Capital One Car Loans
Some of the best auto loan deals are at Capital One Bank, which is charging as little as 3.59% APR for a 60-month new-car loan.
The McLean, Virginia-based bank has about 900 branches from New York to Texas but offers car loans nationwide.
Although Capital One is best known for its Venture and Quicksilver credit cards — “What’s in your wallet?” — it’s also become the third-largest auto lender in the country.
And no wonder.
If you borrow $20,000 at 3.59% APR for five years, your payments would be about $364 month.
Compare that to borrowing the same amount at the national average of 4.04% APR for five years. You’d pay $368 a month.
That means the more affordable financing from Capital One would save you $4 monthly, or $240 over the life of the loan.
You can borrow as much as $40,000 and finance up to 100% of the value of the car or truck you’re buying, which means you don’t have to come up with a down payment to qualify.
There’s no application fee and no prepayment penalty if you choose to pay off your loan early.
Use our auto loan calculator to figure out exactly what your monthly payments would be on any deal.
The only catch is that you must buy from one of Capital One’s approved franchise dealers to qualify for its lowest promotional rates.
But when we popped a few ZIP codes into the dealer locator, it looked like there were lots of options, covering most if not all of the major brands. It doesn’t look like this will put a serious crimp in your car-buying plans.
Capital One also offers a Blank Check program. Once you’re approved for a car loan, you can go to the dealer with check in hand and pay for your auto up to the approved loan amount. The blank check is good for up to 45 days.
You can apply for an auto loan online at Capital One and get an answer in as little as 60 seconds.
Also search our database of the best auto loan rates from dozens of lenders in your area to see if you can find a better deal.
Having an idea of how much you’d pay at Capital One or another bank means you can negotiate more effectively with a car dealership.
If the dealer’s finance officer can find a better loan, great. It not, you know you’ve got a great loan to close the deal.