At a glance

- Availability
- Affordability
- Customer Experience
- Transparency
About PenFed
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Loan amount
Up to $150,000
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Min. credit score
Not specified
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APR from
5.24%
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Funds available in
Not specified
Loan amount
Up to $150,000
Min. credit score
Not specified
APR from
5.24%
Funds available in
Not specified
To help you find the right auto loan for your needs, you can receive prequalified loan offers without impacting your credit. If you hesitate to finance due to your credit score, applying with PenFed and receiving quotes can ensure you sign off on what you can afford. The prequalification process also allows you to compare different loan options simultaneously.
PenFed encourages preapproval, which can be a great way to compare its rates versus competitors, but it comes with unspecified used vehicle restrictions.
Online vehicle buying service
Wide range of loan amounts
Many loan terms available
Traditional underwriting criteria
Several potential fees
Membership requirement
Pentagon Federal Credit Union, more commonly known as PenFed, is a Virginia-based credit union that offers loans for new and used car loans and auto refinance loans. If you are buying a new vehicle PenFed boasts a car buying service that comes with lower rates and vehicle prices.
While PenFed is a member-based organization, the $5 membership fee is waived for those applying for auto loans.
For borrowers looking for similar rates and terms to that of PenFed but prefer in-person support, U.S. Bank is an excellent option. With a nationwide footprint and branches across the country, borrowers can secure new or used vehicle loans or refinance their current ones. U.S. Bank is an especially strong option if you have a previous relationship with the institution. Similar to the credit union experience, bank customers will be offered more competitive rates.
A membership-based lender just like PenFed, Consumers Credit Union boasts a very similar experience to that of PenFed. Both lenders have a car buying service available that allows borrowers to shop and secure financing all in one spot. Though Consumers Credit Union discloses slightly less information regarding qualifications, loan amounts and funding timeline. Keep this downside in mind when comparing the two options.
Between available discounts and potential fees, PenFed carries several benefits and drawbacks to consider.
PenFed boasts customer service in person, over the phone or by email. Specifically, the 24/7 help center allows for questions regarding your loan application to be answered by available agents. To secure help over the phone, PenFed can be reached at 724-473-6333 or 800-247-5626. You can also use the online chat tool to get additional assistance.
New and used cars can be purchased through PenFed’s car-buying service.
PenFed’s new and used auto loans' best rates aren't the lowest on the market but are still competitive. Plus, you can get access to added protections to give you a peace of mind, including an extended warranty that covers you when your auto manufacturer’s warranty expires and debt protection if the unexpected happens and you can’t afford to make the monthly loan payments.
The lowest rates go to those who both have excellent credit and use PenFed's car-buying service. Note that used auto loan rates start at 6.49 percent and their terms cap out at 72 months.
Whether you’re looking to get a lower interest rate, monthly payment that works better for your budget or modify the vehicle’s title, PenFed may be able to assist. According to its site, customers save $108 per month on average by refinancing. Plus, you can refinance up to 125 percent of the amount you owe, allowing you to easily access cash and use it however you see fit.
The process to apply for an auto loan 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.
PenFed works directly with TrueCar to expedite the car shopping process for its borrowers. This is a significant perk not every lender offers. Drivers can easily search for new or used vehicles in their area. You can specify makes and models while shopping.
PenFed outlines a few fees, including returned loan payments, late charges, automobile lien placement charges and check stop payments. Look out for these additional costs when signing off on your loan agreement.
Overall score | 4.3 | |
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Availability | 5 | PenFed offers high maximum loan amounts and a wide range of repayment terms. |
Affordability | 3.8 | Starting APRs are higher than competitors and PenFed mainly considers traditional underwriting criteria. |
Customer experience | 4.6 | Online access and close to 24/7 support leaves PenFed scoring high for customer service. |
Transparency | 4 | While APRs and fees are available, the option to prequalify is not disclosed. |
Bankrate considers 18 data points when rating auto loan lenders. Acceptance criteria, whether rates and fees are available and APR range all influence lender scores. These scores are broken up into four categories.