Military Banking Rates

Tips on Getting a Military Loan for Your New Car

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Posted in Auto Loans, Articles

Military Loan

Finding an affordable Military loan to finance your next car purchase can mean the difference between staying in the black or falling into dangerous territory with high monthly payments and steep interest rates. PenFed (Pentagon Federal Credit Union) lifts the curtain for military families who want to save money when taking out an auto loan.

Military Banking Rates interviewed PenFed to find out what they had to say about finding cost conscious military loan rates and services when buying a car.

1. Do you offer free auto loan quotes? If so, what are the steps a consumer would take to obtain a no obligation quote?

If you are referring to automobile rates, then the answer is yes.

Our rates are displayed on our website PenFed.org and we also have payment calculators available for use.  Our Member Service Representatives are also available to provide “no obligation” rate and estimated payments quotes to folks interested in applying for an auto loan with us. Applying for a PenFed car loan is made easy with our online auto loan application.

2. What are typical turnaround times for a car loan application to be processed and funded?

The average turnaround time is approximately 24 hours.

3. What are your top three tips for buying a car locally?

  1. Shop for a car that is reliable and safe to drive
  2. Keep the credibility of the seller in mind
  3. Consider the car’s pricing and affordability

4. How can a person determine how large a loan he/she can afford?

PenFed has a payment calculator that is available to all users on our website. The calculator allows the individual to review a variety of  loan amounts, terms, rates and payments.  Ideally the borrowers do not want to assume a payment that will create potential financial stress later down the line.

5. Are there any options for someone with a car loan that’s too expensive?

If an individual feels that their current car loan financing is “too expensive,” they should explore refinancing options. By refinancing, an individual can oftentimes secure a lower rate or longer term. This can help make the car loan more affordable.

6. What’s the difference between an auto loan from a credit union and an auto loan from a bank or finance company?

In order to obtain a loan from a credit union like PenFed, the individual will need to join the credit union and obtain membership status.  Credit Unions historically have lower interest rates than banks and finance companies, so working with a credit union to find an affordable military loan to finance a car can be beneficial. PenFed is Federally insured by NCUA.

7. What was your first car, how did you buy it, and why?

My first car was a Chevrolet Cavalier. My father had to co-sign on the loan, so we identified a car that was safe, had good mileage, and had pricing that allowed for an affordable monthly loan payment.