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

I also just got a Penfed used loan for 1.99%, but I'm not too bothered by the rate change as it would only save me a few bucks per month. I think I'm still getting a pretty decent deal.

FYI for anyone looking at a used auto loan - they won't finance anything over 100K miles.

The Route 66 extended warranty they offer is also a pretty good deal, I've heard good things about it.
I'm aware that most extended warranties aren't worth it but I believe the cost on this is only $1895 for premium vehicles which adds an additional 3yrs/36K miles which would break even pretty quickly especially if you buy a used BMW/Mercedes with typically higher repair costs. They won't warranty M-cars or AMG's however.

Quote from nfusion770 : Thats true, but only if people are disciplined. Actually, when you get down to rates this low the money is so cheap it almost makes no sense to pay off early, unless you have a burning hatred of all debt or something.

Yeah, absolutely. There's no downside to carrying the debt at this rate.*

*Not a suggestion to borrow beyond your means, just to not make more than the minimum payment when your rate is at 1.5%. If something unexpected and bad happens, you're going to wish you had that money sitting around, rather than in the bank. Or if rates jump, and you want to take on a mortgage or another car payment, you've lost money by paying your 1.5% loan down early.

Quote from tenchichrono : Yeah, I'll reply once I get an email back.

Just spoke with them, they said that the "Board of Directors" decided not to apply the rate to loans processed in July.

Looks like I bit on this too early...

I'm looking into buying a new car and wouldn't mind refinancing my other vehicle. Any chance of getting both or is this a one time only thing?

Quote from automated : Just spoke with them, they said that the "Board of Directors" decided not to apply the rate to loans processed in July. Looks like I bit on this too early...

DOH!!!! I just applied and was approved 2 weeks ago.

I just bought a truck Sunday and financed through the dealerships financial service. I havent received all of my information, but i know it was 2.89%. Is it too early to refinance for this incredible rate??

Quote from STEVESKI : I'm looking into buying a new car and wouldn't mind refinancing my other vehicle. Any chance of getting both or is this a one time only thing?

That's what I plan to do as well. We currently have a car financed with Penfed. I am going to trade that one in and get a Penfed Loan (which I will use if the dealer can't beat it). Then, when that is all handled I will refi my wife's car (not currently with Penfed) to the 1.49%.

My thinking is that the loan we are keeping is at 2.49 which isn't bad. Refinancing this one isnt such big deal in the unlikely case we are declined. Also, Honda (the new car) has 1.99 and the dealer may be able to do better so I am just hedging my bets.

The entire thing depends on your credit score, of course.

Quote from mr_rolla : I also just got a Penfed used loan for 1.99%, but I'm not too bothered by the rate change as it would only save me a few bucks per month. I think I'm still getting a pretty decent deal. FYI for anyone looking at a used auto loan - they won't finance anything over 100K miles. The Route 66 extended warranty they offer is also a pretty good deal, I've heard good things about it. I'm aware that most extended warranties aren't worth it but I believe the cost on this is only $1895 for premium vehicles which adds an additional 3yrs/36K miles which would break even pretty quickly especially if you buy a used BMW/Mercedes with typically higher repair costs. They won't warranty M-cars or AMG's however.

"Keep in Mind: This rate is not available for refinancing of an existing PenFed loan. "

Quote from tenchichrono : DOH!!!! I just applied and was approved 2 weeks ago.

Me too. I pressed the rep as hard as I could on the issue, but no dice. It doesn't work out to a ton of money, but every bit helps. At that rate, I would have even extended the term a bit-- I kept my term the same when I did the refinance, but with money this cheap it's stupid not to extend it as long as you can.

Does anybody know if PenFed offers GAP insurance to go w/ their financing?

Quote from abner463 : Does anybody know if PenFed offers GAP insurance to go w/ their financing?

Yes they do

Since I have a loan with them I was told I cannot refinance even if I borrow additional $5000.
Wondering if I can pay off the existing loan and refinance then?
Not sure how long it would take to get my title back from penfed from the existing loan as I might need that for the new loan.
Current loan balance:$20,000 4 years remaining. Current rate:2.49%
Not sure its worth going thru this hassle?

Quote from deals2912 : Since I have a loan with them I was told I cannot refinance even if I borrow additional $5000. Wondering if I can pay off the existing loan and refinance then? Not sure how long it would take to get my title back from penfed from the existing loan as I might need that for the new loan. Current loan balance:$20,000 4 years remaining. Current rate:2.49% Not sure its worth going thru this hassle?

Go to bankrate.com and look for the auto loan calculator and see if it is worth your while. It might not be. But if it makes you feel better, my last auto loan (10 years ago) was at 3.55%. So anything these days is a real deal!

Quote from hahahaha : Is there any fees to do refi?

None. Banks charge fees to refinance auto loans? Seems like a bad way to get someone's business from another institution.

PenFed will add $5000 to your principal balance (and send you the check) if your loan is already with PenFed, as long as the total principal is less than the value of the vehicle. You can always put that in your IRA, emergency savings, etc. Pretty hard to get a $5000 loan at this kind of APR, so it works out even if you do add the principal.