Rates are current as of March 2023unless otherwise noted and are subject to change. or just a certain type of loan. $1,000. 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! I would rather keep the equity in my pocket, during that time period, then in the vehicle. I actually had a few grand in equity. { BK7 DC 12/2019 } target 1300/ kohls 3000/ discover IT cb 6500 / 2nd discover IT cb 6000/mercury 4100 / firestone 2800 /legacy . However, PenFed's "Payment Saver Plus Program" removes the risk of credit damage, making a walk-away just another option to satisfy the balloon payment obligation. Take two $50,000 cars, one with a 50% RV and one with a 40% RV. 01-22-2022 02:06 AM. Ken had already updated the PenFed site to these new rates but haven't seen anything mentioned on the blog or in the forum. Flexible loan terms of up to 72 months. Had no issues with penfed. 1. No match for the 2.99% 36mo rate that PenFed offered. Where there is no state sales tax, for example NJ when purchasing a zero emissions vehicle. Further information is available in our FICO Data Privacy Policy. Uses transunion credit for score. Like a lease, the PaySaver Auto Loan program offers payments that are considerably lower than conventional financing. Do not do it! F40Model Year: 2019 + Previous Generations; F20 / F21Model Year: 2012 - 2018. Loan rates and terms are determined by each individuals credit history, underwriting factors, and loan-to-value and are subject to change without notice. Paysaver rates not posted, but you can apply for paysaver loan via the website. CU doesnt want your business. Financing Available for up to 110% of vehicle value. Frequent Contributor. Anything branded payment saver is the afg balloon. Given most APRs are pretty low right now, the difference in interest paid, for such a short term, is fairly insignificant. They changed stuff over the years. 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 . The content you are about to view is produced by a third party unaffiliated to Pentagon Federal Credit Union. I'm seeing 3.74% for 84 months at DCU. I don't see it on their site anymore, did they stop offering it? I really don't think it is terrible as long as you setup an auto deduction into a interest bearing acount for what you would save each month. Why? PenFeds new Payment Saver Plus Program removes the risk of credit damage for members. Chances are you owe too many people too much money and your CU sees this as a liability. . 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. That is what Chrsyler is estimating based on 64% residual with about 10k lease. I created both and getting $10 charged every month from my checking account since I only have minimum. 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. To start viewing messages, select the forum that you want to visit from the selection below. 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. Copyright 2001-document.write(new Date().getFullYear()) Fair Isaac Corporation. New and used motorcycle loans. 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. European Delivery. We use cookies to provide you with better experiences and allow you to navigate our website. There are some exceptions where the Penfed payment saver has worked out better for me then a lease or traditional finance. The pen fed saver payment calculator estimates a rubicon unlimited with 53k msrp to be worth 34k in change after 3 years. I've been researching some alternative financing and this Penfed loan seems to blow everything else out of the water (including Select finance). The vehicle mileage may not exceed 15,000 miles per year based on the model year. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. They had been very interested in leasing for years and then made a last minute decision to go with balloons based on a middle man who I think had a piece of the deal. Including the ability to turn your vehicle in and walk away at the end of the loan term. Sorry, I do not. A dealer can usually get it done because we have direct lines to the loan officers. Do you wish you could make paying your bills less of a hassle? How to pick a car? 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. Original review: June 28, 2022. In normal times? Yes I know about the dangers of the loans, what I need to know is who is offering them (other than PenFed). It gave me a ~$29.7k residual on a $72k MSRP. I am a bot, and this action was performed automatically. 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. SoFi's starting interest rate is also lower than PenFed's but . For instance in 2014 I took out one for a loaded 781 Porsche Boxster S, fully loaded car. Just like buying new? Including the ability to turn your vehicle in and walk away at the end of the loan term. F40Model Year: 2019 + Previous Generations; F20 / F21Model Year: 2012 - 2018. Using the balloon loan qualified me for thousands in additional rebates versus a CCAP lease. 2. PenFed takes no responsibility for the content of the page. 1.5% cash back for non-members. What state/county do you live in? I have found cars with a 72 month term lower. Other features of the Payment Saver Auto Loan include: New and used vehicles up to five years old qualify. Applications and Car Buying Service dealership match must be received during the promotional period, between 2/1/2023 and 4/30/2023. Bimmerpost Model Selection. junio 16, 2022 . Have they stopped all new vehicle finance options? I have a lady coming by today who I got approved and she literally has a 412 score. You need to be a member to access it. Should I wait since I just had Pen Fed pull my credit or does it not matter? PenFed's new Payment Saver Plus Program removes the risk of credit damage for members. 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). I looked but it was cheaper to go with BMW select. A balloon loan is fundamentally paying down a presumed balance between MSRP and residual value. Where Penfed has an unusually high MSRP, which does not properly align to the manufacturer MSRP. Payment and Shipping info for 1st Edition Camaro5 shirts, Americans increasingly going upside down on auto loans. Has anyone ever used this program before? Become a member and take advantage of products and exclusive offers! I've also been thinking about going this route. $869.13. A lot of credit unions buy residuals from AFG. To find out more about the PaySaver Auto Loan program, call or stop by AmeriCU today or go to the PaySaver Calculator to see for yourself how low your auto loan monthly payment can be! We can help you find an auto loan that meets your needs with our CarBuilder program. Uses transunion credit for score. This allows me to recoup the equity locked in the vehicle, which would otherwise be lost w/ a Tesla lease. I also got a decline the other day on a 700. It's a lease-like program, but you OWN the vehicle, and there are plenty of end-of-term options:. Because their RVs are so low, youll have some equity at the end to trade with but your payments will be a lot higher than your other options with a lease. Copyright AmeriCU Credit Union. I wasnt questioning the logic of a balloon loan vs. lease; I understand why someone would do one vs. the other in various scenarios. You may find these sections particularly useful; Will paying in cash or a large cash down payment offer me leverage in negotiations? Same APR. You have to be an employee of a specific business, student/family in a specific school district, or active/retired military. I can't remember where I read it but I believe Payment Saver is no longer offered as of late last year. I have had the Payment Saver on a FJ Cruiser, JKUR, JLUR and now my Raptor. Minimum Deposit. Penfed payment saver loans (like bmw select with balloon) Bimmerpost Model Selection. Uses experian for credit score. Did you get this quote via their PenFed website? I had no problems getting 3 approvals at other banks at top rates inculding through BMW. Those would be your best bet to see if there is one you can work with. MERGED: Has anyone read this (bankruptcy) about GM? 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. Popular programs such as PenFeds PSA Loan basically resembles a auto lease, but without th. F40 Model Year: 2019 + Previous Generations; F20 / F21 Model Year: 2012 - 2018; E82 / E83 / E87 / E88 Model Year: 2004 - 2011; 2. On a typical (not speciality, not for purchase only incentives, not to avoid a closed-end lease) vehicle?? . However, they do not take any action and the dispute . Please review our most Frequently Asked Questions to see if your question has already been answered. 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. Your lender or insurer may use a different FICO Score than the versions you receive from myFICO, or another type of credit score altogether. G42 Model Year: 2021 + F44 Model Year: 2020 + Previous Generations; F22 / F23 Model Year: . My question is, if I do go forward with the pen fed . 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. Their MSRP for cars when doing payment saver are ridiculously off and by off I mean lower. PenFed Payment Saver Deal. Rates depend on terms, as follows: The term doesnt matter that much because you can sell, trade, or pay it off whenever you want. TT (Mk3) Discussion - PenFed - Anyone ever use PenFed's Payment Saver loan? 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. ; Trade it at maturity or anytime during loan term. 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. I calculated the residual value it gave me in it's car-specific calculator (i'm logged in as a member). PenFed Payment Saver Auto Loan. $100 bonus offer statement credit on $1,500 spent within the first 90 days. Do we have to have a checking account open too or just share account is good enough? 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. 2.70%. Any chances this program comes back? Make a Payment. BMW 1 Series Coupe Forum / 1 Series Convertible Forum (1M / tii / 135i / 128i / Coupe / Cabrio / Hatchback) (BMW E82 E88 128i 130i 135i), Ordering, Pricing, Options, Tracking Discussions. As my grandfather would say, this place can't find its Auto Saver Loans. Login Register. I traded my M3 in back in September after about 30 months and I actually had a few grand in equity. Credit Unions often offer what's called a Payment Saver Auto Loan. If something happens to the income, they may never get paid the contracted balance. 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. In addition, PenFed offers Payment Saver (Balloon) loan options for members seeking lower monthly payments. 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??? (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. AFG Calculator. Payment saver loans. More details on software and accessibility are available at WebAIM.org. 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. Uses transunion credit for initial score. No security deposit or acquisition fees. Remember your panic when you were far from home and remembered that a bill was due? For those looking to pay less upfront at a higher rate, they come with a lump-sum payment at the end of their term. Thanks for turning me on to this. AmeriCU Credit Union (https://americu.org/) I applied with neither and was approved. What are the pluses/minuses of financing using payment saver plan? My wife also works and makes over $200k a year.We currently lease and finance Volvos. They usually announce all the small CUs they sign each quarter. Membership via $15 one-time donation to American Consumer Council. It doesn't hurt to try but it probably won't make a difference. basically you are taking the chance that at the end of the term of the loan your car is still in perfect condition. Certificate Term. High-Yield Savings Accounts; CD Rates; . I wonder if its worth trying to contact Pen Fed again or just cut my losses and work with the dealer. I think this is the path I'm going to go. This lets us know where you're located so we can assist you better. Pentagon Federal Credit Union, or PenFed, serves over 903,609 members. You need to claim your rental income on the application. What happens if you can't refinance in time at the end of the loan? My only thought is we have two rental properties/mortgages so might look like I have large debt but they actually provide income. 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. 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. Press question mark to learn the rest of the keyboard shortcuts. There website says it's an estimation based on their data & the mileage cannot exceed 15k a year. 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.. I was told to just call back when I have the VIN. Please contact the moderators of this subreddit if you have any questions or concerns. 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. MECF_728x90_top. The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. Teachers Federal Credit Union (https://teachersfcu.org/) Its not. 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. 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. I think Brad is right. FWIW the AFG calculator is a good resource to play around with numbers: AFG Calculator. My PenFed Visa has a $50K limit, which is their max. 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. Minimum loan amount of $15,000 for vehicles financed with 60 to 72 month loan terms. 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). The share savings account gets you all the benefits, Powered by Discourse, best viewed with JavaScript enabled. balloon loans are dangerous and I think the interest rate on them usually fluctuates with prime. BMW Buyers Guide - Dealers, Resources & Pricing. Read PenFed car loan review. AFG uses a derivative (90% iirc) of straight ALG for the RVs on their balloon loans. Re: Has PenFed done away with Payment Saver (balloon finance) loans? I have a credit score of 821 and $130k annual income. I just emailed Penfed to ask for more info on how they figure the RV. Yep, that is what I am going with as well. Payment came back very high, not sure what rates/fees they used. 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. Anyone on here have any experience with these loans?? Collapse. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. You can look through AFgs website in the press release section. Refinance your current vehicle loan to reduce your monthly payments with the PaySaver Auto Loan program. Membership to the CU is possible via a $35 donation to Nashua River Watershed Association. Has PenFed done away with Payment Saver (balloon finance) loans? See the difference? Since the title is in YOUR name you have more options prior to loan maturity and at loan maturity. The banks want nothing to do with that, and will happily turn you away. 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. However the payment difference is hundreds per month between a lease and a balloon payment. Better then a lease loan offering is backed by AFG at a 3.74% rate. 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. Our students say Absolutely amazing app, but is there a way to copy a result? Does anyone know who else offers payment saver loans? 2. The lease numbers are just NOT favorable for me. Penfed payment saver loan? We currently lease and finance Volvos. Put Your Money in Your Pocket with Mobile Banking, 8 Tips for Taking Reliable Mobile Deposit Check Photos. I had forgotten about these loans, so I might go this route myself right now. Maybe you can reverse engineer a good guess on the RV by figuring out total cost of payments compared to MSRP. I earn $xxxx per month, will I qualify for an auto loan or lease, and is it a good idea? All FICO Score products made available on myFICO.com include a FICO Score 8, and may include additional FICO Score versions. 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. Anyone else skeptical about these loans? I just thought it may make sense in regard to the Odyssey and Sienna which lease terrible and tend to hold decent RVs. 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? 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. PenFed Credit Union offers low rates, particularly if you're interested in its car-buying service. 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? Penfed has a calculator which allows you to lookup MSRP and RV for a given vehicle. For visitors with visual disabilities, access to this website, including our FICO Data Privacy Policy, is available through assistive technologies, such as BrowseAloud, JAWS, VoiceOver, Narrator, ChromeVox, and Window-Eyes. APY. FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. I did this same type of thing with my E92 M3 and it was perfect. But interest rates start higher than the interest rates for its traditional car loans. I have great credit and am already approved for a normal loan through my credit union with affordable monthly payments, but am considering the payment saver loan because of how much lower it makes them. Theyll get you financing. Learn more. We can help you find an auto loan that meets your needs with our CarBuilder Program. Out of curiosity, for those who have balloon loans, whats your APR? I can't remember where I read it but I believe Payment Saver is no longer offered as of late last year. I just looked at our HELOC and its currently 3.13%. Balloons are purchases so youll pay sales tax on the full price of the vehicle and you wont always get the same incentives available on a lease. Please note that verified professionals will have flair, take advice from non-flaired users with discretion. NerdWallet rating. F80 M3 / M4 Pricing, Ordering, European Delivery, https://www.dcu.org/loans/auto-choices.html.