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Our take on Navy Federal auto loansNavy Federal Credit Union is a good choice for established members who haven’t had problems with its customer service. Compared to other lenders I’ve reviewed, it does have some of the most competitive starting rates on its new and used car loans. It also has one of the longest preapproval periods I’ve seen: 90 days to shop around and compare vehicles is extremely generous. But it’s also one of the few banks that has faced recent action from the Consumer Financial Protection Bureau (CFPB). I go into more detail in the full review, but you should know that Navy Federal has previously lied to borrowers and frozen online accounts for delinquent payments. In recent years, it seems that Navy Federal has cleaned up its act. So while it does receive mixed reviews, it’s still a legitimate choice. Just be aware of its past before you apply for an auto loan. Kellye Guinan was a financer writer for Finder, covering everything from loans from auto to personal to business finance. 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 USAANavy Federal, PenFed and USAA all have annual percentage rates (APRs) starting under 3% 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 auto loan rates, fees and termsExpect 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 vehiclesNavy 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
RefinancingNavy 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 requirementsYou 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 requirementsWhile 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:
Navy Federal offers exclusive membership to the militaryTo become a member of NFCU, you will need to fall into one of these categories:
Immediate family members or household members also qualify for NFCU membership. Vehicle requirementsNFCU doesn’t list any specific requirements for new cars. But it does have two categories for used cars:
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 accountIf 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 apartBeyond 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 vehiclesUnlike most banks, Navy Federal offers financing for leisure vehicles, including:
Each vehicle has its own requirements, but you can expect interest rates starting around 7% to 8%.
96-month terms availableNavy 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 TrueCarNavy 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 2016It’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. Car loan ratings★★★★★ — Excellent ★★★★★ — Good ★★★★★ — Average ★★★★★ — Subpar ★★★★★ — Poor We rate car loan providers on a scale of 1 to 5 stars based on factors like transparency, costs and customer experience. We don’t take into account elements like eligibility criteria, state availability or payment frequency — we save that for our reviews. Read the full methodology of how we rate car loan providers to get a better picture of what goes into each star rating. Does Navy Federal use TransUnion for auto loans?Editorial and user-generated content is not provided, reviewed or endorsed by any company. Navy Federal normally uses TransUnion for credit card applications. However, they may pull an inquiry from any of the three major credit bureaus (Equifax, TransUnion, and Experian) when evaluating a credit card application.
Does Navy Federal do a hard pull for car loan?Yes, Navy Federal Credit Union does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.
Which credit bureau is most used for auto loans?Equifax and Experian are the most commonly used credit bureaus by auto lenders. They offer services that are directed specifically at the auto industry, and each gets a portion of their revenue from the industry.
Does Navy Federal use Equifax?Compare Equifax Credit Monitoring Products | Equifax. Navy Federal Credit Union has partnered with Equifax to provide members with access to special rates on Equifax Credit Monitoring and Identity Theft Protection products.
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What credit bureau does navy federal use for auto loans
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