Capital One Auto Finance Purchase and Refinance Loans: 2024 Review - NerdWallet (2024)

FAQs

Is Capital One good to refinance auto loans? ›

We rate Capital One auto refinance an 8.3 out of 10.0. The financial institution is reputable, established and offers large loan amounts for car refinance. While the company has negative reviews on the BBB, this number is low and insignificant to the amount of business the company produces.

If you have a consistent monthly income and don't mind being limited to participating dealers, Capital One may be a good choice for an auto loan. It's possible to get prequalified with a soft credit check. And the Auto Navigator tool can come in handy if you're on a tight budget.

Auto loan rates for new and used vehicle purchases fell in the first quarter of 2024 to 6.73% and 11.91%, respectively, down slightly from the 15-year highs we saw at the end of 2023, according to Experian.

Capital One doesn't share specific credit score requirements. But it does state that to be eligible for a loan or refinancing, you must: Make at least $1,500 per month. Be at least 18 years old.

You may pay more in interest. You may have to pay fees. You could increase your odds of going upside-down.

It has far fewer physical branches than other large banks, so it may not be a good choice for those who want to bank in person. Capital One is best for those who prefer online and mobile banking and are looking for high-yield accounts with no fees or minimum requirements.

Eliminating a car payment from your monthly budget can give you access to funds for other obligations or to put toward savings. And the relief of one less bill to pay each month could also be a plus. It would lower your debt-to-income (DTI) ratio. Paying off your loan could decrease your DTI ratio.

In general, expect a decision in: 1 business day — For pre-approvals with soft credit check. 1–3 days — For existing Capital One customers. 3–5 days — For new customers submitting all documents.

We almost forgot what that feels like, but our data show 2024 could shape up to be a buyer's market provided you're looking to buy new. New-car inventory increased by 36% year over year, with inventory levels close to what they were in February 2021 before pandemic shortages really started to hit.

Will refinance rates go down in 2024? ›

Mortgage rates are expected to go down in the second half 2024. Depending on which forecast you look at for housing market predictions in 2024, 30-year mortgage rates could end up between 6.5% and 7% by the end of the year.

The good news is that there is consensus among some authoritative sources that used car prices will fall during 2024. The less-inspiring news is they differ on how much that will be.

Capital One Auto Financing author review by Emma Simon

Low rates: Capital One can provide low rates for consumers with a good credit history. Low payments: The company can also negotiate low payments with Capital One Auto Finance specialists to help you lower your payments.

You must not have 3 or more open Capital One Auto Finance accounts or an aggregate limit over $100,000 with Capital One. There is a minimum monthly income requirement of $1,500, and your income must be sufficiently greater than your monthly debt obligations and living expenses.

Consequently, refinancing a car loan — which involves applying for a new loan — could temporarily ding your credit score. It lowers your accounts' average age: Refinancing also lowers your average age of accounts, leading to a possible decrease in your credit score.

While interest rates aren't at historic lows anymore, other market factors like car values could make this a good time to refinance your car. However, whether it's a good time to refinance heavily depends on your credit situation. If you can get a lower interest rate, it's a great time to refinance.