Navy Federal auto loan review: Low rates for military members | finder.com (2024)

Navy Federal auto loan reviews and complaints

Navy Federal receives mixed reviews. And unfortunately, its negative reviews are much more detailed than its positive ones. There are plenty of 4- and 5-star reviews praising NFCU for decent customer service and products. However, negative reviews cite frequent mistakes and problems that aren’t fixed after multiple attempts to work with NFCU.

Because its positive reviews are typically vague, take them with a grain of salt. For its negative reviews, understand that Navy Federal has faced government action in the past for misleading customers and closing accounts. While you should always consider customer reviews carefully, NFCU’s spotty history means you may be better off working with a lender that has a proven track record of good customer service.

How an NFCU auto loan compares to PenFed and USAA

Navy Federal, PenFed and USAA all have annual percentage rates (APRs) starting under 5% for borrowers with good to excellent credit.

If you’re looking for lenders that work with the military, both PenFed and USAA are top alternatives to Navy Federal.

Navy Federal Credit Union Auto Loans	PenFed Auto Loans	USAA Auto Loans
Minimum credit score Varies	Minimum credit score Varies	Minimum credit score Varies
APR 4.54% (As low as)	APR Starting at 5.19%	APR As low as 4.84%
Loan amount Not stated	Loan amount $500 – $150,000	Loan amount $5,000 – $150,000

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Navy Federal auto loan rates, fees and terms

Expect competitive interest rates and long terms from NFCU. But it isn’t up front about the fees you might have to pay.

New and used vehicles

Navy Federal allows you to finance new and used vehicles up to $100,000. It also has a 90-day preapproval period — most lenders only offer preapproval up to 30 days. Plus its used cars come with a free Carfax report.

New vehicle loans

Late model used vehicle loans

Used vehicle loans

Refinancing

Navy Federal auto refinance has the same low starting rates as its new and used vehicle loans. Provided your vehicle falls within NFCU’s requirements — and you meet its eligibility criteria — you may be able to refinance your vehicle for up to 96 months.

Navy Federal requirements

You must be a member of Navy Federal Credit Union to apply for one of its auto loans — although those eligible for membership may also be able to apply.

Personal requirements

While there are no specific eligibility criteria for a Navy Federal car loan, you will likely need to meet these minimums to qualify for the best rates:

• Regular source of income
• Good to excellent credit

Vehicle requirements

NFCU doesn’t list any specific requirements for new cars. But it does have two categories for used cars:

• Late model used vehicles: Model year 2020, 2021 or 2022 with 7,500 to 30,000 miles
• Used vehicles: Model year 2019 or older — or any vehicle with 30,000+ miles

You may also be able to finance a classic or antique vehicle that is older than 20 years, but expect a higher interest rate.

Apply using your online banking account

If you aren’t already a member, become one first and start the application after.

Or, choose to apply in person at a Navy Federal location. Since NFCU isn’t up front about the exact requirements you’ll need to meet, this option may make the most sense for new members.

What sets it apart

Beyond exclusively serving military members, DoD employees and their families, Navy Federal Credit Union has a few unique features that separate it from other banks and credit unions.

Loans for leisure vehicles

Unlike most banks, Navy Federal offers financing for leisure vehicles, including:

• Motorcycles and mopeds
• Boats and personal watercraft
• Campers and RVs
• Travel trailers
• ATVs
• Snowmobiles

Each vehicle has its own requirements, but you can expect interest rates starting around 7% to 8%.

96-month terms available

Navy Federal offers 96-month — eight-year — terms for new cars. Most lenders won’t offer terms longer than seven years. This is a pretty unique feature, but for many, it isn’t the right choice.

Although a long loan term means lower monthly payments, it also means you pay more in interest. If you qualify for NFCU’s lowest rates, this may not be a problem. If you don’t, it could mean paying hundreds of dollars more in interest over the life of your loan.

Car-buying service through TrueCar

Navy Federal has partnered with TrueCar to offer a car-buying service. With it, you can see what others have paid for similar vehicles and get personalized offers from dealerships in your area. This isn’t an uncommon option — many large banks and credit unions have partnered with TrueCar.

According to NFCU’s website, its borrowers have saved around $3,500 on new vehicles in the past. Your actual savings will vary based on incentives and the manufacturer you buy from.

Faced CFPB action in 2016

It’s not all good, though. Navy Federal paid a fine of $28.5 million to the Consumer Financial Protection Bureau (CFPB) in 2016. The CFPB states that Navy Federal falsely threatened legal action, wage garnishment and contact to commanding officers — in addition to illegally freezing member accounts after they failed to repay loans.

Compare current auto loan rates to see how Navy Federal stacks up against other lenders.