Auto Loan Question
 

So I signed up with PenFed to borrow $13k for my Z. They were taking a while to approve my loan (still pending). I know I'll get it, I have excellent credit. The problem is, someone agreed to my offer this past weekend and I just had to jump on it and buy my Z. I got a relative to lend me the $13k I needed to buy the car.

I obviously owe this person $13k asap. My question is, once I get approved for the loan, how do I pay this person back? I would think they give me a check to my name and I do what I want with it, but when I called in they said eventually they would need the VIN and all that. Maybe I'm freaking out over nothing but I really want that 3.99%. I don't want them to think this is just a personal loan I got and then give me a higher rate.

I'm not sure if/how your situation is different than mine, but here is my experience:

Last Wednesday night I applied for membership with PenFed and opened an account. I setup my online access, and then immediately applied for a car loan online.

After entering in all the required information and hiting submit, I immediately got feedback that I had been approved for the loan.

Thursday morning I called PenFed and told the lady I had been approved the night before. She verified my account information and identity. Then I provided her with the sellers name and the VIN number of the car I was purchasing. She went through some questions and answers and the check for purchase was ready for issue. We funded my account with enough money to have it shipped via FedEx overnight and Friday morning at work I had the check for the purchase of my new vehicle.

wait.... you got a loan for..... wait..... what are you talking about?

sorry if my post was confusing...

- i applied for a penfed loan
- it was pending when it was time for me to buy the z
- i borrowed money from a relative and told them i'd pay them back when they approve the loan
- i bought the car with my relatives money
- when penfed approves my loan, how do i get that money to my relative instead of the dealership?

You applied for an auto loan, so I really doubt that it can be used for other purposes other than purchasing a car. If it was a personal loan, then you can use it to pay back your relative. It's just as how -EAD- proceeded. But I could be wrong...

awhh dude...I think most banks/credit unions write the check out to the dealership e.g. if Los Angeles Nissan dealer--> "pay to the order of Los Angeles Nissan xyz of the amount $13,000 and no cents."

tell penfed that your relative is the current owner, because they are since they bought the car, not you. so your buying it from your relative.

I just had a buddy use penfed and they wrote the check out to him personally...then he cashes it and gave it to the private seller...don't sweat it

I used a different bank but they gave me the check directly. The nice thing is that you also get the title instead of the bank holding it.

is good credit required to get that car loan?.. i have 10 grand saved so i thinki need a 25,000 loan

Yes, especially during these times. Continue to save your money and be patient. It takes time and discipline to establish excellent credit.

I would assume you have to put them as a lien holder

what is a lian holder is it like a second owner?

Yes. You obtain a loan from the bank and the bank has a financial interest (lien holder) in the vehicle as they own it as well. They hold the title until you pay off the vehicle. Stop paying and they repossess. :tiphat:

are you sayin that is possible to get a loan even with my credit score being low at 526 , cuz thats the only thing stopping me to get a z rite now. a nissan dealership already did a credit check on me and told me my credit is to low and i need a cosigner with a high credit score