Capital One Auto Loan Check - should i accept it?

[NRG]

Hello,

I might have a potential buyer, but he's going through Capital One for his loan. Have you ever gone through this experience before? Do you recommend it? What other pre-caution should I take? Should I turn down the buyer because of this method?

I have heard bad stories about blank check, fraud, etc.

Here's an example of the check from Capital One:

http://www.capitaloneautofinance.com/Loan/HelpCenter/TheBlankCheck.aspx

Any input is appreciated.

 

[The Kid]

I would not, but what do I know :biggrin: They are draft's not certified funds. Ive done my job by selling the vehicle, why should I have to jump thru hoops to get funded?

 

[gene]

Check with Viet with Addison Ave. Credit Union first. They have MUCH better rates. She's a prime member, and doesn't say "HUH" what kind of car is that?
360-449-6457

 

[Autophile]

I bought my car with one of those checks (actually a "PeopleFirst" check, back before CapitalOne bought out PeopleFirst), and from the buyer's perspective it is as simple as can be. My gut feeling is the deal is legit because I have not heard of any scams involving these checks. However, if you are nervous, call CapitalOne and find out if they have issued a check to this person and the maximum amount the person is approved for.

 

[ashman]

If it is legit capitalone needs your info to send you a packet which transfers ownership to them the buyer should inform you of this so it may be completed before any vehicle or funds chage hands. I don't think you trade the buyer title for check other then that sounds good.

 

[HKSboosted2]

I've heard of many people (supra owners) using Cap One checks. It's pretty legit. Should be painless for both sides from what I hear.

 

[Stick-e-rice]

I've accepted a capital one check for a car I've sold a few years ago. There is nothing to worry about. You release the vehicle when the funds have cleared and you have your bank tell you when.

Capital One is one of the few companies that will issue a loan check for a vehicle with a salvage vehicle.

It's perfectly legit if its a real capital one auto loan check.

 

[GEENSX]

I've used them also, no problems just follow the instructions they provide to you in the package. Also just let the buyer knows upfront so he knows what to do on his end. Good luck with your hunting

 

[docdan]

I have bought my last 5 or 6 cars with Capital One (and prior to the name change, People First's) checks. The checks are legit and easy way to buy cars.

I do think the seller may have to jump through a very minor hoop or two, just to make sure that Capital One ends up with the title directly from the seller.

 

[jimmycinla]

From the CapOne site...
How it works:
"We'll personalize your Blank Check with your name and address at the top. All you need to do is make it payable to the seller or lender up to your approved maximum amount, sign it and you're done (you don't have to use the whole amount; it's there only if you need it)".

I would get a solid confirmation of what the buyers limit is from CapOne before anything.

If possible my choice would be for him to write the check to himself (if possible) and have his bank issue you a Certified Bank Check.

-jc-

 

[BD]

Take the buyer and the check to you bank, and have them varified with Capital One. I guess you can always hold on to the title until the check is cleared, all you have to do is draft an agreement and sign by both parties.

 

[MLmotorsport]

I sold a used Cooper S to a guy half-way across the country a few years ago when they were still bringing over sticker for used ones. He did the blank check thing and everything was fine. It did smell of scam so we covered our butts and did alot of checking. We tagged the title as Cap 1 being the lein holder and made photocopies of everything then gave it to the new owner to take to his DMV (as he was out-of-state). A few mos later Cap 1 called asking for the title (apparently the guy kept the title and didn't bother to send any $ to them). They were wanting to hold us liable for the missing title. Luckily we were able to prove that the title was tagged as Cap 1 being the leinholder. They called a few mos after that with the same story - we gave them the same response (faxing copies of the title) and they never bothered us again. This guy had been driving that Cooper for nearly a year on their dime. I have no idea what he did for tags that whole time. I still wonder what ended up happening. A simple duplicate title should have solved the problem but interstate exchanges can sometimes be complicated when dealing w/ title work... especially if the one in posession of the car vanishes. Even if they got the car back I'm sure they lost their butts on the deal. Haha, sorry for the story. Moral: make copies of everything, but I doubt it's a scam (unless the check is a fake - a simple call to Cap 1 will tell you).

 

[KGP]

Capital One should have a phone number that a seller can call to make sure the check is not a forgery.

 

[Wheelman]

I purchased my NSX with a Capital One check. I went with them because they offered the lowest rate for an exotic car over 7 years old. Unfortunately, my credit union wasn't willing to give me an auto loan for any vehicle over 6 years old. I talked with them about exceptions at the time such as a mint collectors vehicle or exotic. Last year, they just started offering these types of loans.

For the Capital One loan, I filled out the seller's info and sent him the check. Once the check cleared, he sent the title over to Capital One which begin my car loan. I already had the possession of the vehicle, they had the title. Quick and painless.

 

[NRG]

Thanks everyone for your input and advices!

 

[johnny010]

BS- The seller doesn't have to complete anything BEFORE the transaction can be made. There are blue checks and green checks. From the sellers point of view, either color will work.

Second - the amout of the limit is printed on the check so there is no need to call ....in small print it should read something like "...approved up to $35,000..."


I used it and it worked perfectly.

Here is a detailed discussion on my experience.

 

[The Kid]

BS- The seller doesn't have to complete anything BEFORE the transaction can be made. There are blue checks and green checks. From the sellers point of view, either color will work. .

Im a capital one dealer, and a ACURA franchise..get your facts straight before you give others financial advice:wink:

 

[johnny010]

What facts aren't straight? Everything was confirmed prior to my writing.

 

[The Kid]

What facts aren't straight? Everything was confirmed prior to my writing.

I can show you at least 10 bounced drafts from Cap. One. We make sure we have the cash in our account before releasing the car.:wink:

 

[johnny010]

I can show you at least 10 bounced drafts from Cap. One. We make sure we have the cash in our account before releasing the car.:wink:

The Kid, I think you misunderstood me. When I wrote the seller doesn't have to do anything, I didn't mean the seller shouldn't verify funds. I simply meant the seller doesn't have to fill out a bunch of paperwork and send it in, confirming title ownership etc, BEFORE the car is turned over to the buyer.

As a seller, I would call to verify funds, double check the check, and then turn the car over. Then, fill out all the ppw, and get the title to Capital One.

 

[Cairo94507]

What with all of the counterfeit checks being passed these days, cashier's checks, etc., I would take the check to your bank and then tell them to verify and guarantee the funds. If that takes a week or so, so be it. Better safe than chasing someone for money later.

 

[spartan2-3]

Keep in mind those are NOT CHECKS, they are Draft. Your buyer could have Capital one convert it into a Cahiers Check. Dont deliver the car until you physically have the Cashiers Check.

I run a Dealer (500+ cars per month) and its our Policy not to take Draft Checks.