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

Wichard20 307 508 August 1, 2012 at 05:18 PM in Finance (6)
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Last Edited by widgit August 3, 2012 at 02:02 AM
Just saw this posted on their site. 1.49% for New, used and Refinance up to 60 months if applied online. I have an autoloan and credit card with them and the have been great. There are multiple ways to qualify to become a member.

www.penfed.org
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Last Edited by FinsUp99 September 11, 2012 at 11:15 AM
Keep in Mind: This rate is not available for refinancing of an existing PenFed loan.

FYI : If you get their loan, the insurance requirement is 500 deductible for the car that is being financed. At least when I got their loan a year ago. So check it out.

AAA members can join penfed for free https://www.penfed.org/aaa-auto-loans-overview/
[COLOR="Red"]

9/8/12: PenFed sent me an email saying cars with more than 100k are only eligible for 24 month loans.
9/9/12: Follow-up phone call confirmed that >100k can be no longer than 24 months. Mileage over 125k is not eligible for a loan.


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#496
Quote from LeaninBack916 View Post :
Awkward. I just got a call from them and they said they were following up on my loan application and that I just missed qualification. That my average line of credit history was short by about 3 months of what they require. But they wouldn't tell me what that was. They said my credit score/history was excellent. My CK says 2 years 4 months as the average... So 2 years 7 months average? lol? Anyways, their rep was really nice though. Just sucks, I want the 1.49%. I looked at the calculator and it would save me about $1000 interest-wise over the life of the loan. About 1700 in interest if I paid minimum now (I still pay more than that to apply to principal). 670~ with a PenFed. I will try again next Spring I guess. At 1.49, I'd just sit back, hit that good minimum payment grizzy and enjoy the credit boost.

I'm sad.
Thanks for this info! I just saw that mine is 1 year 3 months, mainly because I recently applied for several new credit cards 6 months ago. Frown
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#497
Quote from GPz1100 View Post :
What is this $100 finance charge? Was this on penfed's loan or your existing finance company?

I requested a loan for amount $X.xx (the payoff amount). Check received for the same $X.xxx amount. Logging into the account online, shows the same $X.xx amount (down to the penny).

Is your loan/title now in penfed's possession? I wonder if this $100 fee is fee your DMV charges to change the lien holder on the title. IL charges $95 for a corrected title. It's still unclear if i'll get hit with this fee or not.
My finance charge was added to the loan amount from PenFed for repayment, but not on the check. I'm not sure its purpose, but I'll ask them after the process is complete.
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#498
Quote from bloake View Post :
Thanks for this info! I just saw that mine is 1 year 3 months, mainly because I recently applied for several new credit cards 6 months ago. Frown
I did too but the cards that are a part of my 'history' were all opened when I first got credit back in '05 and '06 (out of high school). I opened the slate and the BofA Cash Rewards about 6 months ago. But anyways.... their rate is so nice though. I'll try again in 6 months until then I'll just pay extra on the principle and wish it was 1.49%
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Last edited by LeaninBack916 October 12, 2012 at 09:12 AM.
#499
Quote from LeaninBack916 View Post :
I did too but the cards that are a part of my 'history' were all opened when I first got credit back in '05 and '06 (out of high school). I opened the slate and the BofA Cash Rewards about 6 months ago. But anyways.... their rate is so nice though. I'll try again in 6 months until then I'll just pay extra on the principle and wish it was 1.49%
Did you try a local credit union? The ones in my area offer 1.89%. It's not 1.49, but it might be easier to obtain.
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#500
Quote from bond4284 View Post :
Did you try a local credit union? The ones in my area offer 1.89%. It's not 1.49, but it might be easier to obtain.
If I go to a dealership and buy a car right now at 6%, how much would it cost for me to refinance and can I do it the same day as buying the car? Any idea, I don't know anything about financing cars. Appreciate the help, thanks.
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#501
Quote from bond4284 View Post :
Did you try a local credit union? The ones in my area offer 1.89%. It's not 1.49, but it might be easier to obtain.
That's the thing. My local CU has me at 3.9%. I am just looking to lower the interest haul. It would save me about $1000 over the life of the loan (if not more as a I pay it off sooner). My local CUs only go to about 2.9%. While it's better... it's not worth the hassle imo
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Last edited by LeaninBack916 October 12, 2012 at 09:43 AM.
#502
Quote from SociallyDynamic View Post :
If I go to a dealership and buy a car right now at 6%, how much would it cost for me to refinance and can I do it the same day as buying the car? Any idea, I don't know anything about financing cars. Appreciate the help, thanks.
It doesn't quite work like that. Bond is right.... finance at your local credit union. They will give you either a form that says you are qualified or a 'blank check' to use at the dealership. Oh and remember to always be ready to get up and leave when you go to look at cars. I got my car (new/used 2011 Kia Koup with 6850mi) from a Lexus dealership. I saw they had the one I wanted and went there (as my 4th stop). KBB on it was 17500 and the dealer wanted 17300.

I could tell they knew nothing of this car as they kept saying look at the 'fancy interior lighting' and the 'Ipod plugin!'. Anyways, after the test drive (I loved the car personally) I told them it was pretty good but how much was the final price. They go through the pitch of financing through them and what I wanted for my monthly payments. I told them no, I want the final price and I may finance through them if they have a low rate. They came back and told me they would, only for me, take it down to 16700 + tax. I told them no, a few back and forths for about 30 minutes.

I really wanted to get them down to 15000. I kept telling them it's used so the 'full 100k warranty wasn't accurate, it would be 60k' (which is true with Kia since Im not the original owner). Anyways... the last offer he came back with was 15,790. And wouldn't budge. He showed me the total after taxes and fees (but they also paid dmv reg) so it was 16787 out the door. He then asked me about financing I said go ahead and run it. Came back with 4.9% at 0% with 3000 down. I whipped out my credit union approval and said let's make the deal.

As a new buyer, just remember to always get up and leave if you aren't liking the deal. The first 3 dealers (2 Kia, one a Dodge) were all full of BS and they all say the same thing... what kind of monthly payments do you want... they make lots off that kind of 'financing'.

Oh and as to the refinancing portion.... you can't, in theory, refinance right after. It's more of a credit worthiness thing at that time. If you're getting a higher rate then your probably deemed credit-wise as a risk.

Good luck on your car buying adventure. Remember it's all about getting from Point A to Point B in a car style you like. People at first laughed when I said I got a KIA and told me keep AAA on speed dial and that it would break down. Then they actually saw it, one friend even drove it, and are now asking me how I got such a good deal when they (new) go for 22k+ and are hard to find used.
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Last edited by LeaninBack916 October 12, 2012 at 09:43 AM.

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#503
Quote from SociallyDynamic View Post :
If I go to a dealership and buy a car right now at 6%, how much would it cost for me to refinance and can I do it the same day as buying the car? Any idea, I don't know anything about financing cars. Appreciate the help, thanks.
Use the PenFed rate to your advantage. Get the dealer to lower your rate to be more competitive with PenFed. This is what I have done the past few cars we have purchased. My rates for cars have been 1.99 and now 1.49 and not through Penfed. The rates were matched by the dealer at time of purchase.
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#504
Quote from LeaninBack916 View Post :
It doesn't quite work like that. Bond is right.... finance at your local credit union. They will give you either a form that says you are qualified or a 'blank check' to use at the dealership. Oh and remember to always be ready to get up and leave when you go to look at cars. I got my car (new/used 2011 Kia Koup with 6850mi) from a Lexus dealership. I saw they had the one I wanted and went there (as my 4th stop). KBB on it was 17500 and the dealer wanted 17300.

I could tell they knew nothing of this car as they kept saying look at the 'fancy interior lighting' and the 'Ipod plugin!'. Anyways, after the test drive (I loved the car personally) I told them it was pretty good but how much was the final price. They go through the pitch of financing through them and what I wanted for my monthly payments. I told them no, I want the final price and I may finance through them if they have a low rate. They came back and told me they would, only for me, take it down to 16700 + tax. I told them no, a few back and forths for about 30 minutes.

I really wanted to get them down to 15000. I kept telling them it's used so the 'full 100k warranty wasn't accurate, it would be 60k' (which is true with Kia since Im not the original owner). Anyways... the last offer he came back with was 15,790. And wouldn't budge. He showed me the total after taxes and fees (but they also paid dmv reg) so it was 16787 out the door. He then asked me about financing I said go ahead and run it. Came back with 4.9% at 0% with 3000 down. I whipped out my credit union approval and said let's make the deal.

As a new buyer, just remember to always get up and leave if you aren't liking the deal. The first 3 dealers (2 Kia, one a Dodge) were all full of BS and they all say the same thing... what kind of monthly payments do you want... they make lots off that kind of 'financing'.
Thanks for you help. I'm a little confused here.
So you took the 4.9%? Or you had a better deal from a credit union? How does that work exactly? I've never been to a credit union before. Man this procedure sounds complicated.
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#505
Quote from SociallyDynamic View Post :
Thanks for you help. I'm a little confused here.
So you took the 4.9%? Or you had a better deal from a credit union? How does that work exactly? I've never been to a credit union before. Man this procedure sounds complicated.
I had 3.9% from my credit union and, while it's cheaper than the 4.9% also, it's nice to have the loan with a bank I trust. But some dealers offer 0%, some offer lower rates. Just depends. If your credit is really good it makes paying less in interest that much more feasible.

It's actually really easy. I highly suggest seeing the lowest rates in your area. Go in, apply, and if you are approved you put that approval letter/check/whatever they give you in your back pocket and go shopping. Just remember to get approved for an amount that covers taxes/fees. I was preapproved for 21k as I thought I might spend as much as 19k for the car + taxes/fees. Even though I only spend just under 17k.

The hardest part is haggling with the dealer sharks. You will feel that overwhelming urge to want to hit them in the face. I did several times.
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#506
Quote from LeaninBack916 View Post :
I had 3.9% from my credit union and, while it's cheaper than the 4.9% also, it's nice to have the loan with a bank I trust. But some dealers offer 0%, some offer lower rates. Just depends. If your credit is really good it makes paying less in interest that much more feasible.

It's actually really easy. I highly suggest seeing the lowest rates in your area. Go in, apply, and if you are approved you put that approval letter/check/whatever they give you in your back pocket and go shopping. Just remember to get approved for an amount that covers taxes/fees. I was preapproved for 21k as I thought I might spend as much as 19k for the car + taxes/fees. Even though I only spend just under 17k.

The hardest part is haggling with the dealer sharks. You will feel that overwhelming urge to want to hit them in the face. I did several times.
Hah that's totally possible. Yeah I heard that it's a pain in the ass, but whatever. I'll see.
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#507
So here's my new car buyer story....

I bought my first car 3 weeks ago. I got a new job and needed a car almost immediately, so I didn't get to do the due diligence I probably should've done. I mostly looked for local cars on ebay, and came across a 2012 Mustang with 6,000 Florida miles for $22.9k and instantly fell in love with it. I'm not sure if the dealer knew anything about the car, because it was priced like a base model, when it was obviously a premium (leather, automatic trans, spoiler, upgraded stereo). I tried to negotiate, but the salesman said that they only list cars on ebay that they're trying to get rid of ASAP, and the ebay price is the rock bottom price they'll negotiate down to with someone who walks off the street. (When I first got to the dealership, the sticker on the car had an asking price of $25.5k.)

In any case, I did the newbie thing and got suckered into buying the extended warranty ($2,000) believing that I wouldn't be able to get financing otherwise. The finance manager "got his buddy at the bank to do him a solid" and "knocked my 8% interest to 5.8%." (I have no real credit history with secured loans.) Being caught up in the moment, I believed all his BS. It only hit me that I was being scammed when, as I'm about to drive away in my shiny new Mustang, the sales manager said "Enjoy your new ride man. I still think we sold it to you way too cheap."

After getting home and doing 30 minutes of googling, I realized I was totally scammed. The next week, I went back to the dealership to cancel the extended warranty. I got the typical push-back with "the original factory warranty is only 36,000 miles" (lie: it's 60,000) or "the finance manager isn't here, I can't process this" (another lie). I ended up getting hostile with them until I got the proper cancellation paperwork. The finance guy even said it takes "10-12 weeks to process the refund" to which I replied "It's ok. It'll take 10-12 weeks for you guys to see my down payment." ($5,000 with AmEx, which gladly took up my fight and put the money on hold).

A few days after THAT ordeal, I was reading about AAA and happened to come across this thread. Well, today the CSR at PenFed told me that the check for the payoff amount is in the mail. In a way I feel lucky, because I got a really good deal on the only part of the car that is non-negotiable after the sale - is the price of the car itself. If all goes as planned, I'll refi the car this week (before even making my first monthly payment to SunTrust) and I'll be able to apply the warranty refund to the down payment. My total cost will go from $6k down $21k @ 5.8% and $3k+ in interest to $4k down $21k @ 1.5% and $800 in interest.

Thank you, SlickDeals!
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#508
Quote from LeaninBack916 View Post :
It doesn't quite work like that. Bond is right.... finance at your local credit union. They will give you either a form that says you are qualified or a 'blank check' to use at the dealership. Oh and remember to always be ready to get up and leave when you go to look at cars. I got my car (new/used 2011 Kia Koup with 6850mi) from a Lexus dealership. I saw they had the one I wanted and went there (as my 4th stop). KBB on it was 17500 and the dealer wanted 17300.

I could tell they knew nothing of this car as they kept saying look at the 'fancy interior lighting' and the 'Ipod plugin!'. Anyways, after the test drive (I loved the car personally) I told them it was pretty good but how much was the final price. They go through the pitch of financing through them and what I wanted for my monthly payments. I told them no, I want the final price and I may finance through them if they have a low rate. They came back and told me they would, only for me, take it down to 16700 + tax. I told them no, a few back and forths for about 30 minutes.

I really wanted to get them down to 15000. I kept telling them it's used so the 'full 100k warranty wasn't accurate, it would be 60k' (which is true with Kia since Im not the original owner). Anyways... the last offer he came back with was 15,790. And wouldn't budge. He showed me the total after taxes and fees (but they also paid dmv reg) so it was 16787 out the door. He then asked me about financing I said go ahead and run it. Came back with 4.9% at 0% with 3000 down. I whipped out my credit union approval and said let's make the deal.

As a new buyer, just remember to always get up and leave if you aren't liking the deal. The first 3 dealers (2 Kia, one a Dodge) were all full of BS and they all say the same thing... what kind of monthly payments do you want... they make lots off that kind of 'financing'.

Oh and as to the refinancing portion.... you can't, in theory, refinance right after. It's more of a credit worthiness thing at that time. If you're getting a higher rate then your probably deemed credit-wise as a risk.

Good luck on your car buying adventure. Remember it's all about getting from Point A to Point B in a car style you like. People at first laughed when I said I got a KIA and told me keep AAA on speed dial and that it would break down. Then they actually saw it, one friend even drove it, and are now asking me how I got such a good deal when they (new) go for 22k+ and are hard to find used.
Wat does the 4.9% mean in that sentence? Smilie
Thanks for sharing. I'm nervous buying a car because the whole process intimidates me. I'm a timid guy and having to face all these car salesman that I think are out to scam me is very daunting to me.
I have a question. When you shop around for a good APR rate, does that mean the CU/Banks kept adding hard-pulls on your credit report? I hate knowing that my credit score might go down only because I was looking around for a good APR rate with a CU/Bank/financer. Thanks.
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#509
Quote from bond4284 View Post :
So here's my new car buyer story....

I bought my first car 3 weeks ago. I got a new job and needed a car almost immediately, so I didn't get to do the due diligence I probably should've done. I mostly looked for local cars on ebay, and came across a 2012 Mustang with 6,000 Florida miles for $22.9k and instantly fell in love with it. I'm not sure if the dealer knew anything about the car, because it was priced like a base model, when it was obviously a premium (leather, automatic trans, spoiler, upgraded stereo). I tried to negotiate, but the salesman said that they only list cars on ebay that they're trying to get rid of ASAP, and the ebay price is the rock bottom price they'll negotiate down to with someone who walks off the street. (When I first got to the dealership, the sticker on the car had an asking price of $25.5k.)

In any case, I did the newbie thing and got suckered into buying the extended warranty ($2,000) believing that I wouldn't be able to get financing otherwise. The finance manager "got his buddy at the bank to do him a solid" and "knocked my 8% interest to 5.8%." (I have no real credit history with secured loans.) Being caught up in the moment, I believed all his BS. It only hit me that I was being scammed when, as I'm about to drive away in my shiny new Mustang, the sales manager said "Enjoy your new ride man. I still think we sold it to you way too cheap."

After getting home and doing 30 minutes of googling, I realized I was totally scammed. The next week, I went back to the dealership to cancel the extended warranty. I got the typical push-back with "the original factory warranty is only 36,000 miles" (lie: it's 60,000) or "the finance manager isn't here, I can't process this" (another lie). I ended up getting hostile with them until I got the proper cancellation paperwork. The finance guy even said it takes "10-12 weeks to process the refund" to which I replied "It's ok. It'll take 10-12 weeks for you guys to see my down payment." ($5,000 with AmEx, which gladly took up my fight and put the money on hold).

A few days after THAT ordeal, I was reading about AAA and happened to come across this thread. Well, today the CSR at PenFed told me that the check for the payoff amount is in the mail. In a way I feel lucky, because I got a really good deal on the only part of the car that is non-negotiable after the sale - is the price of the car itself. If all goes as planned, I'll refi the car this week (before even making my first monthly payment to SunTrust) and I'll be able to apply the warranty refund to the down payment. My total cost will go from $6k down $21k @ 5.8% and $3k+ in interest to $4k down $21k @ 1.5% and $800 in interest.

Thank you, SlickDeals!
Thanks for sharing. So the moral of the story is to not go for the extended warranty? Any advice on that? When is it worth it to get the extended warranty? Good job on turning your situation around! Smilie
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#510
Quote from bloake View Post :
Thanks for sharing. So the moral of the story is to not go for the extended warranty? Any advice on that? When is it worth it to get the extended warranty? Good job on turning your situation around! Smilie
The hard and fast rule is that it's NEVER worth getting an extended warranty from the dealer. The markup on them is close to 100%. Otherwise, it's really a combination of how old your car is, how many miles are left on the factory warranty, how technical it is (cost of fixing a hybrid?), how many miles you plan on putting on it, etc.
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