Navy Federal Credit Union Auto Loan Review

Overall, the new car auto loan rates at Navy Federal are some of the most attractive across the industry including what you’ll find at online banks. The industry standard for a 60-month auto loan for someone with near-perfect credit is around 3.60%. In comparison, 60-month loans at Navy Federal are available with rates as low as 2.89%.

APR Range
7.49%–18.00%
Term
Up to 60 months
Loan Amount
$250–$50K
SimpleScore
4.6 / 5.0
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SimpleScore Navy Federal Credit Union 4.6
Rates 5
Loan Size 5
Customer Satisfaction 5
Support 4
Fees 4

Founded in 1933, the Navy Federal Credit Union is most widely known for industry-leading CD, credit cards and money market rates, those interested in other products and services including a Navy Federal auto loan will be pleased with the rates, services, and options available. The bank offers some of the lowest rates available industry-wide on new, used and late-model used vehicles with pre-approvals valid for 60 days and no down payment requirement.

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In this article

    Navy Federal Credit Union at a glance

    LenderMin. LoanMax. LoanAPRTermsKey Benefit
    Navy Federal Credit UnionNot specifiedNot specified2.49% – 6.29%36 – 96 monthsIndustry-leading low rates

    What we like about it

    It’s hard not to get excited about the Navy Federal auto loan rates, particularly with new cars and late model used vehicles. For new vehicle loans up to 36 months, borrowers can get rates as low as 2.49%. For longer-term loans of 61 months to 72 months, this new car rate only rises to 2.99% which is still well below the industry average at traditional and online banks.

    Additionally, most loan approval decisions at Navy Federal are made in under five minutes and are accompanied by a free CARFAX report. While it may be necessary for loan approval for some, most borrowers will not be required to make any down payment to secure their loan.

    Things to consider

    Used vehicle rates are slightly higher than new vehicle rates, but still on par or better than most options available in the industry. Also, for late-model used vehicles and older used vehicles, you won’t be able to get a loan over 72 months. If this is a deal-breaker, consider trying another bank that may offer longer loan terms or choosing a more affordable vehicle. Furthermore, products and services from Navy Federal Credit Union are only available to active or retired military service members and their immediate families.

    Navy Federal Credit Union auto loans

    Securing a Navy Federal auto loan on a new vehicle is quick and painless. You’ll receive approval most of the time in under five minutes. New car rates range from 2.49% to 6.29% depending on the term length of your loan, your credit, the amount financed, and any other creditworthiness factors the bank deems applicable.  Additionally, customers can receive pre-approval from the bank prior to picking out a car, giving you much more negotiation flexibility when purchasing your vehicle. Pre-approvals from the bank are good for 60 days from the check date.

    Overall, the new car auto loan rates at Navy Federal are some of the most attractive across the industry including what you’ll find at online banks. The industry standard for a 60-month auto loan for someone with near-perfect credit is around 3.60%. With bad credit, the rate will be higher. In comparison, 60-month loans at Navy Federal are available with rates as low as 2.89%. Navy Federal classifies cars made in the current and previous calendar years with less than 7,499 miles as new.

    Navy Federal does not require down payments on auto loans; however, a down payment may be necessary to lower your loan-to-value ratio to secure the loan. If you have issues during the approval process, you may want to contact the bank and see if this is an option.

    Navy Federal Credit Union auto refinancing

    For those looking to secure a better rate on an existing auto loan, you should heavily consider Navy Federal as an option. All of the same great rates available on new and used cars are available for refinancing as well. Currently, customers can also get a $200 credit when they refinance through the bank. Existing Navy Federal loans and loans under $5,000 are not eligible for the promotion. Additional terms and conditions for the promotion do apply, so make sure you read all of the fine print before moving forward.

    Navy Federal Credit Union private seller loans

    Though not explicitly mentioned on the company’s website, private seller loans are discussed on the company’s Making Cents blog. Those interested in a private seller auto loan through Navy Federal Credit Union should contact the bank directly for availability and rate information.

    Check Your Auto Loan Rates

    View our top-rated lenders and find the best rates today. It’s quick and easy.

    Navy Federal Credit Union used car loans

    According to the bank, any car made prior to the previous year with more than 7,499 miles is considered a used car. Newer cars with over 7,499 miles are also considered used regardless of the build date. Additionally, cars with between 7,500 miles and 30,000 miles are considered late-model used vehicles. The distinction is important as loan rates on late model used vehicles are typically lower and could be an important piece of the purchasing decision process.

    With Navy Federal’s used auto loans, the availability of term lengths is capped at 72 months as opposed to new car loans that have the option of up to 96 months. Late-model used vehicle rates are about half a percent higher than new car rates across the board.

    Traditional used car loan rates are higher than late-model rates across the board at varying rates. Shorter 36-month loans are just under a percent higher, 37-month to 60-month loans are 1.2% higher, and 61-month to 72-month rates are just under 0.50% higher. All of these rates assume optimal borrowers who qualify for the lowest available rates. Those with less than perfect credit history should still be able to get better rates than they would at most other banking options.

    Methodology

    SimpleScore

    We’ve created the SimpleScore™ to help you objectively compare products and services here at The Simple Dollar.

    Our editorial team:

    • Identifies five factors to compare across each brand
    • Determines the rating criteria for each factor
    • Calculate an average of those five factor scores to get one SimpleScore™

    We break down each of these five factors and their rating criteria for our review of the best auto loan companies of 2020.

    Why do some brands have different SimpleScores™ on different pages?

    Some brands like Bank of America, Wells Fargo, and Chase have different SimpleScores™ because they offer more than one financial solution — like auto loans, home loans, personal loans and banking.

    For instance, in our Bank of America Mortgage Review, we give the company a 3.8 out 5 based on our five rating factors for mortgages. In our Bank of America Auto Loans Review, we give the company a 4.4 out of 5 based on our rating factors for auto loans. By tailoring our SimpleScore™ to each financial solution, we’re able to give you a more accurate view of their services and how they compare to competitors’ services.

    Minimum new car rate

    Companies that look out for new car buyers with lower rates receive higher scores from us.

    Minimum used car rate

    We also give higher ratings to companies that look out for used car buyers by offering lower rates.

    Maximum loan size

    Having enough money to cover your auto loan is important –– that’s why companies with higher maximum loan amount receive better scores from us.

    Customer satisfaction

    We use the J.D. Power 2019 Consumer Lending Satisfaction Study℠ to find out how customers rate their experience with each company. (If a company is not included in J.D. Power’s study, we skip this rating factor and average the remaining factor scores.)

    Fees

    Fees can add up very fast –– that’s why we give a higher score to companies who have fewer fees.

    Jason Lee

    Contributing Writer

    Jason Lee is a U.S.-based freelance writer with a passion for writing about dating, banking, tech, personal growth, food and personal finance. As a business owner, relationship strategist, and officer in the U.S. military, Jason enjoys sharing his unique knowledge base and skill sets with the rest of the world. Follow Jason on Facebook here