Capital One Auto Finance Purchase and Refinance Loans: 2024 Review

Full review of Capital One

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.

Table of contents

Capital One at a glance

Capital One may be a good fit for those who ...

Do you qualify for a Capital One auto loan?

How to apply for a Capital One auto loan

How auto loan rates work and how we collect them

How do we review auto loan direct lenders?

Capital One auto loans at a glance

• Restrictions

  • New vehicle definition: Did not disclose.

  • Maximum vehicle age: 10 years.

  • Maximum vehicle mileage: Up to 120,000 miles.

  • Other vehicle restrictions: New and used vehicles must be purchased at a dealership that has a lending partnership with Capital One. Does not finance purchase loans for certain vehicle makes including but not limited to Oldsmobile, Daewoo, Saab, Suzuki or Isuzu vehicles.

  • Loan amount minimum: $4,000 for purchase loan; $7,500 for refinancing.

  • Loan amount maximum: Did not disclose for purchase loan; $75,000 for refinancing.

  • Maximum loan-to-value ratio: Did not disclose.

  • Refinance time restrictions: Did not disclose.

  • Bankruptcy restrictions: Did not disclose.

• Other loan details

  • Approval speed: Pre-qualification is immediate in most cases and is valid 30 days from pre-qualification request.

  • Initial deferred payment: Did not disclose.

  • Selected payment due date: Did not disclose.

  • Maximum debt-to-income ratio: Did not disclose.

  • Late payment grace period and fee: Did not disclose.

  • Hardship plans: Did not disclose.

• More lender details

  • Contact options: Phone, chat through website.

  • Availability: Mon–Fri 9 a.m.-9 p.m. ET and Saturday 10 a.m.-7 p.m. ET.

  • Mobile app to manage account: Did not disclose.

  • Online resources: Has auto FAQs and an auto learning center with articles and a monthly payment calculator.

  • Related services: Offers Capital One Auto Navigator, a website where car buyers can research vehicles available at participating dealerships and get pre-qualified for financing online. The credit application is completed at the dealership.

» MORE: Compare auto loans, rates and lenders

Capital One 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, 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.

Do you qualify for a Capital One auto loan?

The Capital One website includes the following basic eligibility requirements to pre-qualify for an auto refinance loan:

• Must be at least 18 years old.

• Must have a valid physical street address within the contiguous U.S.

Capital One did not provide basic eligibility requirements for auto purchase loans. It also declined to provide the minimum credit score, minimum credit history or maximum debt-to-income ratio required to qualify for an auto loan. It did list minimum gross annual income as $18,000.

Note that meeting these requirements doesn’t guarantee approval. Also, many lenders are flexible with minimum requirements when considering an applicant's total financial picture.

Before you apply

Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.

Figure what monthly payment you can afford. For purchase loans, use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price.

For auto refinance loans, use an auto refinance calculator to see your monthly payment and determine what APR and term you need to make refinancing worthwhile.

Gather your information and documents. Capital One requires the following to submit an initial loan application: Social Security number, address, time at address, phone, email, birthdate, employment status, employer name, income, housing status and housing payment amount.

To proceed with a loan application, you may be asked for additional documentation or information, such as proof of the income you submitted or proof of residence.

» MORE: Compare auto loan refinancing lenders

How to apply for a Capital One auto loan

1. For purchase loans, find an approved dealership. Capital One financing is limited to new and used vehicles purchased through dealerships available on the Capital One Auto Navigator tool. It’s a good idea to ensure these dealerships have a vehicle you want, and Capital One recommends calling the dealer to ensure the vehicle is still available.

2. Get pre-qualified online. You can pre-qualify for both auto purchase loans and auto refinance loans on the bank’s website. Pre-qualification is not a firm offer of credit. It gives you an idea of rate and payment amount for different loan terms using a soft credit inquiry, which won’t affect your credit score.

3. Complete an auto loan application. If you pre-qualify and decide to move forward with an offer, you may be asked to provide additional information. For a purchase loan, you would request pre-qualification for a specific vehicle and take your pre-qualified loan offer to the dealership. For refinancing, the application process is 100% online, including e-signing the contract and uploading documents. A hard credit inquiry will be done before you receive final loan approval.

4. Stay on top of your loan payments. Most major lenders report car payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments is a good way to make sure your payments arrive by the due date.

How auto loan rates work and how we collect them

The auto loan APR range NerdWallet displays is provided by the lender. We make every attempt to keep rates updated, by sending out bimonthly rate surveys and encouraging lenders to send us updates when rates change. We also compare these rates to APRs on the lender's website, if available. The accuracy of our rates depends on the information lenders provide to us. It’s always a good idea to check average auto loan interest rates, and compare to similar lenders, to determine if a lender’s provided rate seems realistic.

We ask lenders to provide their lowest rate that at least 10% of applicants applying for the lowest rate have qualified for in the previous three months, without including any potential rate discounts. The lowest rates shown are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above).

We also ask lenders for their highest rates, which typically reflect rates available to borrowers with fair or bad credit (a FICO score in the mid-600s or below). The highest interest rates result in higher monthly payments and more total interest paid.

Actual rates received by this lender's auto loan borrowers may be different from any rates shown in this review.

How do we review direct lenders for auto loans?

NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.

Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.

To receive a star rating, a lender must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).