Need advice on buying a Viper through Penfed

[SRToad4]

Posted this on Alley, figured I'd post it here for ideas too:

So I called up, got approved, blah blah. 1.49% is insane haha.

Anyways, I am located in Phoenix, AZ. Car is located in San Antonio, TX. The seller (private seller) has a lien on the car for around $28k. I'm buying the car for $30,500 from him.

I was going to pay $15k cash and finance $15.5k.

Problem is that Penfed will not finance the car until the payoff letter shows $15.5k, and right now the payoff shows $28k.

What do I do!!

I can send the bank $12.5k cash to get that payoff down to $15.5k, but how am I protected here in case he changes his mind, etc.

 

[Bill Pemberton Woodhouse]

Simplest answer is finance it somewhere else and then refinance it later through PenFed. Not a big fan of theirs, as they can be very slow and somewhat difficult to deal with. Good luck and obviously you have some disadvantage dealing with someone that far from you.

 

[SRToad4]

Yeah, only problem with financing elsewhere is the big question of where to get a loan that is ok to do a 10 year old car, in a different state, that is private party with a lien on it...

 

[herbbone]

Thats exactly what I did. Bought mine using my own funds or finance it through a bank or card. Then take out the Penfed loan. Found them very easy to deal with and actually quite fast. PM me.

 

[chorps]

Not sure how strong the legal protection is, but if you can use his bank as the middle man, you can get the seller to leave the signed bill of sale with his bank manager and you can fix up the payments scheme to his bank's satisfaction at which time the bank manager releases the bill of sale to you.

 

[SRToad4]

I definitely dont want to pay more than 15k out of pocket for this transaction to happen. There's always the option to finance the whole $30,500 and then put $15k cash towards it and refinance, but it just seems like a ton of headache...

Any other ideas? Dealer consignment an option?

 

[CA97GTS]

Pay cash if you can, then use the title to get the loan you want on your car from PenFed
That is what I did.

 

[AFL in NJ]

At 0.49% for a loan, its pretty easy to put up with any "details" penfed makes you go through.

You must be registered for see images attach

 

[CA97GTS]

At 0.49% for a loan, its pretty easy to put up with any "details" penfed makes you go through.

You must be registered for see images attach

.49 is for EX rental cars......don't think they have any Vipers
1.49 for His car or any others....

 

[CEJ]

Ex-rental car is not worth a cheap loan. 1.5% on a used car is very cheap. Whatever you do, don't pay down his note. That's just asking for grief.

 

[NO HEMI]

what CEJ said!!

 

[SRToad4]

So looks like only way to really get this deal done would be to finance the whole amount on the payoff, pay remainder to him via check, and then refinance the car after I get it.

 

[Mopar Steve]

I have a beautiful 2001 GTS for sale with title in hand! Easy purchase, needs nothing!

 

[SRToad4]

I've seen your GTS Steve, it's beautiful, but it's a bit out of my price range.

 

[Ray W]

How about giving your down payment to PenFed and then they can write the check for the 28K and you can give the seller the other $2500.00.

 

[SRToad4]

Tried, they said they wont do that :/

 

[SR]

How about you finance 28k through PenFed, pay 2.5k directly to seller and as soon as the loan is closed, send a check to PenFed for 12.5k (you will be left with 15.5k loan).

I just purchased a car through PenFed and it was easy and trouble free and done quickly.

 

[Nine Ball]

How about you finance 28k through PenFed, pay 2.5k directly to seller and as soon as the loan is closed, send a check to PenFed for 12.5k (you will be left with 15.5k loan).

I just purchased a car through PenFed and it was easy and trouble free and done quickly.

Doing it that way won't reduce the payment to the equivalent of a $15.5K loan. Payments would remain based on a $28K loan, nearly double.

 

[chesapeake07]

Doing it that way won't reduce the payment to the equivalent of a $15.5K loan. Payments would remain based on a $28K loan, nearly double.

On a 5 year note:

You could apply the $12.5k towards the first 25 +/- payments on the $28K loan and make the adjusted payment of ~$268 from the $15.5K loan. If you make the $268 payment from the beginning of the loan starting the first month, you would have to refinance or payoff at 39 +/- months.

Just a thought...

 

[SRToad4]

Yeah, payments will still be ~$600 unless I refinance. Problem is, Penfed won't refinance it's own loans.