Navy Federal Auto Loan Review 2024

Pros Explained

• Member perks and savings: Navy Federal partners with a variety of companies to provide members with extra benefits, like access to the car-buying service TrueCar, a SiriusXM trial, CARFAX reports, and insurance discounts.
• Pre-qualification available: Unlike some competitors, you can pre-qualify for an auto loan with Navy Federal Credit Union. This can help you understand the rate and terms you may receive, making it easier to shop around for the best deal. 
• Flexible repayment terms: This lender offers repayment terms of 36 to 96 months for its new vehicle loans and refinance loans (a wider range than you often find), and 36 to 72 months for used vehicle loans.

Cons Explained

• Military affiliation required for membership: Navy Federal only serves individuals associated with the U.S. military. You can’t become a member if you don’t have ties to the armed forces, Department of Defense, or National Guard. Veterans, retirees, and annuitants are eligible.
• Late fees apply: If you forget to make a monthly payment on time, Navy Federal will charge you a $29 late payment fee.
• Credit score requirements not disclosed: Unlike some competitors, this lender doesn’t disclose its minimum credit score requirements for auto loans.

Types of Auto Loans Offered by Navy Federal Credit Union

Borrowers can get new and used vehicle loans from Navy Federal, and it also offers refinancing for existing car loans. You can also get financing through Navy Federal if you’re planning to purchase a new motorcycle or RV. But it doesn’t offer private party car loans, so you’ll need to look elsewhere if you intend to buy a car from a private seller. It also doesn’t do lease buyouts or cash-out refinances.

New Auto Loans

• APR: 4.54%–18.00%
• Loan amounts: $250 and up
• Loan terms: 36–96 months

Used Auto Loans

• APR: 5.44%–18.00%
• Loan amounts: $250 and up
• Loan terms: 36–72 months

Refinance Auto Loans

• APR: 4.54%–18.00%
• Loan amounts: $250 and up
• Loan terms: 36–96 months

Motorcycle Loans

• APR: 8.95%–18.00%
• Loan amounts: Up to $150,000
• Loan terms: Up to 180 months

RV Loans

• APR: 8.95%–18.00%
• Loan amounts: $250–$500,000
• Loan terms: 12–180 months

Time to Receive Funds

In some cases, Navy Federal offers same-day funding once you’re approved for an auto loan. It also indicates that many borrowers receive loan decisions within minutes of submitting applications, but some email follow-up may be required in certain instances. 

Borrower Requirements

• Minimum recommended credit score: Not disclosed
• State availability: 50 states and Washington, D.C.
• Income requirements: Not disclosed
• Membership requirements: Navy Federal Credit Union is open to members of the U.S. armed forces, National Guard, and Department of Defense, as well as their eligible family members.

Vehicle Requirements

• Maximum accepted mileage: No maximum
• Maximum vehicle age: No maximum
• Maximum loan-to-value ratio: 125%
• Vehicle restrictions: Loan cannot be used to finance a business vehicle

Navy Federal Auto Loan Features

• Origination fee: None
• Prepayment fee: None
• Pays creditors directly for refinance loans: Navy Federal will send refinance loan funds directly to your existing creditor.
• Car-buying service: Navy Federal partners with popular car-buying service TrueCar.
• Partner dealerships: Navy Federal gives you access to partner dealerships through TrueCar.
• CARFAX reports: When you’re approved for a loan, Navy Federal provides a free CARFAX report, which includes reported accident data, service history, type of use, and ownership history.
• Liberty Mutual Insurance savings: NFCU members can save on auto and home insurance through Liberty Mutual.
• SiriusXM free trial: Eligible borrowers can sign up for a free three-month trial of SiriusXM Platinum. After the trial, you’ll get a 25% discount if you continue the subscription.
• Mobile app: Available for Android and Apple devices

Co-Signers and Co-Applicants

You can apply for a Navy Federal Credit Union auto loan with a co-applicant, also called a co-borrower. Your co-borrower will be equally responsible for monthly auto loan payments, and will share equal ownership of the car. 

Navy Federal doesn’t allow co-signers at this time. Unlike co-borrowers, co-signers aren’t responsible for loan payments unless the primary borrower defaults on their car loan. 

Customer Service

If you have a question about Navy Federal auto loans, you can reach its customer service team via live chat with a real person, over the phone, or by email. If you have more general questions, you can also message customer service on Facebook or Twitter. Those who prefer to get help in person can visit a branch. 

Customer Satisfaction

Navy Federal Credit Union has an excellent reputation among customers on third party review sites. Satisfied customers mention their great experiences with customer service and low loan rates. But some unhappy customers complain about poor communication. Many of the negative reviews are related to this lender’s mortgage product.

While online reviews can be a useful metric for deciding which lender to choose, they don’t tell the entire story. Be sure to do your own research and don’t rely solely on other customers’ experiences to guide your financial decisions. 

How to Apply for a Navy Federal Auto Loan

Applying for a Navy Federal car loan is a straightforward process once you’re a member. It can be a helpful time-saver to have your personal, financial, and vehicle information available when you apply. Here’s what to expect. 

1. Log in to your account: You’ll need to first be a Navy Federal member to apply for an auto loan. Once you’re a member, log in to your account to begin the process. 
2. Pre-qualify for an auto loan: Pre-qualify for an auto loan on the Navy Federal website to get insight into the rate you could receive. 
3. Complete a full application: If you decide the quoted rate is right for you, you can move forward with a full loan application. You’ll need to share your personal information, as well as information about your employment, income, and the vehicle you’re planning to finance. Be aware that the underwriting team will do a hard credit pull when you apply. 
4. Await a loan decision: Navy Federal indicates that it makes many loan decisions in just minutes. But it could take longer, depending on if additional information about your application is required. 
5. Get approved and buy the car: If approved, Navy Federal will disburse the loan funds to the bank account you specify; refinance loan funds will be sent directly to your creditor.

Alternatives to Navy Federal

Final Verdict

Navy Federal offers competitive auto loans, especially if you’re financing a new vehicle. As a borrower, you’ll benefit from a low starting APR, very few fees, and a choice of repayment terms to suit your situation. This lender also gets high praise from the majority of its existing customers, which can provide some peace of mind that its customer service and lending products are up to par. Overall, it could be a great choice for existing Navy Federal customers and those who can qualify for membership.

Methodology

Investopedia is dedicated to providing consumers with unbiased, comprehensive reviews of auto loan lenders. To rate providers, we collected hundreds of data points across more than 20 auto loan lenders, including interest rates, fees, loan amounts, borrower requirements, and vehicle requirements, to ensure that our reviews help users make informed decisions for their borrowing needs. We also conducted a survey of 1,016 auto loan borrowers for attitudes and opinions about lenders and the loan approval and disbursement process. See our full auto loan review methodology for more information.