2024 Navy Federal Credit Union Auto Loan Review
Navy Federal Credit Union auto loans at a glance
Navy Federal Credit Union (NFCU) has come a long way since its inception. In 1933, seven Navy Department employees banded together to form the credit union. Today, NFCU has more than 28 million members, making it the largest credit union in the United States.
NFCU restricts its membership to active-duty military, veterans, Department of Defense (DoD) employees and their family members. If you fall under that umbrella and are willing to join a credit union, here’s what you should know:
- Low minimum APRs: Navy Federal auto loan rates are competitive. If you’re active duty or retired, you can save even more through an APR discount.
- Long loan terms: You could opt for a 96-month loan term if you’re purchasing or refinancing a car.
- Unique member benefits: Navy Federal Credit Union members gain exclusive access to discounts on insurance, rental cars and more.
- Easy application process: There’s no need to head to a branch to apply for an auto loan. Instead, you can get it done in just a few minutes using Navy Fed’s website or mobile app.
- Best for military members and families: From auto loans to personal loans to banking and investing, Navy Federal might help you meet your financial goals. That is, if you’re eligible to join.
Navy Federal pros and cons
Every lender — even one as popular as NFCU — has drawbacks as well as benefits. Take a look at the big picture before committing.
| Pros | Cons |
|---|---|
Co-borrowers allowed Unique member benefits APR discounts for active-duty and retired military | Must have military affiliation Does not disclose minimum credit score requirements Maximum loan amounts not specified |
Low average rates are just the tip of the iceberg at Navy Federal. Members save on Liberty Mutual® insurance, Sirius XM® radio, Enterprise Rent-A-Car® and other products and services.
You can get a preapproved car loan from NFCU online, and get a decision within minutes. Before you apply, however, you’ll need to make sure you meet its membership requirements. Those in the following groups are eligible:
- Active-duty and retired military members
- Veterans
- Immediate family members of NFCU members (parents, grandparents, spouses, siblings, children and grandchildren)
- Household members of NFCU members
- DoD civilians
You must also open a Membership Savings Account with a $5 minimum deposit to maintain membership.
A closer look at Navy Federal auto loans
You can get a Navy Federal car loan whether you’re buying from a dealership or a private-party seller. Auto loan refinancing is also available, unless your car loan is already with NFCU. If you borrow from Navy Federal, you could take advantage of:
Flexible loan options
Navy Federal Credit Union offers flexible loan terms and amounts. Borrowers can get 100% financing and choose a repayment term as long as 96 months (eight years).
Just beware that both of these options make borrowing more expensive in the long run. The more money you borrow and the longer you take to pay it back, the more interest you’ll pay overall. Plus, if you finance your entire purchase, you risk being upside down on your auto loan.
The lowest Navy Federal auto loan rates are reserved for shorter-term payment periods. For example, the starting APR for a new car with a 36-month term is 4.54%. That figure jumps to 8.09% if you choose a loan repayment term of 85 months or more.
Military discounts
For members of the military, an NFCU auto loan can be a great deal. That’s because Navy Federal offers several discount programs based on military affiliation. Here’s an overview:
- Loan discounts for active-duty and retired military: Qualified applicants can get a 0.25% APR discount when they apply in person or by phone, and set up direct deposit.
- Senior Enlisted Reward Program: NFCU offers a 1% rate discount exclusively for Active Duty, National Guard and Reserves E-7 through E-9. Note that it can’t be combined with other discounts.
Car-buying service
Finding the right car in addition to the right loan can be a challenge, so Navy Federal partners with a car-buying service. TrueCar helps you filter and search for the right car, then connects you with dealerships that have that vehicle.
Navy Federal provides membership pricing, so you have less pressure to negotiate. If you don’t choose a Navy Federal auto loan, many other businesses also offer similar car-buying services, including American Express and PenFed.
Other membership benefits
Low APRs and rate discounts aren’t the only reasons to join NFCU. Members get additional benefits that can be useful when buying a car. This includes free FICO scores (but only if you also have a Navy Federal credit card).
Navy Federal auto loans also come with a free CARFAX report on used vehicles. Once you have your eye on a used car, you can order your CARFAX report to see its ownership, accident and service history.
How to get an auto loan with Navy Federal Credit Union
You must join NFCU before you can take out a loan. If you aren’t already a member, your first step is to open a Membership Savings Account with a minimum deposit of $5.
After you join, you can complete an auto loan application with Navy Federal Credit Union in just a few minutes. Apply online, over the phone at 1-888-842-6328 or at a branch. NFCU has branches in 30 U.S. states and the District of Columbia, as well as overseas. Here’s an overview of how to get a loan with Navy Federal Credit Union:
- Sign in. Log into your NFCU account either online or through the mobile app.
- Answer a few questions. Be prepared to provide the following information for yourself and your co-applicant, if you have one:
- Phone number and email address
- Housing, employment and income details
- How much you expect to borrow
- Length (term) of the loan you want
- Information about the car you plan to buy (if you know)
- Keep an eye out for communication. If NFCU needs more information to make a loan decision, you’ll receive a follow-up email or text.
- Receive the check. If you’re approved, you’ll receive a check at your home address or you can pick it up at a local branch.
- Complete the paperwork. You’ll need to sign a small stack of forms with the dealer or private seller to officially buy the car and start the loan.
Once your loan is finalized, your first payment will be due within 30 to 60 days.
How Navy Federal auto loans compare
Navy Federal isn’t the only bank or credit union car loan that caters to the military. Be sure to shop around and compare offers. Comparing may be the best way to find an auto loan with the features you need at an APR you can afford.
Please note that the table below illustrates rates and terms for new vehicle loans.
| Navy Federal Credit Union | USAA | PenFed Credit Union | |
|---|---|---|---|
| Starting APR | 4.54% | 5.99% with autopay | 5.44% |
| Loan terms | Up to 96 months | 12 to 84 months | 36 to 84 months |
| Loan amounts | Not disclosed | $5,000 and up | Up to $150,000 |
| Minimum credit score | Not disclosed | Not disclosed | Not disclosed |
At PenFed, you can borrow up to 125% of your vehicle’s value to cover taxes, registration fees and other related expenses. And while USAA is a bank, it provides a host of membership benefits similar to a credit union, including discounts on car care and travel.
Is a Navy Federal auto loan right for you?
Navy Federal auto loans could be great for borrowers who are already members or borrowers that are eligible (and willing) to join. Depending on your military status, you could save up to 1.00% on your APR through the lender’s discount programs.
However, in the same way you wouldn’t buy the first car you test drive, you shouldn’t take out the first loan you prequalify for. Check out Navy Federal auto loan rates, but continue to shop around to find the loan that best aligns with your goals.
Frequently asked questions
Navy Fed doesn’t publicly disclose its minimum credit score requirements. Credit unions do sometimes have higher credit requirements than online lenders, though. Although you might not qualify if you have rocky credit, you can add a creditworthy co-borrower to boost your odds of approval.
Every car buyer (or refinancer) has different needs. Some want to pay the least amount of interest. For others, a low monthly payment may be just as important as customer service. If cost is your main concern, however, Navy Fed’s auto loan rates tend to be competitive.
Navy Fed’s auto loan preapprovals are valid for 90 days from the day you applied.