Capital One Auto Finance Review

Capital One is well known for its credit card offers, but it also provides a variety of banking services, including car purchase and refinancing loans. This review can help you decide if Capital One auto finance loans are worth considering.

Our team has compared 24 of the best auto loan companies for different situations like new car loans, refinancing, and used car loans. For Capital One’s auto loan program, we looked at 35 data points including its availability, preapproval or prequalification offering, loan types, and fees. We also surveyed 2,000 auto loan customers to get an idea of what’s important for consumers. We update our rating methodology periodically to keep our recommendations current as well.

If you’re trying to secure a low-interest loan, read our review of the best auto loan providers. We compare interest rates, loan terms, availability, customer service, and reputation. Read on to see how Capital One scores in these categories.

Capital One has a convenient prequalification process that doesn’t require a hard credit check. Its auto loan terms are reasonable, and the lender can be a good option for those with poor credit. Overall, we give Capital One auto loans 4.1 stars.

If you’re trying to purchase a car or refinance an existing vehicle, Capital One auto financing is worth a look since its auto loan prequalification process won’t affect your credit.

How We Rate Capital One Auto Loans

Here’s a deeper look at the methodology we use to rate Capital One along with other auto loan providers.

Industry Standing

First, our team looked at Capital One’s industry reputation. As a large national bank, Capital One scores well in this category with a 4.7 out of 5.0. The rating includes Capital One’s longevity since 1996 and its A- rating with accreditation from the Better Business Bureau (BBB).

Availability

Not all auto loans are available to everyone. This category includes state availability, age restrictions, vehicle restrictions, minimum credit score, and ease of application process. We also note whether a company offers preapprovals or not. Capital One scores 4.5 out of 5.0 because it doesn’t have a minimum credit score and it’s available in all states.

Loan Details

In this category, we look at the types of loans available, loan amounts, term lengths, and added benefits. Capital One scores 4.2 here because it offers new, used, and refinance loans with a variety of terms.

Rates And Discounts

This category rating includes starting APRs, fees like prepayment and application fees, and discounts for automatic payments or bundling services. Capital One scores lower here with a 3.4 because it doesn’t offer discounts or details on APRs. It doesn’t impose fees, though, which is good.

Customer Service

Lastly, our team takes a good look at the customer service reputation of each company. This includes customer ratings and complaints on the BBB, ratings on Trustpilot, and reachability through phone and chat services. We also review the company’s mobile app and ratings if applicable. Capital One scores 3.5 for this category. The company offers 24-hour customer service and a good app, but it has lower-than-average customer satisfaction ratings on the BBB and Trustpilot.

Capital One Auto Finance Pros And Cons

Here are some of the advantages and disadvantages of getting a Capital One auto loan or refinancing loan.

Capital One was founded in 1994 and is headquartered in McLean, Virginia. It’s one of the largest banks in the United States and has over 700 locations across the country. Behind Ally Financial, Capital One is the second-largest auto finance company in the country. Unfortunately, its auto loan services aren’t available in Alaska or Hawaii. In our consumer survey, we found Capital One was one of the most popular auto loan providers for respondents.

A Capital One auto loan can be used to purchase a new or used vehicle or refinance your current auto loan. These loans can be applied for individually or jointly. A joint application is a smart idea for those with poor credit scores. A co-signer with good credit may even help you get a lower annual percentage rate (APR).

Capital One Auto Financing Restrictions

Certain brands and types of vehicles aren’t eligible for a Capital One auto loan. These include:

• Oldsmobile
• Daewoo
• Saab
• Suzuki
• Isuzu
• Commercial vehicles
• Motorcycles
• Recreational vehicles (RVs)
• All-terrain vehicles (ATVs)
• Boats
• Camper vans
• Motor homes
• Vehicles with a history of chronic malfunctions
• Branded title vehicles
• Lease buyouts
• Vehicles with no vehicle identification number (VIN) or title

There’s also a vehicle age restriction for Capital One auto loans. For purchase loans, vehicles must be made within the last 10 model years and have fewer than 120,000 miles. However, some older vehicles or those with up to 150,000 miles may be eligible for financing.

Refinancing loans are only available for vehicles up to 10 years old that have an “established resale value.” For refinancing, your current loan can’t be with Capital One. Your current lender must meet one of these requirements:

• Reports your loan to a major credit bureau
• Is insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA)
• Is accredited by the Better Business Bureau (BBB) and is a state-registered lender or auto dealer

Capital One Auto Loan Availability

You can’t use a Capital One auto loan for just any vehicle on the market. Once you get prequalified with Capital One, you can shop from 12,000 dealerships nationwide. These dealers are part of the Capital One Auto Navigator network. The Auto Navigator buying service allows you to browse the inventory of dealerships in your area.

You can only prequalify online. Your Capital One auto loan is only finalized when you visit a dealership, so you may not know the exact APR and payment amounts until you visit a dealer in person.

Capital Auto Loan Credit Score Requirements

Capital One doesn’t have minimum credit score requirements, so it may be a good choice for those with poor credit. However, the company requires applicants to have a monthly income of at least $1,500.

Even though Capital One doesn’t have a minimum credit score, it may not approve everyone with low credit scores. Capital One doesn’t specifically advertise to bad-credit borrowers.

How Your Credit Score Affects Your Capital One Auto Loan

Borrowers with low credit scores should be prepared to find higher interest rates for Capital One auto financing. The good news is that you can get prequalified without hurting your credit score. We recommend comparing this to prequalifications you can get from other lenders. According to our survey, about 62 percent of respondents sought prequalification before doing a full auto loan application.

Below, you can see the average auto loan rates for different credit score ranges. The data comes from Experian’s Q3 2022 State of the Automotive Finance Market report. Even taking a few months to raise your credit score can significantly reduce the total amount you pay on an auto loan.

Other Factors That Affect Capital One Auto Loan Rates

Your credit score is perhaps the most influential factor in your auto loan rates from Capital One and other lenders, but it isn’t the only one. The following factors also affect the rates you’ll get from a creditor:

• Financing terms: Opting for a longer loan term will get you a lower monthly loan payment, but you’ll likely find higher rates, too.
• Down payment: Whether in cash or as a trade-in, the amount you put down on a car, truck, or SUV affects the loan-to-value (LTV) ratio. This is the amount you borrow compared to the value of the vehicle. If you have a lower LTV, you can probably get a lower rate.
• Vehicle details: The age, make, model, and mileage of the vehicle you want all affect your rates. Loans for older vehicles and high-mileage cars usually come with higher rates.

Getting an auto loan through Capital One is a fairly straightforward process. You can start by picking your car with Auto Navigator and getting prequalified. You’ll then visit the dealer in person.

Choose Your Vehicle Or Dealership

The first step to getting a Capital One auto loan is to browse the Auto Navigator site for vehicles and dealers in your area. If you narrow your choices down to a single vehicle, you can get prequalified right on that page for an auto loan. You can also simply view dealership inventory in your area and find out which dealers work with Capital One.

Capital One Auto Loan Prequalification

Capital One auto loan prequalification can be done online. It requires you to complete a brief questionnaire about your vehicle, income, and housing situation.

Note that prequalification isn’t the same as preapproval. A preapproval is a guaranteed loan offer, while a prequalification is a tentative statement that you qualify for certain loan terms. Capital One also offers preapprovals. In other words, you can get a full financing offer before visiting a dealership.

After prequalifying, you’ll be given loan offer details like APRs, monthly payment amounts, and even a list of vehicles available from participating dealerships. Capital One doesn’t run a hard check on your credit report during the prequalification process, meaning you can see your loan offers without lowering your credit score.

Visit A Dealer To Finalize The Auto Loan

The last step is to visit a Capital One network dealer to choose your car and finalize the loan. With this step, you’ll complete a full credit application, which will require your Social Security number. Capital One will run a hard inquiry on your credit report, so your score may dip.

You’ll need to supply the following required documents to complete the process:

• Proof of income
• Proof of residence
• Proof of insurance
• Proof of employment
• Title and registration if you’re trading a vehicle in
• Prequalification letter

It’s possible that your final Capital One auto loan terms will differ slightly from those offered during prequalification. There are also rare cases where you may not be approved for a new loan after you complete a full credit application.

You can also use Capital One to refinance your current auto loan. In this case, Capital One will pay off your old loan and you’ll have a new loan with Capital One. Generally, it’s a good idea to refinance if you can get a lower APR and save money over the long term. Some people also refinance to get a lower payment even if they don’t save money in the end.

Here’s the basic process:

• Prequalify: Go online and enter basic information about your vehicle and current auto loan to see if you qualify without hurting your credit.
• Submit an application: If you like the rates you find from Capital One, go ahead with a full application (this will affect your credit score).
• Sign the contract: If you’re approved, you’ll get a contract to sign online. You’ll also confirm your current lender information with Capital One.
• Final steps: After you sign the contract, Capital One will take care of updating your title documents in most cases. A representative will reach out for anything else.

Once you’re all done, you’ll begin making your new auto payments to Capital One.

Capital One is regarded well within the financial services industry. It’s accredited by and holds an A- rating from the BBB.

Despite this, Capital One’s online customer review profile is average. It has an average rating of 1.1 out of 5.0 stars from customers on the BBB website and an average Trustpilot score of 1.2 out of 5.0 stars.

It’s important to note a few things about these low ratings. First, many customer reviews mention Capital One’s banking services, not its auto loans. Second, although auto loans are only a small part of Capital One’s business, complaints from banking customers may still speak to the overall quality of the company.

Keep in mind that Capital One is a large company with many products and services, millions of customers, and billions of dollars in revenue. Though there are thousands of complaints online, these represent a small fraction of Capital One customers.

Positive Capital One Auto Loan Reviews

Customers who are happy with their Capital One auto loans mention positive customer service experiences and satisfaction with loan terms. Several customers with poor credit were also grateful to be able to secure loans with Capital One.

“I recently was approved [for a Capital One auto loan] and now have a new car. That experience alone was the best I have ever had. My credit was literally beyond bad, and thanks to Capital One, I am on the right track and my credit score keeps going up.”

– Susie Moore Young via Trustpilot

Negative Capital One Auto Loan Reviews

Many Capital One customers complain about not finding the same offers they were quoted after prequalification when they visited a participating dealer or financial institution.

“Don’t ever think about applying for an auto loan from them. It’s a total nightmare. They basically damage your credit, and when you walk into the dealership with the approval, you will find completely different numbers.”

– Creative Geek via Trustpilot

“I had to sit out of work due to the [COVID-19 pandemic]. I asked for them to put one payment on the end of my loan so it wouldn’t hurt my credit or have me stressed out. To no avail, they basically said no, you need to find a way to make the payment and maybe it won’t get reported to the credit bureaus.”

– L.T. via Trustpilot

In this review, we gave Capital One car finance 4.1 stars for its easy auto loan prequalification service and good terms. Overall, Capital One is a good option for car loan financing. However, before you make a decision, compare providers to find the best auto loan for you.

Capital One Car Finance Reviews: FAQ

Below are frequently asked questions about Capital One auto finance loans.