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PenFed auto loans: 2025 review

Written by
Denny Ceizyk
Edited by
Kellye Guinan
Updated on Oct 30, 2025

At a glance

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with Bankrate
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4.5
Rating: 4.5 stars out of 5
Bankrate Score
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Availability
Rating: 4.5 stars out of 5
4.5
Affordability
Rating: 3.8 stars out of 5
3.8
Customer Experience
Rating: 4.8 stars out of 5
4.8
Transparency
Rating: 5 stars out of 5
5.0

About Bankrate Score

Full methodology

Bankrate’s take

Its low APRs and financing up to 125% of the car amount sets PenFed apart from similar lenders in the auto loan space. PenFed also provides loan terms of up to 7 years, which can make payments even lower.

Lender Details

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Loan amount

Up to $150,000

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APR from

Starting at 3.39%

Credit Good Icon

Min Credit Score

Not Specified

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Funds available in

Not Specified

PenFed is best for low rates and a wide range of terms 

Qualified car buyers will find some of the lowest auto loan rates available at any car lender and a variety of terms to tailor a monthly payment that fits your budget. The lender’s online preapproval can give you an initial decision on new and used vehicle purchase loans and even refinance loans in minutes. The lender also offers extra insurance options such as extended vehicle warranties and debt protection. 

Types of car loans that PenFed offers 

New car purchase Used car purchase Refinance
APR As low as 3.39% As low as 4.34% As low as 4.19%
Loan amounts Up to $150,000 Up to $150,000 Up to $150,000
Loan terms 36-84 36-84 36-84

New and used auto loans

PenFed offers members some of the most competitive rates in the auto loan market with an online prequalification process to avoid harming your credit. Its lowest rates are reserved for borrowers who use its new car-buying service through TrueCar. If you choose not to use this service, your APR may be higher. That said, PenFed offers generous loan terms as long as months to help keep your payment low on expensive vehicle purchases. 

Auto loan refinancing

If you have a car with less than 125,000 miles, you may be able to refinance it with PenFed. Its auto loan refinance rates are slightly higher than its new and used car purchase options. Still, PenFed's minimum interest rates are lower than much of its competition, and the longer terms may be worth considering if you’re having difficulty making payments on your current loan. 

Where PenFed stands out

  • Very low minimum APRs. PenFed’s new car buying service rates are among the lowest of Bankrate-reviewed auto lenders. 
  • Up to 125 percent financing. You can finance extras like gap insurance or extended warranties with PenFed’s 125 percent financing option. 
  • Flexible loan terms. With the costs of new cars continuing to rise, PenFed’s long loan terms give you lower payment choices to keep your payment affordable. 

Where PenFed falls short

  • Must be a PenFed member to qualify. Only PenFed members qualify for its auto loan products. You can find specific membership requirements on its website.
  • No published credit requirements. PenFed's website doesn’t provide any information about credit score, income or debt minimums to qualify.
  • Must open a PenFed savings account with a minimum balance. You must open a savings account with a minimum deposit of $5 to be eligible for a PenFed auto loan. 

PenFed customer resources 

Customer support

PenFed borrowers can schedule a call with a representative using its online form 24/7, but its regular customer service phone hours are Monday through Saturday from 8 a.m. to 8 p.m. ET. 

Digital experience

You can prequalify online without affecting your credit, and the entire loan process can be completed digitally. PenFed also provides an auto loan calculator if you want to crunch numbers with different down payments, loan terms or trade-in values (if you’re upgrading your current car). 

How this lender compares

PenFed vs. U.S. Bank

PenFed offers much lower rates for all of its auto loan products than U.S. Bank, making it a better choice if you meet its membership requirements. PenFed also offers repayment terms as long as months, while U.S. Bank is capped at a maximum term of months. 

That said, you won’t have to go through a membership application process with U.S. Bank like you do to be eligible for a PenFed loan, and it offers a lease buyout program that PenFed doesn’t have.

PenFed vs. U.S. Bank

PenFed offers much lower rates for all of its auto loan products than U.S. Bank, making it a better choice if you meet its membership requirements. PenFed also offers repayment terms as long as months, while U.S. Bank is capped at a maximum term of months. 

That said, you won’t have to go through a membership application process with U.S. Bank like you do to be eligible for a PenFed loan, and it offers a lease buyout program that PenFed doesn’t have.

Read our PenFed vs. U.S. Bank breakdown

PenFed vs. Consumers Credit Union

PenFed is much more transparent about its loan amount and terms than Consumers Credit Union, which offers very little information about its products online. Its advertised rates are also higher than those currently offered by PenFed. If you live near one of Consumers Credit Union's offices, it may be a better choice if you prefer in-person service.

Do you qualify for a PenFed auto loan?

In general, you just need to verify your citizenship or permanent residency status and qualify based on your income, credit score and the type of vehicle you’re buying or refinancing. New car purchase or refinance loans require that your vehicle be no more than a year old. Older used vehicles may come with higher rates and the lender won’t finance any vehicle with more than 125,000 miles on it. 

How to get a PenFed auto loan

Applying with PenFed is fairly straightforward and can be done online, in person at a PenFed branch or over the phone. As with any auto loan application, you can expect a hard credit pull before final approval. Keep in mind that membership is required to receive an auto loan, but you can join PenFed when you apply. 

  1. Prequalify online

    Before applying for a car loan, use PenFed’s online application process to determine what you prequalify for.  According to the lender’s website, the process usually only takes a few minutes once you’ve input all your information.

  2. Pick your loan terms and provide documents

    Choose the loan term and APR that fits your budget and provide any documents, such as paystubs, as requested.

  3. Receive your funds

    When you’ve picked a car, you’ll receive funds with a check made out to the seller of your vehicle, or the funds will be sent directly to the dealership. 

How Bankrate rates this lender

Overall score 4.5
Availability 4.5 Low rates with high loan amounts and combination of new, used and refinance loan options available.
Affordability 3.8 Variety of loan terms and ability to borrow more than value car to finance items like extended warranties and extra insurance.
Customer experience 4.8 Online service is provided six days a week, and there is prequalification for borrowers who are shopping around.
Transparency 5.0 Rates and terms are disclosed on website.

Methodology

Bankrate's trusted auto loans industry expertise

Read our full methodology

48

years in business

22

lenders reviewed

16

loan features weighed

352

data points collected

The Bankrate team uses a 16-point system to evaluate auto loan refinance products across four main 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.