Navy Federal Credit Union Auto Purchase and Refinance Loans: 2023 Review

Navy Federal Credit Union offers auto loans for new and used vehicle purchases and refinancing. It offers additional discounts to military personnel.
By Whitney Vandiver  

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Auto loan reviews

NavyFederalCreditUnion

  • New auto purchase loan

  • Used auto purchase loan

  • Auto loan refinancing

The bottom line:

Best for applicants who want to finance or refinance a vehicle without age or mileage restrictions and who prefer 24/7 customer service.

New auto purchase loan review

NavyFederalCreditUnion
Navy Federal Credit Union - New car purchase loan

Not yet rated

Est. APR
4.54-18.00%
Loan amount
$4,996-No max.
Min. credit score
Did not disclose

Pros

  • Offers pre-qualification with a soft credit check.

  • Available in all states.

  • Customer service available 24/7.

  • Doesn’t charge an origination fee.

  • Fully online application available.

  • Co-signers are allowed.

Cons

  • Doesn’t provide a Spanish version of website.

  • No co-borrowers allowed.

Best for applicants who want to finance a new vehicle without restrictions on age or mileage and prefer 24/7 customer service.

Full Review

Navy Federal Credit Union is a direct lender that offers auto loans for new and used car purchases and refinancing. While it offers discounts to members of the military and their families, its services are available to anyone who qualifies for a loan.

Customers serving in the military and their families can qualify for special discounts and deals to save money on auto loans with Navy Federal Credit Union. For example, qualifying members can receive a 0.25% APR discount on new vehicle purchases. Active and retired military members qualify for applicable discounts.

Navy Federal Credit Union provides a few perks when you're approved for a 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 Credit Union's Car Buying Service, which uses TrueCar to research cars online, see prices for inventory and get a trade-in offer in one place.

Navy Federal Credit Union's 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:

  • Don’t want restrictions on qualifying vehicles. Navy Federal Credit Union doesn’t restrict qualifying vehicles by make, model, age or mileage.

  • Prefer assistance with the loan process. Customer service is available 24 hours a day to assist with the application process.

  • Qualify for military or veteran discounts. Navy Federal Credit Union offers discounts to service members and their families.

Application process

  • Origination fee: None.

  • Personal information needed: Address, phone number, email address, employment status, housing status and housing payment amount.

  • Pre-qualification available: Yes, with a soft credit inquiry.

  • Online, in person or both: Process can be completed online, including uploading documents.

  • Approval speed: Less than 10 minutes.

  • 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.

  • 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.

  • 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: Did not disclose.

  • 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: No.

  • 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: No.

  • Offers cash-out refinancing: No.

  • Existing loan payoff: Funds are mailed directly to the previous lender by check.

  • Assistance provided: Customer service is available 24/7.

  • Availability: 24 hours a day.

  • Contact options: By phone or in person at a location.

Used auto purchase loan review

NavyFederalCreditUnion
Navy Federal Credit Union - Used car purchase loan

Not yet rated

Est. APR
5.44-18.00%
Loan amount
$250-No max.
Min. credit score
Did not disclose

Pros

  • Offers pre-qualification with a soft credit check.

  • Available in all states.

  • Customer service available 24/7.

  • Doesn’t charge an origination fee.

  • Fully online application available.

  • Co-signers are allowed.

Cons

  • Doesn’t provide a Spanish version of website.

  • No co-borrowers allowed.

Best for applicants who want to finance a used vehicle without restrictions on age or mileage and prefer 24/7 customer service.

Auto loan refinancing review

NavyFederalCreditUnion
Navy Federal Credit Union - Refinance loan

Not yet rated

Est. APR
4.54-18.00%
Loan amount
$243-No max.
Min. credit score
Did not disclose

Pros

  • Offers pre-qualification with a soft credit check.

  • Available in all states.

  • Customer service available 24/7.

  • Doesn’t charge an origination fee.

  • Fully online application available.

  • Co-signers are allowed.

Cons

  • Doesn’t provide a Spanish version of website.

  • No co-borrowers allowed.

Best for applicants who want to refinance a used vehicle without restrictions on age or mileage and prefer 24/7 customer service.

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.

To review Navy Federal Credit Union, NerdWallet sent a survey requesting more than 60 data points and followed up with company representatives. This information was compared with other lenders that seek the same customer or offer a similar product.

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