bgronek

I have a 6MT/Navi/Anthacite/Ebony on order and due for delivery in the next couple of weeks. While I plan on arranging my own financing (purchase), I will also give the dealership a chance to beat my rate on the condition that the loan is not transferred or associated with Capital One Finance. I don't want to turn this into a flame, but I'll never do business with Capital One again.

So...my question to the community is whether the car loans obtained through Honda Finance have anything to do with Capital One?

Chrysler Finance actually uses Citibank in this manner when selling their auto loans.

Thanks for the help and for all of the great information on this site,

Brad

eaRL

I would say that there is no connection between Cap. One and American Honda Finance. I used AHFC for my current car and previously, my Element and they are very reasonable. They did not transfer either one of my loans to Cap. One. The AHFC loan is very straight forward. Cap. One's loans come with too many little rules and regulations. I just want a straight forward loan that I can pay online but most importantly no pre-payment penalty and no one percent increase if I do not use autodraft. Cap One's rates are low, but I can get get pretty close to their rate with AHFC.

http://www.hondafinancialservices.com

Wanta04TL

Actually when I got my car I called ahead to get the Acura dealership's rate they could give. First they came up with 4.59% for 60 months. I had already gotten a quote from Cap One of 3.99%, so I said no deal. They came back that afternoon with a rate of 3.15% from Wachovia. So I don't think they just use one company to sell your loan to. So just mention that you don't want Cap One and see who else they can come up with a good loan from.

FWIW, I don't think you have any right to stop the sale of your loan, so no matter who you go with you might end up with Cap One down the road.

eaRL

That's right. The dealership could have 15 lenders they look at. So you should assume the first APR is probably going to be on the high side and the APR is subsidized by the lender so any percentage the dealership gets above, say, 3.59% is kicked back to the dealer. It differs from lender to lender. The numbers I used are just an example. Ofcourse, if the initial offer is in the low threes then I'd jump on it. Until you get to where the rubber meets the road so to speak, you never know what the dealership's finance department will offer. I don't want to appear as if I'm making a recommendation because each person's situation is different.

You see the loan selling more often with companies like capital one that offer a broad range of financial products. You see it all the time with home mortgages. In my opinion, AHFC is less likely to sell your loan to another finance company. But, as you mentioned, there's really nothing you can do about it if they choose to sell it.

bgronek

Thanks for your responses / help. I understand that loan factoring is done totally at the whim of the lender. It's good to hear that it seems that AHFC isn't factoring to or re-selling Cap. One auto finance.

Thanks!

Modeler

I've had 3 loans with AHFC over the last five years and all three of them never left AFHC servicing. Their service is great, by the way.

TLGator

Keep in mind that you can also obtain your financing independent of the dealer. Check online, there are some good deals.

But as someone above already said, no matter who you finance through, your contract will include a standard clause that lets the lender sell your loan (or lease, for that matter) to someone else.