For those of you financing....forget Penfed | FerrariChat
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For those of you financing....forget Penfed

Discussion in 'Ferrari Discussion (not model specific)' started by dogdoc97, Sep 13, 2014.

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  1. dogdoc97

    dogdoc97 Formula Junior

    Aug 2, 2011
    711
    Atlanta, GA
    #1 dogdoc97, Sep 13, 2014
    I too used to think Penfed was the best and cheapest......well try Lightstream Finacnial; a division of Suntrust Bank which is huge out of Atlanta, about a $175 Billion in assets.

    Recently Penfed wanted me to get an appraisal on an old car that they could not value; then I found Lightstream, they did not ask for anything literally about the car.

    I just used them twice to buy two cars; it literally was about 7 minutes online; you get a call immediately after you hit submit...they pull a FICO score and then the best part...

    They ask you NOT TO LIST them as a lien holder both to the DMV and your INSURANCE COMPANY; it's nuts BUT a manager told me that is how they keep the rates down, no paperwork trails to file. In fact the documents say if you are asked by the the insurance company tell them it is an an UNSECURED loan, that sounds nuts too me. The manger said they have some proprietary software that lets them take such risk on who they give a loan too. In fact on the loan they do not even ask for a VIN nor do the documents even list a car, it is simple interest of course no pre payment penalty.

    2.29% for 60 months, it was so easy I thought it was a scam lol; and then you tell them what account to deposit the money into and what day of the month you would like the payment to be on. I already do my corp. banking with Suntrust and the joke is my local branch manager and personal banker had NEVER even heard of this subsidiary that Suntrust bought last year, they are in California. Moreover, the Suntrust car loans rates were substantially higher at the local branch, dogdoc
     
  2. GrayTA

    GrayTA F1 World Champ
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    #2 GrayTA, Sep 13, 2014
    Thats crazy!!!



    PDG
     
  3. dsevo

    dsevo Formula Junior

    May 7, 2007
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    #3 dsevo, Sep 13, 2014
    Very interesting. Just looked through their website. I'm curious why their rates are different for a new car, used car, etc. since it is essentially an unsecured loan. You mentioned they didn't even care what you were buying. Why not just sign up for a new car loan since it has the lowest rates, then buy whatever you want? Am I missing something. If they can in fact stay in business with this model, they are going to kill it. It's always easier to sell a used car when the title doesn't have a lien on it.
     
  4. vracer

    vracer Formula 3

    Jun 23, 2014
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    #4 vracer, Sep 13, 2014
    Wow! But I guess it does make sense to lend to someone with excellent credit. They can pay peanuts on a CD, and make 1,5% on the spread. I have to assume it is a variable rate. Too bad I don't believe in borrowing money to buy toys.
     
  5. HotShoe

    HotShoe F1 Veteran
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    Nov 3, 2008
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    #5 HotShoe, Sep 13, 2014
    I used PenFed and it was a piece of cake.

    I'll remember this info next time around just in case.
     
  6. vrsurgeon

    vrsurgeon F1 World Champ
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    #6 vrsurgeon, Sep 13, 2014
    Love my Penfed.. will hav to keep this in mind.
     
  7. Jack-the-lad

    Jack-the-lad Seven Time F1 World Champ
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    #7 Jack-the-lad, Sep 13, 2014
    Can you give us the contact name and number or email address of the person you dealt with?

    Thanks.

    Jack
     
  8. dogdoc97

    dogdoc97 Formula Junior

    Aug 2, 2011
    711
    Atlanta, GA
    #8 dogdoc97, Sep 14, 2014
    the last call I got back was from a manger that has been with them since the 90's I think she said; I want to say Linda or Laura BUT hey I cannot recall SH-- some days. I see your point that you could lie and tell them it is a new car unless they ask for some documentation for that but in both cases I bought used.

    I recall her one comment that after getting my credit score and income which I supplied(not really verified) she said something like "your good for anything we have here" so I do think it is an easy process, so if you do finance and I know a lot of you say you do not I would look into this. I too liked Penfed but twice they asked me to get an appraisal, so you have to think you can spend that money and they can still turn down the loan and in one case I almost lost the car b/c the seller did not want to wait for me to get this all lined up.

    The last loan Penfed did for me was on my Panoz, there was a young kid I will call him in his 20's I recall that was a car buff and he went to bat for me to underwriting b/c Penfed told me they are hesitant on loans for "marques or brands that are not recognizable", hell I buy odd stuff sometimes and so they ask so many questions and then just say go get an appraisal; I just hate to waste a$500-1000 for every loan thru Penfed b/c it is off the names they have in their database. This also happened to me on the De tomaso, Dogdoc
     
  9. Dave rocks

    Dave rocks F1 World Champ
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    #9 Dave rocks, Sep 14, 2014
    I've used Penfed twice and it would be hard to get me to move. 1.49 for 60 months. Yes, title needs lien but that's no issue for me. My second time I was approved 2 seconds after I submitted the online application.
     
  10. henryr

    henryr Two Time F1 World Champ
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    #10 henryr, Sep 14, 2014
    that's unreal. why anyone would loan anyone money for 1.49% is beyond me.....


    (i am in the finance biz so skip all the "real"reason why" - i get it)
     
  11. henryr

    henryr Two Time F1 World Champ
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    #11 henryr, Sep 14, 2014
    just back from the website...

    if there a no liens, no paperwork.... how do they know if the loan is for a new car (1.99%) or used (2.99%) ???????????
     
  12. LightGuy

    LightGuy Four Time F1 World Champ
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    #12 LightGuy, Sep 15, 2014
    If you miss a payment do they send out Knuckles and Lumpy with a tow truck ? ;)

    Kidding kidding;
    I may look into this even though I HATE loans.
    The car I'm looking at now is appreciating already and about to take off $$$ while my cash is about to be tied up in another deal too good to be true.
     
  13. BigJay2050

    BigJay2050 F1 Veteran
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    #13 BigJay2050, Sep 15, 2014
    This is very interesting. Has anyone used Woodside Credit? It seems their rates are super high compared to Penfed and Lightstream -- but they are also in CA.

    It also seems Penfed has a $100k cap on the loans? Does lightstream have any such limits?
     
  14. tundraphile

    tundraphile F1 Veteran

    May 16, 2007
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    #14 tundraphile, Sep 15, 2014
    Dumb question about PenFed (or the other mentioned) I couldn't find on the website: do they do loans for older cars at these rates? Say a 328 or 348?

    Most banks only loan on cars 7 years or less than 100k miles. On a Ferrari the mileage won't be an issue but the age certainly will.
     
  15. TachItUp

    TachItUp Rookie

    Jan 28, 2006
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    Atlanta, GA
    #15 TachItUp, Sep 15, 2014
    My Lotus is financed through PenFed. As far as I know, their only criteria regarding old cars is mileage (less than 80k I think). Their rates are fantastic, and they have no problem lending towards 'weird' cars.
     
  16. dogdoc97

    dogdoc97 Formula Junior

    Aug 2, 2011
    711
    Atlanta, GA
    #16 dogdoc97, Sep 18, 2014
    If you have used them then you know that they want like 20% down or more...I mean come on if I wanted to put down like $40K then I would just pay cash! Of course they are happy to loan you some money; they just got a lot of your equity upfront BEFORE you even made a payment...they are well protected, dogdoc

    PS Penfed will loan money on weird cars but they asked me twice to get appraisals, not worth the hassle to me, dogdoc
     
  17. Statler

    Statler F1 World Champ

    Jun 7, 2011
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    #17 Statler, Sep 18, 2014
    Penfed asked for some pics of engine and car for mondial (30k car). I made more for one year on the cash than they did so I used them and then paid off their loan early. It just made it easy for me and seller as check was sent directly. (Although now I know seller personally and have to defend car armed so he doesn't steal it back...).

    When I can make money on a toy plan I will. Otherwise pay cash!!!
     
  18. BigJay2050

    BigJay2050 F1 Veteran
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    #18 BigJay2050, Sep 19, 2014
    Agreed, and for that "protection" they want to charge higher rates than most on top of it. It's probably why it's so easy to get approved.

    My question remains though: Penfed and Lightstream seem to cap at 100k -- so how do I finance through them without putting a bunch of money down? In your example with 40k being 20%, we are talking 200k. So I'd have to put down 100k to finance with Penfed/Lightstream, no?
     
  19. dogdoc97

    dogdoc97 Formula Junior

    Aug 2, 2011
    711
    Atlanta, GA
    #19 dogdoc97, Sep 19, 2014
    I just threw that number out, the $40K; I was not aware that they(Lightstream and Penfed) cap at $100K... dogdoc
     
  20. boxerman

    boxerman F1 World Champ
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    #20 boxerman, Sep 19, 2014
    Sounds like the subprime story all over again. Easy money, and if its easy here for people with money, then you just know its easy for people with no money provided they pay higher rates.
    The theory of course that the higher rates blance out the losses, untill the losses get too big and then....

    Yeah for free money maybe I will buy a car or two.
     

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