Thank you. This was my thought as well. Now to decide if I want to roll the equity into the loan, or use the low interest loan for 60-72 months.
Just do this!!!
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If you have some time, could you check one for me? I signed up for Penfed, but it looks like it’s taking longer for them verify my documents because of the holiday.
2022 Kia K5 GT line AWD (w/premium package) for 60 and 72 months.
Thanks
Do I need a checking account for PenFed and maintain a minimum $ amount. Or I read it’s $5 membership Is that per month or just one time.
You only need 1 account, the regular share with minimum balance of $5.
Not the other checking or minimum balance requirements.
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I have their credit card as well. While I don’t carry balances, I am amazed to find out that I have a 6.49% interest rate on it which no other cards I have are anywhere near that.
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I am thinking about my 2019 Q8 whose lease will be expiring on Dec 2022 and I am planning to keep it after lease is over. Currently paying $819 per month and RV is $40k . 3yr /15k . Currently has 20k miles and expecting to drive 6k miles in next 14 months so I have to buy back. If I rollover now to PenFed I can save some money on 72 month rate. Or Rollover in Dec 2022.
Tax already in the monthly payments for the lease amount.
^ as long as its not a turbo 4 lol
If anyone ends up financing a car with PenFed (balloon or otherwise), or any credit union for that matter, if you are the least bit concerned about your financial security don’t open any other products beyond the share account without thoroughly reading all relevant agreements.
Many/most CUs have cross-collateralization provisions in their membership and/or credit/loan agreements.
This means that if you have a car secured by a PenFed auto loan and you also default on one of their credit cards, they won’t release the title to the vehicle until the credit card matter is settled - even if you pay off the car.
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No 72mo option w/ payment saver
Below is the option for 36, 48 and 60 – Note the APR increase.
Thanks. I’ll need to weigh the benefits of both. I can get 1.89% for 60 mos from USAA, which comes out to $514/month using $29,385 as the loan amount (actual MSRP I’m looking at is $31,185). That’s $136/mo difference, which is pretty big for me right now.
With my current pay scale at work, as long as nothing crazy happens, I’ll be seeing about a $40k increase in my base pay over the next 5 years, plus yearly cost of living increases, plus 3 out of 4 kids should be out of the house, so that final payment will be nothing.
And I’m looking to put at least $6500 down, so that’s definitely a manageable payment. I think I might have just decided. Anything else about the payment saver I need to think about that would make this not a good idea?
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If I was putting money down, would it be as simple as taking my down payment divided by number of months and subtracting that from the current estimated monthly payment? Or does the payment saver calculate anything different?
I actually found a dealer that has the exact options and colors I want due in this week, and they’re selling at MSRP with no markups.
Why put the money down?
Just do $0 down.
If anything based on the formula, it should reduce your monthly as the RV will be set.
Make sure you have and/or purchase GAP insurance.
Because I’m getting money back from from selling my current lease, I plan to keep the car for a while, and I want to keep the payments lower right now until I get another pay increase at work.
Depending on the car and the price paid, there may be no gap to insure against.
Even for the balloon payment?
OP will still owe the balance to PenFed, right?
I understand, but when is that pay increase, in a year?
So why not just keep the cash just enough to cover next year, invest the other to save up for the balloon payment.
Gap insurance is included in the payment saver program.
A down payment is just a reduction of loan amount. You can get pretty close by dividing the DP over the term. You will pay less interest with a bigger DP.
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How long does PenFed usually take to approve membership? I uploaded my verification docs for the Regular Savings account last Saturday, they said it usually takes 3-5 business days, and today is business day 5. No response from them yet.