Buying a car with a pre approved check

[Turd Ferguson]

Im currently in the process of buying a used car. Recently, I was pre approved by Capital One Auto Finance and they sent me out a blank check. I was reading over the web some horror stories about bad customer service, title problems, and some dealerships not accepting payment. Does anyone have any experience with COAF???

[Ksyrup]

I used it once with no problems, and had one in my back pocket the second time when the dealership gave me a better deal. I think Capital One now owns the company I used - People First. I had just the opposite experience with them - I applied late one afternoon, was approved about an hour later, and had a check at my doorstep by 8am the next morning. The first time I did it was 1999, and the dealership was kinda skeptical, but it came with instructions for the dealer to call them to verify it and all that stuff, and they took it with few questions. By 2005, I would expect most dealers are well aware of it.

I don't know how much has changed since they got bought by Capital one, though. Good luck.

[lynchjm24]

There are dealerships that won't accept it. Use it to your advantage - tell them you'll take their financing if they beat your rate.

[Radii]

I got mine through Chase Auto Finance, at the time I applied to People First but they wouldn't approve me b/c I had never financed a car or house before. Chase was great about it though and the dealer took it fine.

[Ramzavail]

I had two great experiences with it.

It was a great negotiating tool for both cars.

One, a 2003 Used Gray Focus SE with 6800 miles on it, purchased on January 2004, for 9,500 (these are sold new for 15k or so), they wanted 10,750. Said take it or leave it, they took it. There was some problem with the acceptance of the check, but they eventually took it.

Second, a new 2004 Suzuki Aerio SE left over, purchased on Late December 2004, for $12,500 (the invoice price was $15,500), they wanted 13,500. Said take it or leave it, they took it. They had no problem with the check.

More or less, when you have money in your hand, you have the power. You don't need their financing, you don't need any of their crap.