I traded my M3 in back in September after about 30 months and I actually had a few grand in equity. A balloon loan is fundamentally paying down a presumed balance between MSRP and residual value. Uses transunion credit for initial score. I wonder if its worth trying to contact Pen Fed again or just cut my losses and work with the dealer. A dealer can usually get it done because we have direct lines to the loan officers. Sample deal: I could get into a Flying Spur for nothing down and $0 per month until the end of the 10-year draw period. Anyone on here have any experience with these loans?? Adnimation ATF. Do you wish you could make paying your bills less of a hassle? F40Model Year: 2019 + Previous Generations; F20 / F21Model Year: 2012 - 2018. No down payment required; Annual mileage options of 12,000, 15,000 & 18,000 available; No security deposit or acquisition fees; No early payoff penalty; Since the title is in YOUR name you have more options prior to loan maturity and at loan maturity. I've also been thinking about going this route. PenFed takes no responsibility for the content of the page. New and used motorcycle loans. I ended up taking the truck even though it was more expensive because I'd rather take the risk on a truck instead of what will be an 7-8 year old cadillac at the end of the loan. 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? Had no issues with penfed. Our students say Absolutely amazing app, but is there a way to copy a result? Quite honestly joining for the $5 minimum deposit is a no brainer just for the TDM discounts they offer. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Why? Read PenFed car loan review. Uses transunion credit for score. 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. The pen fed saver payment calculator estimates a rubicon unlimited with 53k msrp to be worth 34k in change after 3 years. Rates depend on terms, as follows: I was just wondering what the logic was behind wanting a higher RV on this type of balloon loan since a lower RV would cost less when it all washes out. I used their calculator here for ballpark numbers: I am a member of PenFed and went under their Car Buying service. Skip to content. Where Penfed has an unusually high MSRP, which does not properly align to the manufacturer MSRP. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. Not that I'm going to finance that long. As far as balloon loans go, it's a very good program. That being said, I did put like 10k down. I wonder were these taxed at the full purchase price or taxed like a lease? 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). My question is, if I do go forward with the pen fed . 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. Did anyone have great luck with these, thought about doing one for a corvette. Lesser known benefits of the program, it includes GAP and deductible insurance. I looked but it was cheaper to go with BMW select. I've been researching some alternative financing and this Penfed loan seems to blow everything else out of the water (including Select finance). { BK7 DC 12/2019 } target 1300/ kohls 3000/ discover IT cb 6500 / 2nd discover IT cb 6000/mercury 4100 / firestone 2800 /legacy . Penfed offered me a balloon for $475 a month and a balloon payment of $15K where as my truck was purchase for $55K and have a balloon of $26K for $550 a month. I currently pay $800 a month on a auto loan, so trading it in for another $800 isnt a strain on my finances. The last thing they want to do is repo your car. Just did the payment saver plan on the M4 we are picking up next weekend. GPO's Payment Saver is a financing option that offers monthly payments that are considerably lower than conventional financing! Re: Penfed Pre-Approvals Credit Card. Credit Union Times PenFed to Offer Walk-Away Balloon Car Loans | Credit Union Times. Stay tuned! . PenFed was their only national CU and the rest are all small that serve a group of counties in various states. . When you register for our products and services, we also collect certain personal information from you for identification purposes, such as your name, address, email address, telephone number, social security number, IP address, and date of birth. CULA used to also offer balloons but we stopped about 5 years ago because the demand for that product was miniscule in most markets. 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. AFG uses a derivative (90% iirc) of straight ALG for the RVs on their balloon loans. Penfed payment saver loan calculator One tool that can be used is Penfed payment saver loan calculator. I just had a giant lunch so I may be even less lucid than normal, so please bear with me. Now you can leave those worries behind and use Access Bill Pay! MountainCrest FCU (WA), G42Model Year: 2021 + F44Model Year: 2020 + Previous Generations; F22 / F23 . Thanks for the input thus far guys, very helpful. Remember your panic when you were far from home and remembered that a bill was due? Those would be your best bet to see if there is one you can work with. You need to claim your rental income on the application. I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea? 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%. Damn I just picked my 2021 trd pro 4runner with this Penfed program back in June. Copyright 2001-document.write(new Date().getFullYear()) Fair Isaac Corporation. Do you wish you could make paying your bills less of a hassle? They usually announce all the small CUs they sign each quarter. APY = Annual Percentage Yield PenFed Credit Union offers low rates, particularly if you're interested in its car-buying service. Please note that verified professionals will have flair, take advice from non-flaired users with discretion. Generally, I do think a balloon loan makes sense for short term purchases. Might have to call them and ask. We can help you find an auto loan that meets your needs with our CarBuilder Program. basically you are taking the chance that at the end of the term of the loan your car is still in perfect condition. I don't see it on their site anymore, did they stop offering it? Also remember to add flair to your post by clicking the "Flair" link beneath it. I can't remember where I read it but I believe Payment Saver is no longer offered as of late last year. Just log-in to PenFed Online (above right, anywhere you are on PenFed.org) and click the Pay Bills tab from the Main Menu of PenFed Online. MERGED: Has anyone read this (bankruptcy) about GM? The term doesnt matter that much because you can sell, trade, or pay it off whenever you want. Become a member and take advantage of products and exclusive offers! Lowest available BALLON LOAN rate found was 2.49% but I did not qualify. Do you think it is worth trying to contact Pen Fed even though they declined my reconsideration or should I just accept it and move on with dealership? Plus dealers had to explain how it was different and 95% of the customers would choose a lease because it makes more financial sense for them. It's a lease-like program, but you OWN the vehicle, and there are plenty of end-of-term options:. You can borrow between $10,000 and $100,000 with terms of 24 to 60 months. Call 1-800-247-5626 for details. The only time this "Payment Saver" would make sense is if you had money tied up in stocks or property that wasn't liquid right now but that you knew would be liquid by the time the balloon payment became due. FORUMS. See this is what concerns meyou had equity b/c of how much you put down (really as with any financing). Hopefully this is not the end of the line, because they are a great option where you can find a favorable RV. Retiree with a solid pension and half a century of on-time car payments? I just looked at our HELOC and its currently 3.13%. PenFed takes no responsibility for the content of the page. Yes I know about the dangers of the loans, what I need to know is who is offering them (other than PenFed). I drive alot, PA charges 9% lease tax on leases, and of course BMW acquisition/leasing fees are not something you deal with when buying. I don't see anyone doing the right thing with these loans. This isnt a product thats useful to me. Our payment quoting technology gives you the ability to build your vehicle of choice online, then compare the cost of the Payment Saver payment to a conventional loan payment. 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. 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. Payment came back very high, not sure what rates/fees they used. 2. 6 Months. Also offers a 2.14% rate for 96 months, so one application gives you both options. 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 Brad is right. 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??? Then at 2 years post bk7 dc i applied for the PCR, approved for 7.5k at 17.99, ymmv. junio 16, 2022 . Should I wait since I just had Pen Fed pull my credit or does it not matter? It gave me a ~$29.7k residual on a $72k MSRP. Reply. 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. I think folks that are considering that option need to give themselves a reality check, and say "Can I REALLY afford this car?" Membership to the CU is possible via a $35 donation to Nashua River Watershed Association. Where there is no state sales tax, for example NJ when purchasing a zero emissions vehicle. I have done 2 PenFed Payment saver loans (my 2014 C7 and my 2021 C8) The video after the finance guy is NOT about PenFed Payment Saver loans Last edited by jimmyb; 04-07-2021 . My PenFed Visa has a $50K limit, which is their max. Id guess they will turn on a lease program sometime in the next year or two. The way the market is now I don't think I would touch it. Latest BALLON LOAN options (best to worst): CapEd Credit Union (https://capedcu.com/) Note that fees charged between providers can vary. Loan rates and terms are determined by each individuals credit history, underwriting factors, and loan-to-value and are subject to change without notice. Do not do it! more or less this is the opposite of gap insurance. Will it impact my credit or look bad to banks if I immediately submit another application with PenFed - this time as a joint application? Financing Available for up to 110% of vehicle value. Were they easy app, approval or did you have to send in a bunch of docs. They would only give me 1.9% on select but gave .9% on regular financing, Pricing, Ordering, Leasing / Purchasing, Delivery, https://www.penfed.org/auto/payment-saver. 1323 3 Only show this user. Does anyone know of anywhere other than PenFed that has auto loans with a balloon payment? Answering everything by email with responses taking less than 15-20 minutes. The vehicle mileage may not exceed 15,000 miles per year based on the model year. Have they stopped all new vehicle finance options? For more information about the relationship between PenFed and PenFed Realty, LLC, see the Affiliate Business Arrangement Disclosure. Applications are subject to credit approval. Make a Payment. The advantage here is there are no terms to ownership (you own the car), no acquisition fee, no lease tax (as there is in PA that is in excess of sales tax), no other lease-associated fees. Does anyone know how the RV is calculated in the PenFed Payment Saver program? Bimmerpost Model Selection. In one case, I was quoted $1500 for origination. I think thats the reason why he loves Penfed balloon loans. But like all credit unions, membership is You'll discover the ease and convenience of paying your bills online in almost no time. Just not a pen fed customer to know what their RVs are on those two specific vehicles. There are some exceptions where the Penfed payment saver has worked out better for me then a lease or traditional finance. When more credit unions were leasing, they were also buying residual insurance from AFG. ; Trade it at maturity or anytime during loan term. Their customer service has been great so far. Access Bill Pay: PenFed's Online Bill Payment System. E81 / E82 / E87 / E88Model Year: 2004 - 2011. How do you plan on paying the $800/month payment? Create an account to follow your favorite communities and start taking part in conversations. 1. Minimum Deposit. *A typical new auto loan of $30,000 at 3.74% APR would have 71 monthly payments of $404 each month, and would include a balloon payment due at loan maturity of $5,475. I had no problems getting 3 approvals at other banks at top rates inculding through BMW. Do we have to have a checking account open too or just share account is good enough? I am a bot, and this action was performed automatically. Certificate Term. There website says it's an estimation based on their data & the mileage cannot exceed 15k a year. TT (Mk3) Discussion - PenFed - Anyone ever use PenFed's Payment Saver loan? MECF_728x90_top. Has PenFed done away with Payment Saver (balloon finance) loans? Ken had already updated the PenFed site to these new rates but haven't seen anything mentioned on the blog or in the forum. Who's Alesha and how do you know she pays everything on time? 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. Maybe you can reverse engineer a good guess on the RV by figuring out total cost of payments compared to MSRP. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. 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). I looked at it. I searched for this but still cannot find a straight answer. But interest rates start higher than the interest rates for its traditional car loans. Has anyone ever used this program before? Go into a dealership and let them properly structure a deal to get an approval for you. 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! 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. 0% balance transfer promo APR for 12 months, although a 3% fee applies on each transfer. i saw maybe less than month ago, but yeah seems to be gone now. Annual mileage options of 7,500, 10,000, 12,000, 15,000 & 18,000 available. AFG Calculator. More details on software and accessibility are available at WebAIM.org. Where the manufacturer is providing more rebates for purchase, versus lease. You need to be a member to access it. 1. CU doesnt want your business. On a typical (not speciality, not for purchase only incentives, not to avoid a closed-end lease) vehicle?? I can't remember where I read it but I believe Payment Saver is no longer offered as of late last year. the same thing that happened with the housing pop is it not? F40Model Year: 2019 + Previous Generations; F20 / F21Model Year: 2012 - 2018. Better then a lease loan offering is backed by AFG at a 3.74% rate. 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. Does anyone know who else offers payment saver loans? Insurance Investments Locations & ATMs Digital Banking EN ESPAOL (800) 421-6674. I have found cars with a 72 month term lower. Pentagon Federal Credit Union, or PenFed, serves over 903,609 members. 1. Refinance remaining balance and keep the vehicle. PenFed dropping the balloons is very interesting. 0 Kudos. Its also well established they dont verify the options you claim are actually equipped (driving up MSRP). How would you like the low monthly payments of a lease, without all the heavy restrictions and hidden costs of leasing? I have a PenFed Payment saver loan on my Tesla Model 3 and on a previously owned Challenger. E81 / E82 / E87 / E88Model Year: 2004 - 2011. That is what Chrsyler is estimating based on 64% residual with about 10k lease. They didn't even have the 2016 M3 in their system when I applied. 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. Penfed Credit Union allows customers to initiate a Non-Fraud Card Dispute process on a credit card transaction. What state/county do you live in? Re: Has PenFed done away with Payment Saver (balloon finance) loans? I just thought there would be interest in PenFed discontinuing their offering, given the flurry of recent discussion in other threads. Payment Saver auto loans. PenFed's payment saver loans have the appeal of low initial payments. Only problem I had was getting approved. Enables you to easily upgrade and/or change your vehicle every couple of years. I pulled one up for a Maserati Ghibli and it showed an MSRP of $48K and the car was a $91K sticker. For one reason or another penfed was difficult to get approval for, and I'm not sure I understand why. For more information about the relationship between PenFed and PenFed Title, LLC, see the Affiliate Business Arrangement Disclosure. SoFi offers personal loans ranging from $5,000 to $100,000, which is much higher than PenFed's $50,000 limit. In normal times? New Auto Loans. Just go to a dealer. Neither lease well and ran across this idea but didnt know how to calculate the RV. The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. This lets us know where you're located so we can assist you better. Solve Now. At minimum, expect a $725 origination fee for vehicles over $75K. Credit Unions often offer what's called a Payment Saver Auto Loan. Payment saver loans. 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 . 2. My only thought is we have two rental properties/mortgages so might look like I have large debt but they actually provide income. AmeriCU Credit Union (https://americu.org/) Congrats man!!! I had forgotten about these loans, so I might go this route myself right now. I calculated the residual value it gave me in it's car-specific calculator (i'm logged in as a member). Hanscom Federal Credit Union (https://hfcu.org/) I think this is the path I'm going to go. Bimmerpost Model Selection. You have to be an employee of a specific business, student/family in a specific school district, or active/retired military. I'm seeing 3.74% for 84 months at DCU. Other restrictions may apply. Keep in mind when you calculate the payments on BMWs site, it doesn't include taxes. This may come as a surprise, but financing a car isn't that easy, and credit scores are only a small fraction of the total approval/decline. If I total the car my . 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. Membership to the CU is possible via a $20 donation to CapEd Foundation. 1.5% cash back for non-members. New auto loans: PenFed offers up to 110 percent financing and terms from 36 to 84 months ranging from 1.49 to 3.49 percent APR. It doesn't hurt to try but it probably won't make a difference. 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. The content you are about to view is produced by a third party unaffiliated to Pentagon Federal Credit Union. Since the title is in YOUR name you have more options prior to loan maturity and at loan maturity. https://www.penfed.org/auto/payment-saver. Where the manufacturer has restrictive lease terms, for example Tesla or Mercedes, that limit your ability to sell/trade/transfer the lease and where you often will have equity.