Capital One Auto Finance Purchase and Refinance Loans: 2023 Review
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Auto loan reviews
New auto purchase loan
Used auto purchase loan
Auto loan refinancing
The bottom line:
Best for borrowers wanting to check rates without affecting their credit score and buying within Capital One Auto Navigator network. Capital One Auto Finance also offers auto loan refinancing.
New auto purchase loan review
Not yet rated
on Capital One's website
Pros
Pre-qualify with a soft credit check.
Auto Navigator offers car shopping and loan pre-qualification by website or app.
Charges no origination fee.
Borrowers can choose loan payment due date.
Cons
Not available in a few states.
Must purchase vehicle at a participating dealership.
Does not offer rate discounts for automatic payment.
Social Security number required to submit initial application.
Best for applicants wanting to pre-qualify for financing and find a new vehicle online, before visiting the dealership.
Full Review
Capital One Auto Finance offers financing for new and used cars, but only through its network of participating dealerships. It also provides refinancing for existing car loans.
Whether applying for a purchase or refinance loan, applicants can pre-qualify with a soft credit check, which won’t affect their credit score. This enables them to get an idea of the interest rate, term and monthly payment they may qualify for before proceeding with the loan. If they do accept the loan offer, a hard credit inquiry is done.
How Capital One Auto Navigator works
For auto purchase financing, Capital One Auto Navigator enables car buyers to shop for a car and apply for a pre-qualified loan offer on its website or through a downloadable mobile app. New and used car financing is limited to one of more than 12,000 dealerships available on the Capital One Auto Navigator tool. Car buyers request pre-qualified offers for the specific vehicles they are interested in and can try different payment scenarios by adjusting factors like down payment amount or term length.
After pre-qualifying online for a Capital One Auto Finance loan, car buyers take their saved offer to the dealership, where application paperwork is completed and a hard credit inquiry is done. Dealers may also provide offers from other lenders at this point, and car buyers are free to go with the best loan available.
How Capital One auto refinancing works
For auto loan refinancing, borrowers work directly with Capital One. The application process is 100% online, including e-signing the contract and uploading documents. If they pre-qualify, applicants will see several offers with different rates and terms, based on a soft credit inquiry. This inquiry will not affect credit scores and lets the applicant see if refinancing a car loan will save them money.
Pre-qualification decisions for refinancing are typically returned in less than one minute. After applicants choose an offer, they complete the refinance application online, resulting in a hard credit inquiry.
While pre-qualification is useful for shopping loan rates or speeding up the process at a dealership, it is not a guarantee of loan approval. Also, pre-qualified loan offers can change after a hard credit inquiry. But, if the information initially submitted was accurate, the pre-qualification offer and final loan terms shouldn’t differ greatly.
Capital One Auto Finance may be a good fit for those who:
Want to compare rates: Pre-qualification with a soft credit check will not affect an applicant's credit score. It enables borrowers to shop loans and compare Capital One rates and monthly payments to offers from other lenders.
Want to shop for cars online: Capital One Auto Navigator enables car buyers to find a vehicle online, pre-qualify and present that offer when at the car dealership, speeding up the car buying process. Pre-qualifying is not a commitment to finance with Capital One if the dealership finds a lower-rate loan offer.
Have other Capital One accounts: Existing Capital One customers may find it more convenient to manage their auto loan and make payments in Capital One’s online banking and mobile app, where they view and manage other accounts. Capital One doesn't offer an auto loan rate discount for setting up automatic payments from a Capital One account.
Capital One Auto Finance at a glance
How does this loan compare?
|  |  |
|---|---|---|
Est. APRN/A | Est. APR2.99-21.00% | Est. APR7.29-22.24% |
Loan amount$4,000-Max. not disclosed | Loan amount$8,000-$150,000 | Loan amount$5,000-$99,999 |
Min. credit scoreDid not disclose | Min. credit score500 | Min. credit score520 |
Used auto purchase loan review
Not yet rated
on Capital One's website
Pros
Pre-qualify with a soft credit check.
Auto Navigator offers car shopping and loan pre-qualification by website or app.
Charges no origination fee.
Borrowers can choose loan payment due date.
Cons
Not available in a few states.
Must purchase vehicle at a participating dealership.
Does not offer rate discounts for automatic payment.
Social Security number required to submit initial application.
Best for applicants wanting to pre-qualify for financing and find a used vehicle online, before visiting the dealership.
Auto loan refinancing review
Not yet rated
Pros
Pre-qualify with a soft credit check.
Application process 100% online including document upload.
Borrowers can choose loan payment due date.
Cons
Not available in a few states.
Minimum refinance amount higher than other lenders.
Maximum refinance amount lower than other lenders.
Best for applicants wanting to see if they could benefit from auto loan refinancing without affecting their credit score.
» MORE: Auto loan refinancing lenders
More from Capital One
Capital One Auto Finance has detailed auto loan FAQ sections on its website, covering auto financing, refinancing and information to help borrowers manage their Capital One auto loan. Borrowers can also take advantage of educational resources found in an online auto learning center.
Capital One Auto Finance customers have access to an online tool called Auto Loan Tracker, which enables them to see future loan payoff information and take actions such as making a payment or editing an existing recurring payment.
In addition to auto loans, Capital One offers a wide range of banking products, including credit cards, banking accounts and investing products.
Capital One auto loan rates
Credit requirements vary by auto lender, but Capital One's lowest rates are typically available only to borrowers with good or excellent credit (generally a FICO score of 690 and above). Borrowers with bad or fair credit won’t qualify for the lowest interest rates.
You can check your credit score before applying for a car loan.
Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 300-499 (considered deep subprime), a $20,000 used car loan, repayment term of 72 months, interest rate of 18% APR and $0 down payment would have monthly payments of $456. One year later, if all payments were made on time, the borrower will have paid the loan down to a balance of $17,963. If the borrower is able to then refinance at 12% APR for the remaining 60 months, the payment would drop to $399 and result in interest savings of $3,394 over the life of the loan.
To review Capital One, NerdWallet sent a survey to Capital One requesting more than 60 data points and followed up with company representatives. This information was compared with other lenders that seek the same customer or offer a similar product.
Frequently asked questions
The vehicle price listed by a participating dealer is the “asking” price and can most likely be negotiated. Before you agree to a sale price, ask the dealer for an “out the door” price that lists all dealer fees, such as the documentation fee, as well as registration fees and sales tax. These fees are not set or controlled by Capital One.
No. Pre-qualifying lets you see the loan rates, term and monthly payment you might qualify for. This information lets you compare offers from other lenders, either on your own or at the dealership. If you find a better financing offer, you are free to use that for the vehicle you found on Auto Navigator.
