Auto Loans

[Lilybuggy]

hi there,

we (well, my husband) applied for penfed auto loan this Saturday.   I didn't see where it listed a member number.  Or if it did, I didn't realize how important it would be.  Anyhow, so I get all these emails that say I am basically getting everything online.  I have no idea if we were approved.  I can't seem to sign up online without this member number.  They won't give it to me personally.   Hubs is on a business trip and doesn't want to deal wtih this right now.

i am wondering if we are approved online, do we need to take some sort of action to go forward? or do they just send the check?

if you apply on a  Saturday, when do you typically find out?

Thanks,

lily

[bettercreditguy1]

They have a process. You can not hurry it. It does take a few days while they check you out. They are extremely methodical in processes, (think military) and you will understand. Sit back and relax for a while. More than likely they will request additional information from you. Did you apply for a cc with them? If so what limit? This may add to your application time. I can tell you, for me it was well worth the wait.

[Lilybuggy]

Thanks for your response.  I actually had him call when he got home from work and was able to login that way.  Anyhow, I think there process is a little backwards since they don't give you the member number anywhere obvious that I could see, yet it is required to register, which is required to see the status of the application.   We were "conditionally approved" and they want to see the purchase order with the total price, including tax, title, fees, etc.  It's a great rate...I'm really happy.  But I'm a little clueless about how this works.  So I have to close the deal with the dealer and then they wait for the check?

[bettercreditguy1]

You will like working with them. Your membership number suddenly appears. Your loan application will be "pre-approved" with a draft check and limit amount. These documents come by mail and there is a use by date. Upon using the draft check, then loan documents and payment book follow in the mail, unless you use direct pay. Their web page is user friendly and streamlined. Customer telephone service is beyond heaven. Reps are knowledgeable in the products, very polite and focused, just like a four star hotel. Enjoy!

[dodgeball]

If there anything like NFCU another Military oriented Credit Union its going to be awesome, heard great things about Penfed if I wasnt a member at NFCU they would be my second choice.

[Lilybuggy]

[quote]Your

---

bettercreditguy1 wrote:

 Your loan application will be "pre-approved" with a draft check and limit amount. These documents come by mail and there is a use by date. Upon using the draft check, then loan documents and payment book follow in the mail, unless you use direct pay. 

---

I hate to be dense here, but online it says "conditionally approved." Under comments, it says it needs a purchase order with the out-the-door price less our down payment.

[discernment]

I am SO glad you are asking all these good questions! We are considering using PenFed to buy a vehicle.  Did they tell you that you had to put $5000-$7,000 down?  Did they require credit checks on both of you? I'm really interested in hearing how the whole process shakes out.

[Lilybuggy]

Discernment,  We didn't apply jointly.  We applied first in his name only because his income is much higher than mine and he has a more established employment history.  Anyhow, in waiting in the unknown of not being able to register online, I actually went ahead and submitted my own application.  However, in order to include and consider his income, they wanted us to apply jointly I believe.  At this point, I had gotten hubby to get the member number himself and saw his conditional approval.  I actually have some blemishes on my credit, but pretty good past auto credit, and thought my husband might have a better chance alone than me with him. So I withdrew my application.

They haven't told us how much down payment we need to put down at all.  However, they are asking for the purchase order which would show price out the door, which would include any trade-in (we dono't have one) or down payment.  That's fine by me as I wasn't going to use the money for any other purposes, but I'm just confused.  I thought I indicated I wanted a blank check, but apparently they really want to give me a specific check.

I'm pretty stoked about finding them (through these sites). 1.99% is a great rate and even though the dealer is offering 0% to quailfied buyers it would then remove several rebates, including a 1,500 one.

[discernment]

---

Lilybuggy wrote:

They haven't told us how much down payment we need to put down at all.  However, they are asking for the purchase order which would show price out the door, which would include any trade-in (we dono't have one) or down payment.  That's fine by me as I wasn't going to use the money for any other purposes, but I'm just confused.  I thought I indicated I wanted a blank check, but apparently they really want to give me a specific check.

---

Interesting!  And, I don't understand how you can tie up a specific car that long while you're waiting and waiting.  We don't have a trade-in either, that's why I asked you about the down payment.  Our local CU that we recently joined told us this last weekend (in no uncertain terms!) that, because we have no trade-in, we would have to have AT LEAST $5,000--$7,000 to put down.  Also, I've heard of CUs giving you a check to go shopping with --- but, I've NEVER known anyone who actually received such a check.  The financial institution ALWAYS wants the purchase order with the bottom line figures in place so that they can give you a check for that specific amount and NO MORE. 

Its already been 5 days since you started this transaction, I sure hope they don't sell the car you want out from under you while you're doing all this waiting. 

[HoldingOntoHope]

When you find the car you want and negotiate the purchase the dealer finance people will know how to handle PenFeds loan. They should have given you some upper limit as to what you are approved for. Whether it will require a down payment will depend on the negotiated deal and the "Out the door" price. Most lenders have a limit on loan to value (LTV) with auto loans. If the price of the car is near or at the total value then you will need a down payment to cover processing fees, taxes, license, etc.

If there are any rebates or dealer reduces the price from MSRP then no down may be necessary. If you are not confident in the car buying process, then find a knowledgeable friend and bring them along as a negotiator. In any case be prepared to walk away from any specific deal. There are thousands of options, and dealers in any metropolitan area.