Capital One Auto Financing – What Are the Pros and Cons?


Capital One is a well-known bank, and it is one that many people use. Now, aside from the usual provision of credit cards, and other impressive programs, they are the number one source for auto financing.

In fact they can be classified as the country’s biggest lenders for auto financing. They offer financing for both new and used cars and their process is simple and straightforward. Plus their qualification process accommodates everyone.


So, if you have been thinking about auto financing, then this would be a good company to keep on your radar. Read on to find out more information about Capital One auto financing.

Capital One Auto Financing - What Are the Pros and Cons?
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The Pros of Using Capital One Auto Financing

You Can Be Pre-Qualified Without Affecting Your Credit Score

This is a great option, because once you complete the application form, Capital One can check your eligibility by pulling what is called a “soft credit” check. This does not affect your score at all, which is very good news.

Most other lenders will do a “hard pull”, and since this goes straight to your credit report, it has the option of bringing your score down by a few points.


They Provide a Quick Calculator on Their Site

When you decide to use their services for auto financing you do not have to keep guessing about how much you may be required to pay each month, as they have a quick calculator on their site for calculating the installments.

They Have an Auto Navigator

The Capital One auto navigator gives you access to the vehicles on offer and their rates even before you buy them. This helps you make a decision on the vehicle you may buy.

Plus, they also give you a glimpse into how much you shall spend and how much you need to borrow to buy the car of your choice.

You Can Compare Rates

The site offers you the option to compare rates with other companies that are offering the same auto financing services. This is usually after you have identified the car you wish to buy and the amount of money that you need.

So, once you do a quick comparison, you are at a better point of choosing the right financier who will charge you the least amount of money.

The Cons of Using Capital One Auto Financing

Pre-Qualification Does Not Mean Approval

Just because you have been pre-approved for auto financing, it doesn’t mean that you have been approved for the loan. You still have to go through the loan application process, and in this case they may do a “hard pull” of your credit report after all.

The only good thing about this is that they may check your report only after you have applied for the loan.

You Can Only Use Their Loans for Certain Dealers

Capital One auto financing loans are only valuable to specific car dealers. This means that if you had your own dealer and they aren’t a part of Capital One, they won’t finance you to purchase the vehicle.

Additionally, not all the dealers accept their offer from Capital One as it may not be as per their requirements. This can be quite limiting.

You Have to Use Their Auto Navigator

Using their auto navigator only shows you the vehicles that are closest to you. Again this can be limiting because you are forced to only choose from the available options that sometimes don’t have what you are looking for.

High Costs

Capital One Auto Financing - What Are the Pros and Cons?
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There are high chances of running into very high costs when you use the Capital One auto financing option. The company actually offers loans on terms that can stretch up to 72 months. 

This may seem extremely attractive, but remember that the longer you have to pay for a loan, the more the costs attached to the loan, such as interest rates.


We hope that with the above pros and cons you may be able to make an informed decision when it comes to your auto financing. Remember that on the Capital One website, you can compare the different offers and choose the option that best suits you.