Navy Federal Credit Union Auto Purchase and Refinance Loans: 2023 Review
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Auto loan reviews
Best for those affiliated with the military who are looking for a possible rate discount and other benefits of credit union membership.
New auto purchase loan review
Pros
Offers a rate discount for active-duty and retired military members.
Available in all states.
Has 24-hour member service.
Fully online application available.
Co-signers and co-borrowers allowed.
Cons
No rate discount for automatic payments.
Doesn’t offer pre-qualification with a soft credit check.
No choice of payment date.
Best for new car buyers who qualify for the military discount rate and could benefit from 24/7 member service.
Full Review
Navy Federal Credit Union is a direct lender that offers auto loans for new and used car purchases as well as refinancing. Credit union membership is open to anyone who has served in a branch of the U.S. armed forces on active duty or as a reservist, has worked for the Department of Defense or a DOD contractor, or is an immediate family member of someone eligible for membership.
Navy Federal offers a 0.25 percentage point auto loan rate discount for active-duty and retired military members. To receive the discount, loan applicants must contact Navy Federal by phone or visit a branch.
Several additional perks are available to those approved for a Navy Federal auto loan. Borrowers can get a free Carfax report, a trial subscription to Sirius XM, and potential savings on auto and home insurance through Liberty Mutual. Becoming a member also entitles you to use Navy Federal's Car Buying Service, which uses TrueCar to research cars online, see prices for inventory and get a trade-in offer in one place.
The Navy Federal website includes resources to help with financial wellness, including tools, calculators and guides on topics like budgeting, saving and retirement. The auto resources include guides for how to research cars before purchasing, tips on buying your first car, info on how to refinance a car loan and more. It also includes articles on car ownership and qualifying for an auto loan.
Navy Federal Credit Union may be a good fit for those who:
Need more flexibility. Navy Federal has no minimum income or length of credit history requirement. Also, for used vehicles, there are no restrictions on mileage, model year, make or model.
Prefer assistance with the loan process. Customer service is available 24 hours a day to assist with the application process.
Qualify for the Navy Federal rate discount. Active-duty and retired military members are eligible for a 0.25 percentage point interest rate discount.
- Qualifications
Minimum FICO credit score: Did not disclose.
Minimum credit history: None.
Minimum annual gross income: None.
Maximum debt-to-income ratio: Did not disclose.
Bankruptcy-related restrictions: None.
States covered: All states.
Membership: Membership available to anyone who has served in a branch of the U.S. armed forces on active duty or as a reservist, has worked for the Department of Defense or a DOD contractor, or is an immediate family member of someone eligible for membership.
- Restrictions
New vehicle definition: 2021, 2022 and 2023 model years with 7,499 miles or fewer.
Maximum vehicle age: None.
Maximum vehicle mileage: None.
Other vehicle restrictions: None.
Loan amount minimum: $5,000 for new car purchase and $250 for used car purchase and refinancing.
Loan amount maximum: No maximum for new or used car purchase or refinancing.
Maximum loan-to-value ratio: Did not disclose.
Refinance time restrictions: To refinance, the previous loan's paperwork must be completed. The title should also be transferrable.
- Other loan details
Loan terms: 24-96 months for new car purchases, 24-72 months for used car purchases, and 12-96 months for refinancing loans.
Automatic payment: Yes.
Rate discount: Offers 0.25 percentage point rate discount for active-duty and retired military members.
Greater-than-minimum payments: Yes, and can be made through automatic payments.
Biweekly payments: Yes, and can be made through automatic payments.
Late payment fee: None.
Prepayment penalty: None.
Co-borrowers allowed: Yes.
Co-signers allowed: Yes.
Payment options: Check by mail, phone, online portal, mobile app, website, ACH and in person.
Selected payment due date: No.
Hardship plans: None.
Offers cash-out refinancing: No.
Existing loan payoff: Funds are mailed directly to the previous lender by check.
- Customer service
Assistance provided: Member service is available 24/7.
Availability: 24 hours a day.
Contact options: By phone, live chat, mobile app, social media or in person at a location.
How does this loan compare?
Used auto purchase loan review
Pros
Offers a rate discount for active-duty and retired military members.
Available in all states.
Has 24-hour member service.
Fully online application available.
Co-signers and co-borrowers allowed.
Cons
No rate discount for automatic payments.
Doesn’t offer pre-qualification with a soft credit check.
No choice of payment date.
Best for applicants looking for more flexibility and fewer restrictions when financing a used car, especially those who qualify for the discounted rate.
Auto loan refinancing review
Pros
Offers a rate discount for active-duty and retired military members.
Available in all states.
Has 24-hour member service.
Fully online application available.
Co-signers and co-borrowers allowed.
Cons
No rate discount for automatic payments.
Doesn’t offer pre-qualification with a soft credit check.
No choice of payment date.
Best for applicants looking for more flexibility and fewer restrictions when refinancing a car, especially those who qualify for the discounted rate.
Navy Federal Credit Union auto loan rates
Credit requirements vary by auto lender, but Navy Federal Credit Union's lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of about 690 and above). With fair or bad credit you won’t get the lowest interest rates, which means your monthly payment and total interest paid will be more. You can check your credit score before applying for a car loan.
Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 300-499 (considered deep subprime), a $20,000 used car loan, repayment term of 72 months, interest rate of 18% APR and $0 down payment would have monthly payments of $456. One year later, if all payments were made on time, the borrower will have paid the loan down to a balance of $17,963. If the borrower is able to then refinance at 12% APR for the remaining 60 months, the payment would drop to $399 and result in interest savings of $3,394 over the life of the loan.
How do we review direct lenders for auto loans?
NerdWallet's review process surveys companies that offer any combination of new car purchase loans, used car purchase loans, auto refinance loans (traditional and/or cash-out) and lease buyout loans. These companies include direct lenders and aggregators; the latter group doesn't have in-house loan products but matches borrowers to third-party lenders within a network. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs. We adhere to strict guidelines for editorial integrity.
Our survey for direct lenders has different questions than the survey for aggregators, but each includes more than 60 data points. NerdWallet independently confirms product details and, when necessary, follows up with company representatives. At least two writers and an editor verify the facts for every lender review to ensure data are accurate.
To receive a star rating, a lender must respond to NerdWallet’s annual auto loans survey. Star ratings are then assessed from poor (one star) to excellent (five stars).
For more details about the categories considered when rating direct lenders and our process, read our full methodology.
