Doesn't every financial institution want insurance on items listed as collateral?
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PenFed financing process.
- Thread starter daicacharco1904
- Start date
Doesn't every financial institution want insurance on items listed as collateral?
- Joined
- 25 February 2012
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- 2,165
I'll add this information here since I had to find it out the hard way, in the hopes that it will save someone a headache in the future:
PenFed will only finance up to 50% of NADA Average value for salvage vehicles. I don't want to re-ignite the debate over salvage vehicles, but just a heads up - I went in thinking it was 50% of NADA High retail, made an offer accordingly, and then had to back out, which was no fun for anyone.
PenFed will only finance up to 50% of NADA Average value for salvage vehicles. I don't want to re-ignite the debate over salvage vehicles, but just a heads up - I went in thinking it was 50% of NADA High retail, made an offer accordingly, and then had to back out, which was no fun for anyone.
I think thats 50% more than most places will do for a salvage title. Otherwise its a personal loan
Correct. Most banks won't finance for salvage. Penfed is a great deal! I plan to use them for my next purchase.
Just tried joining Voices for Veterans. Submitted and got a server error. Any other organizations you guys would recommend joining instead?
Thanks
Thanks
- Joined
- 10 September 2010
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- 206
So, I've been approved, but I'm a bit confused as to exactly what happens afterward.Pretty similar to a private transaction, the seller signs the title over to you. For in state, you would then deliver the title (mail or in person) to PenFed. If you fail to do so, they may raise your rate or simply cancel the loan and send a collection agency your way. They have quite a bit of authority with your signed loan agreement.
For out of state, it is even easier. When I registered my vehicle at my DMV, I simply indicated who the lien holder was and they were supposed to mail the new Title directly to them. You never get the title back until the car is paid off.
I happen to know this because the ever so sharp Virginia DMV messed it up and mailed the title to me instead. Now I need to re-mail it back over to PenFedMore than likely there will be some weirdo mark on any future Carfax report that is ever run. Oh well, maybe they will google this thread (psst - its on VIN JH4NA21621T000002).
According to your post:
1. Seller signs title over to me.
2. I send title to PenFed.
Okay, then?
3. Taxes? Who pays the tax? Last time I had a car financed, the bank paid the taxes for me and took care of the tags. Can I somehow add the taxes to the loan amount?
A big thumbs up for PenFed. Applied on Friday, approved the following Tuesday. Overnight shipping of the check for $15. :biggrin:
I've been a member with them since '04 and remember during an out of state purchase I brought the title, insurance card, and pen fed loan paper work to the Dmv to register. It was fast and easy and I paid my sales tax at the DMV upon registering. I'm not sure if I signed the title prior to turning into the DMV.
I usually apply for a certain amount and receive the pre approved check the next day. I applied for a 22K loan once and planned on spending no more than 20K. Penfed said to keep the rest or apply it to the loan. Granite this was a few years ago, but my wife is a new member and they were VERY strict asking for vin # and info about the exact vehicle she plans on purchasing. I think since I am on my 5th auto loan, refinanced my house through them, and been a member for 8 years they take this into consideration during the application process.
I usually apply for a certain amount and receive the pre approved check the next day. I applied for a 22K loan once and planned on spending no more than 20K. Penfed said to keep the rest or apply it to the loan. Granite this was a few years ago, but my wife is a new member and they were VERY strict asking for vin # and info about the exact vehicle she plans on purchasing. I think since I am on my 5th auto loan, refinanced my house through them, and been a member for 8 years they take this into consideration during the application process.
Taxes depend on your state. If you buy at a dealer in-state then they'll roll tax-+tags into the out the door price. I bought mine from a dealer out of state and got my $1400 raping when I got to the DMV in NC.
- Joined
- 31 October 2011
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Felt your pain!
For me in VA, taxes were due when I registered the car at the DMV. I can't think of a way you could roll that in to your loan.
PenFed will allow you to finance the NADA average retail value, regardless of what the selling price is. If you're paying less for the car, they will issue the loan in two checks. One made out to the seller for the amount you agreed to for the sale, and the other made out to you. So, you can use that amount for whatever you want, including taxes....
I stand corrected, thanks for the update.
- Joined
- 21 August 2011
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PenFed is also great because they seem to have an army of attractive sounding ladies working customer service.:biggrin:
Best financing deal I found is with state farm bank.. done in 1 day..
Yeah but does SFB offer up to 60 months at 1.99% of any year NSX under 100k?
Is there someone at PenFed I should ask for directly? I just called in my application and was told to call back in 24-48 hours for a decision as it is with a loan officer. I'm pretty sure I have read on this post somewhere that people were finding out almost immediately so I'm a little skeptical. On any other application in the past, either I was immediately approved, or told to "check back" which always really meant "Your application was denied for the following reasons".
I wont go into the exact numbers but my income with my new job is 4x my previous income and although I volunteered to provide proof of income, the lady I spoke with said it wasn't necessary unless requested.
I wont go into the exact numbers but my income with my new job is 4x my previous income and although I volunteered to provide proof of income, the lady I spoke with said it wasn't necessary unless requested.
honestly, I think i'm still living in the past and am mentally jumping the gun here.
I fully expect for them to ask for proof of income (I sure would considering the spike). My credit scores range from the low 700's to high 700's.
Debt to income has been unfavorable but when compared to new income, it's nothing at all.
I don't remember how PenFed works, but a local credit union that I used to bank with during my college days wouldn't finance me for an auto loan until I had a 6 month employment history at my first job. However, let's not jump to any conclusions until you receive an official response.
yeah, 6 months and some places 2 years. We will see.
Conditionally approved pending proof of income
- Joined
- 10 February 2008
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- 39
I was approved in 2 days after applying with no income for the 24 prior months and only being employed for 3 weeks.
Congrats!
