Open membership, anyone can join. I think Brad is right. But like all credit unions, membership is For one reason or another penfed was difficult to get approval for, and I'm not sure I understand why. I used their calculator here for ballpark numbers: I am a member of PenFed and went under their Car Buying service. When more credit unions were leasing, they were also buying residual insurance from AFG. $869.13. You need to be a member to access it. Since the title is in YOUR name you have more options prior to loan maturity and at loan maturity. I just thought it may make sense in regard to the Odyssey and Sienna which lease terrible and tend to hold decent RVs. I've been researching some alternative financing and this Penfed loan seems to blow everything else out of the water (including Select finance). At minimum, expect a $725 origination fee for vehicles over $75K. MERGED: Has anyone read this (bankruptcy) about GM? Note that fees charged between providers can vary. The vehicle mileage may not exceed 15,000 miles per year based on the model year. Do we have to have a checking account open too or just share account is good enough? Did anyone have great luck with these, thought about doing one for a corvette. It also has been off for many other makes too and that makes the payment way higher than it should. AmeriCU Credit Union (https://americu.org/) White House Approves $17.4 Billion Auto Loans to GM & Chrysler. Frankenmuth CU (MI). Were they easy app, approval or did you have to send in a bunch of docs. The share savings account gets you all the benefits, Powered by Discourse, best viewed with JavaScript enabled. But unlike a lease, with the PaySaver Auto Loan program you own the vehicle and have all of the flexibility and benefits of vehicle ownership! ; Trade it at maturity or anytime during loan term. F40 Model Year: 2019 + Previous Generations; F20 / F21 Model Year: 2012 - 2018; E82 / E83 / E87 / E88 Model Year: 2004 - 2011; 2. I looked at it. PenFed's used car loans as of Dec. 31, 2018 were $1.5 . That means they are most likely not seeing the originations that afg sold them on. Please contact the moderators of this subreddit if you have any questions or concerns. I don't see anyone doing the right thing with these loans. I have my score from Credit Karma but the dealership told me they got a different score. PenFed's payment saver loans have the appeal of low initial payments. Im sure the dealer can get it done. Call 1-800-247-5626 for details. I did do this loan on my e90 M3 back in 08. 72 month finance would have been about $1018 a month, the payment saver was $639. I have found cars with a 72 month term lower. PenFed takes no responsibility for the content of the page. So i don't think there a specific method, but if you had to guesstimate it will be around the RV = to the 36/15k vehicle & changes based on the term you pick. PenFed Payment Saver Deal. Damn I just picked my 2021 trd pro 4runner with this Penfed program back in June. Frequent Contributor. New vehicles are vehicles without previous owners and are of a current (2021) or prior (2020) model year with less than or equal to 7,500 miles. Take two $50,000 cars, one with a 50% RV and one with a 40% RV. I have a lady coming by today who I got approved and she literally has a 412 score. I have a PenFed Payment saver loan on my Tesla Model 3 and on a previously owned Challenger. (And no, not aware of anyone else other than Penfed that's doing it, cause I'm not in the market for a bad loan. Read PenFed car loan review. They used to have a payment calculator on the site where you could either enter a VIN or select make and model and it would show estimated payments, but it looks like they took it down. Just did the payment saver plan on the M4 we are picking up next weekend. I understand the difference the RV would make on the monthly payments, but its not like you can give the car back at the end of the term like on a lease (at least on the balloon loan PenFed most recently offered). You need to claim your rental income on the application. Penfed Credit Union allows customers to initiate a Non-Fraud Card Dispute process on a credit card transaction. Including the ability to turn your vehicle in and walk away at the end of the loan term. Rates current as of May 4, 2021. If I buy a car using the Penfed Payment Saver (balloon payment) program and say I want to put in $10,000 as a downpayment. Applications are subject to credit approval. Hopefully this is not the end of the line, because they are a great option where you can find a favorable RV. 1. Thanks for the info. more or less this is the opposite of gap insurance. I applied with neither and was approved. Should I add $500 so that I dont get charged a service fee or I can close the chrcking and just keep my share account? G42 Model Year: 2021 + F44 Model Year: 2020 + Previous Generations; F22 / F23 Model Year: . If they truly killed it an didnt just pause it, there is almost no chance it comes back. Remember your panic when you were far from home and remembered that a bill was due? A lot of credit unions buy residuals from AFG. Their MSRP for cars when doing payment saver are ridiculously off and by off I mean lower. Membership to the CU is possible via a $20 donation to CapEd Foundation. 2016 F80 | MG/SO | DCT | Adaptive M Suspension | 19" Black 437M Wheels | CF Roof | CF Trim, AAFCU = 0.99% apr (1.49 base minus .25 direct deposit and .25 for loyalty, if applicable). If you have a chance to be earning 3-5% on what your normal down payment is and go with this you obviously make some money.. if of course the car is still good at the end of the payment. Rates are accurate as of Feb. 2, 2023. i saw maybe less than month ago, but yeah seems to be gone now. A balloon loan is fundamentally paying down a presumed balance between MSRP and residual value. Just like buying new? ; Sell it at maturity or anytime during loan term. the same thing that happened with the housing pop is it not? Had you not put down $10k, you would have been upside down. It seems many local credit unions offer them but all require specific membership criteria (impossible given I am not in their area). . Re: Has PenFed done away with Payment Saver (balloon finance) loans? So I sent a reconsideration letter telling them that and sent bank statements showing six figures in bank account and tax return showing our families income. What happens if you can't refinance in time at the end of the loan? PRIVACY NOTICE: When you visit this website we collect your browsing activities on our site and use that information to analyze and research improvements to the website, and to our products and services. This is completely wrong. Login Register. FTC's website on credit. However the payment difference is hundreds per month between a lease and a balloon payment. Thanks, I was really intrigued buy the loan option Pen Fed was offering to lower payments. Minimum loan amount of $15,000 for vehicles financed with 60 to 72 month loan terms. See the difference? With the Tesla, its about the ability to sell the vehicle, at any time, and not be forced to return it to Tesla. In one case, I was quoted $1500 for origination. AFG Calculator. What are the pluses/minuses of financing using payment saver plan? I'm seeing 3.74% for 84 months at DCU. Also remember to add flair to your post by clicking the "Flair" link beneath it. Put Your Money in Your Pocket with Mobile Banking, 8 Tips for Taking Reliable Mobile Deposit Check Photos. European Delivery. A dealer can usually get it done because we have direct lines to the loan officers. It doesn't hurt to try but it probably won't make a difference. I did this same type of thing with my E92 M3 and it was perfect. Popular programs such as PenFeds PSA Loan basically resembles a auto lease, but without th. PenFed's new Payment Saver Plus Program removes the risk of credit damage for members. However, they do not take any action and the dispute . This isnt a product thats useful to me. Thanks for turning me on to this. GPO's Payment Saver is a financing option that offers monthly payments that are considerably lower than conventional financing! They are difficult to get approved for compared to others as. PenFed Credit Union offers low rates, particularly if you're interested in its car-buying service. I'm new to Audi, but understand RS models maintain their equity, making the. That being said, I did put like 10k down. See this is what concerns meyou had equity b/c of how much you put down (really as with any financing). There are some exceptions where the Penfed payment saver has worked out better for me then a lease or traditional finance. 1323 3 Only show this user. I can't remember where I read it but I believe Payment Saver is no longer offered as of late last year. My only thought is we have two rental properties/mortgages so might look like I have large debt but they actually provide income. To start viewing messages, select the forum that you want to visit from the selection below. In addition, PenFed offers Payment Saver (Balloon) loan options for members seeking lower monthly payments. If so, please share your experience with them. PenFed's new car loans as of Dec. 31, 2018 were $1.9 billion, up 7.7%, while the total among all credit unions was $21.2 billion, up 5.9%. APR = Annual Percentage Rate. i hadnt really looked into this being as its my first loan but the biggest problem i see with it is, what if your car gets totaled. Other restrictions may apply. I have a credit score of 821 and $130k annual income. CALCULATE YOUR PAYMENT SAVER LOAN PAYMENT. PenFed Payment Saver Auto Loan. PenFed vs. SoFi. New Auto Loans. When I add sales tax to my amount and put nothing down, I'm only a few bucks lower than a BMWFS lease with MSD and ED without the risk of being upside down and getting my MSDs back. Typically I lease my BMWs, whereas we traditionally finance my wife's. TTRS isn't yet listed on PenFed, but I imagine it will be more attractive than Audi leasing??? Does anyone know how the RV is calculated in the PenFed Payment Saver program? I have had the Payment Saver on a FJ Cruiser, JKUR, JLUR and now my Raptor. Loan rates and terms are determined by each individuals credit history, underwriting factors, and loan-to-value and are subject to change without notice. I just thought there would be interest in PenFed discontinuing their offering, given the flurry of recent discussion in other threads. Latest BALLON LOAN options (best to worst): CapEd Credit Union (https://capedcu.com/) To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. Paysaver rates not posted, but you can apply for paysaver loan via the website. Used car loan value based on NADA Retail Value. MountainCrest FCU (WA), Access Bill Pay makes bill paying easy and secure. Uses transunion credit for score. Camaro Price | Ordering | Tracking | Dealers Discussions, General Automotive + Other Cars Discussion, Camaro5 Chevy Camaro Forum / Camaro ZL1, SS and V6 Forums - Camaro5.com, Find More Posts by joes3rdcamaro82/91/2010, https://www.penfed.org/productsAndRape=NEW&value=Y. Never any issues with payments.My application only had me on it though, I thought my credit history and annual income would be more than sufficient to qualify. F40Model Year: 2019 + Previous Generations; F20 / F21Model Year: 2012 - 2018. See how anyone can join and take advantage of its market-leading CD rates. I recently applied for an New Auto Payment Saver loan for $65k through PenFed Credit Union and was declined, the reason was Excessive Obligations in Relation to Income (Overextended). Penfed Payment Saver for ED. Sorry, I do not. junio 16, 2022 . Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. I want to buy this car but being declined with them kind of shocked me and makes me worried.Will I be ok going through dealer financing?What should I do? You will need to put in the rental income as "other income" on the credit app, and provide your tax returns showing that income, or sometimes the leases, or bank statements, etc. Basically its a loan with a reduced monthly payment, but has a balance that must be paid or refinanced at the end of the loan. So i dont think there a specific method, but if you had to guesstimate it will be around the RV = to the 36/15k vehicle & changes based on the term you pick. If you look at their terms there is no pre-payment penalty, and you can pay off early anytime. . I wasnt questioning the logic of a balloon loan vs. lease; I understand why someone would do one vs. the other in various scenarios. Collapse. Enables you to easily upgrade and/or change your vehicle every couple of years. Then at 2 years post bk7 dc i applied for the PCR, approved for 7.5k at 17.99, ymmv. Become a member and take advantage of products and exclusive offers! There website says it's an estimation based on their data & the mileage cannot exceed 15k a year. All Rights Reserved. CU doesnt want your business. With the Challenger, Dodge was still offering power dollar rebates with a purchase, but not with a traditional lease. The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. Yep, that is what I am going with as well. Lowest available BALLON LOAN rate found was 2.49% but I did not qualify. I wonder if its worth trying to contact Pen Fed again or just cut my losses and work with the dealer. Pentagon Federal Credit Union, or PenFed, serves over 903,609 members. The way the market is now I don't think I would touch it. Message 3 of 4. It gave me a ~$29.7k residual on a $72k MSRP. Greater Nevada Credit Union's Payment Saver Auto Loan Program allows you to get the low costs of leasing with the option to sell, trade, finance or return at program's end. Please review our most Frequently Asked Questions to see if your question has already been answered. Monthly Payment. CULA used to also offer balloons but we stopped about 5 years ago because the demand for that product was miniscule in most markets. Did you go to a different page? We only did the 36 month term as I was wanting something more along the lines of a lease (Georgia stupid tax laws kill actual leasing) and I wasn't trying to speculate on the car's value 5 yrs from now. Back in 2019, PenFed briefly offered balloon loans with guaranteed residuals (you could walk away at the end of the initial term), but they quickly discontinued those also. Re: Penfed Pre-Approvals Credit Card. If I total the car my . Only problem I had was getting approved. Adnimation ATF. But regardless its clear that people generally arent doing these to save money. Reply. I don't believe they allow you to walk away from the car at the end though. Idk what the full scope of the deal is, but if you make $10,000/month and owe $9,500/month in revolving debt and credit card balances, that leaves you with only $500/month of available buying power. Insurance Investments Locations & ATMs Digital Banking EN ESPAOL (800) 421-6674. AFG runs a balloon loan program through a bunch of small CUs and a couple big ones (Pen Fed nationwide and SEFCU in NY). Affiliate Business Arrangement Disclosure. Copyright 2001-document.write(new Date().getFullYear()) Fair Isaac Corporation. The banks want nothing to do with that, and will happily turn you away. Mileage options apply only if you return the vehicle at program end. He is more focused on the monthly payment than the total cost of ownership. Quite honestly joining for the $5 minimum deposit is a no brainer just for the TDM discounts they offer. No security deposit or acquisition fees. Make a Payment. Again denied!! How to pick a car? Powered by Discourse, best viewed with JavaScript enabled, PenFed Has Stopped Accepting Payment Saver Auto Loan Applications, PenFed to Offer Walk-Away Balloon Car Loans | Credit Union Times. Try Access Bill Pay today! Uses experian for credit score. Minimum Deposit. Where the manufacturer is providing more rebates for purchase, versus lease. Started the process online on Mondaycheck was at our doorstep on Thursday. Like, a super tiny fraction. Equal Housing Lender - Federally insured by NCUAMembership restrictions apply, New and pre-owned vehicles up to five years old qualify, Annual mileage options of 12,000, 15,000 & 18,000 available. To Sign In or Enroll: Log-in to PenFed Online in the login box at the top-right of this page and click the Pay Bills tab from the Main Menu of PenFed Online. Payment saver loans. *For security purposes you must use a 128-bit encryption browser to use Access Bill Pay. You'll discover the ease and convenience of paying your bills online in almost no time. Taxes on full vehicle price were paid on vehicle upfront. I just emailed Penfed to ask for more info on how they figure the RV. I am going to guess that this is a terrible idea for someone that drives up to 20K miles / yr. F80 M3 / M4 Pricing, Ordering, European Delivery, https://www.penfed.org/payment-saverver-calculator. Membership via $15 one-time donation to American Consumer Council. Your actual credit score is only a small fraction of the equation. $465. Chances are you owe too many people too much money and your CU sees this as a liability. Out of curiosity, for those who have balloon loans, whats your APR? { BK7 DC 12/2019 } target 1300/ kohls 3000/ discover IT cb 6500 / 2nd discover IT cb 6000/mercury 4100 / firestone 2800 /legacy . Where there is no state sales tax, for example NJ when purchasing a zero emissions vehicle. I have a lady coming by today who I got approved and she literally has a 412 score. By clicking I ACCEPT, you consent to our use of cookies in accordance with our Privacy, GDPR and Cookie Policies. On a typical (not speciality, not for purchase only incentives, not to avoid a closed-end lease) vehicle?? One quick question for those familiar with this loan: I pay sales tax on the entire vehicle of the car, right? In both cases it seems to me it would make more sense to simply take out a longer term loan in the first place to get your payments down. My wife wants a Sienna or Odyssey and want to see what options I have. Plugged in same options etc and only getting a $740 discount. Please note that verified professionals will have flair, take advice from non-flaired users with discretion. No match for the 2.99% 36mo rate that PenFed offered. As far as the process goes though, I pretty much just need to get my exact total from the dealer (car, taxes, fees, etc) apply for the loan, then walk in and hand them the check? Rates are current as of March 2023unless otherwise noted and are subject to change. To come up with that payment you have to either save it up while your paying the smaller payments or refinance the remainder at the end of the loan. 12 Months. Looks a like 60 month balloon but cannot find any other info about it in terms of how to calculate residual.. could be an alternative to lease.. Instead you owe a large balloon payment at the end. $100 bonus offer statement credit on $1,500 spent within the first 90 days. Theyll get you financing. But interest rates start higher than the interest rates for its traditional car loans. G42Model Year: 2021 + F44Model Year: 2020 + Previous Generations . It seemed like it was kind of like a lease, but without the option to just give the car back at the end of the term. Lesser known benefits of the program, it includes GAP and deductible insurance. This happens most often with no option vehicle (ie Hellcat). Learn more. This is from a different credit union, but it looks like all of the ones that offer payment saver loans use Auto Financial Group to calculate their payments. 2% cash back for PenFed Honors Advantage Members. Does anyone know who else offers payment saver loans? Should I wait since I just had Pen Fed pull my credit or does it not matter? That is what Chrsyler is estimating based on 64% residual with about 10k lease. You may find these sections particularly useful; Will paying in cash or a large cash down payment offer me leverage in negotiations? 2. Id guess they will turn on a lease program sometime in the next year or two. Has anyone else had this experience with PenFed? $1,000. Also offers a 2.14% rate for 96 months, so one application gives you both options. Go into a dealership and let them properly structure a deal to get an approval for you. My question is, if I do go forward with the pen fed . 2. Keep in mind when you calculate the payments on BMWs site, it doesn't include taxes. I searched for this but still cannot find a straight answer. The lease numbers are just NOT favorable for me. I've also been thinking about going this route. Just wanted to give you a heads-up. Given your RV example, if the desired ownership term was only 6 months. SoFi offers personal loans ranging from $5,000 to $100,000, which is much higher than PenFed's $50,000 limit. I love pen fed dont get me wrong and have used the payment saver 7+ times, but it was so much better years ago. I think folks that are considering that option need to give themselves a reality check, and say "Can I REALLY afford this car?" I looked but it was cheaper to go with BMW select. I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea? MECF_728x90_top. Products & Rates Choose Your Product Auto Payment Saver Auto Loan Estimate my payment, That could be why I cant find it, but Im not going to join until I decide if I want to use the loan, but dont know if I want to use the loan until I know the RV. 1.5% cash back for non-members. 4.0. The bottom line: Pentagon Federal Credit Union, or PenFed, offers good interest rates for checking and even more competitive rates for online savings and money market . Has PenFed done away with Payment Saver (balloon finance) loans? I was told to just call back when I have the VIN. The last thing they want to do is repo your car. 01-22-2022 02:06 AM. We use cookies to provide you with better experiences and allow you to navigate our website. For more information about the relationship between PenFed and PenFed Realty, LLC, see the Affiliate Business Arrangement Disclosure. AFG Calculator. Rates depend on terms, as follows: I think thats the reason why he loves Penfed balloon loans. The term doesnt matter that much because you can sell, trade, or pay it off whenever you want. balloon loans are dangerous and I think the interest rate on them usually fluctuates with prime. Here's an overview of PenFed Credit Union's Money Market Certificate rates. Create an account to follow your favorite communities and start taking part in conversations. Yes I know about the dangers of the loans, what I need to know is who is offering them (other than PenFed). Might have to call them and ask. Just not a pen fed customer to know what their RVs are on those two specific vehicles. You might also have luck in the r/whatcarshouldibuy subreddit. I actually had a few grand in equity. Vermont FCU (VT), Using the balloon loan qualified me for thousands in additional rebates versus a CCAP lease.