PenFed Approval

[securingourfuture]

Approved yesterday on a used car loan at 5.8% (lowest ever for me) on a second vehicle up to $24,599.  Well, I really want this car to replace my current cramped car.  But I am pretty sure I will be upside down by $5K, maybe even $7K.  And PenFed only does 110% LTV.  Any ideas?  I have maybe $2K max to put down.  My car isnt having any problems, but it's 7 years old (bought it a couple of years ago when I was on baby #2 - I have 3 now), and I don't mind a slightly higher note for a 2015 or 2016.

Thanks in advance.

[Anonymous]

You could shop around and see if you can get your auto for less to cover the negative DTI. Since PenFed pulled your credit, you could ask them since it's on file if they can give you a personal loan to make up the difference. I wouldn't realy say that to them, just be like hey.... can I also get a personal loan or an overdraft line (whatever they're calling it) and then just use that to make up the difference. If they say no, you could always see if the dealer can work their magic on the sale for you as they might know a lender who will finance higher than 110%.

[Anonymous]

The best thing to do in this situation is to shop around for a car that is priced or can be negotiated below book value. One of the things that you need to do is find out which book value PenFed uses, KBB, NADA, Black Book or other. Believe it or not depending on the car, each of these places will show a different value.

If that does not work, try to find a different lender. It is hard for me to give you much more info seeing as I do not know your current scores, the ones in your sig are old now. For instance, TD Auto Finance will approve up to 120% of a car's value, they pull TU for cr.

[securingourfuture]

PenFed wouldn't budge.

I saw the dealer yesterday, and they were trying to sell me their financing at 15%-17%, so I walked out of course. Chase has approved me for $45k at 5.49%, and my local CU approved me up for $35k at 3.24%. Both Chase and the CU don't require a trade-in; Chase will let me roll the negative equity, and the CU only has a 110% LTV. So I am trying to make the best decision here.

I failed to mention my extended warranty is transferable and doesn't expire for another 3 years/70,000 miles up to 150k miles. My car is still ok for now. I'm just trying to decide if I want to overpay on an old car that will have no warranty at payoff or a new one that will only be 5 years old at payoff.

My scores are:

EXP 658

TU 682

EQ 640

[Anonymous]

I worked at PenFed, they use NADDA for loans, and Black Book for their repos.