Penfed approval/financing question

[shane]

Hey guys,

I've been lurking the forum here for a few weeks, and have gained a great deal of knowledge here. (I also tend to find myself browsing the "color" threads here for hours at a time trying to decide what color I want to order my 2SS in. )

Anyway, here's my question...

I recently opened an account through Pentagon Federal Credit Union, since they're who I'm going to try to take the loan for the Camaro with when the time comes.

I do have a few questions though, that I tried searching for, and couldn't find the exact answers I'm looking for. Hopefully you guys/gals can help.

1.) I realize that by ordering this car, there will be a several-month wait time involved. How does one going about ordering and financing the car like this? I have read that the dealer will typically require a deposit of $2000-$3000 for them to order the car. This isn't a problem. The concern though, is that I don't want to put that money down, not knowing if I can get financed when the car comes in. Does PenFed allow you to apply for a loan on a car that hasn't actually come in yet, and one which you don't have a VIN number for? If so, how long is the loan approval valid for? What would happen if the Camaro doesn't come in before the loan approval expires?

2.) I'm 22, and have a decent credit history for my age. I have a few credit cards with decent credit limits that I have had for a few years, all of which have next to nothing balances (will be paid off completely in a few weeks). My credit score is currently 677, and I expect it will be in the 700+ range as soon as I pay off my 4 wheeler (I currently owe about $2500 on it, but will pay it off within a couple months). I've ran all the FICO simulator tools on MyFico.com, basically inputting in that I will pay off those balances within 3 months, and it estimates me to be in the 710-725 range by then.

I have a good job, and make around $35,000 annually. I don't have a house payment or rent, so my only payment will be the car loan and cell phone. With that said, what are my chances of getting approved, with approximately $5000 down payment?

3.) And my 3rd question...

How exactly does the loan process work on a car? I've never been through this before. Say the MSRP is $35,000. I've paid the $3000 for them to order the car for me, and when the car came in, would have an extra $2000-$3000. How much would I need to try to finance ahead of time to cover the tax/title, fees, and all of that crap? And do all of those fees get paid at the dealer, or is it something you pay the state or DMV when you register your car?

Sorry for all the questions, I'm just a little confused since I've never done this before. The only new thing I've purchased was my new 4 wheeler when I bought it 2 years ago.

Thanks in advance for your help. And I appologize that if this post was in any way incoherent. It's 3AM as I write this, and bed is calling me, lol. Anyway, this forum is awesome...and I've already learned so much here. Hoping to learn so much more.

-Shane

[nards444]

they wont give you a loan for the deposit. Basically when you get a car loan your loan is being backed with collateral YOUR CAR. So its a secured loan. There are loans out there that are unsecured called personal loans, which requires basically no reason or collateral. Since there is no collateral the rates are higher. What i mean by colatteral is this, when you dont pay on your own the bank has a way to get their money back which would be taking your car. Now you could get a personal loan but the rate will be 9-10% interest. Your better off just paying the deposit. But you can apply for a loan anytime, and they will approve or reject you. The money wont be given to you and your loan wont start until you give them your VIN and your insurance.

Now with question 3 i dont know what you want. But its simple algebra. if the price is x and you paid y you will x-y = Z. With title and tax you can finance that. This is what your going to want to do. Get the final price from your dealer, with tax title and registration all together, minus your deposit and thats what you will need to borrow.

[DDustiNN]

PenFed put me through so much hassle with my loan application. I have good credit (711 when I checked, lower than usual due to me moving and having to open a couple new accounts for utilities, etc), but they denied me saying I had 1 or more delinquent accounts (which I don't) and that I'm "over-extended". I explained to them that the only bad thing on my report was 1 single late payment that my dad made on a joint Best Buy card, which I didn't even know I was on. I wrote them a 2-page letter (like the suggested) explaining the invalidity of their reasons, and even offered to have my mom co-sign with me. Their response? Send in the co-signer application. So, I faxed it. Waited... waited... waited... they said it would take 24-48 hours... it took 7 days, and still no response. Finally, after calling for the 4th time, the lady came back on the phone saying it was denied, still for the same reasons. WTF??? Even with a co-signer??? So frustrating!!!

I will say that their customer service reps are top-notch though. They were always very friendly and helpful. But the rest... ugh!!!

Anyway, then I went to Chase, where I have my checking account, savings account, and credit cards. I do everything through them. I explained my situation to the guy, and he sent in my information, saying he would know in the morning. He called me 30 mins later saying I was pre-approved... by myself... no co-signer. Uhhh.. what gives?? I dunno what the deal is with PenFed, but I'm happy sticking with Chase. My interest rate should end up around 5.5% or so I think.

[Verio]

Credit Unions are not in the financial mess because they don't take risks. To them, anyone with any sort of delinquent account in the past is denied.

Hell, even Navy Federal CU, the Credit Union I've been with for the last 8 years, denied me without a co-signer. I've had 3 vehicles through them in the past, and NEVER a late payment. No one wants risk anymore.

[herkman]

PenFed also denied my loan because they said that I have a late payment showing. I was approved through a local bank who said that I don't have any late payments. I was really disapointed with PF whom I was a member with 15 years ago. They have lost my business for good. BTW, My credit score is 720!

[nards444]

Pen fed is a pain in the ass. Im sticking with them this time because of the low rate, but im not going through them again.

[mikenmar]

Originally Posted by Verio

Hell, even Navy Federal CU, the Credit Union I've been with for the last 8 years, denied me without a co-signer.

I got approved by Navy Federal w/o a cosigner, but I have 800+ FICOs.

[DDustiNN]

They insisted "one or more delinquent accounts" which is inaccurate. There was one late payment, on an account that I don't even use. I even offered to provide proof to them (my dad's bank statements, etc). That was in February, and was the only payment of its kind. All remaining payments were made on time, and the account is in good standing.

I also offered to provide proof that someone will be taking over my current lease, and that my mother pays for my student loans. These two things are probably what they considered me to be "over-extended" but they wouldn't even listen. I can very much afford the payment, even if I do end up keeping both cars. Why even bother telling me to write them a letter of reconsideration, if they're not even going to "reconsider" my application? They also told me that "one late payment shouldn't be a big deal, most people have at least one, so it shouldn't count against you." Hmm... yet that was the biggest reason they kept pushing when they turned me down...

With all of the people on here saying how easy it was for them to get approved, I thought I would have no problem. But instead, they wasted almost an entire month of my time with all of their and waiting waiting waiting...

I was just glad that they finally gave me an answer so I could move on. I wanted to make sure I applied somewhere else before my 30-day "loan shopping" window expired, and the credit checks counted against my score.

PenFed

Chase

[DDustiNN]

Originally Posted by nards444

Pen fed is a pain in the ass.

x1000000

[bartking]

Originally Posted by shane

Hey guys,

I've been lurking the forum here for a few weeks, and have gained a great deal of knowledge here. (I also tend to find myself browsing the "color" threads here for hours at a time trying to decide what color I want to order my 2SS in. )

Anyway, here's my question...

I recently opened an account through Pentagon Federal Credit Union, since they're who I'm going to try to take the loan for the Camaro with when the time comes.

I do have a few questions though, that I tried searching for, and couldn't find the exact answers I'm looking for. Hopefully you guys/gals can help.

1.) I realize that by ordering this car, there will be a several-month wait time involved. How does one going about ordering and financing the car like this? I have read that the dealer will typically require a deposit of $2000-$3000 for them to order the car. This isn't a problem. The concern though, is that I don't want to put that money down, not knowing if I can get financed when the car comes in. Does PenFed allow you to apply for a loan on a car that hasn't actually come in yet, and one which you don't have a VIN number for? If so, how long is the loan approval valid for? What would happen if the Camaro doesn't come in before the loan approval expires?

first off all I would make sure whatever deopsit you put down that it's a refundable deposit. My dealer only needed $500 and it was refundable... 2-3K sounds pretty steep. I waited to get my pen fed loan until the car was built and had them wait for about 4 weeks before they send the check to me for the full price minus my $500. I had to have the VIN number on the application so I'm not sure how they will work without one. I would ask the penfed member services group the other questions... they are extremely helpful and plesant to deal with.

Originally Posted by shane

2.) I'm 22, and have a decent credit history for my age. I have a few credit cards with decent credit limits that I have had for a few years, all of which have next to nothing balances (will be paid off completely in a few weeks). My credit score is currently 677, and I expect it will be in the 700+ range as soon as I pay off my 4 wheeler (I currently owe about $2500 on it, but will pay it off within a couple months). I've ran all the FICO simulator tools on MyFico.com, basically inputting in that I will pay off those balances within 3 months, and it estimates me to be in the 710-725 range by then.

I have a good job, and make around $35,000 annually. I don't have a house payment or rent, so my only payment will be the car loan and cell phone. With that said, what are my chances of getting approved, with approximately $5000 down payment?

Again everyone is different so I can't really answer this one.

Originally Posted by shane

3.) And my 3rd question...

How exactly does the loan process work on a car? I've never been through this before. Say the MSRP is $35,000. I've paid the $3000 for them to order the car for me, and when the car came in, would have an extra $2000-$3000. How much would I need to try to finance ahead of time to cover the tax/title, fees, and all of that crap? And do all of those fees get paid at the dealer, or is it something you pay the state or DMV when you register your car?

the 3K would more than cover the tax tags and other fees. I had to pay 2k on taxes on about $30k. When the deal is ready to be made you just ask Penfed to take x amount off the loan and send the check. You should be able to get the final amount from the dealer when they get the invoice from GM. That could be as little as 3 days before the dealer gets the car. At least that was the way it was for me. if you don't have the check yet don't sweat it I didn't either and my dealer got on the phone with member services had them fax over a document saying I was approved for X amount and I was able to get the car home and when the check came about a week later I gave it to my dealer signed the offical loan papers and sent them back to penfed.

Originally Posted by shane

Sorry for all the questions, I'm just a little confused since I've never done this before. The only new thing I've purchased was my new 4 wheeler when I bought it 2 years ago.

Thanks in advance for your help. And I appologize that if this post was in any way incoherent. It's 3AM as I write this, and bed is calling me, lol. Anyway, this forum is awesome...and I've already learned so much here. Hoping to learn so much more.

-Shane

No problem... everyone helping others is why this forum is so great. I know I learned alot (penfed being one of the really cool things I learned).

[Ltdodge]

Originally Posted by DDustiNN

x1000000

I filled out my auto application for PenFed on Friday and this Monday I already received my blank check up to 36K....I had no problems whatsoever

[DDustiNN]

Originally Posted by Ltdodge

I filled out my auto application for PenFed on Friday and this Monday I already received my blank check up to 36K....I had no problems whatsoever

Lucky... that's what a lot of people have said. I wish it was that easy for me :(

[Treadstone]

I was going to go through penfed, but they really must have tightened up their loan procedures. They would only give me 2/3rd of what I needed. I have excellent credit fyi.

I've been with USAA forever, and decided to go that route, and they pre approved me for 5k OVER what I requested.

USAA FTW!

[Speed74SS]

I was accepted for a loan there a couple months ago and just called them with my VIN# and they are sending a check in the mail. I had no problems at all.