Capital One Auto Refinance Review
Refinancing your car loan may help you lower your monthly car payments or change your loan term. Many credit unions and lenders offer auto refinance loans, but Capital One auto refinance is one option with relatively low income requirements and a streamlined online application process.
In this review, we include the pros and cons of Capital One auto refinance and discuss its offerings, pricing, financial stability, accessibility and customer satisfaction to help you determine if it’s the best auto refinance choice for you.
Capital One auto refinance pros and cons
- Pre-qualify with no harm to your credit
- Online refinancing process
- Low minimum income requirement
- Limited refinance options
- Unavailable in Alaska and Hawaii
Pros explained
Pre-qualify with no harm to your credit
Capital One offers a pre-qualification process that doesn’t affect your credit score. After you submit some information, the lender conducts a soft credit inquiry to determine your eligibility.
After pre-qualification, you can decide if you want to move forward with the official application. If so, the bank will complete a hard credit pull — which will appear on your credit report — to finalize your credit application.
Getting prequalified with a soft credit pull lets you avoid numerous hard credit hits from multiple lenders, which can temporarily damage your credit score.
Online refinancing process
Applying for Capital One auto refinancing is convenient and straightforward; you can do it all online. With your prequalification application approved, you’ll see an offer outlining your new loan’s Annual Percentage Rate (APR), term and monthly payment. You’ll have 30 days to decide and complete an online loan application, and 15 days after that to submit the required documentation. You can electronically sign your contract, and Capital One will begin processing payment to your former lienholder. You’ll receive a welcome letter in the mail with account information and instructions on setting up your online banking account.
Low minimum income requirement
The income requirement to qualify for a Capital One refinance auto loan is $1,500 per month, which is on the lower end of what car refinancing companies tend to offer. Of course, other factors — including your credit history — will influence your eligibility and the financing terms you may be offered.
Cons explained
Limited refinance options
Capital One only offers auto refinance and auto purchase loans. If you’re interested in a lease buyout or cash-out auto refinance, you won’t be able to get an auto loan with Capital One.
Unavailable in Alaska and Hawaii
Capital One auto refinance loans are only available to customers who live in the 48 contiguous states. While this includes most of the country, the loans are not available to residents of Alaska and Hawaii.
Capital One auto refinance offerings
Capital One provides two primary types of auto loans: auto refinance loans and auto purchase loans. For transparency, we’ll cover the details of both loans below.
Auto refinance loans
Capital One's auto refinance loans are for those who already have a car loan but want better terms. When you're inquiring about how to refinance a car, you might discover you can lower your monthly payment by getting a better interest rate. You may qualify for an auto refinance loan depending on your credit history, the current value of your car and how much you owe on the original loan.
Whether refinancing your auto loan is a smart move depends on a few factors. If your credit score improved or interest rates have dropped since you got the first loan, you may be able to score a lower APR on a new loan. You must be up-to-date on your monthly payments with your current lender.
The requirements for Capital One auto loan refinancing include:
- Vehicles 10 years old or newer, for personal use only
- Refinance loan minimum of $7,500 up to a maximum of $75,000 (depending on your income, credit and vehicle)
- Must have a loan with a major bank, credit union or state-registered lender, not Capital One or one of its subsidiaries
- At least one applicant must be the registered owner of the car
Capital One doesn’t offer auto refinance for cars no longer in production. It also doesn’t offer refinance loans for commercial vehicles, motorcycles, RVs, motor homes and more. Your car must not have a salvaged title.
Auto purchase loans
Capital One offers auto financing for new and used car purchases. Like any loan, the bank considers your credit history and other financial factors to determine your loan terms. Capital One offers a similar pre-qualification process for new loans as it does for refinance loans. It works with approved car dealerships where you can leverage your prequalification status to streamline the process.
Capital One’s online shopping tool, Auto Navigator, lets you get pre-qualified and view the inventory at your local dealership with your own personalized APR and payment terms. The website offers car reviews, photos, features and specs, plus educational articles to walk you through the car-buying process.
Capital One auto refinance pricing
Your exact terms and rate for a Capital One car refinance loan will vary depending on various factors, such as your credit score, loan amount and the age of your vehicle. You can fill out the online prequalification application to get an accurate quote.
Capital One does not charge an application fee. However, each state enforces a title transfer fee, which varies by state. Capital One pays the fee on your behalf and adds it to your loan balance.
Capital One auto refinance financial stability
Capital One is a well-established financial institution. To assess the lender’s financial stability, we examined the ratings of two independent credit agencies. According to Fitch’s ratings, the company is rated A- with a stable outlook, indicating slightly above-average financial stability and an outlook not expected to improve or decline in the foreseeable future. Moody’s considers Capital One less financially stable, with a Baa1 rating and a negative outlook.
Capital One auto refinance accessibility
Availability
Capital One auto refinance is available to borrowers in the contiguous United States. If you live in Alaska, Hawaii, Puerto Rico or a U.S. territory, Capital One will not be an option for your auto refinancing needs.
Contact information
Capital One auto customer service offers automated services 24/7 and live customer support at the phone numbers and hours below.
Auto refinance applicants
- Phone number: 833-292-8336
- Hours: Monday through Friday, 9 a.m. to 9 p.m. EST
New and used vehicle financing applicants
- Phone number: 800-689-1789
- Hours: Monday through Friday, 9 a.m. to 9 p.m. EST and Saturday, 10 a.m. to 7 p.m. EST
Existing Capital One auto loan customers
- Phone number: 800-946-0332
- Hours: Monday to Friday, 9 a.m. to 8 p.m. EST
User experience
The online prequalification process is user-friendly as it guides you through the steps, making it easy for you to provide the required information and documents. Capitol One also offers educational articles, car reviews, access to local dealership inventory and an auto loan calculator to help you estimate your monthly payments and loan amount.
As a Capital One borrower, you’ll have access to online banking to manage your loan and make payments. The bank also offers a mobile app for iOS and Android (called Capital One Mobile) so you can track your auto loan and other Capital One accounts on the go.
Capital One auto refinance customer satisfaction
Capital One has been accredited by the BBB since 1995 and holds an A+ rating. However, the lender has mixed reviews from its customers across various customer review platforms. The negative reviews from auto loan borrowers mention difficulty getting assistance and billing errors. Positive reviews highlight reasonable interest rates and helpful customer service representatives who were able to resolve auto loan payment concerns.
Capital One auto refinance FAQs
Does Capital One refinance its own auto loans?
What credit score is needed to refinance a car with Capital One?
How we evaluated Capital One auto refinance
In our assessment of Capital One auto refinance, we considered several key factors to provide you with a comprehensive overview:
- Loan offerings: We examined Capital One’s auto loan services — auto refinance loans and auto purchase loans — to gauge the lender’s suitability for different financial needs and goals.
- Pricing: We looked at Capital One's pricing structure, including interest rates, fees and loan amounts.
- Financial stability: We assessed Capital One's reputation and stability in the financial industry to gauge the reliability and trustworthiness of the institution.
- Accessibility: We looked at the geographical availability of Capital One auto refinance to determine how accessible it is to borrowers in various regions.
- User experience: We evaluated the online application process for its user-friendliness and convenience, ensuring that it aligns with modern expectations of hassle-free digital experiences.
- Customer satisfaction: We considered feedback and reviews published online by existing borrowers to determine overall customer satisfaction.
Summary of Money’s Capital One auto refinance review
Capital One offers both advantageous features and potential limitations. On the positive side, the bank provides a pre-qualification process with a soft credit inquiry and streamlines the entire refinancing process online. Notably, the bank considers a relatively low minimum monthly income requirement of $1,500.
Conversely, Capital One doesn’t offer lease buyouts or cash-out auto refinancing options. Additionally, the bank's customer reviews are mixed, with some customers expressing dissatisfaction with customer service. Assessing these pros and cons can help you decide whether Capital One's auto refinancing solution fits your needs.