From their website, it looks like you have to have some kind of military affiliation. Am I missing the obvious? Wouldn't surprise me and it certainly wouldn't surprise my wife

 

I don't think they would have an issue with a 2001.

You are supposed to have a family member in the military. That was my story, which is true- but they never actually checked.

I believe current members can refer people, PM me if you need me to do that for you.

 

in order to satisfy the military affiliation requirement, you just need to donate $20 ($25?) to a nonprofit that helps military families. don't know if the charity is legit or even associated with penfed, but it's cheap and available to everyone. the donation option is built into the enrollment process.

it's really a no brainer. penfed has the lowest interest, will finance almost any car under 100K miles and regardless of age, and the process is quick and easy!

i've had 3 auto loans with them and couldn't ask for more. in contrast, i've dealt with other credit unions that make the entire process so cumbersome and onerous it seems like they don't want your money!

 

For those using penfed, it doesnt specify on their site if the rate changes if your purchase is through an individual or dealer. Do they care? My local bank and credit union charges a higher rate if you purchase private party vs. dealer. Thank you.

 

nope. same rate dealer or private, new or used. that's the beauty of penfed.

 

I also used them back in 09 when the rate was 3.9. No military affiliation needed. Just the donation of $20.

 

In general what are you guys putting down on a 45K car? If you are getting 2.9-3.9% financing is it smart to put down 15-20K on the car when you buy it?

 

3.9 from CU.

 

there should be a thread on penfed and the member that have used it

i've never used it but i always hear good things about it from other ppl

 

Economics 101. If you can get a better rate investing your money, then finance it 100%. If you can't get a better rate and you have the funds available, put down as much as you can afford. I haven't used penfed but plan to on my next purchase (still looking) and I have a relative working in the military.

 

I used PenFed, at 3.99%. It was easily one of the simplest transactions ever. Last I saw, they were offering 2.99%. I was going to refinance, but have been too lazy to call up. As for how much to put down, that's a calculation regarding both financial and psychological factors. Some people don't like debt, period, and will put down as much as possible, regardless of whether it is a good investment. Personally, I have no problem paying 3.99% if I am confident that I can earn more than that with other investments. Actually, I financed about 110% of what the car cost me, on my first car loan ever as I have historically leased or paid cash, as I rolled the taxes in as well. I got a better deal on the car than whatever PenFed's book said my car should cost, so they had no problem writing the check. With the cash that I didn't spend up front (by not financing), I earned the first three years' worth of interest payments within a few months of financing my car. (Don't bank on that as everyone's opportunity for investing is different, and changes drastically over time.) If you think you can earn more than 2.99% annualized over the next five years (after taxes) on your investments, have no trouble sleeping knowing that you have a monthly payment, would like the fllexibility of having the assets more liquid, and the size of the loan will have no impact on your ability to possibly get any other loans that may be needed, it's a no-brainer and you should finance until your heart's content. If any one of those things isn't the case, put money down until you are comfortable with the remaining loan. Contrary to popular belief, there's nothing wrong with manageable leverage. It's when you start borrowing money that you can't afford to pay back unless the stars align (like one or two mortgage borrowers out there) where you have a problem.

I'm not sure that I'd want to be an investor in the PenFed lending business but, as a borrower, there's nowhere else I would look. If you can find a place that gives car loans on used cars below 3%, please share, as I don't know of any one that does. (Pre-meltdown, I was going to use PenFed to take out a loan on a NEW M3, as their terms were better than BMWNA's. That's pretty incredible, seeing as how PenFed has no vested interest in selling the car, unlike a factory finance arm.)

https://www.penfed.org/productsAndRa...%20Auto%20Loan

And to clarify, you don't need to have any relation to the military. If you want to support our troops, you can donate $20 to join the NFMA, and get admission to PenFed that way.