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LarsBrunkhorst
LarsBrunkhorst New Reader
3/16/21 9:26 a.m.

Per the nice lady I just got off the phone with, PenFed is no longer offering loans on vehicles with over 125,000 miles......

I am looking to purchase a higher mileage e46 M3 and even showing her the prices they are currently selling for she told me that it doesnt matter and thats their policy.

Anyone know of a similar lender that is filling that niche? (I am also confused because I used them last year on my escalade and that had 156k on it at the time so not sure if shes just giving me the run around or what)

Seems so dumb to me that even though the vehicle in question has an insane maintenance history and has been driven less than 10k miles a year since new,  its now essentially considered worthless....

ProDarwin
ProDarwin MegaDork
3/16/21 9:29 a.m.

I can't answer your question, but I wanted to say PenFed has lost most of my future business.  I have a mortgage through them.  I changed my home insurance and called to update escrow stuff and the mortgage team is virtually impossible to get in touch with (I never was able to speak to a human).

LarsBrunkhorst
LarsBrunkhorst New Reader
3/16/21 9:56 a.m.

Anyone used Suntrust/Lightstream?

John Welsh
John Welsh Mod Squad
3/16/21 10:06 a.m.

In reply to LarsBrunkhorst :

Such sad news.  I had one car loan through PenFed.  I learned of them here on GRM and then later wrote a lot of positive about my experience in threads like this.  Also in that thread, others spoke highly of lightstream.  

wae
wae UberDork
3/16/21 10:09 a.m.

I've used Lightstream.  They were pretty easy to deal with.  They didn't care that much about the car at the time since it was an unsecured loan.

LarsBrunkhorst
LarsBrunkhorst New Reader
3/16/21 10:12 a.m.

In reply to John Welsh :

Yeah I know, I have used them for 3 or 4 cars at this point and they were always super simple and great to work with. Such a shame really, super frustrating that more credit unions dont want to play ball with older/enthusiast cars. Seems like a no brainer to me but what do I know...

Don Fip
Don Fip None
3/16/21 10:14 a.m.

In reply to LarsBrunkhorst :

Also recommend Lightstream, I've done two auto loans through them.  Everything online, never had an issues.  They do have higher credit standards though since the loans I got were also unsecured.  One of the loans was a refinance, they never asked what the vehicle was.

John Welsh
John Welsh Mod Squad
3/16/21 10:19 a.m.

I read some of the fine print on the PenFed website.

It says:

Financing is available up to NADA average retail value plus tags, title, taxes and extended warranties not to exceed 110%. Some restrictions apply

also says

Financing for 61-72 month term is valid for model year 2016 and newer. Rate depends on term. Vehicle weight and mileage restrictions apply.

 

So, line is 36-60 month loans (3yr-5yr) with just restrictions apply yet the second line clearly states that mileage restrictions apply to 6yr loans.  

Were you attempting to apply for a 6 yr loan?   

 

LarsBrunkhorst
LarsBrunkhorst New Reader
3/16/21 10:24 a.m.

In reply to John Welsh :

Nope, 36 months. According to their "msrp calculator" the car is only worth 6k... which for a very well maintained, rust free, 6pd coupe is laughable. I asked her to find me one that was below 10k and she then told me it was the mileage that was going prevent me from getting the loan regardless..

FMB42
FMB42 Reader
3/18/21 10:20 a.m.

PenFed will miss out on a lot of business with this new policy. This isn't the '60s and many vehicles of the last 20-30 years or so are easily capable of running the clock well past 200K. Oh well, it's their business.

Streetwiseguy
Streetwiseguy MegaDork
3/18/21 11:12 a.m.

She was just trying to save you from the pain of owning an old, new German car.

ProDarwin
ProDarwin MegaDork
3/18/21 11:25 a.m.
FMB42 said:

PenFed will miss out on a lot of business with this new policy. This isn't the '60s and many vehicles of the last 20-30 years or so are easily capable of running the clock well past 200K. Oh well, it's their business.

Yeah, but those vehicles are rarely financed.  And often when they are, they are very high risk.

An E46 M3 is a very unique case.

chaparral
chaparral Dork
3/18/21 11:53 a.m.

OUR Credit Union has different rates for pre-2013 and post-2013, but they'll finance anything they think they can sell if they have to repossess.

glueguy (Forum Supporter)
glueguy (Forum Supporter) Dork
3/18/21 11:59 a.m.

Maybe JJ Best? They focus on specialty/classic cars. No experience with them, just know they are out there. 

Ranger50
Ranger50 UltimaDork
3/18/21 12:18 p.m.
glueguy (Forum Supporter) said:

Maybe JJ Best? They focus on specialty/classic cars. No experience with them, just know they are out there. 

I wouldn't let them finance me a candy bar.

mdshaw
mdshaw Reader
3/18/21 12:29 p.m.

No experience with auto loans.
Save up & pay cash. That's one thing I'm thankful for my wife of. She was raised that if you don't have the cash, you don't the thing. We've never had an auto loan.  
I've seen first hand how costly they really are over a lifetime. 
Look at it from their view. They are a business & I think in the industry 125k miles is a cutoff. Those warranties one can buy etc.

glueguy (Forum Supporter)
glueguy (Forum Supporter) Dork
3/18/21 12:37 p.m.
Ranger50 said:
glueguy (Forum Supporter) said:

Maybe JJ Best? They focus on specialty/classic cars. No experience with them, just know they are out there. 

I wouldn't let them finance me a candy bar.

Well, ok then.   That sounds like there is more first-hand experience than my answer.....

BoxheadTim (Forum Supporter)
BoxheadTim (Forum Supporter) MegaDork
3/18/21 12:44 p.m.

Interesting, being able to finance pretty much any car I would like to buy as long as the car I financed for less than NADA book value was one of the original reasons for joining Penfed. Maybe these odd loans didn't make them that much money.

Of course, it's a credit union and you're a member, so you could ping the board and let them know you're a tad disappointed with their policy change.

All that said, I've not been that impressed with them recently. They're not part of the shared branching network anymore (supposedly), and the fact that a straightforward refi of a mortgage they already serviced too a good 7.5 months was not that impressive either.

I'm still doing my main banking via the CU we used in NV, but the issues around shared branches etc can get a bit annoying.

GCrites80s
GCrites80s HalfDork
3/18/21 2:21 p.m.

Probably people's timing belts breaking then they refuse to pay off a broken car then it gets repo'ed, bank/credit unions find out it costs $5K to fix, cars go to auction and sell for less than $1500 since they don't run.

2002maniac
2002maniac Dork
4/21/21 7:33 a.m.

Canoe

BoxheadTim
BoxheadTim MegaDork
8/8/21 9:13 p.m.

I might be calling Penfed this week to see if they enable me to do something stupid (YOLO) but if they don't, any other recommendations besides Lightstream?

pimpm3 (Forum Supporter)
pimpm3 (Forum Supporter) UltraDork
8/9/21 6:39 a.m.

I have used lightstream three times.   Easy and the car being financed doesn't seem to matter.

Chris_V
Chris_V UberDork
8/9/21 7:52 a.m.
mdshaw said:

No experience with auto loans.
Save up & pay cash. That's one thing I'm thankful for my wife of. She was raised that if you don't have the cash, you don't the thing. We've never had an auto loan.  
I've seen first hand how costly they really are over a lifetime.

I'd rather not dip into my savings to buy a car, and leave the cash in the savings account for actual emergencies. Like a sudden $3000 vet bill. If you're setting aside cash for a few years to buy a car, you could have been using that money in making payments and already had the car. Why not use other people's money to finance a car? With today's low interest rates, the amount it "costs" you for the convenience is vanishingly small, especially if you've already negotiated more than that much off the price of the car you're buying. Take out the longest term you can, and then you can pay more per month to reduce the total term, while being able to pay the minimum one or two months if you need to due to unexpected small budget crunch items that aren't big enough to raid the savings. I've done that in the past and taken out 5 year loans and paid them off in 2. It doesn't mean I can't afford the car, it means I have other priorities with my cash AND it's an easy thing to budget for. I've financed quite a few cars and it hasn't made me financially less well off.

ProDarwin
ProDarwin MegaDork
8/9/21 7:58 a.m.

If you are buying a new car, it makes more financial sense to take out a loan than to pay cash.  Your earnings in the market will greatly outpace your interest.

vwcorvette (Forum Supporter)
vwcorvette (Forum Supporter) UltraDork
8/9/21 8:16 a.m.

In reply to Chris_V :

What you said. I had a credit counselor once tell me never to drop a large sum on anything. Better to manage the debt over time and keep money in reserve. If you have loads of cash, good family support, and a large cushion great, but that's not the majority not people. Our smartcar was financed at zero interest, over five years. Why would you not take that deal?

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