At a glance

- Availability
- Affordability
- Customer experience
- Transparency
About Navy Federal
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Loan amount
$250 and up
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Min. credit score
Not specified
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APR from
4.54%
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Funds available in
As soon as the same business day following approval
Loan amount
$250 and up
Min. credit score
Not specified
APR from
4.54%
Funds available in
As soon as the same business day following approval
Navy Federal Credit Union is the largest credit union in the United States, primarily because of the excellent benefits and services offered to military members and their families. While you have to be a member in order to benefit from what Navy Federal offers, it can provide low APRs and flexible term lengths.
Navy Federal offers great terms to those who qualify, but membership is required.
Variety of term lengths
Low APR
Car buying service
Membership required
Restrictions for older used vehicles
Max rate not disclosed
Navy Federal does not specify any credit or income requirements. However, you will need to become a member of Navy Federal. You may qualify if you’re in one of the following categories:
You must also open and maintain a savings account with Navy Federal with a $5 minimum balance.
As with Navy Federal, you must become a member of Skyla Credit Union (which recently merged with Parsons FCU) to benefit from its excellent rates. However, anyone can become a member of Skyla through the American Consumer Council, compared to Navy Federal’s more restrictive requirements. Both have wide-ranging loan amounts — Skyla's tops out at $150,000, while Navy Federal doesn’t advertise a maximum amount. Navy Federal’s maximum term length of 96 months beats Skyla’s 72 months. Generally, if you don’t qualify for membership with Navy Federal, Skyla is a great alternative.
Like Navy Federal, USAA serves U.S. military members, veterans and certain relatives of both. The two lenders serve all states and offer similar interest rates, though USAA's start about a percentage point higher. USAA stands out for its flexible payment options: You can make your loan payments biweekly, twice a month or monthly. Choosing biweekly payments can help you pay off your loan faster.
Navy Federal gives you the freedom to select an auto loan with terms that work for you. However, there are limitations to who can apply for financing and restrictions on the vehicles that can be purchased.
Navy Federal has a few different customer service options for its members. Member representatives are available 24/7 over the phone at 888-842-6328, or you can get questions answered through a live chat feature on the website. If you prefer in-person communication, Navy Federal has 350 branches worldwide where you can talk face-to-face with a customer support agent.
Navy Federal offers financing for new and used vehicles, along with auto loan refinancing. A company spokesperson stated there is no maximum amount on auto loans.
Navy Federal’s new and used auto loans come with flexible repayment terms. In the current high rate environment, few lenders can beat Navy Federal’s best rate, though competitor PenFed’s rates start at 4.49 percent. You can finance up to 125 percent of the vehicle’s value. That way, you won’t have to pay tax, tag, title and registration fees out of pocket. Just remember that you’ll have to pay interest on any costs you roll into your loan. Terms of 85 to 96 months carry a minimum loan amount of $30,000.
You can refinance with Navy Federal, which may save you money on your auto loan if you qualify for a lower interest rate than you currently have. Some borrowers also refinance to extend the loan term to get a more affordable monthly payment or shorten the loan term to pay the balance off sooner.
You can apply for an auto loan with Navy Federal online, via the Navy Federal app, over the phone or at a branch. In most cases, you should receive a decision within a few minutes of submitting your application.
If you’ve already decided on a vehicle or if you’re refinancing, you’ll also need to supply the vehicle identification number, the registration state, the exact mileage and the dealer name.
Navy Federal offers its members a number of perks, including car buying services provided by TrueCar. Refinancing your auto loan through Navy Federal will net a $200 bonus if certain conditions, including a $5,000 minimum loan amount, are met. Discounted loans are available to active duty and retired military members. You also have the option of purchasing gap insurance.
Navy Federal does not charge fees for loan applications, loan origination or early repayment. Late loan payments generate a $29 penalty.
Overall score | 4.2 | |
---|---|---|
Availability | 4.6 | Navy Federal auto loans are available for a wide range of amounts and don't require borrowers to use a specific dealership. |
Affordability | 4 | While Navy Federal has a low minimum APR, it also relies on traditional underwriting and doesn't offer an autopay discount. |
Customer experience | 5 | Support is available 24/7 and there are several ways to make payments, including a recurring option. |
Transparency | 3 | Rates, fees and terms are available online. However, prequalification isn't available; you must apply for preapproval to preview rates. |
Bankrate considers 18 data points when selecting top auto loans. Acceptance criteria, whether rates and fees are available and APR range all influence lender scores. These scores are broken up into four categories.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.