Got my check from PenFed today, and planned to pick up the car tomorrow, but when I looked at the check, it wasn't what I expected. I received a completed check for the full amount of the requested loan. What I expected (and what I've received the last five times I've pre-approved a loan) was a blank draft, where I or the dealer, would write in the final amount (up to the limit of the pre-approved limit of the loan.)

Did I fill out the form wrong, or is the process just a little different here? Will the dealer make this better or will I have to go through PenFed to get this cancelled and another blank draft issued (and thus, more delay.)

 

Sounds odd. Usually the requested amount is just a ballpark figure, not what you REALLY want to use.

I doubt the dealer can reimburse you the difference. Try calling PenFed to get another check.

 

This is to be expected with the PenFed process. If you want an open ended check you have to request one specifically, otherwise they issue you a check for the amount requested. However, some dealers have been known to delay delivery of MINIs for some owners who go with the open ended option. Tread carefully...

 

Yeah, something's not right. I received a blank draft from Penfed. It does list the maximum approval amount but allows for me to enter the actual price of the car. I would definitely give them a call.

 

I received a blank draft check from them and it delayed my taking delivery of my MINI for 3 days. Reason being was I didn't provide them the info yet because I wanted to make sure everything was okay before I issued the check. My dealership doesn't honor draft checks because as my MA puts it:

"A Draft Check is a conditional instrument where the institution issuing the check has no obligation to honor it."

A Cashiers Check is an unconditional instrument and the dealership will immediately release the vehicle upon receipt."

So I had signed the "option contract" which gave me 5 days to come in with my own money, in this case is the Cashier's Check from PenFed.

I guess it depends on the dealership but I know another NAM member who had to wait more than a week for the check to clear!

 

I'm surprised there are two ways to get a check from PenFed and that it's not the least bit clear to the applicant which one he'll get (they should post a link to the "Financing with PenFed" thread here...)

So now I find myself holding a check (and Prom. note) for more than I really want to borrow. Or I sit in front of the possibility of having to endure a wait while a dealer plays games with a blank draft?

I've never had this problem before, and I've pre-approved financed a lot of vehicles, both new and used.

 

Yeah, typically you get pre-approved for a certain amount then you tell them how much you want to take out.

Maybe you overlooked something during the sign-up process?

 

On the phone with PenFed as I type, and they're telling me explicitly that if you put in the VIN, you get a check, and if you don't you get a blank draft. I might have overlooked it during the process, but dang if I remember seeing anything explaining that. And that's too bad, because it's a pretty freaking important difference.

Good news is that they're cancelling the check and issuing a draft.

Bad news is that it will take 48 hours to re-issue, so I might not have the draft until Friday or Saturday.

If my dealer will give me a good rate, I'll finance today with them, and not execute the draft.

 

Good to know. I might be signing up with them today.

 

I posted it to the main PenFed thread, too so people can see it as reference. And to their credit, they were very nice and helpful on the phone. Enough so, in fact, that I decided to wait for the re-issued check instead of finding faster financing.

 

When I went through Pen Fed (buying from a private seller) they actually issued three checks. One for the pay-off on the car, one for the profit the seller made, and one for me for tax, tag, title. Thought is was quite convenient.