Capital One Catastrophe!

[dx3]

Guys,

Right now I am speechless. Here is what happened.

I applied for an $8000 loan person to person with Capital One. I had no idea what car I wanted to buy, so I figured I would just see if I could get approved and go from there. So Capital One calls me and tells me I have been approved. I ask them how much I am approved for and they said if I needed more to fill out another application and send it in.

I do this and ask for $20,000. They call me back and say it has been approved. Well, I am now getting close to NSX prices so I find the NSX I want and call Capital One and ask them to bump it up again. They said ok, been approved.

Well, I fly down to pick up the car, give the guy the check and drive 9 hours home. I fax everything Capital One asks for.

3 days later I get a call from Capital One. They tell me that on my 2nd application I typed an extra “0” at the end of my income per month. I tell them obviously I don’t make over $500,000 per year otherwise I wouldn’t be needing a loan for $25,000. Well, they tell me the loan has been rejected.

I tell them they approved it, gave me the check, and that I have already purchased the car and it is sitting in my garage. I even had the seller call Capital One to verify everything was ok before he handed me over the keys. They said the loan was fine and I was approved and we could go ahead with the purchase.

So now I have this gentleman’s car that I flew down to pick up ($200 flight) and spent 9 hours and over $100 in gas to get home, and apparently a check that has bounced. I don’t have any vacation left to take a day off and am in no mood to drive another 9 hours and pay for a flight home all because Capital One are morons…

I am in quite a bind! This is not the sellers fault, but I also don't believe it was mine. Capital One are to blame but they will not pay for the car to be shipped or the $300+ I spent on the car. Your thoughts…

Jonny

 

[Aero]

Typo or not about your income it'll be your fault since you filled out the form. I'm not sure why they wouldn't let you fill out a new loan app and see if you can get it then.

If not try to get the loan from a credit union or bank. Should just be the same as if you hadn't bought the car yet..cause technically you haven't.

Be extra nice to and let the seller know you won't be driving his car in the mean time cause he has the right to demand his car back asap.

 

[Matt_337]

Go to your local credit union and apply for an auto loan to cover this. Their rates should be lower than Capital One


Edited: I type too slow and Aero already said the same thing

 

[dx3]

Go to your local credit union and apply for an auto loan to cover this. Their rates should be lower than Capital One


Edited: I type too slow and Aero already said the same thing

The car is a 91 and they don't finance cars that old :frown:

Jonny

 

[ImolaOrange03]

When I purchased my car, I went to HSBC and go my loan approved within a day. Check was mailed off to me to use. No muss, no fuss.

I had problems with Capital One numerous times. I will never used them ever again, once my payments are done. 29.9% interest rates....

 

[DONYMO]

Drive the car back to the original owner, rent a car and drive back home.

 

[popsicle]

The car is a 91 and they don't finance cars that old :frown:

Jonny

who says? when i purchased my car a some while ago it was a 91 and i got it partly financed just fine. and at a pretty good rate.

 

[dx3]

Drive the car back to the original owner, rent a car and drive back home.

Yeah being that I don't have a job that I have to be at and unlimited supplies of $$$ that's a great idea

Jonny

 

[Ski_Banker]

Sorry about your situation, but it is your fault, typo or not, for misrepresenting your income on the application.

Seems like just going through a bank or another lender should get you there, even if it means a higher rate than you expected (based on $500k income).

 

[Aero]

Why won't Capital One qualify you for a new loan?

You might check around some various banks. Banks don't have probs giving loans on older cars (people buy old Corvettes on loans all the time). They may not do all 100% but find one who knows not to use KBB value and I don't think itll be a prob.

Worst case you could do a Home Equity loan if you REALLY want this car. (if you have a house that is)

 

[dx3]

Well when I applied the first time I did not put the extra "0". So when I re-applied 10 minutes later is when the problem occured. I thought they would have noticed the change and brought it up.

My main application had the correct amount on it.

Jonny

 

[Matt_337]

The only options that you do have are to check with your local banks and other credit unions (I know certain CU's will allow for older vehicles) otherwise you are going to be out more than just airfare. After all, you did drive the car 9 hours so I am sure the seller is going to want some sort of compensation for it.

 

[dx3]

Why won't Capital One qualify you for a new loan?

You might check around some various banks. Banks don't have probs giving loans on older cars (people buy old Corvettes on loans all the time). They may not do all 100% but find one who knows not to use KBB value and I don't think itll be a prob.

Worst case you could do a Home Equity loan if you REALLY want this car. (if you have a house that is)

I am in the process of re-applying but it is not looking good. I just purchased my home so my credit score just took a big hit due to my debt/income ratio. Otherwise I would have gone to my credit union instead of wasting time with these morons.

Jonny

 

[docjohn]

Being approved for a loan does not mean you can spend it If you make 50k/year and wanted to be loaned 20-25 k to buy a used car It is time to scramble.None of us can give you a magic number to call ,you will have to do the hard work to find a lender.If you don't own a home and rent good luck.All else fails then you will have to suck it up and ask for $ from family.either way in reality you just stole some guys car and he let you.Good luck.

 

[kam3ham3]

The car is a 91 and they don't finance cars that old :frown:

Jonny

My credit union won't finance a car over 5 years old. Is there a family member that you trust / trusts you to co-sign with?

 

[drew]

Might give prosper.com a try

If you can't get another loan: you will have to return the car AND make the seller whole for usage.

Break out the credit cards and/or get a day labor job if you have to. It is easy to come up with a few extra hundred dollars if you are willing to work.

You can even make fun with it by dropping the car off and take this as a chance to bike/hike cross country---it's fun and the exercise is good for you. You would be surprised how many miles you can do in a day if you are motivated.

FYI: A loan provider can recall a loan for just about any reason too. It doesn't happen often, but they sure reserve their right to do so.


**

I question ANYBODY buying a depreciating asset on time: it doesn't make any financial sense. It is a recipe for a life long experience of living paycheck to paycheck.

It is even worse when one does not have sufficient reserves and completely daft when there are none. It allows even small bumps the road to ruin one and/or have high cost of opportunity.

Drew

 

[gdae]

Do you have a 401k that you could borrow from? I'm sure other members will chime in with warnings not to do this, but if you get far enough over the barrel, it could be an option.

 

[SWIFTVISION]

If you make 50k, you can get a 25k loan. Call around.

 

[SWIFTVISION]

I am in the process of re-applying but it is not looking good. I just purchased my home so my credit score just took a big hit due to my debt/income ratio. Otherwise I would have gone to my credit union instead of wasting time with these morons.

Jonny

Open a HELOC, or a fixed line of credit on your home.

 

[DV8]

The car is a 91 and they don't finance cars that old :frown:

Jonny

Must be different for different states. I was able to finance my 92 Accord and my 91 NSX through my credit union. Credit unions usually have better rates as well.

 

[NSXrunner]

As much as I hate to say this, but you might want to just consider giving up the NSX for now. Get finances in check first, approval (verifiable) for loan, then look for car doen the road. This might reduce the aggrevation you are feeling at the moment and might reduce potential mistakes or errors made during said aggrevated state of mind.

 

[ibDursty]

well... I he said that he just purchased his home so I'm guessing he doesn't have much equity sitting in there yet so I don't think a HELOC is going to work in his case.

 

[Ponyboy]

Jonny, try contacting Spirit Bank and/or Red Crown Credit Union here locally and explain your situation if you still want the car. The only other alternative is to return the car to the owner as the check that he's deposited is/has been recalled.

But you need to be scrambling to resolve this ASAP or this guy may report the car stolen.

 

[KooLaid]

Go through my Addison Avenue Connection

Viet Le - "[email protected]"
http://www.nsxprime.com/forums/showthread.php?t=65525&highlight=viet+le
http://www.nsxprime.com/forums/showthread.php?t=69216&highlight=viet+le

My dilemma:
http://www.nsxprime.com/forums/showthread.php?t=65566&highlight=viet+le

I purchased my car from nsx prime member: NSX FoYoAss:
http://www.nsxprime.com/forums/showthread.php?t=69126&highlight=viet+le

My rate when I applied 1 year ago:

5 years @ 4.x%
6 years @ ?%
7 years @ 6.x%

If your credit is decent, you should get a loan = 3 X gross monthly

They 100% financed me on my 93 last year. Even cut me a check for a little extra I requested for taxes and registration + recaro child seat + 18/19 rims and tires + other goods

 

[JadeFox]

Wow I'm kind of shocked to see how some primers are reacting to the op. He is a fellow NSX enthusiast with a passion for this car and should be given more support by this community. Maybe he should have checked and double-checked, but this kind of thing can happen especially when both the buyer and seller have verified it with Capital One.

OP, sorry about your inconveniences. I sincerely hope things work out for you. Even if you lose a little money and don't get this specific car don't give up. You'll have your chance in an NSX, and then it will be completely worth it. I would offer my help if I could. Man up buddy, things will work out!