Capital One Auto Financing

[jtrejo]

Does anyone know how the blank check works?... What if the vehicle does not come in on time? Isnt the check only valid for thirty days? Im going through them for my financing got a great rate and received my qualification within literally 15 minutes.... Is this real? I mean it was too easy and went by fast...Anyone with any knowledge or experience please post..... By the way the rates are:

12-36 mos APR*
as low as 3.75

37-60 mos APR*
as low as 4.49

61-72 mos APR*
as low as 5.19

[1932highboy]

I used them when they were Peoplefirst on my 2001 PT Cruiser. Worked great. The check does expire after 30 days. So you just renew it at the prevailing rates.

[JonW]

Yep - already been discussed. It's a good way to go.

[hdplasmas]

Whats wrong with financing with Chrysler Financial? On a 60 month term finance rate is about 4-4.3%. A lesser term would give you a lower interest. The big plus about financing through C.F. is that they will give a $1000 rebate. Thats $20 bucks less of payment a month.

[Blue]

I disagree regarding the Chrysler rates. I have excellent credit. I got a 3.99 rate from my Credit union and I looked into First Cap. where they gave me 4.19. The Chrysler rate was 4.99 as an A++++ credit. I went with the Credit Union because I had a 1K loyalty rebate (not offered now). I think Chrysler redit has much higher rates.

[JonW]

Originally Posted by Blue

I disagree regarding the Chrysler rates. I have excellent credit. I got a 3.99 rate from my Credit union and I looked into First Cap. where they gave me 4.19. The Chrysler rate was 4.99 as an A++++ credit. I went with the Credit Union because I had a 1K loyalty rebate (not offered now). I think Chrysler redit has much higher rates.

I agree with Blue - Chrysler quoted me 4.99% as well - also with perfect credit. I tend to think that their quoted rate includes a nice kickback to the dealer and if you get a better deal via CF, then possibly the dealer is dropping their take from the deal. Possibly they have regional variations in the rates as well? I think the prior concensus when this was discussed before was that CF always had high rates. Others here also refinanced somewhere else to take advantage of the $1K back from CF and then get a better rate elsewhere.

[kampsvilleboy]

Capital One (formerly People First) gives you a "blank check" that is good for 45 days. It can be renewed one time for an additional 45 days at the initial locked-in rate. I have used them on 4 loans now and have been very pleased. Regarding my experience with the 300C, my initial rate was 3.99%, renewed it after 45 days as car was not built. After the 90 days car still was not built and rates went up to 4.49% on my second re-new. Car came in and dealer mentioned a local credit union offering 3.9%. I called Capital One as they say on the web site that they will match other legit rates, and they changed my 4.49% to 3.92% over the phone. I also like not having to mail a monthly payment. Very convenient.

[upstate]

I have great credit and with the rebate Chrysler gave me 8.50! I took it then went to the credit union and got 4.25 on 60 months. A warning is Chrysler now has no payment until Jan 05, so if you wait for the payment book to pay it off your interest will accumulate. I went on line, got my account number and paid it off.

[james jefferson]

Originally Posted by jtrejo

Does anyone know how the blank check works?... What if the vehicle does not come in on time? Isnt the check only valid for thirty days? Im going through them for my financing got a great rate and received my qualification within literally 15 minutes.... Is this real? I mean it was too easy and went by fast...Anyone with any knowledge or experience please post..... By the way the rates are:

12-36 mos APR*
as low as 3.75

37-60 mos APR*
as low as 4.49

61-72 mos APR*
as low as 5.19

LOOKS GOOD TO ME!!!

[CJ300]

I don't know if everyone here knows how dealer financing works so I'll give a quick rundown.

Dealer gets your info and either has a auto calculator for a rate or sends it to the finance company and a rate is quoted. Lets say the Dealer gets CFS to quote 3.9%. Dealers F&I guy then decides he will try for more. Comes to the customer and says, good news, we got you 7.5% from CFS with the addition of the $1000 rebate. Most customers see $1000 rebate and take the deal. Now lets say you borrowed $35k even. Your payments would be $701.33 for 60 months at 7.5%. Now take $701.33 for 60 months at 3.9% and the original cash outflow is $38,175.00 approximately. The difference ($3175.00) is around what the dealer makes on the financing. Just by getting you to go with the higher rate. The higher the rate, the more money the dealer will make.

Its called participation on the loan. Its a big money maker for the dealership and the $1000 rebate really helps them sell the loan.

This is the reason for the wide range of rates for everyone that says they are excellent credit. You really never know what CFS approved you at. You only hear what the dealer wants the rate at. Dealers are trying to make as much as possible. Some of you have found good dealers who want you to stay and they give you the real rate. If not, call them on their bluff and they will lower the rate or you can go somewhere else. Its money out of their pocket. Also, if you refinance within 3 months the dealer has to refund the money to CFS, at least thats what I hear. They hate that.