Penfed Auto Loan 1.49% for New, Used, Refinance up to 60 months

Quote from skuld : Just went through the entire 40 page thread. Never refinanced before and was wondering if anyone could help with a few questions: 1.) In pursuit of a lower monthly payment and paying overall less interest, is it possible to put in some of my own cash laying around towards paying off the car in conjunction with the funds from PenFed? Or does it depend on the financial institution of the original loan? 2.) I asked PenFed for a loan a few thousand more than what I actually owe on the car. If I don't end up using the full amount, would the monthly payment and total loan amount would be adjusted accordingly? Or do I have to borrow what I asked for?

PenFed sends you a bank draft that is good for up to the amount you are approved for. The actual loan amount becomes whatever you write the check for. If you use some of your own cash you would have a lower loan amount thus a lower payment etc.

I read the entire thread and could not find an answer. I am planning on buying a used vehicle through the car buying service in a few days. I have already negotiated the car price down from $12,995.00 to $11,000.00 via email and I already have the vin #. I don't know the exact final price because of tax and license; I've been told it's about 10% of the sale price since tax itself is 8% of that 10%. I went ahead and input the info, including Vin #, dealer name, address, and estimated final price of $12,100.00 on Pen Fed's site and am waiting for approval. A couple days earlier, I applied for a loan at 1.49 % when I was still looking and hadn't selected a car. Now that I found a car, I found out that it was being sold by a dealer who was participating in the car buying service which meant that I could get .99% rather than 1.49% so I reapplied. I was already conditionally approved for the first loan at 1.49% and am in the pending stage for .99% with all info entered about dealer and car. I forgot to factor in that this car had a $500.00 off the final negotiated price certificate due to being a Pen Fed member. Since I'm buying used, will they mail me a check for the amount I applied for, or will they mail it to the dealer directly? What happens if the check is for more than the final sales price? Do I wait for the check to clear before taking the car home, or do they have me take out a backup loan as someone suggested in this thread? Thanks.

I called them and had them remove the approved loan which was at 1.49% so that they wouldn't think I wanted 2 auto loans. The loan at .99% is pending at the moment.

Quote from xxxsdesdexxx : I read the entire thread and could not find an answer. I am planning on buying a used vehicle through the car buying service in a few days. I have already negotiated the car price down from $12,995.00 to $11,000.00 via email and I already have the vin #. I don't know the exact final price because of tax and license; I've been told it's about 10% of the sale price since tax itself is 8% of that 10%. I went ahead and input the info, including Vin #, dealer name, address, and estimated final price of $12,100.00 on Pen Fed's site and am waiting for approval. A couple days earlier, I applied for a loan at 1.49 % when I was still looking and hadn't selected a car. Now that I found a car, I found out that it was being sold by a dealer who was participating in the car buying service which meant that I could get .99% rather than 1.49% so I reapplied. I was already conditionally approved for the first loan at 1.49% and am in the pending stage for .99% with all info entered about dealer and car. I forgot to factor in that this car had a $500.00 off the final negotiated price certificate due to being a Pen Fed member. Since I'm buying used, will they mail me a check for the amount I applied for, or will they mail it to the dealer directly? What happens if the check is for more than the final sales price? Do I wait for the check to clear before taking the car home, or do they have me take out a backup loan as someone suggested in this thread? Thanks.

Why don't you take few min to call them and find out?

If the check doesn't cover the entire purchase price, you pay the difference. Check is good as soon as you sign it but some private sellers wait for the check to clear

Quote from kfunk7 : Why don't you take few min to call them and find out? If the check doesn't cover the entire purchase price, you pay the difference. Check is good as soon as you sign it but some private sellers wait for the check to clear

I just called and the Pen Fed rep removed my first application. He said they would mail me the check once it's approved and that it will be made payable to both the dealer and myself and that I will just need to endorse it and give it to them.

Perhaps this is a really stupid question, but when I refinance my current loan and open a new one with Penfed, how does my previous loan get closed?

^^Penfed makes a check out to the old financial institution and you. They mail it to you. You sign it and mail it off to current lien holder. They sit on it for few days - 2 weeks (depends on bank), then release the lien and send the title off to you or penfed. If they send it to you, you are responsible for getting it to penfed.

It's really a rather simple process. In my refi case, it was the state/dmv dragging it's feet in getting the lein holder updated on the title. Going on 3 months now.

Quote from xxxsdesdexxx : I called them and had them remove the approved loan which was at 1.49% so that they wouldn't think I wanted 2 auto loans. The loan at .99% is pending at the moment.

Is that the new rate 0.99%?

Quote from pokymon : Is that the new rate 0.99%?

It's a rate that is available for used cars through their car buying service.

The way it works I think is:

0.49% for new cars through their car buying service

0.99% for used cars through their car buying service

1.49% for new/used cars everywhere else.

Quote from GPz1100 : ^^Penfed makes a check out to the old financial institution and you. They mail it to you. You sign it and mail it off to current lien holder. They sit on it for few days - 2 weeks (depends on bank), then release the lien and send the title off to you or penfed. If they send it to you, you are responsible for getting it to penfed. It's really a rather simple process. In my refi case, it was the state/dmv dragging it's feet in getting the lein holder updated on the title. Going on 3 months now.

Awesome, thank you!

Just got approved to refinance my 2013 Accord with PedFed!

Bought the car with Honda last month at 3.9% (their best rate at the time). Penfed just approved my refinance of it at 1.49% took all of 5 minutes online. Dropping the payment ~$40 a month, and I'll save just over $1,300 in interest! Got to love it!

Quote from Zackb911 : Just got approved to refinance my 2013 Accord with PedFed! Bought the car with Honda last month at 3.9% (their best rate at the time). Penfed just approved my refinance of it at 1.49% took all of 5 minutes online. Drops the payment ~$40 a month in interest, got to love it!

Congrats

Getting everything set up was a hassle imo, but now that it's all done, I'm glad I'm saving ~20$/mo. 2.5% vs 1.49%, not a huge difference, but still. It helps.

I have a decent credit score 690, but am unable to get a loan from them ><

Quote from m15x : I have a decent credit score 690, but am unable to get a loan from them ><

get a co-signer!!
I co-signed my my wifes loan because her credit wasnt up to snuff with penfed. Went from 7.25% to 1.49%...
You have to be patient with penfed and follow the steps they tell you to do. But the rate is awesome