Pentagon Federal Credit Says No Smart Financing?

[rwcmick]

I tried to apply online for a loan through penfed.org and was shocked at what I found out. I know my VIN and everything and total dollar amount, so I was ready to fill out the complete app. I was instantly approved for the loan amount, but when I went to specify the make and model there was no smart option.

No worries I thought, I'm sure they can help me over the phone. I called in and spoke with Bree and she went to ask her supervisor. The answer came back...No loans for smarts, maybe for the next few months!

I was shocked. Shocked I tell you. So I hung up and began to ponder my options. I was looking around the boards and saw that someone had posted they had received a blank check from Pen Fed and were intending to use it for a smart. I called back and asked Bree and she said that once that pre-approval draft (aka blank check) is received, they review it to make sure that it meets their lending conditions. The smart DOES NOT currently meet their lending conditions and the loan will be refused. She said that I should tell folks this so that they aren't rudely awakened after they think everything is complete!

Both times I called in I spoke with Bree, so there is a chance that she or her supervisor is misinformed. However, if you were intending to use Pen Fed, I suggest that you call in as well and verify this info.

Sorry to be the bearer of bad news, but hopefully we can all push together and get the smart into their system.

[Vlad92]

Very strange... I have my pre-approved draft sitting right here on my desk ready to go. I intend to use it to buy my Smart (just as I have bought my last 4 cars through Pen Fed). I would hope it's just a matter of getting the Smart brand info and VIN's into their system. Since it's a "normal" car that's legally sold in the US I don't see it being a problem. I don't care what Bree says... I'm going to go for it and use my check!

I've said it before and I'll say it again... we are on the bleeding edge my friends!

[SmartCard]

In this day and age 13 - 17K is chump change, doesn't seem like it should matter what you spend it on! But I guess if the lender is being totally anal, and have to consider the repo value of the car I guess the cars gotta be in your data base!

[Old SGM]

You guys have about 6 months to get Pen Fed fixed, I also have bought several cars using Pen Fed without any issues. My Smart is due the second half of 2008 and I have planned on using them. So I am relying on you to get it fixed.

[rwcmick]

pen fed has always been good to me, but bree seemed really sure of herself. i've secured backup financing for 5.75 through another cu and i'll call back pen fed on tues and try to get someone other than bree.

[Vlad92]

OK... I just spent the last 15 minutes reading ALL the material they sent me as part of my loan package. It clearly states the loan conditions in the material. The ONLY reference to what they are unable to finance is for commercial vehicles, farm equipment, and vehicles with over 100,000 original miles. There are no other exclusions (even in the fine print on the back of the check).

In addition (being as anal as I am) I just called them and they said to go ahead and use the check that it will not be an issue. My VIN was not in their system but I was told once they get the completed check it will be added. So again... I'm going for it!

[bumblebee]

has anyone got financing quotes from the dealerships? I've got financing ready but if my dealership can match or better my 5.95% I might consider using dealership financing. BTW, my dealership told me they have 18 different creditors they work with.

[rwcmick]

Originally Posted by Vlad92

OK... I just spent the last 15 minutes reading ALL the material they sent me as part of my loan package. It clearly states the loan conditions in the material. The ONLY reference to what they are unable to finance is for commercial vehicles, farm equipment, and vehicles with over 100,000 original miles. There are no other exclusions (even in the fine print on the back of the check).

In addition (being as anal as I am) I just called them and they said to go ahead and use the check that it will not be an issue. My VIN was not in their system but I was told once they get the completed check it will be added. So again... I'm going for it!

Hi Vlad,

I hope it goes through for you! It really doesn't make any sense what Bree said, so I hope she's wrong. It's only a $9/mo diff between the loan I've got now and pen fed, but it still adds up if i carry it for nearly the full 60mo (which hopefully i won't). I guess this is what happens when we are on the bleeding edge.

Oh well, when I get my little smartie next week all will be forgotten

[jwight]

I've mentioned this before; if you join (no cost) USAA and have good credit they are offering new car loans at 4.94%. Current or former military, or children of same qualify for membership.

John

[smarties]

Odd since these cars are technically worth more used than new, at least for now.