Don't rule out PenFed so quickly - call them because I think you can join an affiliated organization that does not require military membership and qualify that way. It never hurts to pick up the phone and ask if they can help you join.

And not sure if this secenario could apply, but I think USAA allows relatives of members, so check that angle out as well. Any current/retired military in your family?

 

I called USAA and they told me I do not qualify. I do not have any family members that are military or anything.

As for PenFed, I initially misread the website and thought I had to pay a monthly fee of 15$. I see now that it is a one time fee. So I will have to reconsider that.

 

My brother joined up to finance a previous car and I got in for free. I think it's $30 or thereabouts to join; which I think my brother mentioned.

 

To those wondering, I have agreed upon an interest rate this morning.

Initially the dealer offered me 3.79% over 60 months. I was upset with that rate and started this thread to figure out how to improve that figure. Thanks to you guys I was able to shop around and get PenFed to ultimately offer me 1.49% over 60 months.

I ended this morning with a call to the dealer and he went from saying "Well this is what they chose to offer you (in regards to the 3.79) and you are a new car first-time buyer" to "Let me speak with the financial adviser and see what he can come up with"
At the end I settled on 1.84 through the dealer and then decided to do 48 months to even further lower the amount of interest paid.

Thanks again for all the great advice you guys saved me about $1200

 

Congrats! Looks like PenFed is definitely the best deal - 1.49% at 60 months and you can always pay it over 48 months at that same rate with no penalty. Be careful that the rate actually equals the A.P.R. on the agreement. A higher APR can reflect unnecessary add-ons. My PenFed 1.49% rate is "APR" on the promissory note.