I didn't sign up for the automated payments and have not received the booklet. So I tried the auto few days before the due date. So here's what happened now: 1st lady I spoke with told me they wouldn't take out the 2nd payment until the next due date, didn't happen. I checked my bank and they did. Good thing I had funds but now they took out double! So again I called and the 2nd lady called and apologized and now said that I'm clear until November but they can wire back the payment if I wanted to or they can send me a check. I just let it be. But if I had gotten an overdraft for that it would've been a different story. So guys better check with them how that goes. They always change their statements every time!!

 

Create an online account with them. You can transfer your payment to them anytime "YOU" want.

 

This is one of the reasons i decided not to go with them. Everytime I called I got a different story. I can't tolerate that when dealing with my credit and paying off a car. I like to make payments when I want and how I want and the BMW financing was super easy and they all gave me clear and concise answers when I asked.

 

Just remember that if your doing account transfer with your monthly payments that you check a couple of days before your payment is do. My first payment they had the wrong bank routing number "my fault". Which I'm glad I caught and then resent them the correct info. I rechecked again 2 days after my second payment was do and the same thing happened. Even though they had the updated info 3 weeks in advance. Of course both times I caught it and nobody called me about it. So just make sure that you stay on top of your acct.

 

The finance guy at my dealership found me 4.69% for 60 months from Bank of America, so I just took it instead of using my PenFed check.

 

if you finance elsewhere always ask them how much the payment per month will be . there are many ways of calculating interest. ex: the toyota 2.9% ends up costiing you more than 5% would why the calculate the interest daily .

 

Thanks to the members that have shared their experience and knowledge here. I have read all 14 pages a couple of times and still have a few questions.

I read here (and confirmed with PenFed) that if you complete the application and choose the "no vehicle selected" option you get the blank check. That check accrues interest from the date of issue...not the date you actually use it.

That said, I assumed this would also give you a rate lock at prevailing rate at TIME OF ISSUE. The representative at PenFed said it does not. You get the prevailing rate at time of USE. Maybe I am being dense here but how can you accrue interest at time of (check) issue and then have the rate adjust to current rate at time of use? Just for reference, I asked the rep a lot of questions and every time she would put me on hold before answering. I assume she was looking up the answers or asking someone else so maybe she got confused...or I did?

 

I seriously doubt interest starts on a blank check as soon as they send it out. I had a blank check from them for over a month that I didn't use and didn't pay them anything in the end.

 

Yeah I'd have to agree but from what I've seen you can call one day and get an answer and on another day get a completely different one. I haven't applied yet (car is waiting to get on a boat) but do plan on doing so in the next few weeks. I plan on financing exactly 20k so I will put in the vehicle information but won't take all of what they offer for it (msrp I suppose is what they offer). Hopefully I can just request that amount and walk in my dealership with it and everything go okya.

 

I thought the same thing. Some have posted in this thread that interest accrues when the check is sent. Others have stated that it does not.

See above. I'm going to call again and see if I get a different answer.

All I was really trying to do with PenFed is figure out if I can get a rate lock by applying in advance. If what they told me was true.....makes no sense to pre-apply and get the "blank check" even if the interest does not accrue until it is used.

 

I don't think they could legally charge you interest, since their is no loan amount. Then again, I've lost faith in our financial sector about about a year ago.

 

Now, here is my question. Since I am requesting a specific amount, would interest and payments start from the date of issue on the check or when it is cashed?

 

Your interest rate can/will change depending on when the check is deposited through your dealer. For example I took a check from them in July fo 11k + 299 gap at the time the rate was 4.25 . Because the rate changes month to month. If I did not get the car by the end of July now I would have had a 4.5% rate. You do not ecrue interest while your holding onto the check.

 

I had been pretty happy with PenFed, but they also really screwed me over in this exact same manner. My first payment was due July 15th and I DID sign up for ACH payments but all the documentation said I should send in a check for the first payment as ACH takes 30-60 days to setup. Annoying, but ok fine I'll try to remember how to write a check. I called 5 days before to see if they got my information setup ACH, "nope" they said, so I sent in a check. 7/15 comes and BOOM they took out an automated payment and cashed my check evne though it was clearly marked as only valid for my July 08 payment [like Tweekey, I'm glad I had the funds this time...]. So I called PenFed and the guy who answered said "oh, well I'm sorry that shouldn't have happened, but don't worry, you are now paid through September." "Oh really?" I thought to myself, that was kind of annoying but I'll just let things settle out so I asked the PenFed guy if that meant the ACH payments would skip through August and resume in September. He readily agreed that was what I should expect and so I decided to let it go and went on my merry way.

August 15th rolls around and my account activity monitor goes NUTS! Apparently PenFed did pull my automated payment which caused me to leverage my overdraft protection with was tied to another account which was demanding exorbinant fees to cover the transfers and coverage (a seperate issue with my bank...who I work for...grr). So now I'm pissed and I called PenFed asking what the heck happened. "Well...I don't know why they told you that, that was incorrect and they shouldn't have said that because our automated payment takes payments every month no matter what. But don't worry, it now shows you are paid through October!" @#$%!#$^!! "That is what the last guy said! Are you telling me that even though your system knows I am paid through October it is still too dumb to not charge me money that I do not owe?!" After laughing [I was not laughing...] the lady said "yes sir, that about sums it up"

I yelled and I screamed and I blew the house down but they refused to take any responsibility for their misinformation and the serious amounts of fees it cost me [and my first overdraft EVER]. I still have a loan with them, but I'm not pleased about it.

 

+2

They do not know what they are talking about. I posted that a page or two back but I'm "too lazy" to go looking for it....

 

Guys- its probably a big call center where a bunch of college students field phone calls all day. Don't expect a super personal touch or them being as excited as you are when you tell them about your Mini. You're just a phone call. And if I get a low rate (Pen Fed is the lowest Ive found online) and they take it out of my checking each month so I dont have to write a check, all the more power to use them.

I don't expect anything else. Get a good rate and go driving!

 

That is what I expect when I call India, and I call India a lot.

My job is tied to support and resource strategies so I'm the kind of guy who asks questions of these people and where they work because I'm interested. According to what they've told me when I called in [and yes they could be lying, but their accents and situational awareness (I always query the weather) implies they are not], they are regular folks living in Virginia for the most part and are direct employees of PenFed. Their system is a proprietary internal system (in that their software and documentation is not labeled with any trademarks or brands) and not one that the folks answering the phone believe to be well suited to help them do their job.

Am I surprised to hear this from an entity tied to the government [though only loosely]? Not really, but you'd think in 2008 somebody could help them update their systems which seem to be stuck in 1998.

 

I requested a check with a set amount, and the papers that I signed said that I started paying for interest on the loan the day the check was issued.

I would have to agree with others that if the check is blank, then they can't charge interest, plus rate is not locked until the check is used.

Basically, a check with an amount is like a certified check (money already drawn against it), and a blank check is like a draft check (have to wait for check to clear). I know some people on this thread ran into delay at the dealer b/c the check was not a certified check and had to wait until check clears.

 

4th loan, all with the "preapproved" check system, no problems, no issues. I always use automated payments, never used a payment book or the "I'll remember" system.

 

I'm a month in my ownership, and I'm still not done with PenFed. Recall, I put in my VIN during the online process, not realizing that meant I was getting a standard check instead of a blank draft. Called them, they sent me a blank draft. But, it turned out that since I essentially reapplied for a second loan over the phone, they weren't able to give me the internet rate, and gave me a rate about .4% over that. I called, complained and they said "no problem, we'll flag the account and issue the loan with the internet rate when the paperwork comes in from the dealer." Got my promissory note, and guess what - wrong rate.

So, now, called back, and they checked my history and agreed to re-issue a promissory note with the correct rate on it. Very friendly and helpful people, but not perfect, either.

 

Same type of thing happened to me.....but you have to admit it's worth putting up with a little nonsense to save alot of $ in the end!

 

I've been following this thread for a few weeks quietly with no real input but decided it was time to chime in.

My mini is currently in transit and have been researching different financing options. My Mini dealer said the best they could offer was approx 6.2-6.5% so I moved on and kept looking. The best I could find was Pen Fed but was hesitant due to some of the negative experiences posted in this thread.

I made the decision to move forward with financing yesterday in light of the nation's financial crisis. I have no idea where this whole thing is going and its some scary stuff!

I joined Pen Fed a few weeks ago and the process was very simple because my father served in the military. Yesterday morning I logged on and applied online. I reached a point towards the end of the process where I wasn't sure what they were asking so I called Pen Fed and got a very nice and knowledgeable woman on the phone who clarified the question and agreed that it was ambiguous. Walked me through the remainder of the online process, logged off and a few hours later I logged back on to see that the loan was approved at the 4.75% rate advertised (also chose to purchase the disability insurance). I'm not sure of overseas call centers as this was my first call to them but the women I spoke with was definitely American who spoke clear English and said she was located in Nebraska (for what its worth).

I do not need the check for approximately 2 weeks so I requested regular mail. I also signed up for auto withdrawal because it seems people who have chosen this method of payment have had more success and it is my preferred method of paying bills (its much less painful) and already know that my first payment will be withdrawn on Nov 9 and how much it will be.

So far so good... I will keep posting on this thread as to my progress.

 

Congrats! I'm almost on my 2nd payment with them and everything has been extremely easy. I originally opted for the voucher payment but turns out, I don't have checks! Called them and found out they have a one time online payment option. Don't remember seeing this listed on the application.

 

It will be interesting to see how this economic crisis impacts people getting car loans.

 

I just went through the online application and was not 100% sure at that point I was actually submitting the application, and then the next screen that popped up was that my loan was approved. It was eerily easy. I still had some questions so I contacted them via phone and decided to remain on approved status rather than have the check issued since I still have likely 1.5 months for receipt of my MINI. I do not lock into the current 4.75%, but then I don't have their insurance verification dept calling why I don't have insurance on a car I don't have yet, and I'm optimistically thinking rates aren't going to be going up for a little while...though I'm naive on such topics.

All went well so far and I am just supposed to contact them when I actually want the check mailed to me.