<p>I know there are lots of people who hate the Capital One credit card. DD has one and has never had a problem as she pays off the balance in full every month. She is getting a new car and will need her first auto loan. Capital One has something called the Blank Check auto loan. They will approve you for a maximum amount at a certain percentage rate (based on your credit history). Then they send you a blank check which you can make out to the auto dealer for any amount you choose up to the maximum they approved you for. Once she has that check, she could finalize a deal immediately without doing dealer financing. It seems to give her a lot of freedom. Has anyone ever used this and what was your experience?</p>
<p>We used it last fall and it went very smoothly (and I was very skeptical). Good rate, too. The dealer couldn't beat it. Bear in mind there are TWO "blank check" programs. One is completely unconditional and it was accepted no questions asked. The other one has some additional steps required before you can drive away and seemed like a hassle. Also, the Capital One Auto website has dealer referrals that you might check out. If the dealer is familiar with Capital One financing then things go very smoothly.</p>
<p>Unrelated to the credit card thing, but might help a young buyer if it's a "new" new car (as opposed to a "new-to-you" car) - have her look into bulk buying programs like from Costco. I got my new car that way. Maybe someone who loves to dicker and play the game could have got a better price. I was happy to pay well under the sticker and not have them hound me for anything extra. Very civilized.<br>
But back to the Capital One thing - does that mean her car loan is at the same rate as her credit card? (I don't know how to do the googly-eye thing here...) Seems like car loans are usually much much lower. Near zero if you time it right in the year.</p>
<p>dragonmom ~ No, this would be a used car. And, no, the car loan rate is NOT the same as the credit card! Their current quote is 6.09% for an excellent credit score and automatic deduction for the premium.</p>
<p>kitty, is there a late payment default triggered "penalty rate"? Be sure to check. A lot of times that's the trick.</p>
<p>curm ~ Thanks, I will check on that. But to get the lowest rate, she will sign up for the automatic deduction, so the payment will never be late (she always has enough in the account to cover it.)</p>
<p>Costco's car financing is through Capital One:</p>
<p>Costco</a> Marketing Page</p>
<p>We are regular Costco shoppers, but have never tried financing a car through them. We get so much spam from Capial One, H simply hates the name and will not touch it with a long pole.</p>