I got an Auto Loan with CapitalOne, question about model year determining APR?

Hi Guys,

I just got approved for an auto loan with CapitalOne, and I'm very confused by the book with the blank check they sent me. They have a chart it in that looks something like this...

The model year* of the vehicle purchased will determine your APR.

Model Year | APR | $8000 | $13000 | $15000

--------------------------------------...

2008 or Newer 6.70%

2007-2004 8.05%

2005 or older 9.30%

-1 or older 7.30%

Thats all they say... It doesn't make sense, it's ambiguous. So if you bought a 2005 you have the option of taking 8.05% or 9.30%, haha. I know that's not right, but seriously they should of given me more info. I looked on their online calculator and I guess it also goes by if I purchase it at the dealer or not. So if I bought a 2003 from a dealer it will still be 9.30% no matter what? Last time I checked my score was 725, think I could get a better deal out there?

I got an Auto Loan with CapitalOne, question about model year determining APR?

What kind of car are you thinking of buying?

I just bought a 2007 certified pre-owned Saab. I went to the dealer with a Capital One approval in hand for 6.7% - a pretty good rate for a new car nowadays. But once I chose the car I wanted, the salesman introduced me to the finance manager, who asked about the terms of my pre-approved loan. It turns out that he was able to offer me a 5.9% GMAC loan for 60 months - even though it was a used car! So he was able to beat the Capital One loan by a good two percentage points (because my CO rate would have been higher than 6.7% since I went for a used car).

So...

Dealers are still trying to move their 2007s and older certified-pre-owned cars, and some have even had end-of-calendar-year specials for 2008s. Call Capital One and ask them to explain the terms of their offer more clearly to you, but don't be surprised if the dealer you ultimately choose can do better than Capital One could.

Last piece of advice: mention NOTHING about financing while you're negotiating what you'll pay for the car. If the dealer thinks they won't be able to get you to sign on for their financing, they will try to stick you for a higher cost so they make some money off of your purchase. (Ditto for any trade-in you might have. Save that until you negotiate the cost of the new[er] car, too.) Of course, I presume you'll go with whichever loan has the best interest rate...and that may or may not be Capital One.

Happy car shopping!!!!!!!!!!

I got an Auto Loan with CapitalOne, question about model year determining APR?

First and foremost I wouldn't get financed by Capital One. That's great that you were approved but I have heard WAY too many horror stories about working with Capital One. Have you checked with your bank or a credit union. THERE ARE BETTER DEALS OUT THERE. 9.30% is ridiculious. Shop around, you can do bettter.

I got an Auto Loan with CapitalOne, question about model year determining APR?

Look at www.Bankrate.com, which shows you the national average rates for new and used cars. Don't pay higher than the average with your good credit score.