Navy Federal Auto Loan has been serving military members and their families since 1933 after opening as a credit union for naval employees. It now offers checking accounts, savings accounts, loans, credit cards and more to 11 million members.
Navy Federal’s mission still drives the organization; to apply for any of its products, you must be a member of the armed forces, a veteran, an immediate family member of someone who served or a Department of Defense civilian employee.
If you qualify, Navy Federal Auto Loan offers competitive rates and high maximum financing amounts for new car loans, used car loans and auto loan refinancing. Along with this, Navy Federal has partnered with TrueCar to create its Car Buying Service, which can help you find and compare vehicles completely online.
Pros And Cons Navy Federal Auto Loans
- Different lengths of terms. Navy Federal offers more than five repayment terms, and the possibility of 96 months. This variety means that you can select a payment plan that meets your needs and budget and has a maximum significantly higher than rivals.
- Low APR. If you’re looking to buy a brand new car or refinance your existing auto loan, then you could get an APR of as lower to 1.79 percent. This is substantially lower than the APR minimum of other lenders.
- Car Buying Service. Through TrueCar the Navy Federal’s Car Buying Service lets you look up MSRPs, get prices on local inventory, and get your car delivered to you.
- Membership is required. Navy Federal Auto Loan are only available to those who meet the requirements to be eligible for Navy Federal membership such as active duty military personnel or immediate family members veterans, and Department of Defense employees. In order to join Navy Federal Auto Loan, you must keep an account with a Navy Federal savings account with at least $5 in balance.
- Maximum APRs not listed. Though Navy Federal has very low rates for its initial APR however, it doesn’t list their maximum rate of interest. If you’re a poor creditor then it’s likely you’ll find that Navy Federal may not be the most affordable choice.
- Restrictions for older vehicles. Even though used cars with the 2020, 2021 and 2022 models are eligible for rates of as minimal at 2.19 percent, all cars older than this or any vehicle with more than thirty thousand miles will have a starting rate that are 3.79 percent.
How Do Navy Federal Auto Loans Work?
Navy Federal offers financing for both used and new vehicles, and also offers options to refinance your vehicle. Apply through the website of Navy Federal or over the phone as well as in person in the branch. In the majority of cases you’ll receive a reply about your application in a matter of minutes.
Contrary to many other lenders you have to be an active part or a member of Navy Federal to apply for and get an auto loan. Only you can qualify to apply if you’re an active member of the military or veteran, and also an employee or retired member or retiree of the Department of Defense. Family members from any of these groups are also eligible.
The loan amounts vary between $250 and $500,000 on used and new cars. The minimum amount you can take out to refinance a loan is $5,000 however Navy Federal Auto Loan doesn’t list a maximum.
The loan terms begin at 12 months, and the maximum lengths of terms vary based on the kind of vehicle you’re planning to finance. The loan period for a brand new car can be as long as 96 years and used cars have a an upper limit of 72 months. Remember that the longer your loan period, the more likely to be upside down with the loan which means you’ll have to pay more for your car than the value of your car.
The rates offered by Navy Federal vary based on the length of your contract as well as the model year of your vehicle, as well as the miles per the car.
New automobiles have the lowest rates. Older used cars (defined to be 2021/2022 and 2023 model year years with 7,500-30,000 milesare more affordable as compared to other used cars. In the event that your automobile is from the 20th model year or older, it is considered to be antique or classic and is subject to the collateral loan rate. The credit union offers an app that is mobile available in Google Play and Apple Stores if you’re looking to manage your loan while on the move.
Do You Believe That Navy Federal Auto Loan Trustworthy?
Navy Federal Credit Union is not yet being rated with the Better Business Bureau, because Navy Federal is in the process of responding to closed complaints.
The credit union was previously awarded the A+ rating with the BBB. The BBB evaluates its rating by analyzing a company’s response to complaints from customers and advertising honesty, and transparency about the business practices.
Navy Federal has been involved in an incident that occurred in recent times. One Navy Federal Auto Loan employee alleged that the lender pushed mortgage lenders in order to grant loans when they believed that the applicants could not repay the loans. She brought a suit and claimed that Navy Federal retaliated against her whistleblowing by changing her duties. The case was dropped in the latter half of 2020.
How Do Navy Federal Auto Loans Compare?
In comparison to other lenders, Navy Federal has some of the most competitive interest rates available. The rates begin much lower than rates offered by PNC and Bank of America.
PNC only provides financing for cars that were manufactured in 2014 or later If you’re looking to purchase an older vehicle then you will not be able to obtain a loan from PNC. Bank of America offers financing for cars that are less then 10 years of age and Navy Federal Auto Loan offers financing for cars that are less that 20 years old. older.
Who Do You Think Navy Federal Auto Loan Best For?
A car loan from Navy Federal is likely the most suitable option for military personnel as well as their family members, particularly individuals with excellent credit ratings who are able to qualify for the most affordable rates in the market.
It’s also an excellent option for people who want to buy new vehicles. Navy Federal’s maximum loan limit is $500,000, which means that you can drive away in a brand new car with every bell and bells.
The Types Of Navy Federal Auto Loan Available
Navy Federal offers financing for used and new vehicles and refinancing of auto loans. The loan amounts for both used and new automobiles are the same in the range of $250-$ $500,000. Refinancing is a loan with a minimum amount of $5,000, however Navy Federal does not specify the maximum amount.
If you are buying a brand new car or refinancing the purchase of a new vehicle you can select the term that is between 36-96 months. If you are purchasing used cars or refinancing a car that is used you have the option of choosing from 36 to 72 month.
How Do You Make An Application For Loans Through Navy Federal?
You are able to request an auto loan at Navy Federal online, via the Navy Federal Auto Loan app, over the phone, or at the branch. In the majority of cases you will get an answer within a few minutes after submitting your application.
In order to apply, you’ll require some details:
- Your contact number and email (and the contact information of your co-applicants (if applicable)).
- Your current employment, housing and income details (and the co-applicant’s information If appropriate).
- The details of your car’s trade-in including registration and title.
- The amount you are planning to pay to finance.
- Your requested Navy Federal Auto Loan term.
If you’ve already made a decision on an automobile or refinancing, you’ll need to provide the VIN number, registration state along with the exact mileage as well as the dealer’s name.
Once you have been approved, you’ll be able to receive your check via post, or take it to the Navy Federal branch.
Car Loan Requirements
Navy Federal Auto Loan does not specify any income or credit requirements. But, you’ll have to be a member of Navy Federal. You might be eligible if within one of these categories:
- Active-duty members in active-duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, National Guard or Space Force.
- Delayed Entry Program.
- DOD Officer Candidate/ROTC.
- DOD Reservist.
- Annuitant, retiree, veteran.
- Grandparent, parent, spouse sibling, child grandchild, or household member of any of the above categories.
- DOD civilian employee.
- U.S. government employee assigned to an DOD installation.
- DOD Contractor assigned an U.S. government installation.
- DOD civilian retirees or annuitants.
You should also establish and keep your savings account at Navy Federal with a $5 minimum balance.
Navy Federal Auto Loan has a few various customer support options available to its members. Members can contact representatives 24/7 via phone at 888-842-6328 or you can have questions answered by using a live chat feature on their website. If you prefer to talk in person, Navy Federal has 350 branches across the globe which allow you to speak face-to-face with a support representative for customer.
What Is The APR For Navy Federal?
The APR for cash advances will be variable, with an APR for cash advances that can be up to 2% more than the APR on purchases. No charges apply to ATM cash advances, if made at the Navy Federal branch or an ATM.
What Is Considered A High Car Payment?
As per experts, the car loan is considered to be too high If the amount you pay for your car exceeds higher than 30percent of income. Keep in mind that the car payment isn’t the only expense you pay for your car! Be sure to take into account maintenance and fuel costs. Check that your car’s monthly payments do not exceed 15 to 20 percent of your earnings.