Capital One Auto Refinance Review 2023

Capital One Auto Refinance Review – Introduction

Capital One is one of the country’s most popular banks when it comes to auto loans and refinancing. Headquartered in McLean, Virginia, it has three divisions – Credit Cards, Consumer Banking, and Commercial Banking.

It is the second-largest auto finance company in the US, with a range of auto loan services available in 48 states. It commands a stable 5% share in the auto loan and refinance market. Therefore, Capital One Auto Refinance should definitely be on your list of refinance lenders to check out!

Here, the Way.com Refinance team has done a thorough review of Capital One refinance auto loans, including the eligibility criteria, benefits and drawbacks. You can read on to know more and make an informed decision before refinancing your auto loan.

Does Capital One offer refinance auto loans?

Yes, Capital One offers several affordable refinancing options for auto loans. Some of the reasons why Capital One Auto Refinance is popular with customers include the 100% online application process (including contract e-signing and document uploads).

Customers need to go through an initial pre-qualification process, after which there will be a soft credit inquiry (which will not affect your credit score). Based on this, they will be offered a range of refinancing options from Capital One.

Pre-qualified Capital One Auto refinance offers may change after the customer chooses an offer and a hard credit inquiry is done. However, if you have submitted all of the information correctly, there won’t be too much of a difference between the pre-qualified refinance offer and final loan terms.

Capital One auto refinance rates are excellent for customers who:

• Have a poor credit score: Capital One refinances loans at credit scores as low as 540
• Have co-signers for refinancing: Having a co-signer can reduce your Capital One Auto refinance rate significantly
• Want to compare different rates: The pre-qualification process allows you to shop and compare refinance loan rates and monthly payments based on a soft credit check.
• Prefer an online shopping process: You don’t need to turn up in person for pre-qualifying or for the refinance contract signing. The process is 100% online.

Pros and Cons of Capital One Auto Refinance: A Snapshot

*As of January 2022

Unique features of Capital One Auto Refinance Auto Loan

Let’s take a detailed look at some of the core features of the Capital One refinance auto loan process.

• Minimum Income: Capital One refinance auto loans require a minimum annual income of $18,000, which is lower than the average.
• Wide range of refinance rates: Capital One auto refinance rates start at 4.1% for excellent credit scores and go as high as 24.99%
• Poor credit score accepted: Credit scores as low as 540 can still get you decent loan terms
• Vehicle age: Your car should not be more than 10 years old
• Co-signing accepted: Having a co-signer can reduce your refinance rates to a manageable level
• No origination fees: Capital One will not charge you a processing fee during application
• Can refinance large loans: Capital One will refinance loans ranging from $7,500 to as high as $50,000

Capital One Auto refinance requirements

Before applying for a Capital One refinance auto loan, ensure you check all the qualifications and Capital One Auto Refinance requirements as defined in the table below:

*As of January 2022

• Capital One will only refinance new and used vehicles, minivans, light trucks, and SUVs for personal use.
• Capital One auto refinance does not cover vehicles no longer in production, commercial vehicles, motorcycles, or motor homes.
• An important thing to remember is that you cannot apply for refinancing from Capital One if your original loan was serviced by it.
• Your current lender must be reporting to a major credit bureau, must be FDIC or NCUA insured, or accredited by the Better Business Bureau and a registered lender in the state.
• If you are a serving member of the armed forces, the Capital One refinance auto loan rates offered to you will be covered under the Military Lending Act.
• You will need to send your vehicle title to Capital One if you reside in Kentucky, Minnesota, Michigan, Maryland, Missouri, Montana, New York, Oklahoma or Wisconsin. For all other states, Capital One will get the title directly from the state agency.
• You may also need to sign a limited Power of Attorney document to show Capital One as the new lienholder.

How to refinance my Capital One Auto Loan: Steps to follow

Step 1: Apply for pre-qualification

To successfully pre-qualify, you must:

• Meet all the basic requirements (like age, minimum annual income, etc.)
• Must have a valid physical street address within the mainland United States
• Be in good standing with regard to your current auto loan (the loan should not be over the limit, behind on payments, or charged off)

Pre-qualification for Capital One auto refinance does not guarantee that you will get a particular rate. However, as long as you have been truthful in your application, there won’t be a significant difference between the pre-qualified offer and the final offer.

Step 2: Choose an offer and submit credit application

You will know whether you have pre-qualified within 24 hours of your initial application. The pre-qualification offer will expire within 30 days from the date your first application is received.

Depending upon your pre-qualified offer, you can choose your preferred loan rate and monthly payment and submit your credit application. This will result in a hard credit inquiry and may impact your credit score. Capital One will give you 15 days from the time you submit your credit application to sign the final contract.

Step 3: Sign your contract

The final step is to send in any supporting documents and e-sign your contract. You may have to provide title transfer documents when contacted by the Capital One team.

Capital One Refinance Review: The Way.com Summary

Overall, Capital One auto refinance offers a balanced mix of options for almost any customer credit score. The pre-qualified offer is a great way to find if you’re eligible for refinancing without affecting your credit score. While meeting all the eligibility criteria can be a chore, it won’t be more than any other lender. You can confidently choose Capital One for refinancing if it meets all your loan needs.