Navy federal auto loan Review 2024 (Update)

One of the biggest attractions to Navy Federal auto loans is the credit union’s low interest rates. Navy Federal also has an online car buying center where the company guides you through the process of financing, buying, researching and insuring your next car.


  • Competitive interest rates and rate discounts for military members
  • Pre-approval is good for 60 days
  • Flexible loan terms including 100% financing for new cars and tenors up to 96 months


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

Flexible loan options

Navy Federal Credit Union offers very flexible loan terms and amounts. Borrowers can avail 100% financing and choose a repayment tenure of up to 96 months (eight years).

Just be aware that both of these options make borrowing more expensive in the long run. The more money you borrow and the longer you take to repay it, the more interest you’ll be charged. Plus, you run the risk of being upside down on your auto loan if you finance your entire purchase.

The lowest Navy Federal auto loan rates are reserved for the shortest repayment terms. For example, the starting APR for a 36-month loan is 3.7%, but this figure increases to 7.84% if you choose a loan repayment term of 85 months or more.

Navy federal auto loan eligibility

To get a Navy Federal Credit Union auto loan, you must be a member. Membership eligibility, like all credit unions, is limited to a specific group of people. To be eligible to join Navy Federal Credit Union, you must be one of the following:

  • A member of the military – Army, Marine Corps, Navy, Air Force, Coast Guard or Air National Guard – on active duty
  • a retired service member
  • a veteran
  • a person in a delayed entry program
  • an ROTC participant
  • a reservoir
  • a department of defense officer candidate
  • Defense Civilian Personnel Department
  • A contractor of the Defense Department assigned to government establishments
  • Department of Defense Civilian Retired
  • a US government employee assigned to DOD installations

Members of the immediate family of anyone listed above, including parents, spouses, siblings, grandparents, children, grandchildren and other household members, may also join Navy Federal.

How to get a loan with Navy Federal

You can complete an auto loan application with Navy Federal Credit Union in just minutes. Applications are accepted online, by phone at 1-888-842-6328 or at bank branches. NFCU has branches located in 30 US states, the District of Columbia, and overseas. Here’s an overview of the process:

  • sign in. Log in to your NFCU account online or through the mobile app.
  • Answer some questions. Be prepared to provide the following information for yourself and your co-applicant, if you have one:
  • phone number and email address
  • Residence, Employment and Income Statement
  • how much do you expect to borrow
  • The length (tenure) of the loan you want.

If you already know which car you are planning to buy, the NFCU will also ask for some details about the car.

  • Keep an eye out for communication. If NFCU needs more information to make a loan decision, you will receive a follow-up email or text.
  • Receive the check. If you are approved, you will receive a check at your home address or you can pick it up at a local branch.
  • Complete the paperwork. You’ll need to sign a small stack of forms with the dealer or private seller in order to officially buy the car and start the loan.
  • Once your loan is disbursed, your first payment will be due within 30 to 60 days.

A Closer Look at the Navy Federal Auto Loan

Here are some other important details about Navy Federal Credit Union auto loans.

  • Navy Federal offers 100% financing, which means you may not need to make a down payment. This makes it easier to buy a vehicle if you don’t have the cash, but it puts you at risk of turning upside down on your car loan.
  • You can choose a loan tenure of up to 96 months for new vehicles and up to 72 months for used cars. Keep in mind that a longer loan term will increase your payments and may make your monthly payments more affordable, but you will pay more interest over the term of the loan.
  • Navy offers the ability to apply for a Federal Car Loan while being pre-approved. Your pre-approval and interest rates are good for 60 days after the check is issued, giving you plenty of time to buy a car.
  • Navy Federal offers several car-purchase programs. The Auto Buying Up Program offers savings on cars purchased through its dealer network, and the Foreign Auto Buying Up Program offers savings on cars purchased overseas or in the U.S. Provides vehicle delivery in
  • Navy Federal also offers guaranteed asset protection insurance for a flat rate of $299, which can be financed as part of your auto loan. If your car is totaled or stolen and you owe more than the current market value of your car on your auto loan, gap insurance can help cover the difference.

How to Compare Navy Federal Auto Loans

If you are looking for reputable credit unions that cater to the military, you have many other options to choose from, including USAA. PenFed also offers special incentives for military members, but unlike NFCU and USAA Bank, anyone can join.

Navy FederalUSAAPenFed
APR4.54% and up4.49%* and up4.59% and up
Terms36-96 months12-84 months36-84 months
AmountNot disclosed$5,000 and up$500-$150,000
Min. Credit ScoreNot disclosedNot disclosedNot disclosed

* Rate includes an autopay discount

Is Navy Federal trustworthy?

Navy Federal Credit Union is not currently rated by the Better Business Bureau, as Navy Federal is in the process of responding to previously closed complaints.

Credit unions used to have ratings from BBB to A+. The BBB determines its score by looking at a company’s response to customer complaints, honesty in advertising and openness about business practices.

Navy Federal has been involved in a recent scandal. A federal Navy employee alleged that the lender pressured mortgage underwriters to approve loans without believing applicants could repay them. She then filed a lawsuit alleging that Navy Federal retaliated against her whistleblowing by changing her job duties. She dropped the case in late 2020.

Is a Navy Federal Loan Right for You?

Navy federal auto loans are great for service members and veterans, as NFCU offers special military discounts. If you don’t have military affiliation, you’ll need to look elsewhere for auto loans.

If you are a member of a credit union or you qualify for membership, you should consider NFCU when shopping for an auto loan. NFCU offers pre-approval, so you can get a rate quote and then check to see if another lender will beat NFCU’s lower rates and various perks.

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