Navy Federal Credit Union Auto Purchase and Refinance Loans: 2024 Review

Full Review of Navy Federal Credit Union

Navy Federal Credit Union offers auto loans for new and used car purchases as well as refinancing. Navy Federal also offers private party auto loans to finance vehicles purchased from an individual.

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.

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.

Table of contents

Navy Federal at a glance

Navy Federal may be a good fit for those who ...

Do you qualify for a Navy Federal auto loan?

How to apply for a Navy Federal car loan

How auto loan rates work and how we collect them

How do we review auto loan direct lenders?

Navy Federal auto loans at a glance

• Restrictions

  • New vehicle definition: Previous model year vehicles and newer with 30,000 or fewer miles.

  • Maximum vehicle age: None.

  • Maximum vehicle mileage: No maximum for used purchase or refinancing.

  • Other vehicle restrictions: Vehicles 20 years or older (based on model year) are considered classic or antique and subject to other eligible vehicle rates.

  • Loan amount minimum: $250 for new and used purchase; $5,000 for refinancing.

  • Loan amount maximum: $500,000.

  • Maximum loan-to-value ratio: Did not disclose.

  • Refinance 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 must have a $5,000 balance remaining on a loan to refinance it.

  • Bankruptcy restrictions: Did not disclose.

• Other loan details

  • Approval speed: Immediate in most cases. Approved loan offer is good for 90 days.

  • Initial deferred payment: Does not offer.

  • Existing loan payoff: For refinancing, funds are provided to the borrower who must then pay off the previous loan.

  • Selected payment due date: Borrower can select their payment due date at any time. During the loan term, it can be changed through the mobile app, online banking, by phone or in-person at a branch.

  • Maximum debt-to-income ratio: Did not disclose.

  • Late payment grace period and fee: No grace period. Charges 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.

• More lender details

  • Contact options: Phone, email, text, live chat, website form, visit a location. Has Spanish-speaking agents by phone.

  • Availability: Member service is available 24/7.

  • Mobile app to manage account: Yes.

  • Online resources: Offers an online auto learning center covering topics such as the car-buying process and how to apply for an auto loan. Also has auto loan FAQs and calculators.

  • Related services: Borrowers can get a free Carfax report, a trial subscription to Sirius XM, and potential savings on auto insurance through Liberty Mutual.

  • 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.

» Curious about other options? Compare auto loan rates from more lenders

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 private parties. Also, there are no maximum age or mileage restrictions for used car or refinancing loans.

• 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.

Do you qualify for a Navy Federal auto loan?

Here are Navy Federal's basic eligibility requirements to apply for an auto loan:

• Must be at least 18 years old.

• Must qualify for Navy Federal Credit Union membership.

Navy Federal did not share specific information about minimum auto loan eligibility requirements, such as minimum credit score, credit history or income. Instead, they 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.”

Before you apply

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: address, phone, email, birthdate, employment status, employer name, income, basic vehicle information and vehicle identification number.

» MORE: Compare auto loan refinancing lenders

How to apply for a Navy Federal auto loan

1. 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.

2. 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.

3. Stay on top of your loan payments. Navy Federal reports car payments to all three major credit bureaus, so on-time payments will help build your credit score, but missed payments will hurt it. Setting up automatic payments is a good way to make sure your payments arrive by the due date.

How auto loan rates work and how we collect them

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 that at least 10% of applicants applying for the lowest rate have qualified for in the previous three months, 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.

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).