How Accurate Is Capital One Auto Preapproval?
Written by
Sarah Sharkey
Edited by
Levi Leidy
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Whether you are purchasing a new or used vehicle, obtaining financing is usually the most difficult part of the process. Since more than 80% of new vehicle purchases are financed, you aren’t alone if you are shopping for the smoothest financing process. Capital One’s Auto Navigator represents one solution, which can help you find out if you pre-qualify for financing through Capital One in minutes.
Read on to learn more about what the Capital One Auto Navigator has to offer.
What Is the Capital One Auto Preapproval?
Capital One’s auto preapproval tool, or the Auto Navigator, is designed to help prospective borrowers determine if they pre-qualify for a vehicle purchase in a matter of minutes. Essentially, you’ll answer a series of questions about your financial situation, and Capital One will let you know if you are pre-qualified for the purchase.
If you want to finance a vehicle purchase, using the Capital One Auto Navigator could streamline your experience.
How Does the Capital One Auto Pre-Qualify Work?
The process of shopping for a new or used vehicle has been tedious in the past. While purchasing a vehicle might still be a chore, Capital One’s Auto Navigator tool can help you streamline some of the details.
You can get started with Capital One’s Auto Navigator by entering some basic information about your financial situation:
- Your income
- Employment situation
- Housing situation
- Your name
- Email address
- Phone number
Once Capital One has your information, you can expect a decision in minutes, or even seconds.
If you are approved, the next step is to use the Auto Navigator platform to find a vehicle that suits your needs. You can filter your search by vehicle type, manufacturer, distance to the dealership and more. As you explore the options through the Auto Navigator, you can quickly estimate what your interest rate and monthly payment would be if you moved forward with that vehicle.
Also, the Auto Navigator gives you the option to adjust different parts of your financing arrangement to build the best deal for your situation. For example, you can adjust things like your down payment and term length to work out a monthly payment that makes sense for your budget.
When you are comfortable with the balance you’ve struck, it’s time to head to the dealership for a test drive with your Auto Navigator pre-qualification in hand. If you are satisfied with the vehicle, you can complete a credit application at the dealership to finalize your financing.
Does Capital One Preapproval Guarantee a Loan?
When you get a pre-qualification offer from Capital One for an auto loan, it will expire 30 days after you submit your pre-qualification request. But it’s important to note that getting a pre-qualification doesn’t guarantee that your loan will be approved. That’s because the Capital One pre-qualification doesn’t run a hard credit check. Instead, it only uses a soft inquiry to offer an estimate of the interest rates you might ultimately be approved for.
With that, you’ll head to the dealership with a pre-qualification in hand, which means your financing arrangement isn’t set in stone yet. If you decide to move forward with a vehicle purchase at the dealership, you’ll need to agree to a hard credit inquiry as a part of the process for finalizing your financing.
For buyers with a credit score that matches the pre-qualification details, you should sail smoothly through the finalization of the loan without any changes to the loan term or interest rate.
Regardless of how things go at the dealership, be sure to read all of the fine print before signing an auto loan contract. Be certain that you’re happy with all of the details before signing on the dotted line.
Is Capital One Preapproval a Hard Inquiry?
No. The Capital One Auto Navigator tool offers a pre-qualification without hitting your credit with a hard inquiry. Instead, you can receive a pre-qualification with a soft credit inquiry, which won’t have an impact on your credit score.
Of course, you’ll have to commit to a hard credit inquiry before the loan is finalized. But you won’t have to undergo the hard credit inquiry until you are ready to finalize your financing arrangement at the dealership.
Pros and Cons of the Capital One Auto Navigator
Every financial tool has advantages and disadvantages. Here are the pros of Capital One’s Auto Navigator:
- Streamlined shopping experience: The ability to filter through car options with your estimated monthly payment in mind is helpful, especially if you are trying to stick with a budget.
- Mobile: You can make the most of Capital One’s Auto Navigator through the desktop platform or on the go, which is handy when you are at the car dealership.
- Adjust the details before going to the dealership: You can tweak the down payment and loan term to strike a balance that suits your needs without the pressure you might feel at the dealership.
- Avoid negotiating monthly payments with the dealership: Many dealerships offer financing for their vehicles. But for most, the financing offered is less than ideal. With a pre-qualification in hand from Capital One, you can avoid the uncomfortable process of trying to negotiate financing terms on the spot at the dealership.
Now for the cons:
- Pre-qualification doesn’t guarantee a loan: You won’t know if your loan is finalized or not until you fill out the final paperwork at the dealership.
- Inventory: Finding a vehicle through Capital One’s Auto Navigator doesn’t guarantee that the vehicle will be available on the lot when you get to the dealership. If you have your heart set on a particular vehicle, call ahead to confirm availability.
How Accurate Is Capital One Auto Preapproval?
Capital One doesn’t disclose how accurate its Auto Navigator pre-qualification tool is. It’s safe to assume that some drivers who receive a pre-qualification through the Auto Navigator are disappointed by a rejection during the process of finalizing paperwork. But if you are completely honest about your financial situation and credit on your pre-qualification application, you shouldn’t worry too much about being turned away from the dealership.
When To Use the Auto Navigator
The Auto Navigator is a useful tool for anyone looking to finance a new or used vehicle. It makes it easy to filter through your car options, with your estimated monthly payment highlighted along the way. If you dread going to the dealership to try to find a vehicle and negotiate financing terms, the Auto Navigator is worthwhile.
You can breeze through the auto financing process, which can make even the most hardened negotiators sweat.
When the Auto Navigator Won’t Make Sense
The Auto Navigator isn’t the right choice for everyone. The first step is to confirm that the vehicle you want to purchase is covered by Capital One Auto Finance. Some vehicles that aren’t eligible include Oldsmobile, Daewoo, Saab Suzuki, Isuzu, commercial vehicles, lease buyouts, motorcycles, recreational vehicles or RVs, ATVs, boats, camper vans, motor homes, branded title vehicles, vehicles without a VIN, and vehicles with a chronic history of malfunctions. Also, you cannot use this type of financing to finalize a purchase from a private party seller.
If the vehicle you have in mind qualifies, Auto Navigator still might not be the right fit if you prefer to navigate dealership financing or want to get financing from another lender. Note that car dealerships are notorious for offering terrible financing deals to buyers, which means you should be on high alert during the negotiation process if you decide to go with financing from a dealership.
Final Take
Capital One’s Auto Navigator is a worthwhile opportunity for some buyers to obtain financing for a new or used vehicle. The ability to shop for vehicles with your pre-qualification and monthly payment in mind can help you stick to a budget easier than wandering the lot at a car dealership. But remember, pre-qualification isn’t a guarantee that your loan will be finalized.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
