Important Loan Info For Those Paying Over MSRP (includes 3.99% group)

[Embalmer]

So I just got my blank loan check from Pentagon FCU last night (3.99%) and I read a very important line in the instructions.

It says: "Enter the amount you wish to finance (up to $xx,xxx.xx). The total amount may not exceed the vehicle MSRP (new) or NADA (used) average retail price including taxes, tags, title fee, and warranty."

I'm going to guess that other loans are very similar....

So, if you agreed to pay above MSRP on your Camaro, I'd look into the financing aspect of it right now before you get your loan and can't use it.

Note: If you are putting a down payment on the car and the "loan" amount is not above the MSRP, you're safe. Just make sure whatever you write on the check is not above the MSRP.

[GOLDDOG]

Check to see if Pentagon FCU offers GAP insurance. Usually it will cost a fraction of what a dealer would charge. Then you can finance up to 125% of the total cost.

[Embalmer]

Originally Posted by GOLDDOG

Check to see if Pentagon FCU offers GAP insurance. Usually it will cost a fraction of what a dealer would charge. Then you can finance up to 125% of the total cost.

They do, but I didn't need it. Good info though.

[live2well]

Originally Posted by Embalmer

So I just got my blank loan check from Pentagon FCU last night (3.99%) and I read a very important line in the instructions.

It says: "Enter the amount you wish to finance (up to $xx,xxx.xx). The total amount may not exceed the vehicle MSRP (new) or NADA (used) average retail price including taxes, tags, title fee, and warranty."

I'm going to guess that other loans are very similar....

So, if you agreed to pay above MSRP on your Camaro, I'd look into the financing aspect of it right now before you get your loan and can't use it.

Note: If you are putting a down payment on the car and the "loan" amount is not above the MSRP, you're safe. Just make sure whatever you write on the check is not above the MSRP.

You may be able to use this as a bargaining chip.....lol....." Well Mr./Ms. car dealer all the banks will lend on this car is up to MSRP." lol Its a reach but.....

[Iwantone2]

Thanks for the info Embalmer. One question though: how do you know what amount PenFed will let you finance? You can't just write any number that you wish to on the check, can you?

[Mr_Draco]

Originally Posted by Iwantone2

Thanks for the info Embalmer. One question though: how do you know what amount PenFed will let you finance? You can't just write any number that you wish to on the check, can you?

The amount will be in the paperwork you had to fill out and when the dealer sends in the paperwork to the credit union they will tell them what the MSRP or the car was and what the other costs was (tax, tag, title, and dealer fees).

Like my credit union will loan up to 100% of MSRP for the car and an extra 25% of MSRP that must go towards dealer fees, tax, tag, and title. They also require a printed out estimate from the dealer before they will approve you for any new car loan if you want to order or a copy of the dealer invoice if it's already on the lot.