PenFed Credit Union Auto Loans: Loans to Power Your Drive

PenFed’s Auto Loans are a top pick for buyers who want low rates, high borrowing limits, and fast funding.

Whether you’re buying a new car, refinancing your current ride, or even handling a private-party purchase, PenFed Credit Union offers competitive auto loans with member-focused perks. With low interest rates, flexible terms up to $150,000, and a robust car-buying tool, PenFed aims to make auto financing fast, fair, and friendly.

Why PenFed Auto Loans Stand Out

• Soft-Pull Prequalification
  Check your estimated APR and loan amounts without impacting your credit score.
• Rates as low as 3.79–4.64%
  Enjoy some of the lowest financing rates available—especially through their integrated car-buying service.
• Borrow Up to $150,000
  Finance not only cars but also RVs and motorcycles—with 125% financing to include taxes, fees, and add-ons.
• Flexible Loan Terms
  Choose repayment durations between 36 and 84 months to fit your budget.
• Same-Day Funding
  If approved early enough, funds can be sent out the same day via check—speeding up the buying process.
• Optional GAP & Protection Plans
  Add-on options include GAP coverage, extended warranties, and debt protection to shield against unexpected costs.

What You Should Know Before Applying

1. Membership Is Required
   Anyone in the U.S. can join with a $5 savings account—often opened during the loan process.
2. Vehicle Restrictions
   New loans: current model year or newer with under 7,501 miles. Used loans: vehicles up to 5 years old and under 125,000 miles.
3. Soft-Then-Hard Credit Process
   Prequalification uses a soft pull. Accepting an offer triggers a hard pull and locks in your rate.
4. Co-Borrowers Allowed
   You can apply with someone else to improve your chances or share repayment.
5. No Autopay Rate Discount
   Gladly, PenFed gives low rates up front—you don’t need autopay to qualify.
6. Rate Validity & LTV Limits
   Your “as low as” APR depends on loan amount vs. vehicle value. Prequal offers are good for 30 days.

Step-by-Step: How to Get a PenFed Auto Loan

1. Join & Prequalify
   Join online (or during application), then fill out personal and financial info to see estimated rates without a credit hit.
2. Use Car Buying Service
   Look up vehicles using PenFed’s TrueCar platform to get pre-negotiated prices and access the best APRs.
3. Apply for the Loan
   Select the offer that fits your budget. A hard credit check follows, and your rate is officially locked.
4. Fund the Vehicle
   PenFed sends payment—usually by check—to the dealer. Funding often happens on the same day.
5. Set Up Payments
   Manage your loan online or via the app. You can set autopay if desired, although there’s no rate incentive.
6. Add Protection (Optional)
   Include GAP, vehicle protection, or debt coverage during the application.
7. Finalize & Drive
   Sign documents, pick up the car, and you’re on your way.
8. Refinance as Needed
   Later on, refinance another lender’s loan with PenFed—title permitting—or adjust your terms.
   

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