Written by
Allison Martin
Edited by
Pippin Wilbers
Pippin Wilbers is a Bankrate editor specializing in personal and auto loans. Pippin is passionate about demystifying complex topics, such as car financing, and helping borrowers stay up-to-date in a changing and challenging borrower environment.
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Capital One allows borrowers who don’t have perfect credit to qualify for an auto loan, which may be appealing to many people. If you’re unsure whether you qualify for an auto loan, you can go through the prequalification process without impacting your credit.
If you do, you can move forward with the full application. But if Capital One won’t prequalify you, you can move on to another lender without damaging your credit. Consider a credit union, which may have more flexible lending requirements.
Capital One auto loans are great for people who don’t have perfect credit, offering no-risk prequalifications. However, using one makes it hard to shop around for cars and you may not live in a state where the loans are available.
Capital One offers auto loans for new and used car purchases. The entire loan process is handled online through the Auto Navigator. You can view real rates and monthly payment quotes on specific vehicles available for sale through participating dealers.
Refinancing is also available, but your vehicle — and your current loan — will need to meet a few requirements in order to qualify.
Capital One doesn’t share specific credit score requirements. But it does state that to be eligible for a loan or refinancing, you must:
If you’re buying a used car, the amount you want to finance must be at least $4,000 and the vehicle cannot be older than 10 years or have more than 120,000 miles. These requirements are comparable with requirements from other lenders.
To refinance, your outstanding loan amount must be at least $7,500 and have 12 months remaining. Your car must also be less than 10 years old — though there is no maximum mileage — and your current loan servicer cannot be Capital One. The loan servicer requirement is unusual, limiting the usefulness of the company’s auto refinancing offers.
If you own a vehicle that’s no longer being manufactured, it’s ineligible for refinancing. Commercial vehicles are also ineligible.
Unlike Capital One, fellow bank PNC is more transparent with its pricing before you prequalify. You can see rate ranges just by plugging in your zip code and loan amount. It also has a nationwide network of branches, which Capital One lacks. And it doesn’t require you to shop from approved dealerships.
However, while neither bank lists credit score requirements, Capital One’s minimum monthly income is unusually low. If you’re in a low income bracket, Capital One might be more likely to approve your loan. Capital One also has a lower loan minimum, making it more useful for borrowers looking to buy an inexpensive vehicle.
Like PNC, U.S. Bank lacks Capital One’s dealership restrictions — making it much easier to shop around for the best car. Its max loan amount is $100,000 — perfect for those looking to finance an expensive vehicle. Unlike Capital One, U.S. Bank offers lease buyout loans, allowing you to finance the purchase of your leased vehicle.
However, U.S. Bank has strict requirements around who gets their best rates — you’ll need a sky-high credit score of 800 or higher. For those with more average scores, Capital One might be a better choice. But there’s no harm in prequalifying for both and seeing which gives a better offer.
Here are some of the benefits and drawbacks of Capital One auto loans.
Support from Capital One is available by phone or online chat. For those with existing loans, representatives are available Monday through Friday from 9 a.m. to 8 p.m. ET. If you’re applying for a loan, representatives are available Monday through Friday from 9 a.m. to 9 p.m. and Saturday from 10 a.m. to 7 p.m. ET.
Capital One offers financing for new and used car purchases at over 12,000 participating dealerships. You can prequalify online and know what terms you’re eligible for before you start shopping for the perfect ride. Furthermore, the Auto Navigator lets you adjust terms to build a car loan that works for your budget. If you plan on buying a used vehicle, it must have less than 120,000 miles and be within 10 model years. There are some exceptions, but you will need to discuss your vehicle choice directly with Capital One.
Auto loan refinancing from Capital One is ideal if you want to lower your monthly payments or APR. Both options will help you save money, either monthly or over time, as you work towards paying off your auto loan. Keep in mind that you’ll only save money if you can qualify for better rates and terms based on your credit score and finances.
You can also refinance through Capital One to shorten your loan term and pay off your auto loan faster.
Following auto loan prequalification, consider the following steps to finance your vehicle. Your prequalification lasts for 30 days before expiring, giving you plenty of time to shop for the ideal car.
Capital One doesn’t offer much detail about any additional features or perks it offers. One unique feature however, is its Auto Navigator, which can help you locate a car that fits your needs.
Capital One does not charge an origination fee for its loans. It may charge other penalty fees, such as late or missed payment fees.
Capital One sets a lower minimum income than many lenders, but doesn’t publish precise credit score or financial requirements to get a loan. It’s hard to assess your likelihood of qualifying for good rates without applying for prequalification.
No, if you prequalify for a loan you are not obligated to submit the final application to get the loan or buy the car.
Capital One can approve and fund loans as soon as the same day you apply. That’s faster than most banks.
| Overall score | 4.1 | |
|---|---|---|
| Availability | 4.2 | The minimum loan amounts offered by Capital One are fairly middle of the road, but it has a number of options for repayment terms and has wide state availability. |
| Affordability | 3.5 | Capital One's minimum and maximum APRs aren't available, and it doesn't advertise a discount for autopay. |
| Customer experience | 4.8 | Prequalification rates are valid for 30 days, and Capital One offers an online chat function once you sign up. It also has an app, and customer service is available six days a week. |
| Transparency | 4 | While it does offer prequalification, Capital One doesn't offer a full APR range before you hand over your information. |
The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
