Navy Federal auto loans: 2024 review

Navy Federal is best for military members

Navy Federal Credit Union is the largest credit union in the United States, primarily because of the excellent benefits and services offered to military members and their families. While you have to be a member in order to benefit from the auto loans Navy Federal offers, it can provide low APRs and flexible term lengths to suit almost every financial situation.

Types of car loans that Navy Federal offers

Navy Federal offers financing for new and used vehicles, along with auto loan refinancing. A company spokesperson stated there is no maximum amount on auto loans.

New/used auto loans 

Navy Federal’s new and used auto loans come with flexible repayment terms. You can also finance up to 125 percent of the vehicle’s value. That way, you won’t have to pay tax, tag, title and registration fees out of pocket. Just remember that you’ll have to pay interest on any costs you roll into your loan. Terms of 85 to 96 months have a minimum loan amount of $30,000 — and longer auto loans may mean paying more in interest.

Refinance auto loans 

You can also refinance your auto loan with Navy Federal, which may save you money if you qualify for a lower interest rate than you currently have. Some borrowers also refinance to extend their loan term to get a more affordable monthly payment or shorten the loan term to pay the balance off sooner. 

Where Navy Federal stands out

• Variety of term lengths: Navy Federal offers repayment terms from less than 36 months up to 96 months. This wide range means that you can choose a payment option that fits your budget and needs, with a maximum that’s much higher than competitors.
• Low starting APR: If you are looking to purchase a new vehicle or refinance your current auto loan, you may qualify for an APR as low as 4.09 percent. This is significantly lower than the market average auto loan APR of 6.73 percent.
• Long preapproval period: Most lenders offer a preapproval window to shop for your car, but Navy Federal gives you 90 days — much more generous than the typical 30 days other lenders offer.

Where Navy Federal falls short

• Membership required: Auto loans are available only to those who qualify for Navy Federal membership: active duty service members, immediate family members, veterans and Department of Defense employees. To become a member of Navy Federal, you must also maintain a Navy Federal savings account with at least a $5 balance.
• Max rate not disclosed: Navy Federal’s starting rate is one of the lowest rates currently available. However, lenders save their best rates for borrowers with excellent credit — and it’s not clear how high Navy Federal’s rates can go. If you have a lower score, you’ll have to apply for preapproval to see your potential rate. 
• Check-only funding: Navy Federal allows you to pick up a check at a branch or have it mailed. There is no direct deposit option available, and Navy Federal won’t pay the dealership directly.

Navy Federal customer resources

Customer support

Navy Federal has a few customer service options for its members. Representatives are available 24/7 by phone at 888-842-6328, or you can get questions answered through a live chat feature on its website. If you prefer in-person communication, Navy Federal has 350 branches worldwide where you can talk face-to-face with a customer support agent.

Digital experience 

The site should look fairly similar for current Navy Federal members. The auto loan application and account management are in the same ecosystem as its other products. It has daily rates clearly displayed, which can help when comparing auto rates from additional lenders.

Its website also comes equipped with a chat function that can help answer any questions about the funding process. 

How this lender compares

Do you qualify for a Navy Federal auto loan?

Navy Federal does not specify any credit or income requirements. However, you will need to become a member of Navy Federal. You may qualify if you’re in one of the following categories:

You must also open and maintain a savings account with Navy Federal with a $5 minimum balance.

If you are applying with a co-applicant, you should also have their information ready as well.

For refinancing, you will also need to supply the vehicle identification number (VIN), the registration state and the exact mileage. The same goes for financing a new or used car you have already picked out.

How Bankrate rates Navy Federal

The Bankrate team assessed more than 35 auto lenders to find the best. Bankrate considered 18 criteria, such as acceptance criteria, loan amounts and APR range. These scores are broken into four categories.