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Payment Saver Loans

Save money by lowering your auto payments.

 

APPLY NOW

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

NEW PAYMENT SAVER RATES

Never titled current () and previous model year ()

APR as low as* TERM LOAN AMOUNT
%
24 to 36 mos -
%
37 to 48 mos -
% 49 to 60 mos -

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

 

USED PAYMENT SAVER RATES

Rate valid for current () and previous two model years ( &  )

APR as low as* TERM LOAN AMOUNT
%
24 to 36 mos -
%
37 to 48 mos -
% 49 to 60 mos -

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

FEATURES & BENEFITS

  • Lower monthly payments
  • Loan amounts up to $100,000
  • Easy online application
  • Quick approvals
  • GAP insurance included

• The vehicle is yours; this is not a lease, so don’t worry about wear-and-tear

• No pre-payment penalties

• Sell, trade, or refinance, at the end of your loan term

• Payment saver loans aren’t applicable to SUVs or trucks

DISCLOSURES: Print Icon Print

Rates and offers current as of  and are subject to change.

*APR = Annual Percentage Rate. Your actual APR will be determined at the time of disbursement and will be based on your application and credit information. Rates quoted assume excellent borrower credit history. Not all applicants will qualify for the lowest rate. The rate you receive on your loan will be the rate in effect at the time of loan disbursal.

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 prior model year (). Up to 110% financing is available. Weight restrictions apply. Minimum loan amount $ for 61-72 month term. Minimum loan amount $25,000 for 73-84 month term. PenFed does not permit internal refinances of an existing PenFed auto loan. “Smart” Car Collateral Restrictions: Financing available up to 110% of the Manufacturer's Suggested Retail Price (MSRP) including tags, title, taxes and extended warranties. Some restrictions apply.  Financing is not available with a Payment Saver Loan for “Smart” cars, Trucks (including hybrids), and SUVs (including hybrids).

Used Auto Loans: Maximum used car loan advance will be determined by PenFed using a NADA value. Financing is available up to NADA average retail value plus tags, title, taxes and extended warranties not to exceed 110%. Some restrictions apply. Call 800-247-5626 for details.

Financing for 61-72 month term is valid for model years - . Rate depends on term. Other restrictions including vehicle and mileage limitations may apply.

Refinance Auto Loans: New vehicles are where you are the original owner and the vehicle is a current () or prior model year (). For used vehicles, maximum used car loan advance will be determined by PenFed using a NADA value. Up to 100% financing is available to qualified members. PenFed does not permit internal refinances of an existing PenFed auto 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).

Other restrictions including vehicle and mileage limitations may apply.

PenFed Car Buying Service:


PenFed Car Buying Service is available in the continental U.S. and Hawaii.
Between 7/1/16 and 9/30/16, the average savings off MSRP presented by TrueCar Certified Dealers to users of TrueCar powered websites, based on users who configured virtual vehicles and who TrueCar identified as purchasing a new vehicle of the same make and model listed on the certificate from a Certified Dealer as of 10/31/2016, was $3,106.

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. There is no guarantee of refinance. Refinancing subject to PenFed's current creditworthiness standards.

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.

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 prior model year ().

USED VEHICLES: Current () and prior two 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 % APR; 60 monthly payments of approximately $ each, with a final balloon payment of approximately $.

Estimate your cost

Auto Payment Saver Calculator

Vehicle Information

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Please select a make.
Please select a model.
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$
Months
0.00%
Vehicle Details
- - - - - - - - - - - -
MSRP
- - -
Residual Value
- - -

Monthly Payment
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Final Payment
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Conventional Monthly Payment
- - -

Auto payment saver loans are only available: For the following years: 2016, 2017, 2018 for cars driven no more than 15K miles per year.

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GAP Protection

Typical car insurance covers damage and theft. But what if your loan is more than the value of your vehicle? PenFed’s GAP Insurance covers that difference.

 

LEARN MORE »

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Extended Warranty

PenFed's Extended Warranty can extend your auto manufacturer's warranty by picking up where that policy leaves off.

 

LEARN MORE »

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Debt Protection

Life is unpredictable. With PenFed Debt Protection, your family's financial security is protected in the event you're unable to make timely payments.

 

LEARN MORE »

LEARN

What's your auto IQ? Learn all you need to know about auto finance here.

Can You Buy a Car While You’re Still in School?

Posted January 2016
by PenFed Team

The college student’s traditional 10-speed bicycle isn’t always enough for getting around today’s sprawling university campuses, back and forth to off-campus jobs, and through rush-hour traffic to an apartment across town. But is it realistic to finance a car when your student loan debt is ticking upward with every passing semester?

While starting out life as a new graduate with debt is never ideal, the way you go about tackling both student loans and a car loan can leave you with a reasonable amount of financial breathing room. The trick is not piling on both student loans and car payments at the same time.

Buy a car the smart way

Put your college research skills to work pinning down the right loan and the right car before you even begin looking at individual cars.

Set your budget. How much money do you have for a down payment? How big a monthly payment can you afford to make? Use an  online auto loan payment calculator  to figure out how the interest rate, size, and length of your car loan will affect your monthly payments. Resist the temptation to lower those payments by stretching out the payment term. The longer your loan term, the lower your monthly payments—but the more interest you pay over time. When you already have student loans to deal with, that’s money you can’t afford to add.

Shop for a loan before you shop for a car. Keep your heart from running away with your head by lining up your financing before you shop for a car. Not only does handling the financing first let you shop around for the best financing rates, but it takes the pressure off you at the car lot. Now the burden is on the dealer or seller to cut a great deal in order to earn your business.

Buying a car when you’re in school

When you’re still in school, you need to keep the cost of buying a car to a bare minimum. The smartest method is to self-finance the money and upgrade the car in stages—the method popularized by financial guru Dave Ramsay.

Here’s how it works: Buy an old car for a couple of thousand dollars in cash, and then begin making monthly “car payments” to your own savings account. Once you’ve saved another few thousand dollars, sell the car (hopefully for about as much as you originally paid), and then use that money plus your new car savings to buy a newer, better car. Repeat this process until you find yourself behind the wheel of a reasonably recent model. By the time you graduate, you’ll be in a newish car you’ve paid for entirely with cash—and with no car debt. Happy graduation!

Buying a car as recent grad

New grads often think paying off student loans should be their number one priority. But now that you’re actively making student loan payments, you can’t afford to overextend yourself. What you really need is the safety net of an  emergency fund for handling unexpected expenses.

Stick with the Ramsay method while you build your emergency fund. When you’re finally in a position to finance a car, consider buying a low-mileage used car to take advantage of the price difference between new and used cars. Don’t be tempted by a lease, which leaves you with nothing to trade-in when the lease is up, setting you back to ground zero.

Auto financing options for students

Even first-time student buyers can find competitive financing with the right lenders. A  PenFed new car loan  or  used car loan can get you behind the wheel at a great rate—comparable to what you’re probably paying for your student loan, and maybe even less.

If the entire process feels too intimidating, cut to the chase and use the  PenFed Car Buying Service to make your purchase online. You can search and sort cars by the features you’re looking for, and you’ll get a free CARFAX ® report on most used cars to ensure you’re choosing a reliable vehicle.