At AutoLoanDaily.com, we’re often asked by consumers who they should apply with for their next auto loan. At a time when most lenders are pulling back due to the uncertainty in the economy, we usually suggest credit unions, since they have money to lend and offer competitive rates.
One private lender who claims to be in a position to lend is Capital One. Capital One finances new and used auto loans and also refinances car loans. The company says it had $1.8 billion in auto loan originations in the second quarter, which is an increase of 31.4 percent over the first quarter of this year, SubPrime Auto Finance News reports.
"Capital One has demonstrated considerable resilience throughout the recession and the ongoing legislative and regulatory changes reshaping the financial services industry," said Richard D. Fairbank, Capital One’s Chairman and CEO, in a statement. "While economic and regulatory uncertainty remains, those same forces are creating attractive opportunities for Capital One. We continue to be well positioned to take advantage of emerging opportunities and deliver significant shareholder value over the long-term."
What exactly is an auto loan origination? It’s basically the process of taking an application and running a credit check, verifying income, etc. and determining whether or not the applicant will get the loan. It doesn’t necessarily mean the consumer was approved for the car loan.
We’re not saying Capital One will offer you the best interest rate, but since the lender says it is in a position to lend, you might want to add them to your list of lenders if you plan on using a private lender instead of the dealership’s captive lender.
A lot of car shoppers will apply with a credit union, bank or private lender to get pre-approved for the car loan and then take the blank check to the dealer to see if they can beat the rate or terms. Private lenders are also an alternative resource for car shoppers with bad credit.