Penfed 0.99% auto loan

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mikep
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Penfed 0.99% auto loan

Post by mikep » Thu May 21, 2015 12:59 pm

Penfed has a sale on their 4 year new (2014-15) car auto loan at 0.99% through Memorial Day. Interesting, the 3 year term is still 1.49%.

Not a member of Penfed but I have heard they are strict in their lending decisions.

What credit score is needed for that rate?

Would they allow cash out refinance at that rate?

I have 4-5 inquiries in the recent 6 months from refinancing the car loan and multiple CCs to take advantage of various miles/offers, and have one of them with a high 0% balance around 10K that I could pay off today, but I have cash earning interest in the bank so I don't. Would penfed see me as a high risk even though I have a high 700s score.

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midareff
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Re: Penfed 0.99% auto loan

Post by midareff » Thu May 21, 2015 1:11 pm

mikep wrote:Penfed has a sale on their 4 year new (2014-15) car auto loan at 0.99% through Memorial Day. Interesting, the 3 year term is still 1.49%.

Not a member of Penfed but I have heard they are strict in their lending decisions.

What credit score is needed for that rate?

Would they allow cash out refinance at that rate?

I have 4-5 inquiries in the recent 6 months from refinancing the car loan and multiple CCs to take advantage of various miles/offers, and have one of them with a high 0% balance around 10K that I could pay off today, but I have cash earning interest in the bank so I don't. Would penfed see me as a high risk even though I have a high 700s score.
I found then about the same as others. You should be able to get the 5 percent gas card once you have that loan.
Last edited by midareff on Thu May 21, 2015 1:12 pm, edited 1 time in total.

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Meg77
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Re: Penfed 0.99% auto loan

Post by Meg77 » Thu May 21, 2015 1:11 pm

I don't know the answers to your questions, but thanks for mentioning this. We are paying 2.15% on a 2014 car loan and may just give this deal a shot!

In general lenders just care about your existing debt payments and credit score, not # of inquiries or credit cards. PenFed says on its car loan page that you may even get an instant approval which means they use an automated consumer underwriting system. Those tend to be largely credit score based. If you have over 700 in general you can qualify for any deal.
"An investment in knowledge pays the best interest." - Benjamin Franklin

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Thu May 21, 2015 1:12 pm

Also what deductible do they require? I usually keep $1000 but if they require a lower one that would eat the savings.

Also this is "good through Memorial Day", ie. Monday. This means tomorrow the loan would need to be funded, as the last business day available before the end of the offer? Since you get the deal in effect at the time of loan funding: "The rate you receive on your loan will be the rate in effect at the time of loan disbursal."

This looks like more hassle than its worth..I don't think Penfed could move that fast. Especially since I have a fraud alert due to Anthem breach. Next week the rate would be higher and that's the rate you would get.

iBogle
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Re: Penfed 0.99% auto loan

Post by iBogle » Thu May 21, 2015 3:20 pm

If you own your car outright, you can still take advantage of the deal to pay off higher interest rate loans.

sharpjm
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Re: Penfed 0.99% auto loan

Post by sharpjm » Thu May 21, 2015 4:03 pm

Meg77 wrote:I don't know the answers to your questions, but thanks for mentioning this. We are paying 2.15% on a 2014 car loan and may just give this deal a shot!
I'm in the exact same scenario, but I don't think I'm going to mess with it. The hassle of application, setting up auto pay at a new financial institution and the credit pull are just a bit too much. And the fact that it would have to be all taken care of by tomorrow.

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Thu May 21, 2015 5:16 pm

I called Penfed about this.
Loans are usually approved/funded within 24-48 hours. Sat/Sun together count as a business day and Monday is actually a business day as well, so if applied today it will likely fund in time (1-2 business days).

Here's the deal breaker for me: They require a $500 deductible. I currently have $1000, so I would need to pay more in insurance costs to go to $500, which would cancel out the savings from the lower rate.

tj
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Re: Penfed 0.99% auto loan

Post by tj » Thu May 21, 2015 5:30 pm

mikep wrote:I called Penfed about this.
Loans are usually approved/funded within 24-48 hours. Sat/Sun together count as a business day and Monday is actually a business day as well, so if applied today it will likely fund in time (1-2 business days).

Here's the deal breaker for me: They require a $500 deductible. I currently have $1000, so I would need to pay more in insurance costs to go to $500, which would cancel out the savings from the lower rate.

When i refinanced to NFCU, I think they required a $500 deductible, but I never changed it from $1k. Either they don't know, or they don't care.

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Re: Penfed 0.99% auto loan

Post by harikaried » Thu May 21, 2015 5:37 pm

mikep wrote:They require a $500 deductible
That's what it says on the letter to insurance that also requests putting PenFed as a lienholder. I called them to see if $1000 deductible was fine, and the person immediately said it was no problem.

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Thu May 21, 2015 5:38 pm

How to know for sure when there is conflicting information from different reps? I was told I'd have to change my deductible from 1000 to 500. I don't want to do this then be stuck with higher insurance costs.

harikaried
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Re: Penfed 0.99% auto loan

Post by harikaried » Thu May 21, 2015 5:55 pm

mikep wrote:I was told I'd have to change my deductible from 1000 to 500
I'm not sure if it's because we've had the loan with a $500 deductible for a year already, but given how quickly the person responded, it didn't seem like a huge deal.
iBogle wrote:If you own your car outright, you can still take advantage of the deal to pay off higher interest rate loans.
If you currently have a PenFed auto loan, you can refinance directly online with a few clicks.

We currently have a 0.99% 48-month loan with 32 months left. From the payment reduction screen, I can slide it to 16 additional months to stay within the 0.99% 48-month rate, and this reduces monthly payments by over $200. (Amusingly, increasing to 17 additional months results in a higher monthly payment because the rate jumps from 0.99% to 2.24%.)

The thing is we pay a fixed amount towards all loans each month, so the $200 saved would go towards paying down a 2.625% ARM, so I guess technically we would be borrowing at 0.99% to pay down a 2.625% mortgage. At the end of the day, not /that/ much interest saved, but it's just a click, a slide, and another click!

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Re: Penfed 0.99% auto loan

Post by harikaried » Thu May 21, 2015 6:47 pm

mikep, I called PenFed for you to ask about the deductible, and they said $1000 is fine and gave a phone number to double check with their 3rd party insurance verification service. That service said that PenFed determines the requirements, and PenFed actually changed their requirements about a year ago for all auto loans to allow up to $1000 deductible.

Separate from that, I ended up refinancing our auto loan to 100% of the current vehicle value and extended to 0.99% 48 months, so we cashed out some extra to lump pay down the mortgage. (It required a credit check for the cash out refinance, but it was approved just fine even though we recently applied for almost 10 credit cards for several thousand dollars of sign up bonuses that total almost the amount we just cashed out. I figure we should make use of our credit instead of just letting it sit! :beer )

abugarcias
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Re: Penfed 0.99% auto loan

Post by abugarcias » Thu May 21, 2015 7:13 pm

I have had 3 penfed loans over the years, all required $500 deductible but I've always kept it at $1,000 and they've never said anything.

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Thu May 21, 2015 10:35 pm

harikaried wrote:mikep, I called PenFed for you to ask about the deductible, and they said $1000 is fine and gave a phone number to double check with their 3rd party insurance verification service. That service said that PenFed determines the requirements, and PenFed actually changed their requirements about a year ago for all auto loans to allow up to $1000 deductible.

Separate from that, I ended up refinancing our auto loan to 100% of the current vehicle value and extended to 0.99% 48 months, so we cashed out some extra to lump pay down the mortgage. (It required a credit check for the cash out refinance, but it was approved just fine even though we recently applied for almost 10 credit cards for several thousand dollars of sign up bonuses that total almost the amount we just cashed out. I figure we should make use of our credit instead of just letting it sit! :beer )
Thanks for your help there! I'll see if I can do it. Anyone know how it works with CA title.. its all electronic I think just a $15 DMV fee?

guitarguy
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Re: Penfed 0.99% auto loan

Post by guitarguy » Fri May 22, 2015 11:51 am

abugarcias wrote:I have had 3 penfed loans over the years, all required $500 deductible but I've always kept it at $1,000 and they've never said anything.
^ This. My deductible is still $1000 also.

guitarguy
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Re: Penfed 0.99% auto loan

Post by guitarguy » Fri May 22, 2015 11:52 am

midareff wrote:
mikep wrote:Penfed has a sale on their 4 year new (2014-15) car auto loan at 0.99% through Memorial Day. Interesting, the 3 year term is still 1.49%.

Not a member of Penfed but I have heard they are strict in their lending decisions.

What credit score is needed for that rate?

Would they allow cash out refinance at that rate?

I have 4-5 inquiries in the recent 6 months from refinancing the car loan and multiple CCs to take advantage of various miles/offers, and have one of them with a high 0% balance around 10K that I could pay off today, but I have cash earning interest in the bank so I don't. Would penfed see me as a high risk even though I have a high 700s score.
I found then about the same as others. You should be able to get the 5 percent gas card once you have that loan.
For the record, you can get the 5% gas card by parking $1000 in a CD there also...no need to have a loan.

tj
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Re: Penfed 0.99% auto loan

Post by tj » Fri May 22, 2015 12:33 pm

guitarguy wrote:
midareff wrote:
mikep wrote:Penfed has a sale on their 4 year new (2014-15) car auto loan at 0.99% through Memorial Day. Interesting, the 3 year term is still 1.49%.

Not a member of Penfed but I have heard they are strict in their lending decisions.

What credit score is needed for that rate?

Would they allow cash out refinance at that rate?

I have 4-5 inquiries in the recent 6 months from refinancing the car loan and multiple CCs to take advantage of various miles/offers, and have one of them with a high 0% balance around 10K that I could pay off today, but I have cash earning interest in the bank so I don't. Would penfed see me as a high risk even though I have a high 700s score.
I found then about the same as others. You should be able to get the 5 percent gas card once you have that loan.
For the record, you can get the 5% gas card by parking $1000 in a CD there also...no need to have a loan.

You dont need a CD. I have $25 in a money market account.

Browser
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Re: Penfed 0.99% auto loan

Post by Browser » Fri May 22, 2015 12:37 pm

I currently have a $1000 certificate with Penfed so I can keep the 5% gas rebate Penfed card. Are you saying that if I took out an auto loan with Penfed that could replace the $1000 certificate to qualify for the card and I can liquidate that?
We don't know where we are, or where we're going -- but we're making good time.

an_asker
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Re: Penfed 0.99% auto loan

Post by an_asker » Fri May 22, 2015 12:47 pm

Browser wrote:I currently have a $1000 certificate with Penfed so I can keep the 5% gas rebate Penfed card. Are you saying that if I took out an auto loan with Penfed that could replace the $1000 certificate to qualify for the card and I can liquidate that?
You would have to first buy that car, Truecar or not! ;-)

mlipps
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Re: Penfed 0.99% auto loan

Post by mlipps » Fri May 22, 2015 12:54 pm

mikep wrote:I called Penfed about this.
Loans are usually approved/funded within 24-48 hours. Sat/Sun together count as a business day and Monday is actually a business day as well, so if applied today it will likely fund in time (1-2 business days).

Here's the deal breaker for me: They require a $500 deductible. I currently have $1000, so I would need to pay more in insurance costs to go to $500, which would cancel out the savings from the lower rate.
There's something ironic about the Pentagon Federal Credit Union considering Memorial Day a business day...

If anyone is looking for a similar deal, DCU has a regular 1.49% on up to 5 years. We took a cash out refi against our car instead of a student loan last fall. They were VERY generous in the valuation, no minimum deductible that I recall (ours was $1000 at the time of disbursement), and I've heard they give prime rate to credit scores as low as 680. You do have to set up direct deposit; we just set up for enough to go in to pay the var payment and rent and auto pay both from the account every month. Oh and 5% interest on savings account balances up to $500 lol. Big bucks there!!!

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Fri May 22, 2015 1:11 pm

After all I think I decided against this given the short time frame. I have 1.48% now and the savings comes to around $40 total over 4 years when I factor in the DMV fees and Penfed join fees (for friends of the military or something) so for all the hassle of a credit inquiry and application I want to get in the $500 range not $40. Unless I want to cash out and use for other things but not going to bother since I don't really want higher payments.

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Tue May 26, 2015 11:26 am

Just wanted to follow up.. did anyone apply for this on Thursday-Friday and get the 0.99% deal besides harikaried who already had a loan with them and was easier to click/refi?
I'm curious how fast they were processing if this deal comes around again.

Thanks.

iBogle
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Re: Penfed 0.99% auto loan

Post by iBogle » Tue May 26, 2015 11:41 am

mikep wrote:Just wanted to follow up.. did anyone apply for this on Thursday-Friday and get the 0.99% deal besides harikaried who already had a loan with them and was easier to click/refi?
I'm curious how fast they were processing if this deal comes around again.

Thanks.
I think I applied last Tues night. Called them Thursday evening to check the progress (didn't receive any notification or updates) and the rep said that I was approved and she would have the check sent out ASAP. I would say to call after you apply to get things expedited if you need too.

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Aptenodytes
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Re: Penfed 0.99% auto loan

Post by Aptenodytes » Tue May 26, 2015 5:07 pm

mikep wrote:Just wanted to follow up.. did anyone apply for this on Thursday-Friday and get the 0.99% deal besides harikaried who already had a loan with them and was easier to click/refi?
I'm curious how fast they were processing if this deal comes around again.

Thanks.
I applied on Saturday afternoon and had the approval instantly and the finalization (what they call being 'transferred') by Sunday.

I was already a penfed customer.

This was another case of the forum helping me tangibly. I had plans to buy a Volt. This news got me to carry through. I had already done all the hard thinking and just needed to commit to a specific car.

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BrandonBogle
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Re: Penfed 0.99% auto loan

Post by BrandonBogle » Tue May 26, 2015 11:49 pm

mlipps wrote: If anyone is looking for a similar deal, DCU has a regular 1.49% on up to 5 years. We took a cash out refi against our car instead of a student loan last fall. They were VERY generous in the valuation, no minimum deductible that I recall (ours was $1000 at the time of disbursement), and I've heard they give prime rate to credit scores as low as 680. You do have to set up direct deposit; we just set up for enough to go in to pay the var payment and rent and auto pay both from the account every month. Oh and 5% interest on savings account balances up to $500 lol. Big bucks there!!!
I also went with DCU since they offered 1.49% for 65 months on a used car. PenFed's 0.99 requires a 2014 or 2015. I even called PenFed since I have existing 0.99 and 1.49 auto loans with them, and they said they cannot match DCU's rate. That is the extent of my loyalty. I will give PenFed the chance to earn new business, but I will ultimately go with the best value to me. This time around, that wasn't them.

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Re: Penfed 0.99% auto loan

Post by harikaried » Wed May 27, 2015 1:47 am

Just to follow up, we received on Tuesday via USPS the one page loan paperwork (truth in lending disclosure / promissory note) to sign and return (no postage necessary). We also deposited the check with mobile deposit, and we'll handle it like we handle any additional cash/paycheck/bonus. Our monthly payment is lower by $64.05, and we'll put that extra towards our 2.625% ARM (as we put a fixed $1500 towards all loans via Serve each month earning 2% cash back).

mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Wed May 27, 2015 11:30 am

Aptenodytes wrote:
mikep wrote:Just wanted to follow up.. did anyone apply for this on Thursday-Friday and get the 0.99% deal besides harikaried who already had a loan with them and was easier to click/refi?
I'm curious how fast they were processing if this deal comes around again.

Thanks.
I applied on Saturday afternoon and had the approval instantly and the finalization (what they call being 'transferred') by Sunday.

I was already a penfed customer.

This was another case of the forum helping me tangibly. I had plans to buy a Volt. This news got me to carry through. I had already done all the hard thinking and just needed to commit to a specific car.
That's good that they were that quick. I still have a fraud alert from the Anthem fiasco so that probably would have slowed things down. But its good to know you applied on Saturday and it was done by Sunday.. especially over a holiday weekend. I'll stay tuned incase this offer comes around again.. maybe July 4th. Also to all that said 1000 deductible was OK that is also helpful when the CSR told me 500. Thanks!

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Re: Penfed 0.99% auto loan

Post by indexfundfan » Wed May 27, 2015 11:56 am

In case anyone is interested, I have the 0.74% APR for 3 years from Western Credit union.
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mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Wed May 27, 2015 12:12 pm

indexfundfan wrote:In case anyone is interested, I have the 0.74% APR for 3 years from Western Credit union.
Thanks.. I looked at that too but I have a 2014 with 6000 miles on the odometer, where they require 5000 or less and a current year 2015 I believe for that rate. Otherwise the rate is 1.24%. Also what are the requirements to join that credit union?
Last edited by mikep on Wed May 27, 2015 12:18 pm, edited 1 time in total.

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indexfundfan
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Re: Penfed 0.99% auto loan

Post by indexfundfan » Wed May 27, 2015 12:18 pm

mikep wrote:
indexfundfan wrote:In case anyone is interested, I have the 0.74% APR for 3 years from Western Credit union.
Thanks.. I looked at that too but I have a 2014 with 6000 miles on the odometer, where they require 5000 or less. Also what are the requirements to join that credit union?
You can join some affiliated organizations though when I visited the branch, they did not even bother asking you to join. Mine is not a refi, I used it to pay for a new car.
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mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Wed May 27, 2015 12:32 pm

indexfundfan wrote:
mikep wrote:
indexfundfan wrote:In case anyone is interested, I have the 0.74% APR for 3 years from Western Credit union.
Thanks.. I looked at that too but I have a 2014 with 6000 miles on the odometer, where they require 5000 or less. Also what are the requirements to join that credit union?
You can join some affiliated organizations though when I visited the branch, they did not even bother asking you to join. Mine is not a refi, I used it to pay for a new car.
Also this rate includes a .25% auto pay discount for paying through their checking account. Are you doing that?

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Re: Penfed 0.99% auto loan

Post by indexfundfan » Wed May 27, 2015 12:41 pm

mikep wrote:
indexfundfan wrote:
mikep wrote:
indexfundfan wrote:In case anyone is interested, I have the 0.74% APR for 3 years from Western Credit union.
Thanks.. I looked at that too but I have a 2014 with 6000 miles on the odometer, where they require 5000 or less. Also what are the requirements to join that credit union?
You can join some affiliated organizations though when I visited the branch, they did not even bother asking you to join. Mine is not a refi, I used it to pay for a new car.
Also this rate includes a .25% auto pay discount for paying through their checking account. Are you doing that?
I was told the auto payment can be through ACH using any 3rd party bank account. My first payment is not even due yet.

But in any case, I figured even at 0.99%, it is the best rate I can find and so I took it.
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Re: Penfed 0.99% auto loan

Post by mikep » Wed May 27, 2015 3:20 pm

I just emailed western the car info to see if they would give me .74. Is there any referral deal I could pass on to you for your help?

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Re: Penfed 0.99% auto loan

Post by indexfundfan » Wed May 27, 2015 3:32 pm

mikep wrote:I just emailed western the car info to see if they would give me .74. Is there any referral deal I could pass on to you for your help?
I sent you a PM.
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mikep
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Re: Penfed 0.99% auto loan

Post by mikep » Fri Jun 26, 2015 9:26 am

Looks like the 0.99% offer is back from penfed as of 6/4, this time without an end date that I can find except a banner for "final week". Guess it's too late again.

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Re: Penfed 0.99% auto loan

Post by mikep » Thu Sep 03, 2015 10:42 am

It's back again for labor day weekend, this time only for 3 year loans on 2016 and 2015 model years.

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