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The whole process took me about 10 minutes. Filled out the application online in about 5 minutes, was instantly approved with a great rate. I was mailed a couple forms that needed signing, which I did and sent back. I found the car I wanted, gave them the VIN and price, they cut a check to the dealer. That was it! I never had to talk with anyone, no headaches, easy peasy. I also have my savings and checkings accounts with PenFed, and actually get interest back that is reasonably significant.
The only knock I have on the company as a whole, which is why I'm assuming they can offer better rates than most companies, is their customer service department seems like a skeleton crew. I've always had long waits and no one seems to be an expert in the products I'm seeking assistance on. If you can avoid calling customers service, the company is a 10/10. Their customer service, however, is probably a 4/10.
I have an excellent credit score. I am looking for an auto loan refinance within 2.4% APR. But upon inquiry, they gave me only 2.99% APR in contrast to what they mentioned that APR starts at 2.14. This is a huge difference and the CU did not provide a proper reason. If a person with an excellent credit score did not get 2.14 then who will get that APR? If there are certainly other reasons behind providing 2.14 APR why it did not mention that upfront while applying. This would have saved a credit check hard inquiry.
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A joke of customer service, it's tough to even talk to a live person. Their loan process is unbelievably bad, they tell me they can't access my credit but that I don't have any credit score. I have 3 mortgage loans right now and have paid off probably 7-8 car loans throughout my life.
PENFED is first choice for auto and home/line of credit loans. Have gotten my last three car loans through PENFED. All three limes, I got auto loan over the phone in just under 10 minutes. Customer service rep very friendly and familiar with loan process and loan information was sent to the dealership same day.
PenFed had a very good interest rate for my auto loan. I am at 3.9% interest for my loan. Compared to banks and other institutions, PenFed beat all others substantially. Avoid Santander because the interest rate they quoted me was above 14%.
I've been a member of PFCU since 1983 and have never been disappointed with the great services they provide. I've never had any issues with my checking and savings account. PFCU representatives are alway eager to provide the best possible customer service possible. Recently purchased a new car and PFCU processed and completed my car loan in one day. PFCU has a great bill paying options where you can set up monthly and single payments.
I had an auto loan with them and moved during the term of the loan. I updated my address information with them, and since the loan was on autopay, thought everything was fine. Unfortunately that was not the case. When I paid off the loan, they sent the title to my old address, and it was returned to them. They then Emailed me stating this fact and asking for my correct address. I called them and told them I had changed my address a long time ago, and asked what address they had, and they confirmed to me my current correct address. They said they would send the title out again, and I forgot about it until about 6 weeks later when I got another Email from them saying it was returned as undeliverable. I called again and had exactly the same conversation a second time, they went ahead and deleted my address information and reentered it and sent the title out again. Yep.
Six weeks later, I got the same Email again. I tried not to laugh too hard when I called them back a third time and told them what was happening, and this time the woman I dealt with said she knew what was happening. They have multiple independent computer systems that have no way of communicating with each other, and every time I updated my address information by phone and the Website, it only updated my general contact information with the company, not with the auto loan department. So she transferred me to the auto loan department and I updated my address information for a fourth time with them, and then got my title about a month later. Hard to believe, but their systems and procedures are apparently that old fashioned.
I started an application online for a car loan and without my consent, the bank pulled my credit report. The bank should request for authorization before pulling the credit which significantly affects my credit. I didn't expect this from such a big bank. I contacted them over email and they were very rude in the response.
Be very careful of what PenFed calls their car buying service. I found my car and needed an auto loan. Their website says that you will get 2.24 interest rate if you use the service. I called the number on the PenFed site and spoke with a real person. Then they had me call PenFed to input my information over the phone. They filled out the application for me. They called the dealer where the car was at to get the vehicle identification number. When completed it went to a loan officer who approved the loan at the rate of 2.24. They said we now have a loan for 4 years, gave me the loan number and the rate pay every month. It was clear the rate is 2.24 and written into the loan. The loan was approved at that rate.
So I then went to the dealer and made the purchase. That contract was done. PenFed said just come and pick you the check and give the check to the dealer and start making the payments. I then went to the branch to get the check. It is here they decided to raise the interest rate if I wanted the check to pay for the car I bought. They said they cannot give me the money at the contract rate of 2.24 but now I had to except a rate of 3.25. I said, "Hold on, what happened to the 2.24 you represented? I bought the car and the dealer wants their money." They said, "It seems one of our employees didn't check and the dealer we called and where you bought the car was not part of the car buying program." I said, "You called them for the VIN number, you of all people would know who you called." They said I am responsible to know if the dealer is part of the program.
I said the loan check is written to this dealer. So PenFed made clear they would not honor the contract or the agreed interest rate. I said, "You understand the position I am in. I have a duty and obligation to pay the dealer and I cannot now unless I agree now to a higher rate we never agreed on." I said, "You realize you just locked this in at 2.24, I acted on that contract we had, and you now with old the check stating you are switching the rate to 3.25. Lexie speaking on behalf of PenFed says, "Yes, You can either pay the higher rate or have the CEO resolve this."
I asked what of our contract we had prior to the purchase and she said that can no longer apply. So I have to say this is a very creative way of locking positioning someone into one price, let them buy the car, then switch to a higher rate. People really need to steer clear of PenFed car buying service. They will try and say the buy car buying service is another company but people will still answer the phone and answer at all times as PenFed car buying service. My car dealer is very nervous now about getting paid.
I've been a PenFed member for almost over a decade. I financed a previous car loan with them at the start and it went smoothly. Fast forward ten years and I decided to apply for a new car loan online for $30,000. I was instantly approved at 2.9% interest rate, the only condition was that I had to provide evidence of employment. So the next day I go to the local PenFed branch with my pay stub and the loan officer says everything looks good but we need the cars VIN to make things final. Still I ask him if everything's ok credit wise before I go to the dealer, to which he said that it shouldn't be an issue.
So I go to the dealer, make a $1,000 down payment to buy the car and tell them I'm financing with PenFed and will be giving them the check the next day. When I go back to PenFed, the loan officer starts to ask for all my financial information which I found redundant because I had provided all of it online when I applied. He then fabricated some story saying that he had to meet with a loan committee and made me wait 15 minutes. He then came back saying that upon further review the “committee” decided the loan was too risky and provided a counteroffer of $25,000 at 5.8% interest rate.
Of course I was visibly upset and felt betrayed. This loan officer waited until I made a buying commitment with the dealer to then screw me over. I would expect this type of practice from a regular bank, but not from a credit union that supposedly prides itself on being pro members. Be wary of present-day PenFed, their low initial offers and promises of approval are now just a trap. They will use every trick of the trade to screw you over. Things are not as they used to be any more at PenFed. Shame.
Pentagon Federal Credit Union Auto Loans author review by Lauren Fix
Founded in 1935, Pentagon Federal Credit Union (PenFed) is an American financial institution that operates in all fifty states and some international military bases. Along with other financial services, PenFed members can apply for new and used auto loans, auto refinancing, auto buying service, and Payment Saver loans for new and used vehicles.
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.
Used auto loans: You can get up to 110 percent financing with terms from 36 and 72 months and APR ranging from 1.99 to 3.91 percent.
Auto refinancing: You can refinance a new or used auto loan with terms up to 72 months and loan amounts up to $100,000.
Payment saver loans: Payment Saver loans allow you to pay lower monthly payments on your new or used vehicle, and then make a final balloon payment at the end of the loan term. You can choose from a 24 to 60 month term with rates from 1.74 to 3.24 percent.
PenFed buying service: As a member you can receive discounts on select vehicles financed through PenFed. You must be a member for at least 60 days prior to applying.
Pentagon Federal Credit Union Auto Loans Company Information
- Company Name:
- Pentagon Federal Credit Union Auto Loans
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