Buy from Enterprise, score a 1.49% auto loan from PenFed
Pentagon Federal Credit Union is offering a phenomenal interest rate on used-car loans to purchase Enterprise Car Sales vehicles.
Through May 31, you can borrow as much as $70,000 at this low rate for up to 60 months as long as you apply online.
This 1.49% rate is even lower than PenFed’s usual great rate of 1.99% on new- and used-car loans.
Enterprise’s used-car inventory consists of former short-term rental and lease cars and cars Enterprise has purchased at auto auctions.
Enterprise sells cars of almost every make, but you’ll have the best selection if you’re shopping for a Chevy, Chrysler, Dodge or Ford. Nissan, Toyota and Hyundai are also well-represented. Enterprise will buy your trade-in, too.
If you’re skeptical about buying a former rental car, here are some things to consider:
* Rental cars are regularly maintained and inspected -- more often than typical owners maintain or inspect their cars. Enterprise has numerous cars for sale that are only a year or two old and have fewer than 40,000 miles.
* Buying a used car through Enterprise has numerous perks that you won’t often find at a dealership.
* All cars come with a limited powertrain warranty good for 12 months or 12,000 miles, whichever comes first.
* Also included in the purchase price are 12 months of roadside assistance from AAA and a free CARFAX report.
* Enterprise uses non-negotiable pricing and a low-pressure sales process, which means you can avoid the stress of haggling.
* If you’re unhappy with your purchase for any reason, Enterprise will buy back the vehicle within seven days for the price you paid -- you’ll only be responsible for a $200 documentation and cleaning fee.
* If you can’t find the right car at a location near you, you can have it transferred for a fee. Enterprise Car Sales has 130 stores spread across most states.
The national average auto loan rate for used cars right now is 5.22% on a 36-month loan, according to our latest national survey of lenders.
If you borrowed $15,000 at the average interest rate, your monthly payments would be $451 and your total borrowing costs would be $1,238.
With a PenFed loan on an Enterprise vehicle, your monthly payments on a 36-month loan would be $426. Your total borrowing costs would be just $347.
That’s a monthly savings of about $25 or $891 over the life of the loan.
Use our auto loan calculator to help you budget your monthly payment.
There are no prepayment penalties or application fees on PenFed’s auto loans, and PenFed will lend you up to 100% of the car’s retail value.
Sometimes sales tax plus licensing and registration fees will put your total purchase price above this value, meaning you may need to bring some cash to the table.
PenFed has restrictions on used-car loans for vehicles with more than 100,000 miles, but we didn’t find any Enterprise cars for sale at the time of writing that had more than 88,000 miles.
Since PenFed is a credit union, you must become a member before you can apply for a loan, but anyone can join.
If you aren’t eligible through your job, association membership or volunteer work, you can become eligible by joining the National Military Association for $20 or Voices for America’s Troops for $15.
You can get preapproved for the loan before you shop, but you’ll need to pick out a specific car to finalize your loan approval.
Visit the credit union’s website to apply.
If you’re in the market for a preowned auto, follow our 10 smart moves for buying a used car to help you avoid all of the nasty surprises in the preowned market and find a dependable, affordable ride.