PenFed Payment Saver Deal...

[Blackfield]

Originally Posted by Vectors2final

Yes, you can. I put down a good down as well. My payment is $550 a month. I actually just made my first payment last month. I'm kicking a little extra every month. I started clicking options to get close to my purchase price, but there is a calculator on the side where you can put the amount you want to finance. It was pretty accurate. There is no prepayment penalties, just like with traditional loans.


Rate? I am at 2.49% and Select is usually 3.5%+

Informing Pen Fed? They just want the VIN, so as long you have that, they'll cut the check. They haven't even asked about the Title, yet, but I'm sure they're going to be asking soon.

Thanks! Good to know that Penfed's rate is better than BMW Select.

With ED, it may take months for PenFed to get the title. That's why I was wondering if we need to inform Penfed before hand for such case.

[Vectors2final]

Originally Posted by Blackfield

Thanks! Good to know that Penfed's rate is better than BMW Select.

With ED, it may take months for PenFed to get the title. That's why I was wondering if we need to inform Penfed before hand for such case.

Well, if it helps any, the loan was funded in early February and they haven't asked for anything yet.

[saxon]

this seems like its exactly what i am looking for and I may do this as it gives a bit more flexibility than a 36 month lease.... the only advantage to a lease is that if the value tanks you're not liable for it

[chiplee]

Originally Posted by Blackfield

Thanks! Good to know that Penfed's rate is better than BMW Select.

With ED, it may take months for PenFed to get the title. That's why I was wondering if we need to inform Penfed before hand for such case.

Yes, I would inform them. They pestered me for the title pretty good just doing Military Sales. BMW "special sales" handles that processing though so ED might be different. Getting a courtesy delivery from a dealer that had no skin in my game meant I was their lowest priority. Letters from Penfed warned of pending unsecured loan rate conversion and such, but the truth is that takes 180 days vice the 90 they talk about in the letters.

[Vectors2final]

Originally Posted by chiplee

Yes, I would inform them. They pestered me for the title pretty good just doing Military Sales. BMW "special sales" handles that processing though so ED might be different. Getting a courtesy delivery from a dealer that had no skin in my game meant I was their lowest priority. Letters from Penfed warned of pending unsecured loan rate conversion and such, but the truth is that takes 180 days vice the 90 they talk about in the letters.

I've gotten those letters as well, but from other financing with Navy Fed.


So far, the courtesy delivery CA has been helpful, prompt and even took pics for me. I guess the wife will find out in a few hours.

[aquarius08]

Originally Posted by Vectors2final

Yes, you can. I put down a good down as well. My payment is $550 a month. I actually just made my first payment last month. I'm kicking a little extra every month. I started clicking options to get close to my purchase price, but there is a calculator on the side where you can put the amount you want to finance. It was pretty accurate. There is no prepayment penalties, just like with traditional loans.


Rate? I am at 2.49% and Select is usually 3.5%+

Informing Pen Fed? They just want the VIN, so as long you have that, they'll cut the check. They haven't even asked about the Title, yet, but I'm sure they're going to be asking soon.

My finance guy told me he can get me the 1.9% for 60 months rate for Select. Maybe he's full of shit but I would check.

[Vectors2final]

If he can, that's awesome.


I know PenFed does 1.7% for 36 and 2.24 for 37-48. PenFed also includes Gap with the payment saver as well.

[JYTsky]

is it possible to change vin after approval?

[F82speed]

Originally Posted by chiplee

...They pestered me for the title pretty good .... Letters from Penfed warned of pending unsecured loan rate conversion and such, but the truth is that takes 180 days vice the 90 they talk about in the letters.

Same here, got my first letter at only the 45'sh day mark, I did reg/title at DMV the first month I had the car but they took forever to get the lien processed and eventually PenFed started pestering me pretty good, told them I did my part so unless they had a secret to make the state of CO move faster to please leave me alone and check with the state and they did eventually receive, all fine in the end

[Adcampo]

I have a payment saver through PenFed now on my 328. I did 60 months and getting out of the loan at about 29 months and I'm upside down by quite a bit. I was even adding about $75 extra per month in my payment. I can get close to break even selling it on my own.

Regardless, I'm going to do the same loan on my M4, but I'll choose 36 or 48 month term. It's a great program and works better than the BMW lease or BMW Select. Rates are better and no mileage restrictions. I'll just look at the backend numbers a little closer.

[hz101]

Just wondering if anyone has had more positive/negative experiences with this loan option. I am considering this for purchasing an M3.

[chiplee]

Originally Posted by hz101

Just wondering if anyone has had more positive/negative experiences with this loan option. I am considering this for purchasing an M3.

It's an ok product. It's like leasing without the mileage restrictions and with a mandatory purchase or private sale at the end of the lease, vice a simple turn in. Ultimately, if you want to own and have a cashflow problem, it's probably better to just finance for 72 months. This loan is like using 9 or 10 year financing.

[mjposner]

Depends on whether you can afford to deal with the balloon and possible negative equity. Also, leasing may make more sense (especially if you can stay under 10k miles a year).

[alex2364]

The disadvantage of this is that you’re at risk of being upside down especially if something happens to the value of the car like being in an accident.

[gatorfast]

Originally Posted by alex2364

The disadvantage of this is that you’re at risk of being upside down especially if something happens to the value of the car like being in an accident.

Thats a great point and a key distinction for anyone thinking this is similar to a lease. While the payments may be similar, the risk of loss is mitigated with the lease (fixed residual and ability to simply walk away at lease end) while the risk remains with the balloon payment (vehicle could be worth substantially less due to combination of market factors and accident history).

[MavRick]

Originally Posted by hz101

Just wondering if anyone has had more positive/negative experiences with this loan option. I am considering this for purchasing an M3.

we used it to purchase my wife's M4 back in the summer of '15. just traded it in on her new one and had $5k of equity, so it worked out well. wouldve been even more had we bought an M3.

the payments were less than what we wouldve paid on a lease. we had planned to use it again, but the MY2019 M4's werent in their system when we needed to secure financing for the new one. actually...i STILL dont think the car is in the system.

sucks as, by my calculations, it wouldve saved us around $150/month vs our lease payments.

[Clark_Kent]

Originally Posted by alex2364

The disadvantage of this is that you’re at risk of being upside down especially if something happens to the value of the car like being in an accident.

You can mitigate the risk of being upside down by negotiating a great deal on the front end. If you pay sticker or anywhere close to it you'll be upside down for sure unless you rarely drive the car. I traded my 2016 M3 in on a 2018 and had positive equity of ~$6k with this product. Overall, I was pleased with it but will likely not use it again.

[alex2364]

Originally Posted by Clark_Kent

You can mitigate the risk of being upside down by negotiating a great deal on the front end. If you pay sticker or anywhere close to it you'll be upside down for sure unless you rarely drive the car. I traded my 2016 M3 in on a 2018 and had positive equity of ~$6k with this product. Overall, I was pleased with it but will likely not use it again.

You should negotiate a great deal whether you're buying or leasing. Any deal you get on the sales price of a car when you're buying is equivalent to a lower monthly payment on a lease.

[hz101]

I was actually thinking of using this loan to get a used M3. There are many on the market with less than 15k miles that have taken huge depreciation hits. I'm talking $20k less than MSRP easily. I can put some money down and have a payment of around $600 a month using their online calculator.

[peeej]

i had penfed all this time and didn't know they do this. haha. wow

[shakenbake11]

Originally Posted by hz101

I was actually thinking of using this loan to get a used M3. There are many on the market with less than 15k miles that have taken huge depreciation hits. I'm talking $20k less than MSRP easily. I can put some money down and have a payment of around $600 a month using their online calculator.

they offer this product ton used cars too? If you are a member and logged in, can you run some calcs e.g. 2016 M3 with 15k miles and it spits out a residual?

Edit: On their webpage, I read their disclosures..it looks like they go back two current year models for used vehicles and 15k miles max. Thats cool. Can anyone tell me a residual on a 2017 comp M3 with 10k miles that has a selling price of $60k @ 60 mo term?

[mindspin311]

Just did the calculator on 69k financed and it spit out $925/mo for 60mo, ehhh....