Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Auto Loans Navy Federal Credit Union Auto Loan Review Updated Feb 28, 2022   |   4-min read Reviewed by Jeff Gitlen, CEPF® Reviewed by Jeff Gitlen, CEPF® Expertise: Student loans, personal loans, home loans, insurance, credit cards Jeff Gitlen, CEPF®, is the director of content operations at LendEDU. He graduated from the Alfred Lerner College of Business and Economics at the University of Delaware. Learn more about Jeff Gitlen, CEPF® If you’re an active or retired member of the military, or you’re related to one, you have a great opportunity to finance a new or used car with one of the best auto loan rates around with the Navy Federal Credit Union (NFCU). In addition to its wide array of banking products and services as well as being one of the largest credit unions in the country, NFCU offers highly competitive loan products, including credit cards, mortgages, and personal loan. Its auto loan products in particular are considered to be among the most flexible and competitive in the industry. Navy Federal Credit Union New Auto Loans What’s unique about Navy Federal auto loans for new cars is not that it offers one of the lowest APRs available; it’s unique because of the way it classifies a new car. To NFCU, a “new” car or truck was manufactured in the last three years, including the current year. So, for the current year, 2017, a new vehicle includes the 2015 and 2016 model years, as long as its mileage is less than 7,499. Loan terms range from 12 to 96 months. The lowest current APR of 1.99 percent comes with a loan term of up to 36 months. For a 37 to 60 month loan term the lowest APR is 2.39 percent. The APR bumps up a notch to 2.69 percent for a 61 to 72 month term; but it jumps considerably to 4.09 percent on a 73 to 84 month term. While some car buyers might appreciate the longer terms of 85 to 96 months, they will pay much higher rates as the low APR for that range is 4.89 percent. The lowest APRs in all loan ranges are reserved for the most creditworthy borrowers with a credit score of at least 700. Buyers with less than stellar credit can expect to be charged APRs of 15 percent to 19 percent depending on the length of the loan term. Navy Federal Credit Union Late Model and Late Model Used Auto Loans If the vehicle you want to buy is a 2015, 2016, or 2017 model with a mileage count of 7,500 to 30,000, NFCU considers it a late model car. That’s important because late model cars qualify for the same low APR as new cars, which is currently 1.99 percent. The maximum loan term for a late model car is 72 months. NFCU breaks down the late model category further into late model used cars from the most recent three-year period that have more than 30,000 miles. The same APR ranges are available on late model used cars with loan terms up to 72 months. Navy Federal Credit Union Used Auto Loans Used auto financing is available for any vehicle older than three years with loan terms of up to 72 months. The lowest APR for a used auto loan currently starts at 3.89 percent for terms up to 36 months, jumping to 5.29 percent for loans terms between 61 and 72 months. GAP Coverage Available A great feature of NFCU auto loans is the availability of GAP coverage. For a one-time payment of $299 (or rolled into the loan), NFCU will cover the difference between your vehicle’s actual cash value and the outstanding balance of the loan when it is totaled in an accident or stolen and not recovered. GAP coverage is available for up to 150 percent of the MSRP for new vehicles and 150 percent of the actual cash value on used vehicles. GAP coverage can be especially valuable if you finance more than 80 percent or 90 percent of a vehicle’s value. GAP coverage can also be added to an existing loan or when refinancing a loan. The application takes just five to ten minutes to complete online and approvals take a few hours. You can also receive a preapproval so you can go out and shop as a cash buyer. Loans cannot be used for a private seller. Refinancing With NFCU NFCU also offers auto loan refinancing. The same APR ranges and loan terms that apply to its new, late model, and used auto financing also applies to refinancing loans for vehicles in the same categories. That means, for people with great credit, there is an opportunity for a considerable rate decrease. In addition to the information and documentation you need to qualify for a loan, you will need to provide NFCU with the vehicle’s VIN, exact mileage, state of registration, current loan number, payoff amount, and lender information. Whether you are buying a new, late model, or used car; or you are refinancing, the application takes a short time to complete and approvals can be fast as well. You can also receive a preapproval for up to 60 days so you can go out and shop as a cash buyer. Loans cannot be used for a private seller.