Payment Saver Auto Loan
 

Key Features

  • New payment saver rate 1.74% APR* for 24-36 months
  • New payment saver rate 2.24% APR* for 37-48 months
  • New payment saver rate 2.24% APR* for 49-60 months
  • Used payment saver rate 2.74% APR* for 24-36 months
  • Used payment saver rate 2.74% APR* for 37-48 months
  • Used payment saver rate 2.74% APR* for 49-60 months
  • Loan amounts up to $100,000 
  • More car for your money

     

Benefits

  • The vehicle is yours, this is not a lease
  • No prepayment penalties
  • No wear and tear clause
  • Sell, trade, or refinance** at the end of your loan term

Keep in Mind: "Smart" Cars, Trucks, Vans and SUVs are not eligible for the Payment Saver Loan. The loan will result in a balloon payment. See below for important information about this product.

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PenFed Car Buying Service

Details and Disclosures

Rates and offers current as of April 01, 2014 - April 30, 2014 and are subject to change.

 

New Auto Loans: Loan rate applicable to new vehicles only.  New vehicles are where you are the original owner and the vehicle is a current or previous model year. Up to 100% financing is available.  Weight restrictions apply. Minimum loan amount $20,000 for 61-72 month term. Rate not available for refinance of an existing PenFed loan. 

 

“Smart” Car Collateral Restrictions: Total financing is limited to 100% of the value and loan terms cannot exceed 60 months.  Financing is not available with a Payment Saver Loan for “Smart” cars, Trucks (including hybrids), and SUVs (including hybrids).

 

*Internet only special rate. Higher rate will be assessed if you do not apply online. 1.49% APR applies to new vehicle loan amounts up to $100,000 financed for 12-36 months. 1.99% APR applies to new vehicle loan amounts up to $100,000 financed 37-48 months. 1.99% APR applies to new vehicle loan amounts up to $100,000 financed for 49-60 months. 2.24% APR applies to new vehicle loan amounts finance for 61-72 months.

 

Rate depends on term. Other restrictions may apply.

 

 

Used Auto Loans: Maximum used car loan advance is NADA “Retail Value” or 80% of the purchase price where NADA “Retail Value” is not available. Further restrictions apply on vehicle weight and vehicles with 100,000 miles or more.  Vehicle mileage may not exceed 125,000 miles.  Up to 100% financing is available to qualified members.  Rate not available for refinance of an existing PenFed loan. Call 800-247-5626 for details.

 

*Internet only special rate. Higher rate will be assessed if you do not apply online. 2.49% APR applies to new vehicle loan amounts up to $100,000 financed for 12-36 months. 2.49% APR applies to new vehicle loan amounts up to $100,000 financed for 37-48 months. 2.49% APR applies to new vehicle loan amounts up to $100,000 financed for 49-60 months. Promotional rate is not available to refinance existing PenFed auto loans.  Rate depends on term. Other restrictions may apply.

 


Refinance Auto Loans: New vehicles are where you are the original owner and the vehicle is a current or previous model year. For used vehicles, maximum used car loan advance is NADA “Retail Value” or 80% of the purchase price where NADA “Retail Value” is not available. Further restrictions apply on vehicles with 100,000 miles or more.  Vehicle mileage may not exceed 125,000 miles.  Up to 100% financing is available to qualified members.  Rate not available for refinance of an existing PenFed loan. 

 

“Smart” Car Collateral Restrictions: Total financing is limited to 100% of the value and loan terms cannot exceed 60 months.  Financing is not available with a Payment Saver Loan for “Smart” cars, Trucks (including hybrids), and SUVs (including hybrids).

 

*Internet only special rate. Higher rate will be assessed if you do not apply online. 1.49% APR applies to new vehicle loan amounts up to $100,000 financed for 12-36 months. 1.99% APR applies to new vehicle loan amounts up to $100,000 financed for 37-48 months. 1.99% APR applies to new vehicle loan amounts up to $100,000 financed for 49-60 months. Promotional rate is not available to refinance existing PenFed auto loans.  Rate depends on term. Other restrictions may apply.

 

 

Payment Saver Auto Loans:  

How It Works 

With Payment Saver Auto Loans, you will be able to make a lower payment than what the conventional auto loan would offer, yet at a higher interest rate. Then, at the end of the loan, you will owe the remaining balance of the loan itself. At this juncture, you may choose to pay off the loan or sell, trade, or refinance the vehicle.

Your Payment Saver Auto Loan payment is calculated based on the loan term, the amount you have requested, and the residual value of the vehicle. The residual is the expected value of your vehicle at the end of your loan term.

The difference between your loan amount requested and the residual value is amortized over the loan term, resulting in a low monthly payment without the danger of your becoming upside-down in the loan.

*Internet only special rate. Higher rate will be assessed if you do not apply online. 

**Not a guarantee to refinance. Refinancing subject to Pentagon Federal current creditworthiness standards.

The residual value of the vehicle after the loan term is an estimation. We cannot guarantee this value. The residual value is subject to current used car market conditions and depends on a number of factors including, but not limited to, the mileage the car has been driven and the condition of the car at the end of the loan term.

Trucks, Vans, Crossover Vehicles, Smart cars and SUVs are not eligible as Payment Saver Loan vehicle types. This restriction includes hybrid trucks and SUVs as well.

Pre-approved drafts no longer available for Payment Saver loans.

NEW VEHICLES: Never titled; Current and previous model year.

USED VEHICLES: Current model year and up to 2 previous model years, as well as all new vehicle model years.

The vehicle mileage may not exceed 15,000 miles per year based on the model year.

Used car loan value based on NADA Retail Value. Other restrictions may apply. Call 800-247-5626 for details.


Loan Payment Example: A $27,000 new auto financed at 2.24% APR; 60 monthly payments of approximately $323.57 each, with a final balloon payment of approximately $9,998.57.