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Navy Federal Credit Union vs PenFed
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- Flexible loan terms (12 to 96 months)
- Allow co-applicants
- Offer discounts for active-duty and retired military members
- Offer financing for many other vehicle types
- Competitive interest rates
- Bonus cash offers on select car models
- GAP Insurance & ADR
- Low APR rates
- Approval within 48 hours
- Competitive APR (annual percentage rate) as low as 2.09%
- Great deals with huge discounts when purchasing a car through its auto-buying service
- Offers for credit union members
- Auto loans can go up to 110% of the vehicle value
- Simple and straightforward online application
- Membership restrictions
- No soft credit check pre-qualification
- Reports of inconsistent interest rates
- Membership required to get a loan
- Social Security number required with initial application
- Best rates are available only for excellent credit scores
- You need to open a saving account before you can get a loan
Navy Federal Credit Union (NFCU), established in 1933 and headquartered in Vienna, Virginia, is a prominent financial institution serving over 13 million members, primarily those affiliated with the military. The credit union offers a variety of auto loan options, including financing for new and used vehicles, refinancing, and loans for motorcycles and RVs. Unique features include competitive annual percentage rates (APRs) ranging from 4.09% to 18.00%, flexible repayment terms extending up to 96 months, and no origination or prepayment fees, making it an attractive choice for borrowers. NFCU stands out for their commitment to customer service, providing 24/7 support through various channels, including live chat and phone assistance. The institution has received positive feedback for their quick loan decision process, often completed within minutes, and the availability of same-day funding in some instances. Additionally, NFCU offers a pre-qualification process, allowing potential borrowers to gauge their rates before committing. However, membership is exclusive to military personnel, veterans, and their families, which may limit access for some. Overall, Navy Federal Credit Union presents a compelling option for eligible members seeking reliable auto financing solutions.
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.
- Loan Terms : 12 to 96 months
- Minimum Accepted Credit Score : Undisclosed
- APR : Starting at 4.09% for new cars, 4.99% for used cars
- BBB Rating : N/R
- Loan Terms : 84 Months
- Minimum Accepted Credit Score : 550
- APR : 2.09%
- 90-day pre-approval validity
- Dedicated military programs and lower rates
- Extra services like TrueCar and GAP insurance
- Bonus cash offers on select car models
- GAP Insurance & ADR
- Competitive APR (annual percentage rate) as low as 0.99%
- Approval within 48 hours
- Great deals with huge discounts when purchasing a car through its auto-buying service
- Lease Buyout
- Loan Refinancing
- New Vehicle
- Private Party
- Used Vehicle
- Lease Buyout
- Loan Refinancing
- New Vehicle
- Private Party
- Used Vehicle
- Extended Warranty
- GAP Insurance
- Limited Warranty—Undisclosed
- Mobile Application
- Online Account Management
- Return Policy
- Extended Warranty
- GAP Insurance
- Limited Warranty—Undisclosed
- Mobile Application
- Online Account Management
- Return Policy—Undisclosed
- Hard Credit Check
- Income
- Minimum Credit Score—Undisclosed
- Pre-qualification With Soft Check
- Hard Credit Check
- Income—Undisclosed
- Minimum Credit Score
- Pre-qualification With Soft Check
- Documentation/Processing Fee
- Late Payment Fees
- Origination Fee
- Prepayment Penalties
- Title Transfer Fee
- Upfront or Application Fees
- Documentation/Processing Fee—Undisclosed
- Late Payment Fees—Undisclosed
- Origination Fee—Undisclosed
- Prepayment Penalties—Undisclosed
- Title Transfer Fee—Undisclosed
- Upfront or Application Fees—Undisclosed
- Automatic Payments
- Cash
- Check
- Debit or Credit Cards
- In-Person Payments
- Mail-In Payments
- Online Payments
- Phone Payments
- Automatic Payments
- Cash—Undisclosed
- Check—Undisclosed
- Debit or Credit Cards
- In-Person Payments—Undisclosed
- Mail-In Payments
- Online Payments
- Phone Payments
- Articles and Videos
- FAQs
- Help Guides
- Live Chat
- Phone
- Articles and Videos
- —Undisclosed
- FAQs—Undisclosed
- Help Guides—Undisclosed
- Live Chat
- Phone—Undisclosed
Navy Federal Credit Union vs. PenFed Credit Union
Navy Federal Credit Union (NFCU) and PenFed Credit Union are popular choices for auto financing among military personnel, veterans, and their families. While they offer similar services, including auto loans and refinancing options, they have key differences in membership eligibility, loan terms, and additional perks.
Membership eligibility
NFCU serves active-duty military, veterans, Department of Defense employees, and their immediate families, making it exclusive to those with military ties. PenFed, initially founded for military personnel, has broadened its criteria, now open to anyone who joins by opening a savings account, making it more accessible for a wider audience.
Auto loan rates and terms
NFCU generally offers lower rates, with APRs starting at 4.09% for new cars and 4.99% for used vehicles, and loan terms up to 96 months. NFCU doesn’t charge prepayment penalties, allowing borrowers to pay off loans early without additional costs. PenFed offers competitive rates, beginning at 5.24% for new cars and 6.49% for used ones, with terms up to 84 months. They also provide refinancing options up to $150,000.
Application and pre-qualification process
NFCU does not offer a soft credit pull for prequalification, meaning potential applicants face a hard credit inquiry upfront, which could impact credit scores. Pre-approval is valid for 90 days, allowing time for car shopping. PenFed will enable applicants to prequalify with a soft credit inquiry, making it easier to explore rates without affecting credit scores.
Additional services and perks
Both credit unions offer benefits like TrueCar partnerships for discounted vehicle pricing. NFCU also provides GAP insurance and additional perks for military members, including tailored loan programs for active-duty personnel. PenFed offers a unique automobile deductible reimbursement program covering repair deductible costs and various protection plans like extended warranties and debt protection.
Customer service and reputation
NFCU is highly rated for its customer service, particularly among the military community, with over 340 branches worldwide. PenFed has fewer branches but compensates with a robust online platform and mobile app. Both credit unions are well-regarded, with PenFed holding an A+ BBB rating.
Conclusion
Your choice between NFCU and PenFed for auto financing should depend on membership eligibility and preferences for specific services. NFCU offers competitive rates and focuses on military members, while PenFed provides broader accessibility, flexible rates, and the ability to prequalify without a hard credit pull. Both offer valuable services, but one may suit your needs better, depending on your circumstances.