Capital One Auto Refinance (2024 Review) (2024)

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While it’s best known for its credit card offerings, Capital One also provides financial services including refinancing auto loans. Capital One auto refinance allows you to prequalify to refinance your vehicle without hurting your credit score. This makes it an excellent choice for borrowers who want to explore all of their options.

In this article, we at the MarketWatch Guides Team will explain how Capital One auto refinancing works, how long the application process takes and who typically qualifies. We recommend reaching out to several providers to find the best auto loan and refinancing rates.

Year founded: 1994
Headquarters: McLean, Va.
Better Business Bureau (BBB) rating: A-

Capital One was founded in 1994 in Richmond, Va., as a credit card company. In 2020, it became the nation’s sixth-largest retail bank and the largest auto loan provider in the banking industry. Borrowers can get auto loans or refinance existing auto loans through Capital One. However, auto loan services aren’t available in Alaska or Hawaii.

The financial institution has an average customer service reputation. Capital One is accredited by the BBB and holds an A- rating from the organization.

Capital One offers auto refinance loans for used and new cars, light trucks, minivans and SUVs owned for personal use. You can apply for these loans individually or jointly. Getting a cosigner for your auto loan refinancing can be a smart idea if you have poor credit or you’re looking to get a lower annual percentage rate (APR).

Here’s a closer look at what Capital One auto refinance offers:

Factors That Affect Auto Refinance Rates

Your APR and maximum loan amount from Capital One will depend on:

• Amount financed
• Term length
• Vehicle characteristics
• Income
• Credit history

Source: Capital One

Any adult can apply to refinance their car loan with Capital One. To prequalify for a new loan, you must be in good standing on any existing Capital One account and with your mortgage and car payments (even if they’re with other companies).

To be eligible for a Capital One auto loan, you must have a minimum monthly income of $1,500, totaling $18,000 per year. The company doesn’t list any credit score requirements on its website. However, you’re more likely to be approved if you have a good credit score of 670 or higher.

Additionally, Capital One only refinances loans from other financial institutions, which doesn’t include any Capital One subsidiaries. For you to qualify for an auto loan, your current lender must be:

• Currently reporting your loan to a major credit bureau
• FDIC or NCUA insured
• A state-registered lender or auto dealer and accredited by the BBB

You must be the only lienholder on the title to qualify for a Capital One auto refinance offer.

Capital One has a three-step application process for borrowers before they can be approved for a new loan. The loan process is completed online and follows these steps:

1. Prequalification: You’ll need your Social Security number, employment history and current vehicle loan information to complete the prequalification process. You can also submit your preferred payment date for your new loan during this time.
2. Credit application: Once you’re prequalified, you must complete a credit application. This is different from the soft credit check that occurs during the prequalification process, as it will post an inquiry to your credit report.
3. Finalize: When your loan application is approved, you must e-sign your contract agreement to set your loan up for funding. You’ll also be required to enter your current lender’s details, upload any supporting documents needed and provide Capital One with your title transfer documents.

If you want to wait to receive funds or shop around, your prequalification from Capital One auto refinance expires 30 days from when your initial application is received. After prequalification, you’ll have at least 15 days to submit your credit application and provide any required information or documents and sign your contract.

Any contractual offers made to you by Capital One are subject to change upon verification of the information entered in your application.

Capital One has average customer ratings but performs well across consumer studies. The company has a 1.1-star rating out of 5.0 on the BBB from over 1,000 customers. It has also closed more than 9,000 customer complaints through the BBB over the past three years. While this may seem like a lot, Capital One’s BBB profile encompasses all its financial services, not just auto refinance.

In the J.D. Power 2021 U.S. Consumer Financing Satisfaction Study^℠, Capital One Auto Finance ranked second behind Ford Credit for overall customer satisfaction for a mass-market lender. This study measures customer satisfaction through the application and approval process, the billing and payment process and the customer service experience.

Our team reached out to Capital One for a comment on its scores and negative reviews but did not receive a response.

Positive Capital One Reviews

Positive customer service reviews for Capital One are limited on the BBB. Existing reviews praise the company’s professional service and its wide range of financial products. When it comes to auto loans and refinancing, customers report finding better interest rates with Capital One than with competitors.

Capital One Complaints

Our experts looked at the customer reviews posted on the BBB since the start of 2022. Many gave the company a 1- or 2-star rating. Common complaints about Capital One’s financial services include unsuccessful attempts at disputing transactions, bad customer service interactions and consistent issues during the verification process for auto loans and credit cards.

While this may look negative for the company, keep in mind this is a small fraction of the millions of Capital One customers nationwide.

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. We recommend reaching out to Capital One and the other recommendations below to find the best auto refinance rates.

Recommendations for Auto Refinance

While Capital One auto refinance can be a smart choice, it isn’t your only option. We recommend reaching out to several banks and dealerships, such as Auto Approve, to find the lowest auto refinance rate possible.

Auto Approve: Top Choice for Refinancing

Auto Approve works with a nationwide lender network consisting of banks, finance companies and credit unions. Customers can refinance loans for their cars, trucks, SUVs, motorcycles, recreational vehicles (RVs), all-terrain vehicles (ATVs) and boats. Auto refinance rates start as low as 2.25% APR for those with high credit scores, with loan amounts ranging from $5,000 to $85,000.

Keep reading: Auto Approve review

RateGenius: Top Choice for Good Credit

RateGenius works with an expansive lender network to help drivers with good credit scores find an auto loan that best suits them. The company allows customers to refinance loans for their cars, trucks, and SUVs. Auto refinance rates start as low as 3.09% APR with a minimum approval credit score of 640. If approved, loan amounts range from $12,000 to $100,000.

Keep reading: RateGenius review

Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best auto loan companies. We collected data on dozens of loan providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the companies that scored the most points topping the list.

Here are the factors our ratings take into account:

• Reputation (30% of total score): Our research team considered ratings from industry experts and each lender’s years in business when giving this score.

• Availability (20% of total score): Companies that cover a variety of circ*mstances are more likely to meet borrowers’ needs.

• Loan Details (15% of total score): We considered the types of loans, term lengths and loan amounts that are available from each lender to determine this score.

• Rates (25% of total score): Auto loan providers with low APRs scored highest in this category. Available discounts were also taken into account.

• Customer Experience (10% of total score): This score is based on customer satisfaction ratings and transparency. We also considered the responsiveness and helpfulness of each lender’s customer service team.

*Data accurate at time of publication.