Caltech Employees Federal Credit Union

Vehicle Loans- New, Pre-Owned & Refinanced Frequently Asked Questions

What rates can I expect on a new or used vehicle loan?
What terms are available?
What are the minimum qualifications for a loan approval?
Will CEFCU check my credit?
How much can I borrow?
How long does it take to get a loan decision?
What documents will I need to provide?
How do I know if I am approved or not?
How long does it take to fund the loan?
How can I repay my loan at CEFCU?
How are the interest charges calculated?
Is there a prepayment penalty?
Can I protect my family and myself if I were to become ill or pass away?
How do I know how much I should pay for the car?
How do I know if I can save money by refinancing my car?
What do I have to do to refinance?

What rates can I expect on a new or used vehicle loan?
CEFCU offers value alongside competitive rates on new and used vehicles.

What terms are available?
Terms vary. The most common new and used vehicle terms are 60 to 84 months. However, the maximum term for cars six years and older is 60 months.

What are the minimum qualifications for a loan approval?
You must be 18 years old, be employed or have a verifiable source of income, the ability to repay the debt, and a stable credit history.

Will CEFCU check my credit?
Yes. Your loan officer will order your credit report when the application is submitted if we have not obtained one within the past 90 days. If you are applying with a co-borrower, a credit report will also be ordered on that individual..

How much can I borrow?
You may borrow up to the MSRP (Manufacturer Suggested Retail Price), plus tax, title, and warranty. On used cars, we will loan up to 100% of the Retail Kelly Blue Book value, plus tax, title, and warranty. Autos older than five years, we may loan up to 80% of the Kelly Blue Book value.

How long does it take to get a loan decision?
Each office has loan officers available to meet with you during business hours. You may also contact a loan officer by phone or email. We take pride in the service we provide and work hard to give you an answer within 48 hours if all pertinent information is provided.

What documents will I need to provide?
Every loan circumstance varies.  Your loan officer will give you detailed information about what additional information you may need to provide to ensure that your loan funds in a timely manner.   

Click here to view a complete list of the standard forms and documents that we will request to begin the loan process.

How do I know if I am approved or not?
Once you submit your Loan Request, your loan will reflect a "pending" status. A loan officer will contact you about your request within 24 hours of receipt of the application, unless it is a holiday or weekend.

How long does it take to fund the loan?
Depending on the type of loan, funding can generally be completed within 48 hours provided all appropriate documents are received and signed.

How can I repay my loan at CEFCU?
We have several convenient payment options for your loan payments at the Credit Union.  

1. You can make your payments in person at any of our lobby locations or the drive up window at the Foothill Office.
2. You may authorize an automatic transfer from an account at CEFCU to your loan.
3. An ACH authorization allows you to electronically transfer money to your loan account at CEFCU from another financial institution.  
4. Caltech and JPL employees may use payroll deduction. Your employer forwards the authorized funds to CEFCU directly, and the deducted amount will show on your pay stub.
5. Use CEFCU@HOME to set up scheduled recurring payments to your loans from your Credit Union accounts.
   
6. We also offer coupon books for your loan payments. They may be used at any of our locations or by mail.

How are the interest charges calculated?
All loans with CEFCU are simple interest loans. This means that the interest accures and is calculated on the unpaid principal balance from the date of the last payment.

Is there a prepayment penalty?
No, there isn't a prepayment penalty.

Can I protect my family and myself if I were to become ill or pass away?
Yes, Credit Life and Disability Insurance is available through CUNA Mutual Insurance. It can protect your credit rating and your family from hardship in the unforeseen instance of injury, illness, or death.

How do I know how much I should pay for the car?
Our loan representatives have several resources available to them, which can provide information regarding MSRP and value for new and used vehicles. The Red Book is available in all three offices, providing members with valuable information about fleet pricings.

How do I know if I can save money by refinancing my car?
Our loan officers can do a comparison for you. All we need is the payoff amount of your current car loan and your current interest rate. We can calculate payments and interest to determine if we can save you money or if you are better off to stay with your current lender.

What do I have to do to refinance?
Simply apply and provide the payoff amount and your current lenders information. We will process your application. At the loan closing, you will be asked to sign all the appropriate paperwork and a payoff check will be mailed to the financial institution where your car was financed. It’s as simple as that!

Every loan circumstance varies. All loans are subject to credit approval. Rates may change without notice. For more information, please contact us at (800) 592-3328, extension 402 or in person at any of our office locations. We're always happy to help!