Daniel Robinson is a writer based in Greenville, N.C. with expertise in auto insurance, loans, warranty options and more. Away from the keyboard, Daniel spends time with his wife and son, plays guitar and obsesses over the Beatles and Baltimore Orioles.
Edited by RaShawn Mitchner Senior EditorRaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.
Our Research Process Edited by RaShawn Mitchner Senior EditorRaShawn Mitchner is a MarketWatch Guides team senior editor covering personal finance topics and insurance. She’s spent over a decade writing and editing articles about how to save money on travel, entertainment, household services and more.
Why Trust UsHere’s a breakdown of how we reviewed and rated the top auto loan providers
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In our Navy Federal Credit Union auto loan review, we at the MarketWatch Guides Team will explore the company’s auto loan and refinancing options for borrowers. We’ll also explain how financing works, the application process and other financing options, including those with the best auto loan rates and best auto refinance rates .
Key Takeaways
Refinance Loan
Loan Term 48-84 Months APR 5.29% Credit Score 550
Refinance Loan
Loan Term 12-84 Months APR 5.29% Credit Score 640 Save on average $1,200 a year Skip 90 days of payments Get qualified online in minutes
Refinance Loan
Loan Term 36-84 Months APR 4.99% Credit Score 640New Car Loan
Loan Term 12-84 Months APR 0% Credit Score 300
New or Used Car Loan
Loan Term 12-84 Months APR 5.49% Credit Score 575All APR figures last updated on 3/16/2024 – please check partner site for latest details. Rate may vary based on credit score, credit history and loan term.
Navy Federal Credit Union (NFCU) can be a smart option for borrowers due to its low interest rates for auto loans and auto refinancing. However, you must be in the armed forces or be a veteran or a close family member to qualify for membership and use any of the credit union’s financial products.
| Rating Category | Our Score |
|---|---|
| Industry Standing | 8.7 |
| Availability | 9.2 |
| Loan Details | 9.4 |
| Rates and Discounts | 9.0 |
| Customer Service | 9.3 |
| Overall Rating | 9.0 |
*Scores are out of 10.0 points per rating category.
Competitive interest rates
Multiple options for loan term lengths
Offers auto loan preapproval
No prepayment penalties or origination fees
Must be a credit union member to apply and qualify for an auto loan or refinancing
Doesn’t offer auto lease or lease buyout options
Year founded: 1933
Headquarters: Vienna, Va.
Better Business Bureau (BBB) rating: Not rated
Navy Federal Credit Union was founded in 1933 by seven Navy Department employees. Since then, the financial institution has rapidly expanded and has over 12 million members nationwide.
NFCU membership is open to active-duty military members and veterans, as well as employees or retirees of the Department of Defense. Close family members may also become Navy Federal Credit Union members.
The company offers a range of financial products, including:
Members who are looking for new vehicles can participate in NFCU’s Car Buying Service. This feature can help you search for a new car, get personalized offers on local inventory and set up delivery for the vehicle you decide to purchase.
Loan amount : No minimum specified
Starting APR : 4.09%
Loan Term : Up to 96 months or 180 months for classic cars
Prepayment penalty : None
Application fee : None
Navy Federal Credit Union provides financing for new, used, and classic cars. Also, the company offers loans for alternative vehicles such as boats, motorcycles and RVs. As with most credit unions, borrowers who qualify for membership can apply to get an auto loan or refinancing .
Navy Federal Credit Union offers a preapproval process for auto loans, which may help you negotiate a better sales price with a dealership. During preapproval, the credit union will perform a hard credit check and ask for any necessary documents to provide you with a loan amount and term you may qualify for. Note that a hard credit check could temporarily lower your credit score.
Borrowers who are eligible to get a new or used car loan through Navy Federal Credit Union can generally expect to find low interest rates. Term lengths for auto loans range from one to eight years, though the lowest APRs are typically found with loan terms lasting fewer than five years.
There are no application or prepayment penalties for getting an auto loan for your new or used car. You can set up recurring payments for your car loan through the Navy Federal Credit Union mobile app or online banking. You also have the option to make additional payments when you want.
Refinancing your existing car loan can be a good idea if you’ve improved your credit score or interest rates are significantly lower than when you initially took out the loan. Navy Federal Credit Union offers refinance auto loans for your vehicle.
To refinance your car with Navy Federal, you must take out a loan that’s at least $5,000. Term limits and APRs for refinancing are the same as those for new and used auto loans.
Our research shows that the company offers competitive rates in the finance industry, with annual percentage rates (APRs) as low as 4.54% for new-vehicle loans. However, only borrowers with excellent credit will be eligible for the lowest rates.
Here are the latest auto loan rates for new and used vehicles from Navy Federal Credit Union:
| Loan Type | APR for 36 months or less | APR for 36 – 60 months | APR for 61 – 72 months | APR for 73 – 84 months | APR for 85–96 months |
|---|---|---|---|---|---|
| New vehicle | 4.54% | 4.74% | 5.04% | 6.94% | 7.84% |
| Late-model used vehicle | 4.54% | 4.74% | 5.04% | N/A | N/A |
| Used vehicle | 5.44% | 5.74% | 5.84% | N/A | N/A |
*Rate range as of June 13, 2023 for both auto financing and refinancing loans.
Late model and used vehicles are defined as follows:
The company can also finance classic and antique cars for up to 180 months. The lowest rates for 60 months and below is 7.45% and anything above those terms are subject to APRs of 9.8% and above.
To be eligible for a Navy Federal auto loan, you must be a member. This requires you to be an active military member or related family to the person in service. Otherwise, there’s no minimum credit score requirement or income requirements for financing a car with the lender.
Navy Federal Credit Union members can apply online for auto loan preapproval . However, members with poor credit scores should consider adding a co-signer to their application to increase their chances of being approved for the credit union’s loan products.
Navy Federal Credit Union members can complete their auto loan applications in four simple steps:
To apply, you’ll need:
If you’re signing with a co-applicant, you’ll need to provide the same information above for them as well.
If you’ve already chosen the vehicle you want to purchase, you’ll also need to provide:
Navy Federal Credit Union has a strong reputation backed by customer reviews and industry studies. In the J.D. Power 2022 U.S. Consumer Financing Study℠ , Navy Federal Credit Union received a score of 908 out of a possible 1,000 points .
This gave the company the highest score for overall customer satisfaction among financial institutions that offer auto loans for mass-market vehicles. However, Navy Federal Credit Union didn’t formally rank in the study due to its eligibility requirements for membership.
On Trustpilot, the financial institution has an average customer rating of 4.5 stars out of 5.0 from over 31,170 reviews. On the site, 90% of reviews collectively give the company “Excellent” or “Great” ratings.
While reviews on Trustpilot are largely positive, Navy Federal’s customer reviews on the BBB are mixed. The lender is not rated by the BBB and has an average star rating of 1.21 out of 5.0 from just over 340 customers.
Our team reached out to Navy Federal Credit Union for a comment on these scores but did not receive a response.
In November 2022, our Guides team surveyed 2,000 different loan recipients across the country. Of those 2,000, 4% favored Navy Federal Credit Union, making it the fourth most popular auto loan lender in the survey.
car owners in our 2023 survey who got loans from them" width="1024" height="802" />
A Navy Federal Credit Union auto loan or auto refinance loan can be a good choice for those who qualify for membership. Credit union members can take advantage of low APRs and lengthy loan terms. If you’re not in the armed services or part of a military family, you’ll need to look elsewhere for a loan to finance your vehicle purchase.
While Navy Federal Credit Union can be a solid choice for borrowers, its membership limits who can apply for an auto loan or refinancing. Shopping around for auto loan and refinance rates will allow you to find the best APR for your new or used vehicle. We recommend reaching out to myAutoloan and Auto Approve.
The myAutoloan marketplace lets borrowers compare auto loan and refinance rates from several providers. The company offers auto loans for new and used vehicles, refinancing and lease buyouts. For new auto loans, rates start as low as 6.99% for term lengths of 37 to 60 months. Used auto loan rates start at 7.24% for 37 to 60 months, while auto refinance rates can be found for as low as 5.49% for terms up to 36 months.
Within the finance industry, myAutoloan has a stellar reputation, earning an A+ rating and accreditation from the BBB. The company also has an average customer rating of 4.0 stars out of 5.0 from reviewers on Trustpilot.
While Auto Approve doesn’t offer auto loans for purchasing new or used vehicles, it’s built a reputation as a refinance car loan specialist. The company’s APRs start at 6.24% for refinancing, though only borrowers with high credit scores will have access to these rates. Auto Approve also offers a lease buyout option for people looking to purchase their leased vehicles.
Auto Approve has a strong reputation among industry organizations. The lender has an A+ rating from the BBB, where customers give it an average score of nearly 4.38 stars . Customers on Trustpilot also give the company high marks, with an average rating of 4.6 stars .
