Can I ask how? I have over a 820 fico and have not found this anywhere.

 

I am right there with you! Tough decision here since both of our jobs are in banking and housing related fields (yikes!). In regards to "negative" comments about PenFed, I felt that the very attractive interest rates outweighed the potential for problems. I am just a bit **** about details and wanted to make sure I completely understood their terms before signing on the dotted line. That said, I applied and was approved and it was easy. Even with the special employee rates at our bank, they could not come close to the 4.75% rate offered by PenFed for a 72mo term. I have/would never consider financing a car for 72mos (I usually pay them off in 3 years max) but feel the option for lower payments is necessary just in case one of us should lose a job due to the current economic climate.

 

When I was first looking at buying an '08 MINI back in July, Bank of America had that rate for a 60mo term. I generally start checking rates at www.bankrate.com. You click on auto and then click on the appropriate state and city and it will give you an listing of current rates. The rate he quoted did not show up for me here in Sarasota, FL even though we have BOA here. But if you clicked Cali and Irvine (where I had a family address) you would have gotten that rate. It looks like it is gone now.

 

I don't know really. I just told them if they could beat 4.75% (my penfed check) then I would be glad to go with them. I filled out a quick credit app and within a few minutes he told me he found 4.69% at BoA. My credit score is probably around 750.

 

I am a bit concerned today about the credit crisis looming. I have my Penfed pre-approval package but next week I am going to initiate the financing process and get my check for the amount I was pre-approved for. I keep hearing about banks freezing their lending, even to people with higher credit scores and I fear something might go wrong next week when I want the check. I wonder if anyone has had any negative news this week from Penfed or any other lender.

 

I, too, was concerned so I applied on Tuesday and was approved within a few hours and had the check by Friday which was sent via regular mail along with paperwork which needed signed and returned. (I did not opt for fed ex). I voiced my concern with the possibility of freezing loans or rates skyrocketing and the agent I spoke with said that I had no reason to be concerned.

I feel much better knowing I am locked in though.

If you are on the Don Q, you're delivery will probably be next week or early the following week. If you know you are definitely going with Pen Fed, it would make sense to do it now. Mine is due in to Charleston this Thursday with another week or so to the dealer. I know my first payment is due Nov 9 and I have the check in hand, made out to myself and the dealer.

 

I tend to agree with you. I am going to get with them tomorrow and have the check made out to the dealer immediately That way when the car arrives in 10 days or so I am all ready. This credit problem I keep hearing about is a bit disconcerting!

 

The only thing I know is that I applied on Friday (3 days ago) and was instantly approved, no problems. So I take this as a good sign.

 

I read this tonight and thought of this thread because I too am waiting on production and plan to go to PenFed when my Mini's done.

http://money.cnn.com/galleries/2008/...you/index.html

Good article explains it pretty well.

Its a trickle down effect. Timeline? Would be very hard to figure out, but my guess is that Plan B might help give us time before rates went up. Or they might never move. In the refinance sector, things happen close to instantly, but I dont have sufficient experience in car loans.

One good thing going for us is that a big jump in percentage isn't a huge amount- maybe $20? Not like a house mortgage where it could increase hundreds.

 

Hmmm, back and forth. To PENFED or not to PENFED...

Thanks to all for the great information thus far.

 

Just got approved withe PENFED. Here is my experience thus far.

-Joined and paid the $20 membership fee
-Logged onto the online banking and applied for loan
-Loan Denied! wtf, called and they said I have some derogatory item from 2002! I was 15 years old so I'm like great, what the heck is this.
-Contact Credit bureaus and have them invistigate it

Plan B:

-Apply for loan with a co-signer
-Submit Online Application
-Download Guarantor Form from their website
-Had my co-signer fill it and and have it notarized (notary required since he was not a member of the credit union. If your co-signer is a member no notary is required)
-Faxed the notarized guarantor form in
-18 hours later (I faxed it at 9pm) I was approved!

So from here I suspect I will receive my packet of information. I already choose the coupon book payment method in the online application process. I'll update as this goes.

So far so good...

 

Applied PenFed Wednesday 10/1
Approved that night for full amount (of course less what I am putting down) at 4.75%
Received Check in the mail Saturday 10/4 (live in Kansas City)
Check is for full amount made out to my car dealer & myself
Had wrong VIN # on the promissory note, called Monday 10/6 - she made a note on the account & had me cross out the VIN on the note & write in the correct one (only off by 1 digit & probably my own data entry error)

So.... crossing my fingers. Hope to get my car next week and all goes smooth with check. My load did start immediately; my first payment is due 11/3.

My main 2 things I need to make sure I do is 1) Get my proof of insurance to PenFed immediately & 2) Make sure I get the title to them in the 30 days.

 

Hhmmm...I have been denied. That's okay, though. I have a few other options.

 

Sorry to hear wandrur! That is great that you have some other options and there should be several places that can offer you a loan. Good luck and let us know how it goes.

 

Yeah, I think I know why. A few big payments haven't yet gone through but will be made within the next week. That, and I just realized that one account went to 'email notification only' statements...and I missed a payment. Oops. I haven't yet adapted to the electronic age, apparently.

I'll get on those, though, and give them a ring next week.

 

If anyone is on the fence regarding PENFED, dont be....it was one of the easiest processes ever. In fact, it was scarily easy! Sure you need sound credit but if you do then it is a great service. Most dealerships are familiar with how it works and will gladly accept the check and complete the process for you. I recommend PENFED whole heartedly!! Send me all your questions if you have any.

 

I never used 3rd party financing (and Im too damn lazy to go through 43 pages of Pen Fed praise), but do they verify income by looking at paystubs/W2's/bank statements? Im a self employed photographer. Do I need to prove income?

Thanks in advance.

 

Depends on your debt to income ratio on your credit report. If your debt level is relatively low, then they probably will not ask for income verification.

 

Didn't ask me for any income proof.

 

I was in sort of the same boat as you and I had to verify income, when I did I never got approved but never approved either. So I gave up and went with BMW financing. They were more then willing to give me the best rate due to my large down payment.

 

As for me, they just pulled my credit and sent the loan package out the next day. I guess it differs from person to person but once the approval comes through the process is a cakewalk.

 

just got my denied letter today... gotta call tomorrow and get something else goin... but we'll see. My dealership is horrible with even acting like they give a crap about my business so im close to walking away...

 

Know the feeling. I haven't yet gotten a letter explaining my denial, though I can likely guess the reasons. My dealership seems much better than yours, though. I'm not excited about the loan rate they're offering me, but it's likely my only option at this point. That sucks that your dealer is so sucky. Did you have the option of any others nearby?

 

well not exactly nearby, but like an hour-and a half away...

I guess we'll see if things change once i call tomorrow.

 

Good luck. Hope all goes well. Keep us apprised.