PenFed financing process.

[SonOfLiberty]

I financed my NSX through Pen Fed, and it's been good. It was a little frustrating setting it up because they asked for 3 or 4 different papers sequentially for faxing. If they would have just told me ahead of times to fax them all, I could have done it all at once instead of stretching the review time out for an extra week or two.

But they are great for answering questions and customer service. They are open really late, so if you work a normal day job you can call them when you get home at night. Great rates in my opinion too.

 

[daicacharco1904]

I financed my NSX through Pen Fed, and it's been good. It was a little frustrating setting it up because they asked for 3 or 4 different papers sequentially for faxing. If they would have just told me ahead of times to fax them all, I could have done it all at once instead of stretching the review time out for an extra week or two.

But they are great for answering questions and customer service. They are open really late, so if you work a normal day job you can call them when you get home at night. Great rates in my opinion too.

I just went through that. Today was the final day for all the paperwork being faxed. Overnighted check is suppose to go out today.

 

[bngl3rt]

Two things I've been wondering about PenFed....

1) How is the down payment computed? I assume there is some minimum down payment percentage, but you have the option of putting more down if you want to?

2) Is there a pre-payment penalty? In other words, if you suddenly win the lotto or something, any reason not to just pay off the balance on your car in one go?

 

[DocL]

Two things I've been wondering about PenFed....

1) How is the down payment computed? I assume there is some minimum down payment percentage, but you have the option of putting more down if you want to?

I didn't need a downpayment when I used them to finance my car.

2) Is there a pre-payment penalty? In other words, if you suddenly win the lotto or something, any reason not to just pay off the balance on your car in one go?

Nope. No penalty.

 

[bngl3rt]

I didn't need a downpayment when I used them to finance my car.

Very interesting. Another thing that confuses me is the timing - a good condition NSX will get snapped up fast, so how do you get the seller to hold onto it for you once you've agreed on a price & while you deal with PenFed to get the check in the mail? I notice some NSX postings specifically say "no financing" probably because they don't want to wait for that whole process.

 

[blue_myriddn]

Very interesting. Another thing that confuses me is the timing - a good condition NSX will get snapped up fast, so how do you get the seller to hold onto it for you once you've agreed on a price & while you deal with PenFed to get the check in the mail? I notice some NSX postings specifically say "no financing" probably because they don't want to wait for that whole process.

Two things:
1. Cash down payment. Don't expect anyone to hold a car unless you give them a reasonable down payment. Cash is better than a check, green bills speak.

2. Bring a purchase agreement and have the seller sign it.

Those two things combined should allow you to hold on to a car and "close the deal" even if you are waiting on a check.

Penfed is a little tedious for out of state private transactions unless you are pre-approved in which case I *think* you can get the check in advance. Then again, all financing for private parties may be a nuisance, Penfed is the only one I have ever dealt with.

 

[bngl3rt]

2. Bring a purchase agreement and have the seller sign it.

Sounds like a great idea. Are there any good templates for such a thing? Maybe LegalZoom has one?

Penfed is a little tedious for out of state private transactions unless you are pre-approved in which case I *think* you can get the check in advance.

In advance of even finding and documenting a specific car??

 

[blue_myriddn]

Penfed actually has a letter of intent to sell in their forms section that you need to have filled out anyways (https://www.penfed.org/forms/ - hit the loans tab, then Letter of intent to sell auto). There are also plenty of other templates around the internet too, I remember tracking a few down but I couldn't quickly find them for you at the moment.

No idea about the pre-approval stuff as I hadn't been a member long enough to be pre-approved It may be worth asking about though as they mumbled something about it on the long phone conversation that I had with them when I was trying to figure out how I could get me + check to the car I wanted to buy. I ended up failing and was forced to make 2 trips.

 

[bngl3rt]

No idea about the pre-approval stuff as I hadn't been a member long enough to be pre-approved

Anyone else know anything about this?

Would be great to be able to take the check with you, and if PPI looks good, hand it over and drive away...

 

[daicacharco1904]

I believe its due to being a member for a certain amount of period and all documents were given. It takes 24 hours for them to view. My process took about two weeks due to them telling me to fax required documents one by one.

 

[Teej]

I wanted a '97 or at least a '95 - '96 for the -T- but I'm reading that in order to get a good rate, I would need a '91-'92 with sub 100k?

 

[blue_myriddn]

I wanted a '97 or at least a '95 - '96 for the -T- but I'm reading that in order to get a good rate, I would need a '91-'92 with sub 100k?

Should be able to finance a newer car. I financed my 2001 and got a 1.99% - I only financed for 2 years though, if you finance over 4 years or more you are looking at 2.49% I believe.

 

[Teej]

Should be able to finance a newer car. I financed my 2001 and got a 1.99% - I only financed for 2 years though, if you finance over 4 years or more you are looking at 2.49% I believe.

So because of the age of your 2001, was 24 months your only option? I know most places will not go 4+ years on vehicles 3 years or older.

 

[blue_myriddn]

So because of the age of your 2001, was 24 months your only option? I know most places will not go 4+ years on vehicles 3 years or older.

no, I only requested a 2 year loan. Dunno if they would restricted me, so sorry that I can help there. I don't see anything on their website indicating a restriction due to age, only NADA Retail value. I can't say I researched it heavily though as 2 years was all I needed.

 

[Teej]

Rec'd my PenFed welcome packet in the mail today...

 

[bngl3rt]

Rec'd my PenFed welcome packet in the mail today...

Go Teej! Beginneth the hunt?

 

[itrsteve]

Go Teej! Beginneth the hunt?

The part that sort of sucks about PenFed is that you have to have the specific car locked in with a purchase order and everything before they'll cut a check. I like the USAA process better but the PenFed rates can't be touched.

 

[Teej]

The part that sort of sucks about PenFed is that you have to have the specific car locked in with a purchase order and everything before they'll cut a check. I like the USAA process better but the PenFed rates can't be touched.

Elaborate please. Do you have to have a purchase order ready before they will even talk? Or just cut the check?

 

[itrsteve]

Elaborate please. Do you have to have a purchase order ready before they will even talk? Or just cut the check?

They made me modify the whole application based off one specific car (VIN), send it up to a loan officer for approval and then finally cut a check once a PO was done. Sort of makes it a pain for those sight unseen purchases you have to travel for.

 

[yoojeankim]

could i ask how what loan value they'll go based upon? the nada average/high retail price?

what % will they give loan to value

thanks guys
dan

 

[itrsteve]

could i ask how what loan value they'll go based upon? the nada average/high retail price?

what % will they give loan to value

thanks guys
dan

They'll go up to the NADA high retail 100%

(I know, that's what I said)

 

[yoojeankim]

nada doesnt allow me to put mileage unless theres another way?

 

[dirtiehippie]

I'm new to the site and getting ready to shop for/buy an NSX after parting ways with my previous 'fun' car - 400 hp turbo RSX-S (it is time for a proper sports car.)

This thread was a tremendous help in alleviating the stress of trying to figure out where I could get financing. Signed up with PenFed and have an application in the works.

Many thanks to everyone that chimed in with advice and personal experience dealing with PenFed. You all were a big help.

- Chris

 

[Teej]

Keep us posted on your transaction in dealing with PenFed.

 

[bngl3rt]

So in a regular used car sale, the seller signs the title over to you and you drive away.

But how does it work with financing? Who is responsible for sending the title to PenFed so that they can hold onto it? Buyer or seller?

Show up with pre approved cashier's check, PPI looks good, write agreed price on cashier's check, drive to bank, verify funds in seller's acct, do paperwork (CA release of liability etc in my case), receive signed-over title.

Mail title to PenFed??