of the loan amount, which can add up over the life of the loan.


Pros:


Let's look at some of the pros of getting a loan from them.


  • Capital One has many loans available, including both new and used cars.
  • They have low-interest rates, making it a more affordable option than some other lenders.
  • The application process is quick and easy, so you can get your loan processed quickly.
  • You can be pre-qualified easily with a soft credit.
  • There is no origination fee.
  • You will have the option to choose the due date for loan payment.
  • The website and the app have loan pre-qualifications and car shopping with an auto navigator.


Another plus side, Capital One offers competitive interest rates and terms on its auto loans. Borrowers can choose between fixed and variable rates, and repayment terms range from 12 to 84 months. And there's no prepayment penalty, so borrowers can pay off their loan early if they wish.


Cons:


There are no physical branches, so all transactions must be done online or over the phone. Again, this could be a pro or a con, depending on your preferences.


  • It is not available in all states.
  • You may not get rate discounts for automatic payments.
  • You will need to provide your social security number for the initial application.
  • You need to get a participation dealership to purchase the vehicle.



Eligibility criteria


The loan terms can be available for 24 to 84 months in 48 different states across the globe. Applicants must meet certain eligibility requirements to apply for a Capital One auto loan. For example, they must be at least 18 years old, have a valid driver's license, and be U.S. citizens or permanent residents.


The minimum income of the applicant should be between $15k to $18k in a month, with a minimum financing amount of $4k.


According to Capital One, the models of used vehicles should be from 2011 (or from 2009) with a mileage value of 15,000.


How to apply?


Capital One is a great option for those who need quick and easy refinancing. The application process includes e-signing of contracts, uploading documents online, and receiving instant feedback after completing the form with no impact on credit scores!


Down payments


Capital One offers a wide range of auto loans without any down payment. Still, poor credit applicants may need to provide some collateral. The amount depends on the lender and whether they feel enough protection is in place if you stop paying your loan off.


Takeaway


Overall, Capital One is a great choice for borrowers looking for a competitive auto loan. Their variety of loan options and helpful features make the borrowing process easy and convenient. In addition, they have competitive interest rates, an easy application process, and many loans available. However, they do not have any physical branches, so all transactions must be done online or by phone.


If you're looking for a new or used car and need financing, Capital One may be a good option. Compare its rates and terms to those of other lenders to find the best deal for you.


Thank you for reading! We hope this article helped inform you about Capital One auto loans.

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