As a credit union, they offer highly competitive APRs for new, used, and refinance auto loans.
Use the PenFed Car Buying Service to find a car and get an even lower rate.
Borrow up to 125% of the vehicle’s value to cover taxes, tags, and protection plans.
It’s easy to join! A simple savings account is your key to PenFed membership.
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How to Become a PenFed Member – It’s Easy!+
You don’t need to be affiliated with the military to join PenFed! Membership is open to everyone in the U.S. All it takes is opening a Regular Share (Savings) Account with a minimum deposit of just $5. This one simple step makes you a member-owner of the credit union and gives you access to all our great products, including our low-rate auto loans.
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Great Rates on New & Used Car Loans+
PenFed offers some of the best auto loan rates in the country for both new and used vehicles. With a PenFed pre-approval, you can shop at any U.S. dealership like a cash buyer, knowing exactly how much you can afford. This gives you powerful negotiating leverage and simplifies the buying process.
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Refinance Your Current Auto Loan and Save+
If you have a higher-rate auto loan from another lender, refinancing with PenFed could save you hundreds or even thousands of dollars over the life of your loan. U.S. consumers can apply online in minutes to see if they qualify for a lower rate.
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Flexible Financing Up to 125%+
Buying a car involves more than just the sticker price. That’s why PenFed offers U.S. members financing up to 125% of the vehicle’s value for qualified applicants. This extra financing can help cover the costs of taxes, title, registration, and optional vehicle protection plans like GAP or an extended warranty, all within your single auto loan payment.
Top Auto Loan Options in the U.S.
- Bank of America Auto Loans: Provides competitive APRs, online prequalification, and financing for both dealer and private party purchases.
- Capital One Auto Navigator: Offers a seamless online experience with prequalification that doesn’t impact your credit score, allowing you to shop and compare rates effortlessly.
- LightStream (a division of Truist Bank): Specializes in unsecured auto loans with no restrictions on vehicle age or mileage, ideal for those purchasing from private sellers or looking for a straightforward loan process.
- Carvana Financing: Delivers a completely digital car buying and financing experience, including instant approvals and home vehicle delivery.
- PenFed Credit Union Auto Loans: Known for its low APRs, up to 125% financing, and a user-friendly online application process, PenFed stands out as a top choice for auto financing.
Traditional Bank Financing
Traditional banks like Bank of America and Wells Fargo offer auto loans with online access and reliable service—but they often reserve their best rates for top-tier credit customers or long-time account holders. PenFed Credit Union offers a stronger value for members, with consistently low rates, flexible terms, and no requirement for perfect credit. Plus, PenFed members enjoy credit union benefits like better support and fewer hidden fees.
PenFed Credit Union Auto Loans
PenFed offers highly competitive auto loan options, including loans for new and used cars, lease buyouts, and refinancing. Borrow between $5,000 and $150,000 with terms from 36 to 84 months, and enjoy some of the lowest auto loan rates in the market—often starting well below traditional lenders. PenFed also allows online preapproval and delivers fast decisions, making it a great choice whether you’re buying from a dealer or refinancing to save money.
Online Lending Platforms
Online lenders like Carvana and LightStream provide digital convenience, but often lack the member-focused perks and long-term service quality of a credit union. With PenFed, you get online tools for fast applications and account management, along with ongoing member support and loan flexibility you won’t always find with online-only lenders.
Unsecured Personal Loans
Unsecured personal loans may help if you’re buying from a private seller or want a loan not tied to your car. But they usually come with higher rates and shorter terms. PenFed’s secured auto loans are a better fit for most buyers—offering lower rates, longer repayment options, and support for purchases from dealers or private parties.
Buy Here Pay Here Dealerships
Buy Here Pay Here dealerships are common for buyers with poor credit—but they often charge very high interest rates and offer minimal buyer protections. PenFed works with a wide range of credit profiles, offering fair rates and flexible terms even for those rebuilding their credit. As a credit union, PenFed prioritizes financial wellness, not profit, making it a safer, smarter option.
How PenFed Auto Loans Affect Your Credit and Financial Health
Financing through PenFed helps build a strong credit profile—especially when payments are made on time. Your loan adds to your credit mix and can boost your FICO score. PenFed reports to major credit bureaus and provides tools to manage your loan, set up autopay, and track your balance. For added peace of mind, PenFed offers GAP insurance and extended protection plans, helping you safeguard both your car and your financial future.
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