Obtaining a car loan for forum purchase

fongpi · 05-30-2012, 04:06 AM

Howdy y'all,

There is a car on the forum I want buy, what's the best way to get a loan? I've always gone through the dealership so this would be a first. Any credit unions that are recommended?

mjposner · 05-30-2012, 06:20 AM

Penfed has cheap rates.

GEJEN · 05-30-2012, 07:07 AM

+1 Penfed has great rates along with Navy fed.

jc05e46m3 · 05-30-2012, 08:40 AM

Navy Federal and USAA offering great rates.

mdosu · 05-30-2012, 08:57 AM

Why is everyone giving him Penfed, Navy Fed and USAA info? What if he's not connected to military or dept. of defense? he's asking how to do it, not where it's the cheapest.

Go to bank or credit union where you want to take out the loan, tell them it's a private sale, they'll tell you what they need from you and seller to cut you a check. It's a bit painful, but beats getting reamed by a dealer

coogs08 · 05-30-2012, 10:48 AM

Just like mdosu said, go to a credit union that is near you. The CU's usually offer much better rates than the big banks. The process isn't too bad, if the current owner of the car is still financing it, the CU will have to obtain a payoff amount and send/wire the funds to the bank that has the lien on the title. Then they will have to set up the new loan and transfer the title under your name, with your CU holding the lien. I went through this for my M3 and it was pretty simple. I'll give you an example of how the numbers will work:

Purchase price: 45,000
Amount still owed on car: 30,000
Amount you're putting down: 5,000
Taxes, title, license fees: 2,000

The CU will wire 30,000 to the bank who has the lien on the title, paying it off, and allowing the CU to obtain the title.

The CU will cut a check of 15,000 to the seller.

The CU will have the loan prepared for you in the amount of 42,000 (45,000 - 5,000 down + 2,000 taxes)

Hope I didn't confuse you!

8_is_enough · 05-30-2012, 11:24 AM

Quote:

Originally Posted by mdosu

Why is everyone giving him Penfed, Navy Fed and USAA info? What if he's not connected to military or dept. of defense? he's asking how to do it, not where it's the cheapest.

Go to bank or credit union where you want to take out the loan, tell them it's a private sale, they'll tell you what they need from you and seller to cut you a check. It's a bit painful, but beats getting reamed by a dealer

you don't need to have any connections to the military to use PenFed. just FYI.

mdosu · 05-30-2012, 03:07 PM

Quote:

Originally Posted by coogs08

Just like mdosu said, go to a credit union that is near you. The CU's usually offer much better rates than the big banks. The process isn't too bad, if the current owner of the car is still financing it, the CU will have to obtain a payoff amount and send/wire the funds to the bank that has the lien on the title. Then they will have to set up the new loan and transfer the title under your name, with your CU holding the lien. I went through this for my M3 and it was pretty simple. I'll give you an example of how the numbers will work:

Purchase price: 45,000
Amount still owed on car: 30,000
Amount you're putting down: 5,000
Taxes, title, license fees: 2,000

The CU will wire 30,000 to the bank who has the lien on the title, paying it off, and allowing the CU to obtain the title.

The CU will cut a check of 15,000 to the seller.

The CU will have the loan prepared for you in the amount of 42,000 (45,000 - 5,000 down + 2,000 taxes)

Hope I didn't confuse you!

yeah, confusing, but that's correct. Lots of steps involved, but the credit union knows exactly who to talk to and what they need. They're in the business to make this go smoothly and quickly so you can start paying them for a loan. lol. Good luck OP.

coogs08 · 05-30-2012, 03:36 PM

Quote:

Originally Posted by mdosu

yeah, confusing, but that's correct. Lots of steps involved, but the credit union knows exactly who to talk to and what they need. They're in the business to make this go smoothly and quickly so you can start paying them for a loan. lol. Good luck OP.

Aint that the truth...

M3PO · 05-30-2012, 05:28 PM

Just an FYI, the only big bank that does private car loans in California is Bank of America. The process is a bitch/nightmare. Ask me how I know.

GotE46M · 06-06-2012, 09:24 PM

Penfed.. read what other people are saying guys.

M3_WC · 06-06-2012, 11:27 PM

Quote:

Originally Posted by mdosu

Why is everyone giving him Penfed, Navy Fed and USAA info? What if he's not connected to military or dept. of defense? he's asking how to do it, not where it's the cheapest.

Go to bank or credit union where you want to take out the loan, tell them it's a private sale, they'll tell you what they need from you and seller to cut you a check. It's a bit painful, but beats getting reamed by a dealer

You don't have to be military to join Penfed, anyone can join. Plus they are fantastic to work with. They currently have 1.99% on used car loans.

mdosu · 06-07-2012, 11:39 AM

.

Z K · 06-07-2012, 11:50 AM

Yes, anyone can join penfed... but the process is a little bit more involved than going to a local credit union or bank to get a loan. I joined penfed but the process online is a bit confusing if you don't follow their directions and everything closely. Even then it took a few phone calls to get things rolling. It was anything but smooth. I would say going to the local CU or bank is a lot more painless as they hold your hand as you go through the process.

SAINT VAN ROCK · 06-07-2012, 03:05 PM

Quote:

Originally Posted by fongpi

Howdy y'all,

There is a car on the forum I want buy, what's the best way to get a loan? I've always gone through the dealership so this would be a first. Any credit unions that are recommended?

Seems to me that the OP is in fact asking for recommended CU's, not just the steps

. At any rate if you are still interested, I just saw a commercial from USAA offering services to non-military/DoD affiliated. Check out this site..https://www.usaa.com/inet/pages/why_...legacyPassDown under the "Other Individual" tab.

Happy shopping & good luck with your purchase!

fongpi · 06-27-2012, 03:05 AM

Quote:

Originally Posted by mdosu

Why is everyone giving him Penfed, Navy Fed and USAA info? What if he's not connected to military or dept. of defense? he's asking how to do it, not where it's the cheapest.

Go to bank or credit union where you want to take out the loan, tell them it's a private sale, they'll tell you what they need from you and seller to cut you a check. It's a bit painful, but beats getting reamed by a dealer

Thank you!

05-30-2012, 04:06 AM	#1
fongpi Private First Class Drives: NA Join Date: Mar 2012 Location: San Francisco, Ca Posts: 138 iTrader: (0)	Obtaining a car loan for forum purchase Howdy y'all, There is a car on the forum I want buy, what's the best way to get a loan? I've always gone through the dealership so this would be a first. Any credit unions that are recommended?
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05-30-2012, 06:20 AM	#2
mjposner private 1st Class Drives: 2011 E93 M3 Join Date: Mar 2011 Location: US Posts: 451 iTrader: (1)	Penfed has cheap rates. __________________ Previous BMW: 08 BMW M3; 08 BMW Z4M; 04 X3; 02 M3 Convertible; 02 M3; 00 M Roadster; 94 325 convertible; 85 635csi My other ride: www.mjposner.com/corvair Check out my Mountain retreat:www.blueridge-rental.com My Blog: http://carfisheye.blogspot.com/

05-30-2012, 08:57 AM	#5
mdosu Help! Can't decide btw MW & AW, 1st world problems Drives: 2008.99989 SSII E90 "Civic" Join Date: Oct 2009 Location: Northern Virginia Posts: 5,849 iTrader: (4)	Why is everyone giving him Penfed, Navy Fed and USAA info? What if he's not connected to military or dept. of defense? he's asking how to do it, not where it's the cheapest. Go to bank or credit union where you want to take out the loan, tell them it's a private sale, they'll tell you what they need from you and seller to cut you a check. It's a bit painful, but beats getting reamed by a dealer __________________ Yes, that's a xmas tree in my trunk

05-30-2012, 10:48 AM	#6
coogs08 Second Lieutenant Drives: 2009 M3 Join Date: Aug 2011 Location: Pearland, TX Posts: 203 iTrader: (1)	Just like mdosu said, go to a credit union that is near you. The CU's usually offer much better rates than the big banks. The process isn't too bad, if the current owner of the car is still financing it, the CU will have to obtain a payoff amount and send/wire the funds to the bank that has the lien on the title. Then they will have to set up the new loan and transfer the title under your name, with your CU holding the lien. I went through this for my M3 and it was pretty simple. I'll give you an example of how the numbers will work: Purchase price: 45,000 Amount still owed on car: 30,000 Amount you're putting down: 5,000 Taxes, title, license fees: 2,000 The CU will wire 30,000 to the bank who has the lien on the title, paying it off, and allowing the CU to obtain the title. The CU will cut a check of 15,000 to the seller. The CU will have the loan prepared for you in the amount of 42,000 (45,000 - 5,000 down + 2,000 taxes) Hope I didn't confuse you! Last edited by coogs08; 05-30-2012 at 10:58 AM.

05-30-2012, 05:28 PM	#10
M3PO Colonel Drives: '08 IB E92 Join Date: Sep 2011 Location: OC Posts: 2,176 iTrader: (6)	Just an FYI, the only big bank that does private car loans in California is Bank of America. The process is a bitch/nightmare. Ask me how I know. __________________ 2008 IB E92 M3\| BBS \| KW \| Arkym \| Platte Forme A.G. \| Active Autowerke \| K&N \| Fabspeed \| Dinan \| Evolve-R

05-30-2012, 07:07 AM	#3
GEJEN Registered Drives: Something Evolved Join Date: May 2012 Location: GA Posts: 2 iTrader: (0)	+1 Penfed has great rates along with Navy fed.

05-30-2012, 08:40 AM	#4
jc05e46m3 Private Drives: 2012 M3 AW/FR ZCP Join Date: Mar 2011 Location: VA Beach Posts: 96 iTrader: (0)	Navy Federal and USAA offering great rates.

06-06-2012, 09:24 PM	#11
GotE46M Private Drives: 2002 CB M3 Join Date: Dec 2011 Location: O.C, Socal Posts: 91 iTrader: (0)	Penfed.. read what other people are saying guys.

06-07-2012, 11:39 AM	#13
mdosu Help! Can't decide btw MW & AW, 1st world problems Drives: 2008.99989 SSII E90 "Civic" Join Date: Oct 2009 Location: Northern Virginia Posts: 5,849 iTrader: (4)	. __________________ Yes, that's a xmas tree in my trunk

06-07-2012, 11:50 AM	#14
Z K Major Drives: E90 M3 Join Date: Jul 2011 Location: San Francisco Posts: 1,240 iTrader: (2) Garage List 2008 BMW E90 M3 [0.00]	Yes, anyone can join penfed... but the process is a little bit more involved than going to a local credit union or bank to get a loan. I joined penfed but the process online is a bit confusing if you don't follow their directions and everything closely. Even then it took a few phone calls to get things rolling. It was anything but smooth. I would say going to the local CU or bank is a lot more painless as they hold your hand as you go through the process.

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