[Z K]

Originally Posted by Jdub679

I have to admit, I'm a little wary of these loan companies. But I'll be honest, I don't have a good reason to be worried other than I'm not familiar with them by name. Any reason I shouldn't be worried? Aside from the lower APR, are there any other advantages these companies might provide? Do these loans usually allow early pay off without fees? Thanks.

Penfed is a legitimate credit union. I financed my M3 through them and have paid off the loan early now - no fees for early pay off. I also have a credit card from them. (5% off all gas purchases!) They have great customer service as well.

Recently I got a loan from Patelco credit union. They have a lot of branches near me. I don't know if they are elsewhere. They have lower rates on used car auto loans than Penfed and no need for donation to join.

[jeremyuhh]

Thanks for everyones input. Lightsteam looks simple, straight forward and promising.

Ive only dealt with Logix FCU who gave me a used private party vehicle loan and financed 1 of my past 6 cars directly through a dealership.

Quick question: Say I apply and get approved for a $30k loan. I go to the dealership and buy a car for $28k. With Lightstream, since there is no pre-approval, I will get the full $30k and will still have to pay that higher monthly payment as opposed to applying for a $28k loan.

From my understanding, I can either refi down the road, put that $2k back into the loan as my first monthly payment or spread between my payments, or use it to get the rod bearings done

If I were pre-approved for the same amount any where else, I would be able to negotiate the price and get funding for only the negotiated price, and pay a lower monthly payment, correct?

[PoorLurker]

Look at what type of loan it is too.

I think Lightstreams loan allows you to have the car's title in hand as well.

What is your timeline for purchase? 730 isn't tier 1 credit is it? May want to get it up to tier 1 and lowest rates if possible.

Getting too much money at rates today isn't that bad of a deal. (Some people will say this is dumb, but 2% loans is pretty much free money in the long term)
Yes, you will always pay the same monthly rate for the entire loan even if you put that extra $2k down immediately.

$2k difference over 5 years is negligible around $35 per month

[sid369]

I have heard that for Penfed, everything is through the mail and nothing in online and you need to give them the VIN no. I have not used them.

For Lighstream I have heard that you need to have a 800 score to get approved.