06-17-2013 11:37 PM
Who did the financing on the car, whas it through the dealer themselves or did they secure outside financing? At this point I don't think they are under any obligation to take any other financing from you, they have their money. Best you can hope for I think is to pay off whoever wrote the loan or refi through PenFed.
Not to chastise or anything but NEVER believe what a delear tells you. Unless it's in writing it never happened. My Grandfather sold cars for 35 years and he taught me a couple of things about how they try to get over on people.
06-18-2013 12:12 AM
The creditor-seller on my simple finance charge contract is the dealer themselves.
The thing is I just recieved the auto loan check from PenFed for $20k today.
I am just worried that my dealer won't accept the auto loan PenFed check for the $20k I owe them and instead force me to pay them via their 60 month installment fees.
As I said in my earlier post, I am able to prepay the dealer's loan at any time and will have to pay the accrued interest.
Am I just being paranoid over nothing? It matters, this is my first car purchase.
06-18-2013 12:34 AM
If you can get up there and pay it off before there is to much interest, and they accept your check you're fine. No sense in worrying until there actually is an issue.
06-18-2013 02:13 PM
I would take the check to the dealer for them to check and pay whatever interest you owe. Think the interest payment as a penlty for your mistake and never make that one again. Most people are excited to drive off the lot but make sure in doing so it is not going to cause you any hassle down the road.
One time I almost walked away from a deal because the dealer insisted I need to fill out a credit application when I had a check in hand. Needless to say I did not sign a credit app and I paid for the car with my check.
06-18-2013 02:20 PM - edited 06-18-2013 02:22 PM
That's very strange. There's no reason why you need to take the dealer-loan since they know you financing in place. And I would not agree to the loan (with high APR) if it wasn't on the contract.
Also, there's no reason why the dealership would not honor the PenFed check, money is money to them unless previous PenFed checks have bounced! Which is very unlikley.
When I purchased my new vehicle 3-years ago, I had a document (not a check) from USAA to give to the dealer; the dealer fils out the document to receive the funds. However, I did leave a personal check for the full-amount of the vehicle "in-case" the USAA check was not authorized. Needless to say, the dealership did not cash my personal check nor was I asked to sign any dealership financing until the USAA note cleared.
06-29-2013 10:09 PM
I recently purchased a vehicle on Friday and I think I made a grave mistake. I have done all my homework and was preapproved for a autoloan from PenFed for $20k. Now here is my mistake. PenFed does not send out the check until I have the VIN# of the vehicle. Unfortunately, I found the car that I wanted about 100 miles away for my home and was too excited to bring it home that same day. I think the dealer noticed this and took advantage by saying that they would not release the car to me unless I signed up for a "Simple Interest Loan" with them or if I came back to their dealership with the PenFed check already cashed and cleared. Unfortunately, I did not want to drive back 100 miles away and wait a few days for the check to clear so I signed up for their simple interest loan. The finance guy told me I am able to pre-payoff their simple interest loan in full within the first month without penalty with my PenFed check and would also have to pay their inflated APR accured interest for that month.
Now the thing that worries me is if there is any chance that the dealer will refuse to accept the PenFed auto loan check and refuse to cash it. Is this possible? I mean, the check is already money in their bank. I am afraid of them not accepting it because the APR on the dealer's loan is quite high at 4.9% as supposed to my bank's PenFed's 0.74%. That's practically money in their bank for the next 60 months. Please send me your opinions. I am worried
Just financed my RAV4 2013 via PENFED. What they (TOYOTA) offered was a finance option wherein I was given 1 week to provide them with PENFED's check or I would start paying interest to Toyota Financial's in-house loan rate of 1.99% (I guess same as the simple interest loan you are about to sign too). I just gave them the downpayment that day and drove home with the car with the loan doc signed. I guess you can just overnight or send them PENFED's check to your finance manager at the dealer once you get it to make sure it won't get lost in the mail. I guess there is no need to worry. It was the first time i financed too through a third-party bank such as PENFED which could save us money in the long run.
PENFED gave me 1.74 on 72 months as in their prom website.
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