So I'm in the market for a new truck.
Due to just buying a new house, I kinda want to keep some money in reserve, and paying of a loan would pretty easy.
How do I act quickly in purchasing a vehicle buy still utilize a loan? I'd assume the bank isn't just going to lend me a few grand in advance, but I don't want to make a seller wait, especially if I'm getting a good deal.
How does that all work?
Best thing to do would be to CALL your banking institution and ask how their particular process works.
Yep. Usually, I've used loans on cars through dealers as they have the infrastructure to deal with banks and loans.
A private party sale with a loan can be done, but it sometimes requires patience on the seller's part. YMMV.
I bought a used Prius a few months ago from CL.
I paid the seller $5,800 in cash. All along, my plan was to borrow the money. I had it in cash but did not want be out the cash on hand for the long term.
I had heard on GRM of PenFed
I had never used them but their website showed 1.99% used car loans. They were super easy to work with over the phone. Ultimately I borrowed $7,000 even on this Prius and a check to me arrived in the mail.
It really was that easy.
So, is it possible for you to pay the seller in real cash and then wait to be reimbursed?
Totally. Didn't know I could do that (reimbursement).
I've done loans through my insurance company (State Farm) in the past and they've mailed checks or let me pick up checks before I have the vehicle. They're pretty trusting and there was no fee and no early payoff charge. Car loans are really stupid cheap. I still don't like them and haven't had one for a very long time but like you say sometimes you need to keep cash in reserve.
dculberson wrote: I've done loans through my insurance company (State Farm) in the past and they've mailed checks or let me pick up checks before I have the vehicle. They're pretty trusting and there was no fee and no early payoff charge. Car loans are really stupid cheap. I still don't like them and haven't had one for a very long time but like you say sometimes you need to keep cash in reserve.
FYI, that wasn't a loan through your insurance company. That was a loan through State Farm Bank. Slight difference, but worth noting that not every insurance company can actually finance a car loan.
I also highly recommend SFB for car loans--I used to work for the Bank, I was responsible for the Repo agents and auctioning off cars that folks didn't pay on. They're really easy to work with.
I did a loan through LightStream when I bought our family car last year. Once it funded all I had to do was to walk into a SunTrust branch and have them cut a cashier's check for the purchase amount.
pheller wrote: Totally. Didn't know I could do that (reimbursement).
My local credit union that I have an account with could do the same thing but their rates were closer to 5% on a used car. Pen Fed was 1.99% for a 3 yr loan.
With the reimbursement, did you line that up prior to purchase?
Like you said "I'd like to buy this vehicle with VIN#" and they said ok how much do you need/want? and you said "I'd like the entire purchase price" and then you went and bought it with your own cash while waiting for the check?
John Welsh wrote: I bought a used Prius a few months ago from CL. I paid the seller $5,800 in cash. All along, my plan was to borrow the money. I had it in cash but did not want be out the cash on hand for the long term. I had heard on GRM of PenFed I had never used them but their website showed 1.99% used car loans. They were super easy to work with over the phone. Ultimately I borrowed $7,000 even on this Prius and a check to me arrived in the mail. It really was that easy. So, is it possible for you to pay the seller in real cash and then wait to be reimbursed?
Do you mind telling me more about this process? What did they ask for, documentation wise? How did they appraise the vehicle? Etc.
In reply to pheller:
IIRC, the way it worked with my CU buying private party was I said "Hey, I found a vehicle, I'm going to buy it." They said "Cool, send us the VIN and we'll either mail you the the check or you can come pick it up if in a rush." They may have asked for pictures representing the condition as well, I forget. The certified check is made out so either you or the seller can cash it, once they get the info needed they don't care how the transaction goes down.
I'm actually in the market for a used truck myself, and looking to take a loan as well, also due to recent house purchase and resulting shortage of cash.
I will 2nd penfed. By far the easiest part of the car buying process. Give them a call. I have done it both ways, they mail me a check good up to a certain amount and I go car shopping, or I buy something cash and they mail me a check (payable to me) for the loan amount after. Very easy to work with.
I must say, it all seemed too easy.
I bought a Prius for what I saw as "under market price" and did not think it would be hard to get a loan. It was as if PenFed was just willing to "get me on the hook" for as much as I wanted. I may have read somewhere that they loan up to 125% or NADA value.
I came up with the loan amount of $7k on my own. I bought the car for $5,800 and it is quite possible that when I paid the sales tax at the title office, I may have error-ed and even given a number lower than $5,800 
No inspection. No appraisal. Nothing in person.
A large legal envelope arrived. I signed a lot of places. Upon return of the signatures, days later a check arrived in my name.
I heard this whole thing called "a loan on a free and clear title."
It was almost like I would imagine a pawn transaction (which I have never done). I have this thing of value that only I own. If I sign your papers then I will no longer own it but for a fee ($200 per month) you will let me continue to use it and some day I will actually own the whole thing again (3 years later.)
Does Penfed have any crazy requirements for membership?
John Welsh wrote: I must say, it all seemed too easy. I bought a Prius for what I saw as "under market price" and did not think it would be hard to get a loan. It was as if PenFed was just willing to "get me on the hook" for as much as I wanted. I may have read somewhere that they loan up to 125% or NADA value. I came up with the loan amount of $7k on my own. I bought the car for $5,800 and it is quite possible that when I paid the sales tax at the title office, I may have error-ed and even given a number lower than $5,800
Interesting. I'll be contacting them. This could open up my search some.
I used a loan when I bought my NB to get it before I sold my other car. My credit union (delta community) approved me over the phone, and with the Vin number, cut me a certified check in the car owners name for a little less than the loan amount, and gave me the rest in my checking account, which I then took as cash for price negotiations.
The whole process too like an hour. I called in the morning, picked up the stuff at noon, and bought the car at night.
I gave the lien notice with the title document when I did the transfer. Basically their process is they trust me to be good to do the transaction as agreed, and to turn in the lien form and insurance documents in the time frame they give. If not they come after me for the money.
When I bought my wife's car using GE Credit union, I did basically the same thing; got an out the door price (at a dealer out of state). They cut a check to the dealer and gave it to me. I delivered the check when I picked up the car.
Both deals also had an X number of days cancellation where if I decided not to buy the car, I just gave them the check back.
pheller wrote: Does Penfed have any crazy requirements for membership?
Yes, it was crazy.
I was read a long speech asking me if I was a Gov't employee, Gov't contractor, Military, Military verteran, etc and then the last choice was, "had I ever donated blood through the Red Cross?"!!!
I answered yes to the Red Cross but stated that I could not prove it.
That was good enough!
A $5 deposit (taken via debit car) made me a member with an existing account there.
Do they do they do any type of membership referral?
One other question, Mr. Welsh--what year was your car?
I used Lightstream and have nothing bad to say. Great rate, especially for an older car. I even get to hold the title. It took them about 24 hours to approve me for some insane amount of money and then when I found the car I told them how much I needed. I had the money in 24 hours and was able to get a cashier's check from my bank. I will for sure use them again. The banks I deal with couldn't come close. My credit union didn't even believe it until I showed them and then told me I did well!
I've financed multiple cars through DCU. It was ridiculously easy - and I keep getting refi offers, so they don't seem to care if you already own the car or not. They did nothing to verify the condition of the car (or, frankly, that it existed, with the exception of the title).
cmcgregor wrote: I've financed multiple cars through DCU. It was ridiculously easy - and I keep getting refi offers, so they don't seem to care if you already own the car or not. They did nothing to verify the condition of the car (or, frankly, that it existed, with the exception of the title).
I had much the same experience as cmcgregor this week, but with a different lender. I picked up a used Audi a week or so ago with finance from NZCU (found them through this post) and while they're an NZ loan provider as opposed to US / UK, I was surprised that the process was pretty much the same as others have mentioned in this thread. Jumped through all the usual hoops, of course (ugh paperwork), and was given the loan while I was still searching out my best option which was great. Meant I could compare / contrast and hunt out a better deal without an arbitrary time limit.
Would recommend anyone else thinking about finance for their next purchase contact a few local providers etc before you start, though, as I know not all of them follow the same kind of timeline (have had at least one friend go through a different provider which required info on the car they were purchasing. Then again their credit wasn't all that great so :P). TL:DR Your mileage (pun intended) may vary.
How soon till someone posts the obligatory, "You're a moron for taking out a loan for a car?" 
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