Capital One Auto Finance Overview
Capital One Auto Finance is based in Plano, Texas, and offers financing options for new and used vehicles. Capital One Auto Finance is a division of Capital One Financial Corporation, which entered the auto loans business in 1998 through the acquisition of Summit Acceptance Corporation. In 2001, Capital One Financial Corporation additionally acquired PeopleFirst Finance LLC and, in 2003, the corporation rebranded its auto financing division as Capital One Auto Finance.
Capital One Financial Corporation is a Fortune 500 company that offers a wide-array of financial services. Capital One has its corporate headquarters in McLean, Virginia, and has over 313 billion in assets. The corporation has received an A+ rating from the BBB.
How Do Capital One Auto Finance’s Auto Loans Work?
Capital One Auto Finance offers three types of auto financing: loans for new cars, loans for used cars and refinancing for existing auto loans. In addition to cars, the company finances light trucks, minivans and SUVs but does not offer financing for motorcycles, RVs, ATVs, boats or commercial vehicles.
What Are the Interest Rates for Capital One Auto Finance’s Auto Loans?
Capital One Auto Finance interest rates can vary depending on the type of loan and your credit history.
- For new vehicle loans, APRs start at 2.49%.
- For used vehicle loans, APRs start at 2.89%.
- For refinancing an auto loan, APRs start at 2.99%.
How Much Money Can I Borrow from Capital One Auto Finance for Auto Loans?
Capital One Auto Finance offers loans ranging from a minimum of $7,500 to a maximum of $40,000. The actual amount of financing that will be available to you is limited by the value of the vehicle you are purchasing or refinancing. For new vehicles, the value is based on the invoice price. For used vehicles, the value is based on either the Kelley Blue Book wholesale value or the NADA trade-in value depending on what state you live in.
What Is Capital One Auto Finance’s Application Process Like?
With Capital One Auto Finance, you can fill out an application online or by phone and, within minutes, you can find out what offers are available to you. The company lets you see if you pre-qualify for financing, which doesn't affect your credit score. Based on your creditworthiness, you may need to provide additional information such as proof of income.
How Are Capital One’s Auto Loans Better than Other Auto Loans?
- Capital One Auto Finance offers low and competitive rates.
- Borrowers can see if they pre-qualify for auto financing without having their credit score affected.
- On average, customers who refinance with Capital One Auto Finance lower their annual auto payments by $700.
* “Advertised 2.49% APR is offered depending on the individual’s excellent and substantial credit, and key financing characteristics, including but not limited to the amount financed, a term less than or equal to 60 months, a loan-to-value (LTV) ratio of less than or equal to 80% and a new vehicle. Your actual APR will be based on your specific situation. . . . Pre-qualification does not guarantee that you will receive financing or any particular financing terms, which are subject to change based on our evaluation of your credit application submitted at the dealer and any required documents. . . . Monthly payment and Annual Percentage Rate (APR) terms are not final until your financing is completed at a participating dealer.”