topic Re: Penfed auto loan process in Auto Loans

Penfed auto loan process

Lilybuggy — Mon, 23 Apr 2012 18:58:30 GMT

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

Re: Penfed auto loan process

bettercreditguy1 — Wed, 25 Apr 2012 00:46:28 GMT

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.

Re: Penfed auto loan process

Lilybuggy — Wed, 25 Apr 2012 02:03:11 GMT

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?

Re: Penfed auto loan process

bettercreditguy1 — Wed, 25 Apr 2012 11:11:05 GMT

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!

Re: Penfed auto loan process

Anonymous — Wed, 25 Apr 2012 11:54:14 GMT

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.

Re: Penfed auto loan process

Lilybuggy — Wed, 25 Apr 2012 14:25:06 GMT

[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.

Re: Penfed auto loan process

Anonymous — Wed, 25 Apr 2012 16:42:09 GMT

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.

Re: Penfed auto loan process

Lilybuggy — Wed, 25 Apr 2012 18:37:28 GMT

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.

Re: Penfed auto loan process

Anonymous — Wed, 25 Apr 2012 19:25:51 GMT

@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.

Re: Penfed auto loan process

Anonymous — Wed, 25 Apr 2012 21:23:50 GMT

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.

Re: Penfed auto loan process

bettercreditguy1 — Wed, 25 Apr 2012 21:33:06 GMT

Yes, I understand about the blank check thing. I applied for the loan first to see what I would pre qualify for. They (Pen-Fed) sent me a "draft check" with the pre-approved limit endorsed on the check. It said something like "not valid over" and "this draft is valid through ... date". It was up to me to purchase and complete the sale of a vehicle within those paramaters. Precise, factually, understood. I knew Pen Fed's position. My responsiblities were to fill in the voids.

Re: Penfed auto loan process

bettercreditguy1 — Wed, 25 Apr 2012 21:43:39 GMT

p.s. I forgot to say I "custom ordered a vehicle." My stress was Pen Fed would not guarantee payment or loan terms past the approval date without another credit check. They also would not "Confirm" the draft without a VIN Number. It all worked out just fine. The vehicle was produced about seven weeks after order entry/sales commitment from me and the dealer. The Vin Number/production date occured about two weeks before the commitment time would have ended from Pen Fed. And Yes, I did place a cash down payment to initiate the "sales order" with the dealership. Win, Win, Win!

Re: Penfed auto loan process

bettercreditguy1 — Wed, 25 Apr 2012 21:57:48 GMT

Totally removed from Pen Fed is this: You will need to cover the difference of all monies due for the purchase of said vehicle and associated costs less the loan upfronted by your Financial Institution. This means you will be required to pay for sales taxes, license fees, insurance and any other fees required by your lender to complete the transaction. I am certain you are aware of this so this is informational in only.

Re: Penfed auto loan process

Lilybuggy — Wed, 02 May 2012 16:20:32 GMT

Thought I would update for any future Penfed auto researchers. Even though we applied for the blank check, PenFed only conditionally approved us and waited on the buyer's/purchase order with exact numbers before sending the draft. The timing was difficult. We closed the deal on Sunday towards the end of the month. The dealer knew we were going with credit union funding, but the salesguy was a little confused about how the process works. I personally wanted to just sign the buyer's order, put our money down, and wait for the credit union draft in order to drive away with the car. Yet, we were somehow persuaded to just sign a "courtesy" dealer financing contract and take the car then and there. I really freaked out that they would refuse to honor the PenFed draft and hold me to the less favorable terms of the courtesy dealer financing. They assured me that they would never do this and ultimately put it in writing that they woudl give me a week to provide the PenFed draft before acting on the dealer financing contract. This put me at ease a bit, but in hindsight, I wish I held to my guns about just waiting to take the car when the draft came in, but in the end, the dealer did shred the courtesy financing contract and accept the PenFed funding.

I emailed a buyer's order on Friday night. I then emailed a second buyer's order on Sunday night for a lower negotiated amount. On Monday morning, the buyer's order was still being reviewed by the loan department. I sent many emails and had my husband call twice. Finally, on Monday afternoon, they cut the draft check and I had them overnight it. It's a good idea to have more $20-30 in your account than just the required $5, because if you do have to overnight, they take the money from there.

Once it got there, my husband had to endorse it and I took it over to the dealer. Once the dealer cashes it, PenFed sends us the loan documents. All in all painless, but a bit nerve-wracking since I had signed that courtesy dealer financing contract, which again turned out fine but caused me to not enjoy my new car for 2 days wondering if I was about to be ripped off.

Re: Penfed auto loan process

Anonymous — Wed, 02 May 2012 17:28:40 GMT

Thank you so much for sharing your experience. I would be frantic waiting and waiting for PenFed to send the check and worried that the dealership would sell the car to someone else.

I'm thrilled that everything worked out okay for you after all. Congratulations on your new car!!!

Re: Penfed auto loan process

bettercreditguy1 — Thu, 03 May 2012 01:04:43 GMT

Great! I am glad the events all worked out for you. I did go ahead and place a cash down payment to "cement the purchase order of the vehicle". I did need to wait for the draft. However, I had been in the system long enought that I knew my "max pre-approved loan amount" before I went auto shopping, (via email from Pen Fed).