At a glance
- Availability
- Affordability
- Customer experience
- Transparency
About Navy Federal
-
Loan amount
$250 and up
-
Min. credit score
Not specified
-
APR from
4.09%
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Funds available in
As soon as the same business day following approval
Navy Federal auto loans: 2024 review
Published 2024-08-29 15:29:00
Written by
Edited by
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 car loans | Used auto loans | Refinance auto loans | |
|---|---|---|---|
| APR | From 4.09% | From 4.99% | From 4.09% |
| Loan amounts | From $250 | From $250 | From $250 |
| Loan terms | 12-96 months | 12-72 months | 12-72 months |
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
Although working with a large financial institution has its perks, it is still important to compare other loans before signing.
Navy Federal vs. Sklya Credit Union
As with Navy Federal, you must become a member of Skyla Credit Union to benefit from its excellent rates. But unlike Navy Federal, anyone can become a member of Skyla through the American Consumer Council. Both have wide-ranging loan amounts — Skyla's tops out at $150,000, while Navy Federal doesn’t advertise a maximum amount. If you don’t qualify for membership with Navy Federal, Skyla is a great alternative.
Navy Federal vs. USAA
Like Navy Federal, USAA serves U.S. military members, veterans and certain relatives of both. The two lenders serve all states and offer similar interest rates, though USAA's start about a percentage point higher. However, USAA stands out for its flexible payment options. You can make your loan payments biweekly, twice a month or monthly. Choosing biweekly payments can help you pay off your loan faster.
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.
How to get a Navy Federal auto loan
You can apply for an auto loan with Navy Federal online, via the Navy Federal app, over the phone or at a branch. In most cases, you should receive a decision within a few minutes of submitting your application.
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
| Overall score | 4.2 | |
|---|---|---|
| Availability | 4.6 | Navy Federal auto loans are available for a wide range of amounts and don't require borrowers to use a specific dealership. |
| Affordability | 4 | While Navy Federal has a low minimum APR, it also relies on traditional underwriting and doesn't offer an autopay discount. |
| Customer experience | 5 | Support is available 24/7 and there are several ways to make payments, including a recurring option. |
| Transparency | 3 | Rates, fees and terms are available online. However, prequalification isn't available; you must apply for preapproval to preview rates. |
Methodology
Bankrate's trusted auto loans industry expertise
57
years in business
37
lenders reviewed
18
loan features weighed
666
data points collected
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.
Editorial disclosure: All reviews are prepared by Bankrate.com staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.
What customers think
What people across the web are saying about Navy Federal
Navy Federal, as a whole, has glowing online reviews. It holds 4.5 out of 5 stars on Trustpilot based on 31,000 reviews. However, only 2,000 of the reviews mention loan products.
Here is what one driver had to say about the borrowing experience:
“Outstanding process for approval on an auto loan. Lowest rates by far. Got approved for the loan, stopped by the local branch and picked up a check. Picking up the check. It probably took about five minutes. I currently have all three of my auto loans through Navy Federal.”
— Trustpilot User
Even a borrower who felt communication was lacking still gave the lender 4 out of 5 stars due to the competitive rates:
“The overal experience was good. I like using Navy Federal for loans because no one can beat their rates but the underwriting process was very frustrating to deal with. Things were coming up in the last 2 days before our closing that I feel should've been dealt with waaaay before we were 2 days away from closing. Granted, we did close on time, but we almost didn't. We didn't have our clear to close until less than 24 hours before our closing because underwriting kept coming back and asking for small minute things that should've been handled long ago.”
— Trustpilot User
Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate. Please see the issuer’s website for updated terms and conditions.
Community Navy Federal scores
AUTO LOAN
Navy federal
Dive into community reviews below and see what others think about Navy federal.
4.5
24
ratings
In July 2024, Bankrate collaborated with a third-party vendor to survey 1.3K loan borrowers nationwide. Bankrate and our vendor collected and summarized borrower responses to five questions on a 5-point scale, three yes/no questions, as well as open-ended reviews of their loan experience. Responses are unedited and have not been reviewed or approved by the associated lender.
Score breakdown
5 stars
67%
4 stars
21%
3 stars
8%
2 stars
4%
1 star
0%
Score by category
Overall rating
4.5
/ 5
Fees & closing costs
3.9
/ 5
Funding time
4.4
/ 5
Customer service
4.6
/ 5
Application process
4.6
/ 5
Online portal or mobile app
4.6
/ 5
In July 2024, Bankrate collaborated with a third-party vendor to survey 1.3K loan borrowers nationwide. Bankrate and our vendor collected and summarized borrower responses to five questions on a 5-point scale, three yes/no questions, as well as open-ended reviews of their loan experience. Responses are based on individual borrower’s product details, and therefore cannot be verified for accuracy. User ratings are unedited and have not been reviewed or approved by the associated lenders, nor do these ratings reflect Bankrate’s own expert review of these loan products.
Community Reviews
See what users like you are saying about Navy federal.
Anonymous Borrower
August 20, 2024
Describe why you selected this lender
It was as easy a process as any other car buying experience I’ve had previously. I didn’t really do much to secure the loan, the finance dept at the dealership took care of all that. Using the app to make my monthly is very simple!
Describe your experience with customer service
I did not need customer service to secure the loan and I haven’t needed customer service since getting the loan.
Loan purpose
Used car loan
Score by category
Fees & closing costs
3
/ 5
Funding time
3
/ 5
Online portal or mobile app
5
/ 5
Customer service
4
/ 5
Application process
3
/ 5
Key Questions
Would you recommend this lender to a friend or family?
Yes
Was the lender responsive/professional?
Yes
Did this loan meet your financial needs?
Yes
Anonymous Borrower
August 20, 2024
Describe your experience with the application process
Simple, easy online process.
Loan purpose
Used car loan
Score by category
Fees & closing costs
NA
/ 5
Funding time
5
/ 5
Online portal or mobile app
5
/ 5
Customer service
5
/ 5
Application process
5
/ 5
Key Questions
Would you recommend this lender to a friend or family?
Yes
Was the lender responsive/professional?
Yes
Did this loan meet your financial needs?
Yes
Loan purpose
Score by category
Key Questions
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Written by
Rebecca Betterton
Writer, Auto Loans and Personal Loans
Rebecca Betterton, a Certified Financial Education Instructor℠, is a writer for Bankrate who has been reporting on auto loans since 2021.
