Navy Federal Auto Loan Review 2023

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We can assist you whether you’re trying to buy a new or used automobile, or even if you just want to refinance your auto loan with a different lender. With decisions often made in seconds, we provide auto loans with competitive rates, 100% financing, and special military discounts1. See how much you can save, and you’ll be able to put your dreams aside and get behind the wheel.

Navy Federal Credit Union, the largest credit union in the United States, has consistently garnered recognition for its exceptional financial services, including its competitive auto loan offerings. Whether you’re a seasoned car buyer or a first-time borrower, Navy Federal’s auto loans provide a compelling option for securing financing for your new or used vehicle.

Navy Federal Auto Loan

Navy Federal Credit Union Auto Loans

Industry Standing
Customer Service
Rates and Discounts
Loan Details


Navy Federal offers low starting APRs on auto loans with repayment terms of up to 96 months and no origination or prepayment fees. However, membership is required for loan access, and membership requirements are restrictive.



  • ✅Competitive interest rates and rate discounts for military members.
  • ✅Preapproval good for 60 days.
  • ✅Flexible loan terms including 100% financing and term lengths of up to 96 months for new cars.


  • ❎Must be eligible active-duty or retired military member, veteran or immediate family to become a Navy Federal member and apply for a loan.
  • ❎Limited auto loan options.

What you need to know about Navy Federal auto loans

Here are some notable features of Navy Federal Credit Union auto loans.

Limited auto loan options

Navy Federal provides loans for new, used, and refinance automobiles and vehicles. Navy Federal also provides loans for the purchase of leisure vehicles, including as boats, motorcycles, and other vehicles.

However, you will have to apply for a loan from a different lender if you intend to purchase a used automobile from a private seller or if you want a lease-buyout loan.


Tip:: Navy Federal provides same-day funding, but this does not guarantee immediate loan funds. Other lenders also offer this feature, and processing time may delay access to funds, even if funds are sent on the same day.

Jessica Ullrich

Eligibility Requirements

To qualify for Navy Federal membership and access its auto loan products, you must fall under one of the following eligibility categories:

  • Active duty military personnel, National Guard or Reserve members, veterans, or their eligible family members.
  • Department of Defense civilians, Department of Homeland Security employees, or Coast Guard personnel.
  • Employees or contractors of eligible Department of Defense or Coast Guard organizations.

Competitive Auto Loan Rates

Navy Federal is renowned for offering some of the most competitive auto loan rates in the industry. Their starting APRs for new and used vehicles are consistently lower than those of many traditional banks and credit unions. For instance, their current APR for a new car loan with a 60-month term starts at 2.49% for well-qualified borrowers.

Factors Influencing Interest Rates

Several factors influence the interest rate you receive on a Navy Federal auto loan, including:

  • Creditworthiness: Your credit score plays a significant role in determining your loan interest rate. A higher credit score generally translates to a lower interest rate.
  • Loan Term: The length of your loan term also affects your interest rate. Shorter terms typically have lower rates than longer terms.
  • Vehicle Type: The type of vehicle you purchase can impact your interest rate. New cars generally have lower rates than used cars.

Strategies for Obtaining the Lowest Rate

To maximize your chances of securing the lowest possible interest rate on a Navy Federal auto loan, consider these strategies:

  • Check your credit report: Before applying for a loan, review your credit report to identify any potential errors or inaccuracies that could negatively impact your credit score.
  • Compare rates: Shop around and compare interest rates from multiple lenders to ensure you’re getting the best deal.
  • Make a sizeable down payment: A larger down payment can lower your loan amount, which may lead to a more favorable interest rate.

Navy Federal Credit Union Auto Loan Details

Loan amount: No minimum specified
Starting APR: 4.54%
Loan Term: Up to 96 months or 180 months for classic cars
Prepayment penalty: None
Application fee: None

Navy Federal Credit Union offers financing for new, used, and classic cars, as well as loans for alternative vehicles like boats, motorcycles, and RVs. Members can apply for auto loans or refinancing. The preapproval process helps negotiate better sales prices with dealerships.

During preapproval, a hard credit check is performed, and necessary documents are requested to determine loan amount and term. However, a hard credit check may temporarily lower credit score.

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Navy Federal Credit Union provides competitive finance rates with APRs as low as 4.54% for new-vehicle loans, but only for excellent credit borrowers. The latest auto loan rates for new and used vehicles are available.

Loan TypeAPR 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 vehicle4.54%4.74%5.04%6.94%7.84%
Late-model used vehicle4.54%4.74%5.04%N/AN/A
Used vehicle5.44%5.74%5.84%N/AN/A

Easy Application and Approval Process

Navy Federal streamlines the auto loan application process, making it convenient and hassle-free. You can apply online, via their mobile app, or by phone. The application typically takes less than 10 minutes to complete.

Pre-Approval and Quick Approval

Navy Federal offers pre-approval for auto loans, allowing you to determine your interest rate and loan amount before visiting a dealership. This pre-approved status strengthens your negotiating position and can help you avoid surprises at the dealership.

Funding Options

Once your loan is approved, Navy Federal provides multiple funding options, including direct deposit to your checking or savings account, mailed check, or wire transfer.

Additional Benefits and Features

Navy Federal’s auto loan offerings extend beyond competitive rates and a streamlined application process. They also offer several additional benefits and features:

  • Discounts for Military Members: Military members and veterans are eligible for a 0.25% discount on their auto loan interest rate.
  • Flexible Repayment Terms: Navy Federal offers a variety of repayment terms to suit individual needs, ranging from 24 to 84 months.
  • Online Account Management: Easily track your loan progress, make payments, and manage your account online or through their mobile app.

Customer Service and Reviews

Navy Federal consistently receives high marks for its exceptional customer service. They provide multiple channels for support, including phone, online chat, and in-person assistance at their branch locations.

Overall Recommendation

Navy Federal’s auto loans stand out as a compelling option for eligible borrowers seeking competitive rates, a smooth application process, and a commitment to customer satisfaction. Their combination of low APRs, additional benefits, and exceptional service makes them a top choice for financing your next vehicle purchase.


What credit score do you need for a Navy Federal auto loan?

You need a credit score of at least 550 for a Navy Federal auto loan.

How long does Navy Federal take to approve a auto loan?

Navy Federal typically takes 1-2 business days to approve an auto loan.

How does Navy Federal verify eligibility?

Navy Federal verifies eligibility by reviewing your credit report and income documentation.

How long is navy federal auto loan pre approval good for?

Navy Federal auto loan pre-approval is good for 90 days.

what credit score does navy federal require for auto loans?

Navy Federal requires a credit score of at least 600 for the best auto loan rates

Will Navy Federal give me a loan with a 550 credit score?

Yes, Navy Federal may give you a loan with a 550 credit score.

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