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Chase beat PenFed

southernblueeyes
New Contributor

Chase beat PenFed

I was dead set against letting the Acura dealership run my credit but in the end I'm happy I did.  Only 2 new cars on the lot when I went Saturday so I put a deposit on one.  Waiting for settlement offer on my totaled Honda before purchasing. But they would only hold it until today. Applied with PenFed Saturday and they finally approved today $50,000 72 months @ 4.09%  BK 7 was discharged March 2020. Thought for sure noone would beat that rate. Chase did. 72 months @ 3.8% less than 2 years after bankruptcy discharged. 

Message 1 of 17
16 REPLIES 16
4sallypat
Established Contributor

Re: Chase beat PenFed

Congrats on the new Acura!

 

I am not surprised at Chase beating PenFed.

 

I had thought PenFed with their low rates posted would be a slam dunk for me too but it wasn't.

My local CU beat them by 1%.

Message 2 of 17
Gmood1
Super Contributor

Re: Chase beat PenFed

4 or 5 years ago I'd have never thought Chase could beat Penfed offers. Unfortunetly, Penfed advertises rates they rarely give now a days.

My current FICO 9 EQ displayed with them is a 818 from over a month ago. Probably 820 now..

That's why after 4 vehicles in a row financed with them, I went else where. The next one scheduled in January, will also be financed with a different lender.

Congrats on your approvals!! 

Message 3 of 17
4sallypat
Established Contributor

Re: Chase beat PenFed


@Gmood1 wrote:

4 or 5 years ago I'd have never thought Chase could beat Penfed offers. Unfortunetly, Penfed advertises rates they rarely give now a days.

My current FICO 9 EQ displayed with them is a 818 from over a month ago. Probably 820 now..

That's why after 4 vehicles in a row financed with them, I went else where. The next one scheduled in January, will also be financed with a different lender.

Congrats on your approvals!! 


Yes, I had the same exact experience - never got PenFed's lowest advertised rate.

 

Glad I shopped around and got a better rate at my local CU.

Message 4 of 17
Loquat
Moderator

Re: Chase beat PenFed

Congrats on a better rate and on the new Acura! PenFed is really good but if Chase can beat them, even better for you. Congrats again and enjoy your new set of wheels.
Message 5 of 17
dunn2500
Frequent Contributor

Re: Chase beat PenFed

GM beat pen fed and navy for me last month.....they would rather have the interest i think, heard some dealers arent even allowing outside financing right now, wasnt case for me but ill take the lowest

 

GM was 2.49% and others were 3.19%.....funny thing is i got letters for refinance shortly there after, but havent called to check.....

 

2022  3/4 ton pickup for under MSRP, no ADMs and had a check to buy........i gave dealer one shot to beat them and they did

 

 

Message 6 of 17
ridgebackpilot
Established Contributor

Re: Chase beat PenFed


@dunn2500 wrote:

GM beat pen fed and navy for me last month.....they would rather have the interest i think, heard some dealers arent even allowing outside financing right now, wasnt case for me but ill take the lowest

 

GM was 2.49% and others were 3.19%.....funny thing is i got letters for refinance shortly there after, but havent called to check.....

 

2022  3/4 ton pickup for under MSRP, no ADMs and had a check to buy........i gave dealer one shot to beat them and they did


Couple of issues here: First, I don't believe any auto manufacturer or dealer can prevent you from financing the truck anywhere you wish. It's not up to them to "allow" outside financing or not. You bring them a check, they give you the truck...

 

Second, no one should be surprised that GM gave you a rate that beat the other lenders. Captive lenders almost always can do that, because they offer loans that are subsidized by the manufacturer. That's why lots of folks here have received zero (0) percent APR loans from Ford Motor Credit and the other captive lenders. No outside bank or credit union is ever likely to match that!

 

So, you did the right thing by letting GM Financial bid for your business. On a new vehicle, I always ask what the captive lender can give me. It's almost always the best rate around!

Message 7 of 17
dunn2500
Frequent Contributor

Re: Chase beat PenFed

if you research alot of dealerships are refusing outside financing, multiple sources confirmed.......whether its legal i havent a clue but alot of people buying cars have claimed dealers dont want the check and actually turned them away unless they financed thru them......take it fwiw......guess they figure the car will sell on their terms or next person will accept it.....

 

 

Message 8 of 17
Loquat
Moderator

Re: Chase beat PenFed


@ridgebackpilot wrote:

@dunn2500 wrote:

GM beat pen fed and navy for me last month.....they would rather have the interest i think, heard some dealers arent even allowing outside financing right now, wasnt case for me but ill take the lowest

 

GM was 2.49% and others were 3.19%.....funny thing is i got letters for refinance shortly there after, but havent called to check.....

 

2022  3/4 ton pickup for under MSRP, no ADMs and had a check to buy........i gave dealer one shot to beat them and they did


Couple of issues here: First, I don't believe any auto manufacturer or dealer can prevent you from financing the truck anywhere you wish. It's not up to them to "allow" outside financing or not. You bring them a check, they give you the truck...

 

Second, no one should be surprised that GM gave you a rate that beat the other lenders. Captive lenders almost always can do that, because they offer loans that are subsidized by the manufacturer. That's why lots of folks here have received zero (0) percent APR loans from Ford Motor Credit and the other captive lenders. No outside bank or credit union is ever likely to match that!

 

So, you did the right thing by letting GM Financial bid for your business. On a new vehicle, I always ask what the captive lender can give me. It's almost always the best rate around!


Actually they can, and as a Finance Manager in my previous career, I have done so...many times.  A dealer can refuse to sell you a car for any reason they want as long as it doesn't violate any discrimination laws.  I know it isn't something most want to hear but it's just the truth.  A dealer can refuse to sell you a vehicle if you choose not to finance said vehicle with them.  

 

This isn't something new and it will never go away.  Dealers have many roundabout ways of making money.  Sometimes it's on the price of the vehicle, sometimes it's on backend products, and a good amount of it comes from financing...even if a customer qualifies for 0%.  

 

We all know that in the not so distant past, manufacturers loved to offer rebates to consumers purchasing a vehicle.  Well...these same manufacturers and captive lenders also offer "factory/lender to dealer" incentives.  The criteria changes as often as  consumer rebates and sometimes dealers will give up profit in one area if it means hitting a number and getting a "spiff" in another.  

 

Sometimes that spiff/incentive comes from captive lenders. That means that I'm going to shove "house" financing on most folks until the dealership hits the mark...even if that means taking a loss on a few deals.  I can't tell you how many vacations that GMAC (at the time) paid for me as well as lined my pockets for hitting targeted goals. 

 

So yea, they can refuse to take your outside financing any time they want and there's nothing you can do about it besides shop elsewhere.  It may not feel right from the consumers perspective but it's total legal. 

Message 9 of 17
Crowhelm
Frequent Contributor

Re: Chase beat PenFed


@Loquat wrote:

@ridgebackpilot wrote:

@dunn2500 wrote:

GM beat pen fed and navy for me last month.....they would rather have the interest i think, heard some dealers arent even allowing outside financing right now, wasnt case for me but ill take the lowest

 

GM was 2.49% and others were 3.19%.....funny thing is i got letters for refinance shortly there after, but havent called to check.....

 

2022  3/4 ton pickup for under MSRP, no ADMs and had a check to buy........i gave dealer one shot to beat them and they did


Couple of issues here: First, I don't believe any auto manufacturer or dealer can prevent you from financing the truck anywhere you wish. It's not up to them to "allow" outside financing or not. You bring them a check, they give you the truck...

 

Second, no one should be surprised that GM gave you a rate that beat the other lenders. Captive lenders almost always can do that, because they offer loans that are subsidized by the manufacturer. That's why lots of folks here have received zero (0) percent APR loans from Ford Motor Credit and the other captive lenders. No outside bank or credit union is ever likely to match that!

 

So, you did the right thing by letting GM Financial bid for your business. On a new vehicle, I always ask what the captive lender can give me. It's almost always the best rate around!


Actually they can, and as a Finance Manager in my previous career, I have done so...many times.  A dealer can refuse to sell you a car for any reason they want as long as it doesn't violate any discrimination laws.  I know it isn't something most want to hear but it's just the truth.  A dealer can refuse to sell you a vehicle if you choose not to finance said vehicle with them.  

 

This isn't something new and it will never go away.  Dealers have many roundabout ways of making money.  Sometimes it's on the price of the vehicle, sometimes it's on backend products, and a good amount of it comes from financing...even if a customer qualifies for 0%.  

 

We all know that in the not so distant past, manufacturers loved to offer rebates to consumers purchasing a vehicle.  Well...these same manufacturers and captive lenders also offer "factory/lender to dealer" incentives.  The criteria changes as often as  consumer rebates and sometimes dealers will give up profit in one area if it means hitting a number and getting a "spiff" in another.  

 

Sometimes that spiff/incentive comes from captive lenders. That means that I'm going to shove "house" financing on most folks until the dealership hits the mark...even if that means taking a loss on a few deals.  I can't tell you how many vacations that GMAC (at the time) paid for me as well as lined my pockets for hitting targeted goals. 

 

So yea, they can refuse to take your outside financing any time they want and there's nothing you can do about it besides shop elsewhere.  It may not feel right from the consumers perspective but it's total legal. 


Well if any dealer would ever do this to me, not only would they never see any business from me ever again but also a ton of other people I know would never deal with them again. So if a lot of people are like me that sounds like a bad business model. Unless what they offer is better for me as well, then why not? Another way around it (if they have your dream vehicle)is to take their financing and just immediately re-fianace.



Message 10 of 17
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