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New Car Loan Terms
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Used Car Loan Terms
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Penfed dropped their rates to 3.99% on both new and used auto loans.

As usual, internet application needed to get the low APR.

Terms and conditions for both new and used vehicles attached or here

Edit #1: 2/1 - Applied online, instant approval

Edit #2: 2/4 - Received check and paperwork packet at home mailing address.

Member Summary
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Probably unlikely w/o a cosigner. She'll have much better luck at other banks/finance companies that don't have such a h... (more)

ltcm (Jun. 05, 2010 @ 1:04p) |

In a word, NO.

RailroadTrack (Jun. 05, 2010 @ 1:06p) |

How much repair does her old car need?

jatan1986 (Jun. 05, 2010 @ 4:16p) |

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Sweet, like they said a good deal just got better!

Green to OP for the update and thanks to Penfed for rate!

It doesn't specifically state but does anyone know if this would apply to refinancing an auto loan as well? Not sure if 'used car' would cover that.

Thanks!

beaglegal said: It doesn't specifically state but does anyone know if this would apply to refinancing an auto loan as well? Not sure if 'used car' would cover that.

Thanks!
Yes Penfed auto loans usually apply to refi as well as taking out a loan on an already paidoff car.

Why would someone want to do that?

1. To lock in low rate 3.99% fixed rate money!
2. If they bought the car very cheap, they could get a much larger loan than their purchase price (based on NADA)

Does anyone know the oldest model year/mileage to get the 3.9% used car rate?

Pedfed?

SUCKISSTAPLES said: beaglegal said: It doesn't specifically state but does anyone know if this would apply to refinancing an auto loan as well? Not sure if 'used car' would cover that.

Thanks!
Yes Penfed auto loans usually apply to refi as well as taking out a loan on an already paidoff car.

Why would someone want to do that?

1. To lock in low rate 3.99% fixed rate money!
2. If they bought the car very cheap, they could get a much larger loan than their purchase price (based on NADA)

Does anyone know the oldest model year/mileage to get the 3.9% used car rate?


Just hung up the phone with PenFed CSR, it doesn't matter with year, but cannot exceed 100,000 miles.

Also the Payment Saver Loan got reduced to 4.24%

Just got off the phone with a PenFed rep.

Although you can refinance an existing PenFed auto loan, you have to "net an additional $5,000" -- i.e., your current balance must be at least $5k less than the current value of the vehicle, and you must actually increase the balance of your loan by $5k (they'll deposit it in a deposit account or send you a check).

You can then turn around and prepay the $5k back toward the principal, but, absurdly, it will not reduce your monthly payment amount. According to the CSR, they will not recalculate a monthly payment after an advance principal payment.

It looks like the only way to do this sanely is to refinance with another institution and then refinance again with PenFed.

Otterley said: You can then turn around and prepay the $5k back toward the principal, but, absurdly, it will not reduce your monthly payment amount. According to the CSR, they will not recalculate a monthly payment after an advance principal payment.
Of course not - it's not absurd, it's standard for loans. Your monthly payment remains constant, but you shorten the term and thus save on interest.

chicolo said:
Just hung up the phone with PenFed CSR, it doesn't matter with year, but cannot exceed 100,000 miles.
hmm, wonder if they will do my classic cars, it states they will loan 80% LTV on cars not in the NADA book.

If I could get $30-40k loans at 3.99% fixed, I could use those as no closing cost investments/RE loans..the payments will be high though

lampy2k4 said: Otterley said: You can then turn around and prepay the $5k back toward the principal, but, absurdly, it will not reduce your monthly payment amount. According to the CSR, they will not recalculate a monthly payment after an advance principal payment.
Of course not - it's not absurd, it's standard for loans. Your monthly payment remains constant, but you shorten the term and thus save on interest.


Depends on the type of loan, I suppose. My private student loans have a fixed period, rather than a fixed payment. Either way, you save on interest, whether the APR or the length of the term is reduced.

Otterley said: Just got off the phone with a PenFed rep.

Although you can refinance an existing PenFed auto loan, you have to "net an additional $5,000" -- i.e., your current balance must be at least $5k less than the current value of the vehicle, and you must actually increase the balance of your loan by $5k (they'll deposit it in a deposit account or send you a check).

You can then turn around and prepay the $5k back toward the principal, but, absurdly, it will not reduce your monthly payment amount. According to the CSR, they will not recalculate a monthly payment after an advance principal payment.

It looks like the only way to do this sanely is to refinance with another institution and then refinance again with PenFed.

If you have $5000, pay to penfed and then refi with them.

swandown said: Pedfed?

Sorry, title has been corrected. It was past my bedtime, and I was too excited not to post the deal.

I applied online this morning to re-fi an existing used auto loan, and was approved immediately. I will update this thread along the way with my experiences.

don't see anything restricting this to USED DEALER PURCHASE so do they allow PERSON TO PERSON PRIVATE USED PURCHASES.

Anyone doing person to person with this, I had a bad experience with used car dealers (big surprise!) and I only purchase my used cars from individuals now.

When I bought a new car 4 years ago I used the dealer financing to get a good deal on the car and then refinanced with Penfed before the first payment was due. Was smooth and easy. 3.9% back then too.

Hi all. I have a 2006 Scion TC that I paid cash for. I have a clear title with my name on it. Anyone know if it would be possible to take out a loan against it as collateral? Thanks.

call them and ask , but I think they will let you take a loan on a paidoff car, as well as a private party deal.

And if there is truly no age limit (most lenders will not lend at the best rates on cars over 10 years old) there may be an angle for collector car owners too!

beatnik28 said: swandown said: Pedfed?

Sorry, title has been corrected. It was past my bedtime, and I was too excited not to post the deal.

I applied online this morning to re-fi an existing used auto loan, and was approved immediately. I will update this thread along the way with my experiences.


So re-fi'd and took out an additional $5K?

I currently have a penfed 4.5% car loan with them....for a Honda Fit I bought new last year (2008)...

Am seriously considering doing this...

Let me know how yours goes..

Otterley said: You can then turn around and prepay the $5k back toward the principal, but, absurdly, it will not reduce your monthly payment amount. According to the CSR, they will not recalculate a monthly payment after an advance principal payment.
1. There's nothing absurd about that
2. The easy way around that for many folks is to just go with a longer payback period than you really want, set the payback period to the appropriate length to get the payment you want. For example, when I did this last year I set my payback period to the number of months so that my payment was a little lower than what it was previously, so I extended the term by 11 months or so, but I had a slightly lower payment and $5,000 cash, which I then used to pay off a much higher interest loan I had.

Thanks OP!!! Big thanks.

5 minute online application, approved. Called, said will have check in a few days.

wOw. very cool

I printed out the Used Auto Loan Rates, and at the bottom is an example of $10,000 @ 3.99% for 60 payments. It states the montly payment would be $195. When I put those numbers into Excel (10,000, 3.99, 60) I get monthly payments of $183.51. Is the difference a refinance charge that gets spread over the length of the loan (60 x $11.50 = $690)? To get the $195 payment, I had to up the rate to 6.6%. Or is it standard to use some other technique for computing the monthly payments?

PhrugalPhan said: I printed out the Used Auto Loan Rates, and at the bottom is an example of $10,000 @ 3.99% for 60 payments. It states the montly payment would be $195. When I put those numbers into Excel (10,000, 3.99, 60) I get monthly payments of $183.51. Is the difference a refinance charge that gets spread over the length of the loan (60 x $11.50 = $690)? To get the $195 payment, I had to up the rate to 6.6%. Or is it standard to use some other technique for computing the monthly payments?Its probably a typo (they probably meant approx $185 since I get $184.12)

Loan Calculator

jatan1986 said: PhrugalPhan said: I printed out the Used Auto Loan Rates, and at the bottom is an example of $10,000 @ 3.99% for 60 payments. It states the montly payment would be $195. When I put those numbers into Excel (10,000, 3.99, 60) I get monthly payments of $183.51. Is the difference a refinance charge that gets spread over the length of the loan (60 x $11.50 = $690)? To get the $195 payment, I had to up the rate to 6.6%. Or is it standard to use some other technique for computing the monthly payments?Its probably a typo (they probably meant approx $185 since I get $184.12)

Loan Calculator


I probably used the wrong technique for computing interest, as the other method would come up with your $184.12. That said, I would check with them about this before getting the loan (not that I am in the market for this, but a co-worker is).

PhrugalPhan said: jatan1986 said: PhrugalPhan said: I printed out the Used Auto Loan Rates, and at the bottom is an example of $10,000 @ 3.99% for 60 payments. It states the montly payment would be $195. When I put those numbers into Excel (10,000, 3.99, 60) I get monthly payments of $183.51. Is the difference a refinance charge that gets spread over the length of the loan (60 x $11.50 = $690)? To get the $195 payment, I had to up the rate to 6.6%. Or is it standard to use some other technique for computing the monthly payments?Its probably a typo (they probably meant approx $185 since I get $184.12)

Loan Calculator


I probably used the wrong technique for computing interest, as the other method would come up with your $184.12. That said, I would check with them about this before getting the loan (not that I am in the market for this, but a co-worker is).
The loan calculator numbers are the correct ones

Heres an Excel calculator posted on FW in the past: see attachment

ecjjones said: beatnik28 said:

I applied online this morning to re-fi an existing used auto loan, and was approved immediately. I will update this thread along the way with my experiences.


So re-fi'd and took out an additional $5K?

I currently have a penfed 4.5% car loan with them....for a Honda Fit I bought new last year (2008)...

Am seriously considering doing this...

Let me know how yours goes..


I should have worded my post more clearly. The loan I am re-fiing isn't from PenFed, it's from my local CU.

As an update, the loan I applied for yesterday (which was approved at the end of the application process) now shows as "active" and is listed under my PenFed accounts.

I applied yesterday to be a member at PenFed so I can get this rate. So far, judging by their customer service, I might be happier keeping my loan with USAA. Becoming a member of PenFed has been such a PITA, and now they are saying that the information I submitted to them doesn't match my credit report that they pulled, so I have to fax in a notarized copy of my Drivers license and utility bill.

I asked them what credit report they pulled, they told me Equifax, I pulled it and it is exactly what I gave them!

</rant> ... sorry, I'm annoyed.

brettdoyle said: Hi all. I have a 2006 Scion TC that I paid cash for. I have a clear title with my name on it. Anyone know if it would be possible to take out a loan against it as collateral? Thanks.

Yes. I applied and pending approval upon I fax the title to them showing there is no lien against it. You may have to call them to finish the application since the online application won't allow you put yourself as the payee.

Also, note, interest rate deduction is part of the stimulus plan. If this gets passed, the 3.99% rate becomes 2.99% effectively (based on your tax rate).

tazzy531 said: Also, note, interest rate deduction is part of the stimulus plan. If this gets passed, the 3.99% rate becomes 2.99% effectively (based on your tax rate).

Although the current bill wouldn't include used car loans, only new

bump. for new loans anyone know if they send you a blank check or how's that work?

amandaw33 said: bump. for new loans anyone know if they send you a blank check or how's that work?
You call them with the VIN and who to make the check out to, they will send it to you via USPS or fedex overnight it for a fee. If you want to pull up to 100% LTV, they will mail you a check for the remainder.

amandaw33 said: bump. for new loans anyone know if they send you a blank check or how's that work?

When I purchased my Honda Fit last July, they sent me a check with the max it could be written for.

did you guys put $$ down on the car as well - did you hand the dealer a bank check and the rest as a check from penfed?

amandaw33 said: did you guys put $$ down on the car as well - did you hand the dealer a bank check and the rest as a check from penfed?

I put $3K down(on a penfed credit card), and then paid the rest with the penfed check.

Thanks. I'm wondering if it's normal for a dealer to accept 2 checks as I want to put a large amt of cash down (prob too much for dealer to accept CC).

amandaw33 said: Thanks. I'm wondering if it's normal for a dealer to accept 2 checks as I want to put a large amt of cash down (prob too much for dealer to accept CC).
We used CC (with 0%APR ) and PenFed check when buying a new car for my gf from a dealer.

toy4two said: don't see anything restricting this to USED DEALER PURCHASE so do they allow PERSON TO PERSON PRIVATE USED PURCHASES.

Anyone doing person to person with this, I had a bad experience with used car dealers (big surprise!) and I only purchase my used cars from individuals now.

They did not restrict person-to-person transaction as of December when I was buying a car for myself. Though, it requires extra step or 2. They actually want VIN and person's name and exact amount before issuing you a check, which makes negotiating a bit more difficult if you know what I mean.

Xeon852 said: amandaw33 said: bump. for new loans anyone know if they send you a blank check or how's that work?
You call them with the VIN and who to make the check out to, they will send it to you via USPS or fedex overnight it for a fee. If you want to pull up to 100% LTV, they will mail you a check for the remainder.


It really depends.
  • They sent a blank check with max note on it, w/o asking for make,VIN, dealer name to my gf: she was an existing customer for some time

  • They asked for all info regarding seller and vehicle being purchased before issuing me a check with preprinted info on it. I was a new customer.


I spoke to Credit dept. and they said they have a cut off credit score criteria, though both scores were almost identical (as I check them daily). My guess is it is somewhere between 720-740 OR/AND existing relationship with PenFed is considered too.

Skipping 152 Messages...
How much repair does her old car need?



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