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PenFed Auto Loan

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Competitive Auto Loan Services

PenFed Credit Union auto loan services are comprehensive, offering a range of loan options and competitive interest rates.

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Best For

Consumers looking for a low-interest rate loan to buy a car

Type of loan

New or used auto loan, auto loan refinancing

Interest Rates

Rates as low as 4.89% APR

Loan Amount

Borrow up to $300,000 with credit qualifications

Cash Incentives

Get added cash incentives from some manufacturers

Down Payment

Not required

Securing funding at a low-interest rate is a priority when purchasing a new or used car. The interest rate and loan type play a role in your monthly payment. A PenFed Credit Union auto loan can fit the bill, offering competitive loan offers that fit many concerns’ needs.

PenFed auto loans are one of the lending options available from the lender, alongside credit cards, mortgages, and home equity loans. They also offer unsecured loans and checking and savings accounts.

About PenFed Credit Union

PenFed, short for Pentagon Federal Credit Union, was established in 1935. It has grown to be the second-largest federal credit union in the country, serving the needs of 2.8 million members worldwide and holding $36.6 billion in assets. As a credit union, only members have access to loan products. However, anyone can open a PenFed account.

What Is a PenFed Auto Loan?

PenFed auto loans can be used to purchase a new or used vehicle. They can be used for many low-cost car loans and to buy a spiffy, custom vehicle when other qualifications are met. PenFed auto loan rates may be more competitive than other lenders because it is a credit union. Credit unions typically have lower overhead costs and are not profit-focused, so they pass savings to members more readily.

How Does a PenFed Auto Loan Work?

When looking at PenFed reviews, auto loans from the lender are straightforward and considered no-hassle. They can be approved quickly, even on the same day, with a fully online application and approval process. The first step is typically to become a member of the credit union. Then, you can open a checking or savings account there.

After establishing membership, all members can request preapproval for an auto loan. Your information is obtained, credit is checked, and the lender then offers preapproval for the loan. At that point, you know what amount you can borrow, the monthly payment, and the overall cost.

PenFed auto loans can be obtained quickly, meaning you can shop for a vehicle and buy it immediately. In many situations, this allows you to drive off the lot with the car you want. However, like all lenders, PenFed auto loan review data shows that creditworthiness is a significant factor in securing these loans.

What Options Do You Have with PenFed Auto Loans?

A PenFed credit union auto loan can be flexible. The company’s auto rates are competitive with other credit unions and sometimes more affordable. They also offer various flexible loan options for new and used cars, along with refinancing possibilities for existing vehicle owners. Some of the PenFed auto loans available include:


If you want to buy a new car from a dealership, you can use a PenFed auto loan. It is often best to obtain preapproval of the loan before heading to the dealership for purchase, as that ensures you know what to expect when you start shopping. PenFed auto new auto loans are available to those with the model year 2022 or newer with less than 7501 miles. You can secure up to 125% of the value of the vehicle. For loans with a minimum of $15,000 in value, 61 to 72-month lending options are available. For those vehicles valued at over $20,000, the loan terms range from 73 to 84 months.


You can also obtain PenFed auto loan rates and loans for used cars. First, the value of the vehicle must be determined. If you are buying that car from a dealership, this is generally an easy step. However, you may have to obtain an appraisal if purchasing the loan from another person. Financing for used PenFed auto loans is available for up to the JD Power valuation of the car with the addition of taxes, title, tags, and extended warranties you add, but this cannot be more than 125% of the value. Rates and terms depend on the age of the car.


PendFed auto loan rates are highly competitive. For those who may have a higher-than-average current interest rate on their auto loan, it may be possible to refinance that loan into one offering a lower interest rate. You can refinance any non-PenFed auto loan. Though the value and age of the car matter, some refinancing options are for as long as 84 months. Rates are determined by the model year and the mileage of the car. Borrowers can secure up to 125% of the value in financing. The average auto loan refinancing lowers rates to as much as 4.89% and may drop the average payment by $108 per month.

Car Buying Service

PenFed Credit Union offers a car-buying service that allows you to get help finding a car that fits your needs. You can use it for both new and used car research and purchases.

Those that use the car buying service may see discounted auto insurance rates with terms ranging from 36 months to 72 months. Exclusive manufacturer offers for members, including bonus cash offers, are also available. These change each month.

PenFed Auto Loan Protections

A PenFed auto loan review shows numerous add-on features that can offer this investment more flexibility and financial protection. Here are some options available through a PenFed Credit Union auto loan.

GAP Protection

When buying a new car, the value is significantly higher while it is still on the lot. Its value drops considerably within the first year, though. GAP protection helps to provide you with car insurance that covers the gap between how much your car is worth now and the amount you owe on your loan balance, minimizing the risk of an accident causing significant financial loss.

Extended Warranty

Purchase an extended warranty for the PenFed auto loan to add to the length of the manufacturer’s warranty. You can choose from a range of options, all of which allow you to secure more financial protection for the vehicle’s main systems.

Debt Protection

Debt protection is designed to provide financial security to families who cannot make a payment on time. It can make that payment, helping the car owner from seeing a negative ding on their credit report from a missed payment.

What Are the Pros and Cons of PenFed Auto Loan?

PenFed Auto loans provide a range of benefits to borrowers. As shown in various PenFed reviews, auto loan offers tend to be competitive, affordable, easy to request, and fast. Here is a look at some of the pros and cons of PenFed auto loans.


  • Flexible repayment terms available
  • Competitive rates for both used and new vehicles
  • Limited or no down payment requirements
  • Full loan preapproval for no hassle


  • You will need to become a member to have access to PenFed auto loans
  • If you want the lowest rate, you need to use the PenFed car-buying service
  • Costs and loan access are dependent on credit profile

How Does a PenFed Auto Loan Compare?

Based on PenFed reviews, this provider’s auto loan options tend to be competitive and sometimes better than other lenders. PenFed auto loan rates may be slightly lower than traditional bank car loans because of these lenders’ lower costs.

Fast processing of loan applications, a fully online preapproval process, and quality customer service make these loans a good option for many borrowers.

How to Get an Auto Loan with PenFed

Utilizing this PenFed auto loan review, consider the importance of choosing these loans over others. To apply for a PenFed Credit Union auto loan, complete the application on the company’s website. It takes minutes to get started.

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