Capital One Auto Financing

Author: Kaitlyn Short

Capital One was founded in 1988 and provides auto financing, mortgage, investment, banking, and credit card services. Forbes has included Capital One on their "Most Reputable Companies" list multiple times. Capital One is based out of McLean, Virginia and has more than 1,000 locations nationwide.

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The Good

• Guaranteed Auto Protection coverage
• Financial tools

GAP Coverage

Capital One offers borrowers the option of purchasing GAP coverage, or Guaranteed Auto Protection. With GAP, car owners will have excess finances to cover the car in the event of total loss due to an accident, theft, or other reasons. GAP coverage differs from regular car insurance because it covers the amount that is still owed on the vehicle rather than just the vehicle's current cash value.

Financial Tools

Capital One's website features several tools for borrowers who use their auto financing. There is a Dealer Locator tool on the website, which enables users to find car dealerships in a specific area that partner with Capital One for financing. Users can also take advantage of online payment and loan calculators to get a sense of how much financing they can afford. By calculating the loan amount, interest rate, and loan term - users can quickly determine their estimated monthly payments for new or used auto financing. To calculate the estimated loan amount for refinancing options, users must enter their current or prospected monthly payments, APR, and loan term.

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The Bad

• Personal cars only
• Restrictions on specific makes
• Approval time may be prolonged

Restrictions

Capital One Auto Finance only covers personal use of new and used cars, small trucks, minivans, and SUVs. Vehicles that will be used for small business activities or corporate use won't be approved by Capital One for financing. In addition, Capital One also won't finance specific makes of cars, such as Oldsmobile, and Isuzu. They also have a mileage limit of 120,000 miles.

Additional Approval

Capital One states that some car loan applications may be held for additional approval time or until additional documentation has been submitted by the applicant. These additional steps may make the process take longer than expected. Borrowers who prefer to know whether they are approved quickly may prefer to opt for a car lender which provides instant qualification information.

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The Bottom Line

Capital One offers a range of APRs, term lengths, and payment options. These options will likely make it easy for borrowers to find finance options that meet their individual needs. In addition, Capital One's GAP coverage provides added financial protection and peace of mind. We recommend researching Capital One further to ensure their services meet your needs.