Pre Approved Auto Loans

I Received A Capital One Pre-approved Auto Loan. Who...

New postby Kathern » 26 Oct 2012, 09:16

I received a Capital one pre-approved auto loan. Who determines the interest rate and recieves payments?

I have a credit card with Capital one for less than a year and not a high credit limit. Is this really a good deal? What are the benefits to taking advantage of this offer?
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New postby Mariann » 26 Oct 2012, 09:16

They, along with numerous companies, send out these pre-approved offers in hopes of people accepting them. It is kind of a fishing expedition. They throw a bunch of hooks out and hope to catch a few. There are no benefits except for the lender.
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Pre-Approved Auto Loan Question?

New postby Alysha » 26 Oct 2012, 09:16

Hey Everyone thanks for taking the time to help me out with my question.

I wanted to know if when you are looking for a potentially new or used car, and show the dealer the pre-approved auto loan letter does that necessarily increase your bargaining power? Whats your opinion on it? How does it help or hurt you?
This pre-approved auto loan offer is from my credit union that I actually bank with, and they have handled my previous car that I now own and numerous personal loans on my behalf.
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New postby Will » 26 Oct 2012, 09:16

In terms of negotiating the actual sale price of the vehicle it shouldn't make too much difference one way or another. If your
pre-approval letter is in fact a real advance approval notification from a financial institution you have done previous good business with (as apposed to some sort of mass mailed come on), it will tell the salesperson (and sales manager) that you are in fact qualified to finance a vehicle. But any dealership that is worth doing business with is going to operate on the assumption that ANY potential customer can in fact conventionally finance a vehicle, at least until they acquire specific information to the contrary. So in this regard you do not actually gain much.

Where your pre-approval may be beneficial is getting the best possible deal offered to you by the dealers finance department.

A dealership finance department is one of the businesses primary profit centers. Not only in terms of the insurance or warranty products they sell but also in the form of "finance reserve", which is an incentive paid to the dealership for arranging the loan from the finance source.

In other words all dealerships make money by arranging financing for you "in house". If you use your pre-approved outside source of financing they make nothing. So in order to keep your financing business "in-house" they are going to do everything they can to offer you a better deal than your pre-approved offer represents.

My advice is to know the exact interest rate for the specific term of financing you are interested in and use it as leverage with the dealerships finance department. Be aware that rates often vary with the amount being financed and / or the length of the finance contract, so you need to know all of the details regarding your pre-approved offer.

Many, many car buyers do there homework and aggressively negotiate the absolute best deal on the price of the vehicle they are purchasing, only to through away hundreds or even thousands of dollars by paying a percentage point or two higher interest. Your best deal on a vehicle should not be measured in terms of initial purchase price but in terms of the total you pay back.

Hope this helps,

Mark H
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Getting an auto loan pre approved before paying off my...

New postby Wes » 26 Oct 2012, 09:16

Getting an auto loan pre approved before paying off my existing auto loan?

I currently have an auto loan for about 20 grand pay off. I want to get into another car, but before I sell my vehicle, I want to be pre approved for another loan (to be sure that I can get approved and into another car right away) HSBC tells me that I must risk it and pay off the loan THEN apply for another loan and hope I am approved. this sounds rediculous to me! because it is denying me EVERYWHERE based on the fact that I already have a loan out for such a high amount.what do I do to make sure I can get into another loan right away? any suggestions? I have heard Carmax.com, but do they give good money for cars?
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New postby Wanita » 26 Oct 2012, 09:16

The truth is you can apply for loan after loan and you will continued to get turned down. Not necessarily because of your credit but because you already have a outstanding car loan for $20K. There is no way to know until that is gone. If you are tradeing the car then banks will see that and understand. If your not trading the car all they see is that you could end up with two loans.

Check your credit (which you should do every few months anyways) if your credit is good then getting a loan will not be that hard as long as your debt to income is not off. Do your research and quit shotgunning yourself out to lenders because that lowers your score!
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NAVY FEDERAL: Getting pre-approved for an auto loan?

New postby Rufina » 26 Oct 2012, 09:16

So my dad is in the NAVY and has an account at NAVY FEDERAL. I want to get pre-approved for an auto loan so I can buy a used car. I'm 18, a student, and am slowly but surely establishing credit. How difficult is it going to be to get the loan? Any tips? Thanks.
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New postby Jung » 26 Oct 2012, 09:16

I doubt you will get a loan by yourself. It is actually easier to get a loan for a house than a car, because with a house, if you don't make payments, the bank knows exactly where the house is and will take it back, however with the car it's different...once you drive off, the bank may never see you or the car again.

you are 18 so you are not going to have any real credit. I hope you don't have credit cards and are in debt.....anyway, if you get your dad to co-sign with you, they will probably give you a loan. Getting a loan by yourself though is nearly impossible.
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Pre-approved Capital one Auto Loan. Sent a letter w/ local..

New postby Everette » 26 Oct 2012, 09:16

Pre-approved Capital one Auto Loan. Sent a letter w/ local dealer? Legit?

I was sent a letter from Capital one saying I am approved for an autoloan up to 30k. They gave me the name of some local participating dealer to go to between the 28th and 30th. I called the number to confirm the pre-approval number and it's some automated capital one number. The numbers 18006859508 and approval number is 451320233.

It says I can walk in there with no money down and own a car that day from Deal Maker Ford in Liverpool NY. All I have to do is bring income proof and a utility bill along with my drivers license and insurance to drive a new car home.

This is almost to good to be true. My credit score is only in the mid 600's so I never thought I'd qualify for anything like this.

I have been a customer of capital one for 2 years with a $500 credit card limit thats in good standing.
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New postby Marisela » 26 Oct 2012, 09:16

Auto finance is what I do for a living and yes it is a valid offer.

The dealer is doing a Capital One sale, I have done these several times and Cap-1 sends out the letters and you are approved.

The last one I did I had people drive over 350 miles to buy a car because the local dealers could not get them approved.
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I applied for an auto loan online, I got pre-approved for...

New postby Tereasa » 26 Oct 2012, 09:16

I applied for an auto loan online, I got pre-approved for up to $44k. What does this mean?

I applied and they said i am pre approved for 44k. Then the same guy calls me back and tells me now I get 48.8k.

I asked about my interest rate, he says he will not know until I pick the car and I guess find a financing company.

Am I setting myself up to get jigged with at the dealership?
The car i plan to get will only be about 12k. I have 3k already set aside for this car. So i guess the APR i get, may not matter so much.
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New postby Gaylord » 26 Oct 2012, 09:16

That's suspicious. they should tell you the interest rate and loan terms up front

you should get your financing from a 3rd party such as capital one. then when you go into the dealership ask them to beat the interest rate of the loan you already have in hand. you don't HAVE to use a loan you are pre approved for. it only becomes a loan you have to pay back if you buy a car with the money
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I received a Capital one pre-approved auto loan. Who...

New postby Hallie » 26 Oct 2012, 09:16

I received a Capital one pre-approved auto loan. Who determines the interest rate and recieves payments?

I have a credit card with Capital one for less than a year and not a high credit limit. Is this really a good deal? What are the benefits to taking advantage of this offer?
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New postby Justa » 26 Oct 2012, 09:16

They, along with numerous companies, send out these pre-approved offers in hopes of people accepting them. It is kind of a fishing expedition. They throw a bunch of hooks out and hope to catch a few. There are no benefits except for the lender.

I've bookmarked this site...

http://finance.lowratetoday.com/

All the best to you.
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