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2.49% APR New and Used Auto Loans!

Great news - PenFed's new, used, and refinanced auto loan rate has been lowered again to just 2.49% APR for 12 to 60 months financing for up to $70,000. Can you afford to put off buying a car any longer? This incredible offer won't last forever, so log on and apply today!*

Refinance your existing auto loan from another lender equaling $15,000 or more before April 30, 2011, and we'll take $100 off your loan balance!

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I just tried to refi and could not get 1.99%. I did 2.49% less than two months ago. I tried adding on $5k. That went ... (more)

irascible1 (Sep. 01, 2011 @ 2:21p) |

Did they drop the $5k cash-out requirement when refinancing a penfed loan when they revamped the program for the 1.99%? ... (more)

cheezedawg (Sep. 12, 2011 @ 3:19p) |

Looks like that language is still in the "Used Auto Loans" page, but not the "Refinance Auto Loans" page.

https://www.pen... (more)

cheezedawg (Sep. 12, 2011 @ 3:21p) |

Only good on cars with < 125k miles

Can refi existing loans with $5000 cash out.
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Man, kickin myself for financing my used auto w/ PenFed at 3.25% 2 months back...

Thanks for sharing.

I recall reading previously that Penfed will let you refi its own loans if you take out an additional $5,000 in the refi loan. Might want to check with Penfed and see if you can do this...

HKnight said:   I recall reading previously that Penfed will let you refi its own loans if you take out an additional $5,000 in the refi loan. Might want to check with Penfed and see if you can do this...

This was the case when I refinanced my last loan to 2.99. I simply put $5K in my pen fed checking account, had them pay off 5K of the loan balance and then refi and deposit the 5K back into my account. I did this all during the same call.

Nice, might switch from US Bank at 2.5% just to ditch their lousy site interface.

Wow, thanks for the tips guys. I will give penfed a call to see if I can make this happen. Save me upwards of $75/yr.

I got mine approved during 3.25, I told them that I couldn't find my member # to do one online and so I wanted 3.25 they issued at 4%(phone in rate). The seller screwed me on the car I was buying and sold it to someone else the day before the checks came out(violating my dealer purchase agreement and promises made during calls every other day to touch base on when the checks would be arriving). Had to write void on the checks, send them back. Picked out the new car and told them that a previous csr said it was fine to give me the internet rate because I lost my member number. At this time it was like March 2nd and got 2.99% instead of 3.25.

But the hilarious part is that talking CSRs through this and loan officers were busy at 3.25%. Were ready to "fall" down the stairs at 2.99 and now apparently in talking with them the 5 loan officers in Omaha this week are ready to go jump off a cliff at the amount of applications stacking up on their desk. We're waiting on a fax to be read for a credit card. It has taken a week of "1 more day please".

Fatwallet is going to cause the suicide of a PenFed loan officer.

I forgot to add, if you apply for a credit card and get approved they auto approve you for a vehicle loan.

Previous Penfed auto loan thread: http://www.fatwallet.com/forums/finance/1013949/

I applied a few days ago and was instantly approved. Pretty nice.

Funny thing is that interest rate on Auto loan is lower than home equity loan. Does that mean Auto is considered safe investment compare to Home?

Got a car loan at 2.99% in Dec 2010. Going to call and see if I can't get it lowered to 2.49% with the $5k gig. Will post my results.

I just did the same a month back. Wonder if they would match their own rates and let me refi.

I did one car at 2.9% a while back, with the $5k trick. I'm not seeing the language indicating the need to refi for $5k more than the loan balance in the fine print on this 2.49% deal. Does anyone know if that is necessary? I can do it, but it's more of a PITA than a straight refi. I have a second car at 4.99% that I will refi now with PenFed.

Driving my cars until they stop. 206,000 and 212,000. And I'm still getting ripped off. You drive a car, you are getting ripped off. Some states (mine) worse than others, but there is no way around it. The only way to minimize the tearing is to buy reliable cars, learn to do as much as you can yourself to maintain and fix them, and develop a network of cheaper parts sources (for the things you can fix) and cheaper mechanics (for the things you can't fix).

NYKnicksFan said:   Funny thing is that interest rate on Auto loan is lower than home equity loan. Does that mean Auto is considered safe investment compare to Home?

Judging by the comps in my neighborhood, I'd say my car is depreciating at a slower rate than my house.

Anyone have any idea how I can join Penfed to take advantage of their awesome rates? Not related to military TIA

Applying for Voices of America...hopefully that works.

I got into PenFed through membership in NMFA National Military Families Alliance. Cost $20 to join back then.

I had a Motorcycle Loan @6.49% and Used Auto @2.99% through Penfed.

Just applied for Refie Existing Penfed Loan - for 5k more.

I'll take the 5K to payoff the bike loan completely and 2 payments on the auto loan. This will lower my total payments for both vehicles by 200 bucks and now I can drop the comprehensive on the bike since its paid off.

Thanks OP! Saved me some cash!

As a senior member of this board, I put a lot of stock in what you say. However, could you please share the source of this info? Is it written down somewhere? Can you point to any other threads where this has been mentioned? Thanks!

hirenrp said:   I forgot to add, if you apply for a credit card and get approved they auto approve you for a vehicle loan.

Temecula1 said:   Anyone have any idea how I can join Penfed to take advantage of their awesome rates? Not related to military TIA

Donate blood or money to the Red Cross. http://www.mymoneyblog.com/penfed-adds-new-ways-to-join-red-cros...

Thank you OP! Opened an account via Voices of America $15 donation. Applied for a Used Car loan to pay off my lease online....everything done online is 30 minutes. Loan is approved immediately. Dealer was quoting me 6.5% for 5 years + fees

Can someone walk me through the $5k refinance of the existing Penfed auto loan?

Worked for me! Thanks OP

I financed a new auto loan from PenFed last year at 2.9% for 48mos;
I was able to Re-fi at the new 2.49% for 60mos today.
Like everyone else has said, had to increase loan amount by 5k. So I will wait for the check and repay it immediately.
Not a PITA.

PatrickBateman said:   Can someone walk me through the $5k refinance of the existing Penfed auto loan?

In order to do the internal Re-financing, you need to increase the loan amount by 5k. They will increase the loan amount, if there is more equity in your collateral (auto). i.e If you car is worth 5000 or more than what your current loan amount/outstanding balance is- they will let you refinance.
You have apply (can do it online) to refinance and once approved, they will send you the check for the 5k and you can whatever you want with it.

You will need to do the application online....calling in your application, will get you a higher rate. I was told by the CSR

PatrickBateman said:   Can someone walk me through the $5k refinance of the existing Penfed auto loan?

I called for the payoff amount, then just go through the online "refinance existing auto loan" link and add 5k to the Payoff quote.

You need to select the option for something along the lines of "refi existing Penfed Loan"

Then it will present you with your existing penfed loans and you select the one that you want to refi (in my case I had 2, but I was refiing my truck to payoff the bike).

From there its pretty straight forward. Pick your repayment term and the check for the difference will be on its way to the address you specify.

Mine was instantly approved.

kwest said:   Man, kickin myself for financing my used auto w/ PenFed at 3.25% 2 months back...I've refinanced my car twice already with PenFed before now, and will be doing it a third time now ... you just need to add $5k to the payoff amount.

How tough is PenFed on credit requirements?

Refi'd my 2.9 TMC loan @ 2.49 with PenFed. One less website to log into to pay my bills every month since my mortgage is with PenFed too.

Name sounds too much like Fed Pen.

Have a branch right next to my house. Stopped in, saw a rep, and they ReFi'd my 2.99% to 2.49% right there on the spot. I just transferred 5k from USAA to PenFed, then she did all the work, and then I transferred 5k back into USAA. Took about 30 minutes. No hassles, and she was very nice.

jwardl said:   How tough is PenFed on credit requirements?

They are conservative. If you hit the majik threshold for their loan products they pretty much go from offering you nothing to 50K credit card and 50k auto loan.

I was turned down for a $1000 request for a CC and then a year later was approved for a $5K one. A month later they hit me with an autoapproval offer for another $45K CC. I also got the autoapproved 50K car loan offer as well at the same time -- even after I accepted the CC.

Once you apply for any product they keep the credit report on file for a while, and any other products you qualify for will show up on the side of the account screen.

---

Why are some people transferring $5K into their PenFed account first? What's the difference between doing this and just adding $5K to your loan amount? I think I'm just tired and my brain is not functioning correctly.

Also, so I assume that the payment drops if the overall balance goes down? So this is how the people who are adding $5K to their loans an immediately paying it off when the $5K check arrives come out ahead? It's not like a mortgage where the payment remains the same even if you are paying down extra principal.

fryth said:   Also, so I assume that the payment drops if the overall balance goes down? So this is how the people who are adding $5K to their loans an immediately paying it off when the $5K check arrives come out ahead? It's not like a mortgage where the payment remains the same even if you are paying down extra principal.

We are doing this because Penfed requires that you must get a new loan of 5K more than the current outstanding balance of an existing Penfed loan. The payment does not go down if you pay down a large payment and it has nothing to do with lowering payments. We only do it so that we can successfully refinance for the same amount that is current owed. The reason why payments go down is because the loan is at a lower rate and you are extending the term (going from 40 remaining to a new 48 month loan).

NYKnicksFan said:   Funny thing is that interest rate on Auto loan is lower than home equity loan. Does that mean Auto is considered safe investment compare to Home?
Much easier to repossess a car than foreclose on a house...

Are there any fees involved if you are not refing an existing penfed loan?

I probably screwed up being too eager to jump in and not reading the earlier thread. Refinanced online from 3.99 to 2.49, instant approval, but I'm embarrassed to admit I had some brain fog about how the $5,000 extra bit worked and didn't prepay that before applying. To be fair, once logged in almost all fields were prepopulated and the whole process took maybe 4 minutes. So unless I can call Penfed in the morning and still have time to lower my remaining balance by sending them $5,000, it looks like I'll have to find a use for the $5000 at 2.49% that will be returned to me. Not overly concerned as I can at least park it in a 2.75% rewards checking account while contemplating its uses - physical gold/silver speculation, oil stocks, or starting that small business idea I've been kicking around. Hookers and blow instantly occurred to me as did (somewhat later) remembering I have a family and that a nice South American vacation/scouting retirement property trip is appealing too. Not 0%, but 2.49% is some very cheap money.

Skipping 154 Messages...
Looks like that language is still in the "Used Auto Loans" page, but not the "Refinance Auto Loans" page.

https://www.penfed.org/productsAndRates/loans/vehicleLoans/usedA...
"If refinancing a Pentagon Federal Credit Union loan, you must net an additional $5,000."



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