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.
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Message edited by: beatnik28 on 2009-02-04 21:03:22 CST
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dchen2
Member
rated:
posted: Feb. 1, 2009 @ 4:19a
Sweet, like they said a good deal just got better!
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?
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.
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.
Message edited by: Otterley on 2009-02-01 12:12:32 CST
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.
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.
Message edited by: beatnik28 on 2009-02-01 14:55:38 CST
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!
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)...
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