Capital One vs PenFed

Capital One, founded in 1994, is a major player in the auto loan industry, offering competitive financing options, flexible terms, and easy online application processes for new and used vehicles. They serve millions of customers across the United States and provide auto loans for new and used cars, as well as refinancing options. Through their Auto Navigator tool, customers can pre-qualify for financing without affecting their credit score and explore various loan options. Loan amounts start at $4,000, with terms spanning from 24 to 84 months. Additionally, they offer educational resources to guide customers through the loan process. Capital One has a mixed reputation in the industry but receives an A+ rating with the BBB. They recently settled a $16 million class-action lawsuit over improperly charged proxy fees. This doesn't involve their auto loan services. They receive mixed reviews, so consider all your options before using their services.

Pentagon Federal Credit Union (PenFed) was established in 1935 and is headquartered in McLean, Virginia. As the second-largest credit union in the United States, PenFed serves nearly three million members, offering a range of financial products, including auto loans for both purchasing and refinancing vehicles. PenFed's auto loan offerings feature competitive starting Annual Percentage Rates (APRs) ranging from 5.44% for new cars to 6.19% for used cars, with loans up to $150,000 and terms between 36 to 84 months. Unique to PenFed is their online car-buying service, which allows members to find vehicles and potentially receive discounts or rebates when financing through the credit union. Additionally, they offer pre-qualification with a soft credit check, making it easy for potential borrowers to explore their options without impacting their credit scores. Customer feedback highlights the ease of the online application process and the benefits of credit union membership. However, some users note that membership requires an initial deposit and that there are no discounts for automatic payments. Overall, PenFed's auto loans are well-regarded for their favorable rates and member-focused services, appealing particularly to those who leverage their car-buying platform.