CarSwami

Hi All

I'm thinking about doing an ED on a Q7 Prestige later this year and was wondering which banks/credit unions will extend auto loans for a vehicle bought under the ED program. I searched this forum for an answer but did not find anything recently that answered this question. So I thought that I would ask it again. I have not served in the military and none of my family have either, so any credit unions that require someone in the family to have served in the military for membership is not open to me. Your help would be much appreciated.

CarSwami

superswiss

Any banks/credit unions will. There is no difference from their perspective if you do ED or not. With ED, you are still buying a US spec car that gets registered in the US, once it gets here. You'll have to pay for the car before you leave. The difference is that you take delivery in Germany, drive it around for a bit and then hand it back to be shipped to your dealer. When it arrives, the car gets registered as a new vehicle, even though, it's technically used now. ED is between you and your dealer.

mkinn

My experience was different. Even though I was pre-approved at a credit Union, I was told by the Dealer, that for European Deliveries, I had to use Audi Financial Services. It might have been the credit union that wouldn't do it. I would call the bank/credit union you want to use and tell them that you are doing a European Delivery and see if they will finance it. I will probably re-finance through the credit union next month to get a lower rate.

superswiss

It is possible that Audi requires financing through AFS for ED. I'm not a 100% sure, but the difference between ED and a regular purchase is that with ED you are actually buying the car directly from Audi, however, the dealer handles the transaction details. That's also why most ED orders don't come out of the dealer's allocation. RS models and the R8 are slightly different as they do come out of the dealer's allocation. I paid cash for my ED RS5, so I didn't actually have to go through this.

CarSwami

Hi All, thanks for your responses to my question. The reason I asked it is because there have been several reports on the BMW ED Forum that some banks/credit unions will not finance vehicles purchased through ED for one reason or the other. I will of course contact my banks and credit unions individually and ask them, but I was hoping that folks on this Audi ED Forum could also give me the names of a few lenders that they have used to finance ED vehicles.

CarSwami

CarSwami

Has anyone financed an ED using PenFed in the DC/MD/VA tristate area in recent times? There are reports on the BMW forum that people have used PenFed in the past, but those reports are a few years old.

CarSwami

Boost Addiction

We've done ED several times over the last 30 years. In the early years, many banks wouldn't make a loan on an ED car because of the perceived risk of the car never coming back to the US and being unable to repo it if needed. That's apparently less of an issue now.

The idea that you could only use Audi Financial is nonsense of course- any method of payment is acceptable to the dealer. That dealer is just trying to force you to a more profitable deal, as they get spiffs and other benefits from originating loans with AFS.

skup

The issue is that a title is not issued on the car until the car reaches US. So I have not found a lender to loan knowing that. I just refinanced mine once it reached US. The lender still treated it as a new car because the dealer will have you sign a title application once it's in the US as if it's a new car.

raceboy18

I am financing an ED purchase through Penfed RIGHT NOW. Was approved last Friday 4/7, and received the loan docs this past Monday, 4/10. The fine print of the loan agreement notes that the Title needs to be received by Penfed within 150 days of the loan being disbursed.


Just got off the phone with a Penfed member representative not more than 1 hour ago. I clarified and disclosed that this purchase was a European Delivery and the title will not be received until sometime after disburse of funds, but more than likely within the 150 days (5 months). They made note of ED delivery in my loan file and said you'll receive sort of nasty letters at 60 days, 90 days, and 120 days which are standard automated Penfed mailings. Call after the 2nd nasty letter if title not yet received to be safe, clarify situation and current status, and they will grant an extension on my file to be safe.


Quick and easy process so far!

FLkiwi

Great info. Did they confirm an APR during the application process? Their site says that this isn't confirmed until disbursement, and is "based on your application and credit information", which sounds just a bit vague to me.