Update 12/21/24: Offer is back at $300 this time. Valid 12/18/24 – 1/31/25. Direct Link (ht Alex)
Original Post 4/22/20:
The Offer
- Get a $250 bonus when refinancing your auto loan with PenFed Credit Union. Minimum $10,000 loan required.
The Fine Print
- The auto refinance rebate of $250 is eligible on loan amounts of $10,000 and greater and must be refinanced from another institution.
- PenFed internal refinances and loans originated from 3rd party partners are not eligible for this promotion.
- The $250 rebate will be deposited to the membership share savings account within 90 days of the loan disbursal date.
- In addition, the first payment on the PenFed loan is required prior to the $250 deposit. PenFed may discontinue or change the promotion at any time.
- Other restrictions may apply.
Our Verdict
Membership to PenFed is open to everyone, just requires a $5 deposit in a share account (you get the $5 back if you close your membership). Obviously make sure you’re getting the best rate, but if you’re looking at refinancing your car, this can be an added incentive to use PenFed. I think some people find their rates to be very good.
Hat tip to reader Rody
Anyone get the $250 bonus yet? I’m still about 2 weeks away from the 90 days and haven’t seen it yet.
Also what a painful process. They are making me add penfed as a lienholder on my title which in Michigan requires a trip to the secretary of state which they are currently not accepting appointments for. I made one anyway to get a new title but it’s not until September due to Covid and penfed sent me a letter saying they were going to up my rate to the highest unsecured rate they have. Thankfully it only took an email to them (hold times are ridiculous, I gave up after 45 minutes) and they put a note on the file about not increasing the rate, I hope that note works for months!
My $250 bonus posted yesterday.
Mine posted yesterday as well a couple weeks ahead of schedule.
Looks like this has expired.
What a painful refinancing process! The loan was originated the day they sent out the check in the mail and started accruing interest. Once I received the check, I cannot go to a local branch of the current lender and pay it off because the old lender also needs to sign on the back of the check. I sent the mail today, and it will take another 3-4 days until they disburse the check. All in all, I will end up paying double interest for 10 days.
I applied before I saw this post. I’ve never had a bad experience with PenFed before (have had the Power Cash card for a few years now for 2%). They’re CS could use a little more work, but appreciate that they don’t outsource the call centers.
The application specifically states 2019-2020 models as “new” cars. I refinanced for 2.74% which is slightly better than my current loan thru a local credit union I primarily use. Also, they pulled Experian.
For anyone with airline industry affiliation, AA FCU currently starts at 2.15% for auto both new & used.
That is after rate discount of .5%. As a AACU member, I don’t recommend them.
I was planning to pay off my car at the end of the year. Wonder if it makes sense to do the refi just for the $250 and then just pay it off at the end of the year. Are there prepayment penalties to prevent that sort of thing?
I had a used auto loan from PenFed from a lease buyout (which I believe they consider a refi) and didn’t see any early payoff penalties. I found them pretty straightforward, but YMMV and as others have said, they don’t have the absolute best rates.
I looked into this but Navy FCU had better rates. This week I refi-ed with them at 2.39% (60 months), happy to lower the 4.0% Kia (also 60) gave me in October
*better rates even counting the $250 bonus; I think PenFed was 3.29% for “late model new” refi
Did you do the $200 refinance promotion with NFCU?
No argh didn’t even know there was one 🙄
Shows here: https://www.navyfederal.org/loans-cards/auto-loans/auto-refinance-rates.php
Perhaps contact them and see if it’s possible to get that applied.
You don’t need to donate anything to open an account. Opened & Applied last week. 800+ credit, bait and switched the prequalified rate of 2.99 to %4.99. I called and cancelled the loan and closed the account. They are mailing me my 5$ opening deposit back
I’ll update, thanks
Weird. I did both my car and the wife’s and both came out to the correct rate.
I have a 800+ credit score and only car debt. Never had issues getting credit. Applied for the 2.19% 36 mo and they approved me for 2.99%. Not cool!! Tried contacting them but they wouldn’t budge.
It probably has to do with the age of the vehicle. New cars are generally eligible for much better rates.
Was it a 2019/2020 model? If not, then 2.99% is the lowest rate they offer.
PenFed doesn’t have the best auto rate. Shop around. My local credit union is offering 36 months for 0.99% refi.
What credit union did you use? I wanna finance.
Arkansas Federal Credit Union
Best I could find (with 800+ credit score) was 2.89% for used car. With the $250 bonus, I pulled the trigger w Penfed
Was the 2.89% with PenFed? How old was the car and how many months was the term of the loan?
2.89% was with a small credit union that I’d never heard of (and no bonus). 2017 vehicle. 36mo term