PenFed Loan Approved, how does it work?

Anonymous · ‎12-27-2016

I applied last week for auto financing from Penfed, and was approved. I unfortunately didn't plan ahead and just opened the account with the minimum, and didn't have the ability to overnight the check. Does anyone remember roughly how long the check took to come, hoping to go shopping this weekend for end of the year deals.

Also for those who have financed with Penfed what is the process like at the dealer. Is it a blank check that I just write for the negotiated price? Am I required to send any information to Penfed about the car, etc? Just want to get an idea of how it works. Thanks!

Appleman · ‎12-28-2016

Congrats on the PenFed approval! Regular mail should be around a week but it is around the holidays so YMMV.

It will depend on which type of loan you took out as to how they get you the funds.

If you did the Payment Saver loan, they need the exact car and final buyers order. They will then mail you a check that you sign, give to the dealer and they sign and keep. With this method I would recommend NOT driving the vehicle home until you have check in hand (will be fully filled in by PenFed).

If you went with a more standard loan you will get the blank check and it will be good for a certain amount. I always recommend that you call before signing ANYTHING at the dealer and run the car VIN and agreed upon total for the car. This will ensure no snags later from PenFed saying a certain vehicle does not qualify.

If you have the blank check you should be able to drive away that day provided you final checked everything with PenFed before signing all of the documents.

The finance guy may/will not like you bringing in your own financing and some have been know to try a few techniques to have you go with their financing (financing is one of many profit centers for a car dealership). Do not let them tell you they need to run your credit for 'The Patriot Act' (basically confirms you are not a terrorist), there are other alternative ways to check. SO, NO SIGNING a credit release form if you are planning to utilize the PenFed financing.

Now on the other hand if you do not mind a few more HPs, tell them you will utilize their financing if they can beat your current rate. This can be used as some negotiating leverage in the right hands. However, ALWAYS double check their numbers before signing anything. ANY questions, make sure you get an answer before signing.

Sorry for so long a post, just want you to be prepared. Happy to provide additional answers if you have more questions.

(I have purchased/refinanced 4 vehicles with Penfed)

Good luck and please take time to post about your experiences good or bad.....

Anonymous · ‎12-28-2016

Thanks so much for all the information, and tips! I am using the standard new car loan, so the process sounds pretty easy. I just went to check the mail, and sure enough it was there. Just for future reference the check is mailed from Omaha, NE.

I am looking at either a Hyundai Santa Fe Sport or a Nissan Murano, so I will definitely follow up with how everything goes this weekend.

Appleman · ‎12-29-2016

PenFed does offer a car buying service. This is basically the TrueCar price service. You basically fill out the information and three dealers will send you price quotes.

The good thing is that you do not pay for this service and do not have to go with one of their dealers.

Earlier this month I bought a new Accord. I put in the information and received phone calls within minutes from dealers in my area. However, one dealer completely blew everyone out of the water price wise.

I actually wanted to buy the Honda from a new dealer just minutes from my house. I filled out their 'Internet Price Quote' for a similar example on their lot. They wanted $2,000 more than the best offer I received through PenFed. I wrote the internet manager back and told him I would consider his car if he matched my PenFed price (final price with the exception of taxes). I indicated I had financing and was buying soon. They readily matched my best PenFed price and I went with the brand new dealer near my house.

I also bought the 8 year 120,000 mile Hondacare warranty at the low price that you often see in the on-line forums. The dealership matched the on-line price quote as well.

This was a very easy transaction. I could have taken time and spent a day going back and forth on price but I feel I got a good price.

As a final note, always ask about final price. This means all fees included (the only exception being sales tax). The local dealer had a $299 fee but adjusted price to account for the fee. I know some markets like Denver have seen dealer fees as high as $999.

Santa Fe and Murano both sound like great choices. Play around with TrueCar to see the market (and try for other cities in your region)

Anonymous · ‎01-02-2017

@Appleman wrote:
Congrats on the PenFed approval! Regular mail should be around a week but it is around the holidays so YMMV.

It will depend on which type of loan you took out as to how they get you the funds.

If you did the Payment Saver loan, they need the exact car and final buyers order. They will then mail you a check that you sign, give to the dealer and they sign and keep. With this method I would recommend NOT driving the vehicle home until you have check in hand (will be fully filled in by PenFed).

If you went with a more standard loan you will get the blank check and it will be good for a certain amount. I always recommend that you call before signing ANYTHING at the dealer and run the car VIN and agreed upon total for the car. This will ensure no snags later from PenFed saying a certain vehicle does not qualify.
If you have the blank check you should be able to drive away that day provided you final checked everything with PenFed before signing all of the documents.

The finance guy may/will not like you bringing in your own financing and some have been know to try a few techniques to have you go with their financing (financing is one of many profit centers for a car dealership). Do not let them tell you they need to run your credit for 'The Patriot Act' (basically confirms you are not a terrorist), there are other alternative ways to check. SO, NO SIGNING a credit release form if you are planning to utilize the PenFed financing.

Now on the other hand if you do not mind a few more HPs, tell them you will utilize their financing if they can beat your current rate. This can be used as some negotiating leverage in the right hands. However, ALWAYS double check their numbers before signing anything. ANY questions, make sure you get an answer before signing.

Sorry for so long a post, just want you to be prepared. Happy to provide additional answers if you have more questions.
(I have purchased/refinanced 4 vehicles with Penfed)

Good luck and please take time to post about your experiences good or bad.....

Great advice Appleman!

I just joined PenFed couple of days ago. Will definitely be utilizing them this coming April for their great Auto Loan rates.

What's the diffence btw with the Payment Saver Loan VS Standard Loan?

Anonymous · ‎01-02-2017

@Anonymous wrote:
Thanks so much for all the information, and tips! I am using the standard new car loan, so the process sounds pretty easy. I just went to check the mail, and sure enough it was there. Just for future reference the check is mailed from Omaha, NE.

I am looking at either a Hyundai Santa Fe Sport or a Nissan Murano, so I will definitely follow up with how everything goes this weekend.

jw2016 good luck with the car buying.. I'm in the market for the new 2017 Honda CRV-EX.

Was considering th Santa Fe as well as I currently have the Hyundai Accent, but the dealership gave a bad taste in my mouth, that I refused to give them more service.

Please share your PenFed Car buying experience once your done.

Anonymous · ‎01-02-2017

Alright, I read somewhere in the forum that you get only 1 HP and its good for 90 days. So that same day I was approved for membership I app for a CC as well and gotten approved as well..

They I realized.. Oh well might as well app for an autoloan..

I'm telling you.. PenFed customer services are one of the nicest CS I've ever dealt with.

Easy Breezy process.. Tentatively approved me in 5 mins. All I have to do is call in the VIN of the car I wanted and that should be it.

Anonymous · ‎01-02-2017

@Appleman wrote:
Congrats on the PenFed approval! Regular mail should be around a week but it is around the holidays so YMMV.

It will depend on which type of loan you took out as to how they get you the funds.

If you did the Payment Saver loan, they need the exact car and final buyers order. They will then mail you a check that you sign, give to the dealer and they sign and keep. With this method I would recommend NOT driving the vehicle home until you have check in hand (will be fully filled in by PenFed).

If you went with a more standard loan you will get the blank check and it will be good for a certain amount. I always recommend that you call before signing ANYTHING at the dealer and run the car VIN and agreed upon total for the car. This will ensure no snags later from PenFed saying a certain vehicle does not qualify.
If you have the blank check you should be able to drive away that day provided you final checked everything with PenFed before signing all of the documents.

The finance guy may/will not like you bringing in your own financing and some have been know to try a few techniques to have you go with their financing (financing is one of many profit centers for a car dealership). Do not let them tell you they need to run your credit for 'The Patriot Act' (basically confirms you are not a terrorist), there are other alternative ways to check. SO, NO SIGNING a credit release form if you are planning to utilize the PenFed financing.

Now on the other hand if you do not mind a few more HPs, tell them you will utilize their financing if they can beat your current rate. This can be used as some negotiating leverage in the right hands. However, ALWAYS double check their numbers before signing anything. ANY questions, make sure you get an answer before signing.

Sorry for so long a post, just want you to be prepared. Happy to provide additional answers if you have more questions.
(I have purchased/refinanced 4 vehicles with Penfed)

Good luck and please take time to post about your experiences good or bad.....

I think this is the loan they got me on.. Only issue is I won't know the APR until I finalized the deal at the dealership and send the final val I need to PenFed. Which is a little uncomfortable because I don't really know how much I will be paying a month.

Appleman · ‎01-02-2017

PenFed CSRs are excellent.

The payment saver is a balloon payment loan that will 'lower your monthly payment'. At the end of the loan you have a big final payment. On a $30,000 car you could be looking at $10,000 to $11,000 final payment. If you don't plan for the last payment you can get in trouble for sure. If it were my loan I would take the balloon payment divided by the number of months on the loan and put that amount in a seperate account each month (eg $10,000/60 months = $167 in an account so you have the balloon payment).

I would call them again and ask what the APR will be for the loan. Or ask them what the APR would be for a standard loan.

And, PenFed can overnight/2day the check to you for $15 and as another poster stated it leave Omaha NE.

Anonymous · ‎01-02-2017

@Appleman wrote:
PenFed CSRs are excellent.

The payment saver is a balloon payment loan that will 'lower your monthly payment'. At the end of the loan you have a big final payment. On a $30,000 car you could be looking at $10,000 to $11,000 final payment. If you don't plan for the last payment you can get in trouble for sure. If it were my loan I would take the balloon payment divided by the number of months on the loan and put that amount in a seperate account each month (eg $10,000/60 months = $167 in an account so you have the balloon payment).

I would call them again and ask what the APR will be for the loan. Or ask them what the APR would be for a standard loan.

And, PenFed can overnight/2day the check to you for $15 and as another poster stated it leave Omaha NE.

That's the weird issue I'm having. They have the application Pending (Conditionally Approved) A final decision and rate is contingent on satisfactory collateral. Mileage, Vehicle Modey Yr, and loan-to-value restrictions apply.

How can I go to the dealer and finalize the value of a car without knowing my APR rates and monthly payment. I will be a laughing stock.