topic Re: Penfed auto loan, what's the next step? in Auto Loans

Penfed auto loan, what's the next step?

mitchblue — Sat, 01 Aug 2015 12:37:15 GMT

I got approved for an auto loan a couple nights ago nd just got an email saying they were mailing me a pre-approval draft .. I don't have a car/SUV/Truck picked out yet. What do I need to do next? Do I just pickout a car and give the dealership the pre-approval draft? Or what, confused and don't want to mess this up. Thanks. Also, is there a limit on when you need to purchase? Do I need to use the loan within' a week, month? Thank you.

Re: Penfed auto loan, what's the next step?

Appleman — Sat, 01 Aug 2015 15:57:44 GMT

Congrats on the approval. I have done this with USAA and they have typically given me 30 days to use the approval. Basically you negotiate on the car you want and use the draft to purchase the check. I was always a little nervous and would call USAA (Penfed in your case) and make sure that the vehicle would meet their funding criteria.

USAA would usually allow enough to cover sales tax etc.

Many times I have gone in with my pre-approval in hand and gotten a better deal in the finance manager's office. Granted if you are at 0.75% they are not going to beat that offer. In 2013 my Subaru dealer was able to get me a better rate than USAA so that I included a Subaru Extended Warranty for the same payment I would have made to USAA without having the warranty included.

You have put yourself in a great negotiating position and good luck. Do not let them tell you they cannot take the check, they are basically not making any money on the financing side if you bring your own bank. Plenty of other dealers out there that will gladly take the check.

And most importantly take your time. Visit a few dealers and get their best prices. Take a notebook along and take notes. I hate to waste time or play games but I usually get the best deal when I walk away a few times. Almost always have a dealer call me back. We look forward to hearing about your purchase.

Re: Penfed auto loan, what's the next step?

mitchblue — Sat, 01 Aug 2015 20:14:42 GMT

@Appleman wrote:
Congrats on the approval. I have done this with USAA and they have typically given me 30 days to use the approval. Basically you negotiate on the car you want and use the draft to purchase the check. I was always a little nervous and would call USAA (Penfed in your case) and make sure that the vehicle would meet their funding criteria.
USAA would usually allow enough to cover sales tax etc.

Many times I have gone in with my pre-approval in hand and gotten a better deal in the finance manager's office. Granted if you are at 0.75% they are not going to beat that offer. In 2013 my Subaru dealer was able to get me a better rate than USAA so that I included a Subaru Extended Warranty for the same payment I would have made to USAA without having the warranty included.

You have put yourself in a great negotiating position and good luck. Do not let them tell you they cannot take the check, they are basically not making any money on the financing side if you bring your own bank. Plenty of other dealers out there that will gladly take the check.

And most importantly take your time. Visit a few dealers and get their best prices. Take a notebook along and take notes. I hate to waste time or play games but I usually get the best deal when I walk away a few times. Almost always have a dealer call me back. We look forward to hearing about your purchase.

Thank you much. Great advice and I appreciate it.