Navy Federal Credit Union Auto Loan Review 2025
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Why trust NerdWallet
- 45+ auto loan products reviewed and rated by our team of experts.
- 30+ years of combined experience covering financial topics.
- Objective, comprehensive star rating system assessing 4 categories and 60+ data points across direct lenders and aggregators.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Auto loan reviews
Navy Federal Credit Union advertises low interest rates, charges no origination fee and offers a rate discount for active duty and retired military members. Eligibility for credit union membership goes beyond current and retired members of the armed forces and includes other military connections.
New auto purchase loan review
Pros
-
Has 24-hour member service.
-
Offers a rate discount (.25%) for active-duty and retired military members. Direct deposit required. Rates shown don’t reflect this discount.
-
Charges no origination/processing fee.
-
Allows co-signers and co-borrowers.
-
Available in all states.
Cons
-
Doesn’t offer pre-qualification with a soft credit check.
-
Credit union membership is required to apply for a loan, but it can be set up on the credit union website.
-
Does not allow choice of payment due date.
-
Offers no grace period for late payments.
Best for new car buyers who qualify for the military discount rate and want the flexibility of buying at any franchised dealership or Navy Federal’s car buying service through TrueCar.
Lender | Est. APR | Loan amount | Min. credit score | |
|---|---|---|---|---|
Best for affordability and good credit  Visit Lenderon LightStream's website on LightStream's website | 6.99-
15.79% | $5,000-
$100,000 | 660 | Visit Lenderon LightStream's website on LightStream's website |
Best for transparency and good credit Visit Lenderon LightStream's website on LightStream's website | 6.99-
15.79% | $5,000-
$100,000 | 660 | Visit Lenderon LightStream's website on LightStream's website |
 Visit Lenderon MyAutoloan's website on MyAutoloan's website | 6.49-
34.79% | $8,000-
$100,000 | 600 | Visit Lenderon MyAutoloan's website on MyAutoloan's website |
Visit Lenderon MyAutoloan's website on MyAutoloan's website | 6.74-
35.04% | $8,000-
$100,000 | 600 | Visit Lenderon MyAutoloan's website on MyAutoloan's website |
 Visit Lenderon Auto Credit Express' website on Auto Credit Express' website | N/A | $5,000-
$50,000 | 525 | Visit Lenderon Auto Credit Express' website on Auto Credit Express' website |
Used auto purchase loan review
Pros
-
Has 24-hour member service.
-
Offers a rate discount (.25%) for active-duty and retired military members. Direct deposit required. Rates shown don’t reflect this discount.
-
Allows co-signers and co-borrowers.
-
Has no maximum restrictions on vehicle mileage.
-
Has fewer restrictions on where a vehicle can be purchased.
Cons
-
Doesn’t offer pre-qualification with a soft credit check.
-
Credit union membership is required to apply for a loan, but it can be set up on the credit union website.
-
Does not allow choice of payment due date.
-
Offers no grace period for late payments.
Best for used car buyers who qualify for the military discount rate and want more flexibility when buying a used car.
Auto loan refinancing review
Pros
-
Has 24-hour member service.
-
Offers a rate discount (.25%) for active-duty and retired military members. Direct deposit required. Rates shown don’t reflect this discount.
-
Offers a $200 bonus for refinancing an auto loan of $5,000 or more from another lender.
-
Refinances vehicles up to 20 years old and has no maximum mileage restriction.
-
Will refinance as soon as title can be transferred; no waiting period.
Cons
-
Doesn’t offer pre-qualification with a soft credit check.
-
Credit union membership is required to apply for a loan, but it can be set up on the credit union website.
-
Does not allow choice of payment date.
-
Offers no grace period for late payments.
Best for applicants who need an auto refinance loan of $5,000 or more and who qualify for the military discount rate.
Navy Federal Credit Union auto loan terms and requirements
New car | Used car | Refinance | |
|---|---|---|---|
Loan terms available. | 12-96 months. Terms greater than 72 months only available for vehicles with fewer than 7,500 miles. Terms of 85-96 months require minimum loan amount of $30,000. | 12-72 months. | 12-72 months. |
Maximum vehicle age. | Previous model year and newer. | No maximum. Vehicles 20 years or older (based on model year) are considered classic or antique and subject to other eligible vehicle rates. | 20 years. |
Maximum vehicle mileage. | 30,000 or fewer miles. | None. | None. |
Place of purchase allowed. | Any franchised dealership, any independent dealership or through TrueCar car-buying service. | NA. | |
Maximum loan-to-value ratio. | Did not disclose. | Did not disclose. | Did not disclose. |
Compare other lenders:
New and used car lenders
Auto refinancing lenders
About Navy Federal Credit Union auto loans: a closer look
Navy Federal Credit Union offers auto loans for new and used car purchases, including private party loans, as well as refinancing. Navy Federal does not offer pre-qualification with a soft credit inquiry, so applying for an auto loan will result in a hard inquiry on your credit report.
To apply for a Navy Federal car loan, you must be a credit union member. 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. An application for membership is available on Navy Federal's website.
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 and agree to use direct deposit of their net pay.
When reviewing and rating auto lenders, NerdWallet writers gather information directly from the lender about customer experience, transparency, loan affordability, loan requirements and flexibility. Navy Federal scores high for loan flexibility — for example having no maximum age or mileage restrictions for used car financing. It also scores high for customer experience, with a fast decision on loan approval, multiple customer contact channels and 24/7 customer support.
The credit union's lowest scoring category is for transparency. NerdWallet asks lenders to provide minimum eligibility requirements to get a loan, so borrowers can assess if that lender is a good fit before applying. Navy Federal did not share this information and responded with the following statement: “Our credit methodology is proprietary, so unfortunately, we can’t get into the specifics. However, we lend to members across the credit spectrum and work with our members to find the best lending option for their unique financial situation.” The lack of data for some scoring is reflected in the credit union's star ratings.
Do you qualify for a Navy Federal auto loan?
Here are Navy Federal's responses to our questions about requirements to qualify for an auto loan.
Minimum credit score | Did not disclose. |
Minimum credit history | Did not disclose. |
Minimum annual gross income | Did not disclose. |
Maximum debt-to-income ratio | Did not disclose. |
Co-applicants allowed? | Co-signers and co-borrowers allowed. |
States covered | Available in all states. |
Other restrictions | Did not respond to survey question about bankruptcy restrictions. |
Other Navy Federal auto loan details
New vehicle definition. Previous model year vehicles and newer with 30,000 or fewer miles. New vehicles with 7,500 or more miles aren't eligible for loan terms greater than 72 months and may have rates that differ from vehicles with fewer than 7,500 miles.
Pre-qualification and preapproval. Offers preapproval with a hard credit check. Does not offer pre-qualification with a soft credit check.
Upfront fees. Does not charge an application or document processing fee.
Interest rate discounts. 0.25% APR discount for active duty and retired military members who use direct deposit of net pay. No discount for automatic payments.
Refinancing time restrictions. Will refinance as soon as the previous loan's paperwork is complete and the title can be transferred (no set waiting period). Borrowers aren't required to have a certain balance or number of months remaining on a loan to refinance it.
Deferred payments. Does not offer option to defer payments at the start of a loan.
Selected payment due date. Borrowers can't select their payment due date.
Late payment grace period and fee. No grace period. Charges a late payment fee of $29.
Hardship plans. Yes. A personal financial management team works with members on an individual basis to address financial hardships and establish good financial habits. This could include deferred payments, extended loan terms or a reduced interest rate.
Contacting Navy Federal. Phone, email, text, live chat, website form, visit a location. Has Spanish-speaking agents by phone. Member service is available 24/7.
Mobile app to manage account. Yes.
Membership. Membership is 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.
Navy Federal Credit Union may be a good fit for those who:
Need more flexibility. Navy Federal finances vehicles purchased at franchised dealerships, independent dealerships, online retailers and through private parties. Also, there is no maximum mileage restriction for used cars loans or refinancing.
Prefer a one-stop auto shopping experience. Navy Federal members have access to an online Car Buying Center where they can apply for a loan, research or buy a car through a car-buying service, get a vehicle history report and obtain auto insurance.
Qualify for the Navy Federal rate discount. Active-duty and retired military members are eligible for a 0.25 percentage point auto loan interest rate discount when they use direct deposit of net pay.
Before you apply to Navy Federal
Check your credit. You can get your free credit report on NerdWallet or at AnnualCreditReport.com. If you find errors, file a credit dispute to correct them before you apply for an auto loan.
Figure what monthly payment you can afford. For purchase loans, use an auto loan calculator to determine what APR and repayment term you need to get monthly car payments that fit your budget. When you know your maximum car payment, a car affordability calculator can help you determine a realistic car price.
For auto refinance loans, use an auto refinance calculator to see your monthly payment and determine what APR and term you need to make refinancing worthwhile.
Gather documents and information. Navy Federal requires the following to submit an initial auto loan application: Social Security number or ITIN, address, phone, email, birthdate, employment status, employer name, income, housing status, housing payment amount, basic vehicle information and vehicle identification number (VIN).
How to apply for a Navy Federal auto loan
Submit your auto loan application. Navy FCU provides several ways to apply — including in a branch or by phone at 1-888-842-6328. To apply online, you must log in to online banking or the mobile app, so you will first need to establish credit union membership to get access to these tools. The application process can be completed 100% online, including document upload.
Review your preapproved loan offer. If you qualify, Navy Federal will respond with a preapproved loan offer. This offer will provide the maximum loan amount you qualify for, the loan interest rate and term. Once you accept the preapproved offer, you may be asked for documents to confirm the information you provided when applying. Navy Federal will issue a check with your funds, which can be picked up at a branch or mailed to your home. Auto loan preapproval does require a hard credit check, which can temporarily lower your credit scores, but it can be useful when negotiating at a dealership or setting a maximum car price.
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.
The auto loan APR range NerdWallet displays is provided by the lender. We make every attempt to keep rates updated, by sending out bimonthly rate surveys and encouraging lenders to send us updates when rates change. We also compare these rates to APRs on the lender's website, if available. The accuracy of our rates depends on the information lenders provide to us. It’s always a good idea to check average auto loan interest rates, and compare to similar lenders, to determine if a lender’s provided rate seems realistic.
We ask lenders to provide their lowest rate without including any potential rate discounts. The lowest rates shown are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above).
We also ask lenders for their highest rates, which typically reflect rates available to borrowers with fair or bad credit (a FICO score in the mid-600s or below). The highest interest rates result in higher monthly payments and more total interest paid.
Actual rates received by this lender's auto loan borrowers may be different from the rates shown in this review.
Frequently asked questions
To apply for a Navy Federal Credit Union car loan, you must first be a credit union member. Eligibility goes beyond current and retired members of the armed forces and includes other military connections. Navy FCU membership requirements are available on the credit union website along with a membership application.
Upon loan approval, funds are provided by check for auto purchase loans as well as auto refinancing loans. You can choose to receive the check by mail or pick it up at a Navy Federal branch. The car title must be sent to Navy Federal within 90 days.
