PenFed Credit Union provides competitive interest rates to military members and families purchasing new cars or refinancing loans. An online car buying program and loan pre-qualification provide added value.
Introduction to PenFed Credit Union
Established in 1935, PenFed Credit Union is one of the largest credit unions in the U.S. As a not-for-profit cooperative, PenFed returns profits back to members in the form of reduced fees, higher savings rates, and discounted loan pricing.
Membership originally served armed forces personnel but has expanded over the years to also include support staff, government employees, and volunteer organization members. PenFed now provides banking, insurance, investing and lending services to over 2.8 million members globally.
PenFed Auto Loan Options
PenFed offers the following auto loans:
New Car Loans
- Maximum loan amount up to $150,000
- Terms from 36 to 84 months
- Rates starting at 5.24% APR
Used Car Loans
- Maximum amount up to $150,000
- Terms from 36 to 72 months
- Rates starting at 6.49% APR
Refinancing
- Maximum loan amount up to $150,000
- Terms from 36 to 84 months
- Rates starting at 5.94% APR
So PenFed provides very competitive rates for large loan amounts to its membership. Extended terms also allow flexibility in tailoring monthly payments.
READ ALSO: Overview of LendingClub Auto Refinancing
Becoming a PenFed Member
To qualify for PenFed auto lending programs, you must first join the credit union. Membership is open to:
- Military, veterans, DoD civilians and contractors
- Family members of eligible military personnel
- Volunteer organization affiliates
- Pay $5 opening deposit (waived for auto loans)
PenFed membership is more exclusive compared to some other credit unions but delivers outstanding service, pricing, and convenience for those who serve our country.
Getting Pre-Qualified for a PenFed Auto Loan
PenFed allows auto loan shoppers to easily check potential rates and terms before applying through their pre-qualification platform. You simply provide some basic details, agree to a soft credit check, and instantly see offers available to you.
If the options meet your needs, you can proceed directly to the application. If not, there is no further commitment or impact to your credit scores.
Additional Features from PenFed Auto Loans
Along with great baseline interest rates, PenFed auto loans offer:
- Online car buying program through TrueCar
- Rate discounts for military members
- No application fees
So members can purchase new vehicles completely online while securing discounted pricing and competitive financing simultaneously.
How PenFed Compares to Other Auto Loan Providers
Navy Federal Credit Union – Nearly identical overall as both specialize in serving military families with great rates and service. PenFed edges out Navy Fed slightly with lower starting APRs.
Consumers Credit Union – Another credit union with online buying assistance but fewer military-specific membership perks from CCU. PenFed’s rates also start lower by nearly a full percentage point.
Pros and Cons of PenFed Auto Loans
Pros
- Easy pre-qualification process
- Online car buying discounts and incentives
- High maximum loan amounts
Cons
- Membership is mostly military exclusive
- Used car loan terms shorter at 72 months max
- Rates under 5% require excellent credit
Contacting Member Support at PenFed
PenFed offers customer assistance through:
- Phone support available 24/7
- Live chat and secure email messaging
- Appointments at local branch locations
- Robust FAQ and contact pages on PenFed website
To Recap
Overall, PenFed Credit Union delivers outstanding auto lending value to military families, veterans, and specific governmental personnel. Consumers within that exclusive scope will find extremely competitive interest rates for purchasing new cars or refinancing loans while enjoying premium member service. While membership is restrictive compared to civilian credit unions, PenFed creditably earns 4.3 out of 5 stars from Bankrate for auto loan availability, rates, customer experience and transparency.
Frequently Asked Questions About PenFed Auto Loans
What is the minimum credit score needed for the best PenFed rates?
While no official minimum score is published publicly, you will likely need an excellent credit of 720 score or higher to qualify for PenFed’s lowest advertised rates below 6 percent APR.
Does PenFed offer special dealer pricing for auto purchases?
No, PenFed does not partner directly with manufacturers or dealerships for special promotional pricing. However members can utilize PenFed pre-approval and competitive interest rates when negotiating their deal.
Can I get pre-approved for an auto loan from PenFed?
Yes, PenFed offers an auto loan pre-approval process allowing members to confirm rates/terms before shopping for vehicles. Pre-approvals require a hard credit check. Pre-qualification is also available to preview offers before applying.
What is PenFed’s maximum auto loan amount?
PenFed does not disclose an official maximum cap on auto loan amounts. However, anecdotal reports from members indicate approvals well into six-figures are possible for those with strong credit and income.
Does PenFed charge an early payoff penalty for auto loans?
No, PenFed does not charge borrowers an early termination fee or penalize members for paying off auto loans ahead of the original scheduled loan term.
In another related article, Overview of the Carputty Flexline for Auto Loans
