Capital One’s prominence in today’s financial world can’t be denied.  They’re the frontrunners of credit lines and loans almost all across the board.

Their auto finance is no different.

Capital One determines the APR (the interest rate on an annual basis) based on your credit score, but they’re known to give low financing frequently.  Sometimes their loans go as low as 2-3%, which is a covetable situation for anyone.

They offer loans for both new and used cars, often with used car loans having a lower interest rate.  When it comes to buying a car, Capital One—which is entirely in the banking industry—often helps find deals and bargains, which isn’t common just from a finance provider.  This is part of why they’re so popular in the US today.

To start off, Capital One has a program on their web site that runs you through the process of applying for the loan, finding a car, and applying it to your purchase.  Many other providers don’t help in the actual process, they just help with the financing.

With Capital One, they serve as the middle-man in the process.  Whereas some places like CarMax set you up with financing on the spot and sell you a car off their own lot, Capital One makes payments to the dealer and then you owe money to Capital One.  Their loans have an APR and require monthly payments, but you’re able to pay above the minimum amount in order to more quickly pay off your loan.

Capital One sends checks to the dealer, and the frequency and amount of which are determined by an agreement that they reach with the dealer.  All that you have to do is make your monthly payments to Capital One on time and they work out the rest of the details.

They also allow auto refinance as well.  If you currently have another form of car loan, you can opt to refinance through Capital One and get a better rate.  Since they deal directly with the dealer, they can work out the details of how to take care of your prior loan.

With the economy the way it is today, auto refinance is huge.  The market for everything is down substantially and so people need more help with their payments, and this is where auto refinance comes into play.

But for those purchasing a new or used vehicle, the process is easy.  Like any other form of loan, Capital One bases your APR on your credit score.  APRs usually run between just under 3% and 12% with some rare exceptions being higher than 12%.  Generally speaking, any loan with 3-6% interest is a pretty good deal, and that’s what Capital One is known for.

They also have both payment withdrawal, so that your monthly car payment automatically comes out of your account, and they have a website from which you can view your account.  You can see your upcoming payments, interest rate, various fees, and total amount left.  Such internet-based technology is now standard in the industry and it’s advised against ever getting into a loan that doesn’t offer such a service.

Unlike some loan providers, however, there are some vehicles that Capital One won’t finance.  For example, any car they finance must be newer than 7 years old and must have fewer than 70,000 miles on it.  Furthermore, they also don’t finance Oldsmobile, Daewoo or Isuzu cars.

When applying for a loan, you must provide proof of income, residency, and identification, which is standard for any major loan.  Capital One auto loans can be applied to up to $40,000 with some exceptions, but it’s uncommon that you’d actually need this much for a practical vehicle.

If for some reason your loan is denied, you’ll receive a statement in the mail explaining why that is.  For legal reasons, no one can give such information out over the phone.

At any rate, Capital One is always a solid choice for auto finance.