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Auto Loan, Reviews

Review: Navy Federal Credit Union Auto Loan

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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Navy Federal CU Are you shopping around for your best auto loan rates before you buy a car? If not, you should be. It helps to get an idea of the type of loan you’ll be approved for before you make a trip to the dealership. Plus, credit unions may offer some of the best rates out there – comparable with dealer financing, especially when it comes to new vehicles.

Navy Federal Credit Union offers auto loans with APRs (annual percentage rates) ranging from 1.79% to 17.99% for those eligible for membership (which includes most any Active Duty members or retirees of various military branches).

What credit score do you need?

If you have a credit score of 700 or above, that will help you obtain your best auto loan rates possible.

NFCU Auto Loan Details

NFCU offers APRs as low as 1.79% on new and late model used vehicles. Rates and terms are dependent upon the model year of the car you choose, which can make the details a little confusing.

We asked a representative from NFCU to give us a quote on a new and used vehicle at the lowest and highest APRs so you can get an idea of the range of options available. (Only the lowest APRs are listed on the website.)

Auto Loan Rates

As of: October 9, 2018

Loan Type

up to 36 mos.
APR as low as*

37-60 mos.
APR as low as*

61-72 mos.
APR as low as*

73-84 mos.
APR as low as*

85-96 mos.
APR as low as*

New Vehicle

2.89% 

3.29% 

3.59% 

4.99% 

5.89% 

Late Model Used Vehicle

2.89% 

3.59% 

4.39% 

Used Vehicle

4.59% 

4.89% 

5.89% 

 

Keep in mind you can apply for any amount you want. Once you submit your application, NFCU will determine whether or not you’re qualified for that amount.

New vehicle financing: NFCU defines a new vehicle as a 2014, 2015, or 2016 model year with less than 7,499 miles.

Late model used vehicle financing: NFCU defines a late model used vehicle as a 2014, 2015, or 2016 with 7,500 – 30,000 miles on it.

Used vehicle financing: NFCU defines a used vehicle as any vehicle with over 30,001 miles.

As you can see, new vehicles have the most favorable financing and terms – up to 96 months is offered only for new vehicles. Used vehicles are limited to loans up to 72 months, and have the highest maximum APR.

Not having access to longer terms isn’t necessarily a bad thing considering we wouldn’t recommend you take an auto loan for a term greater than 60 months. The longer your term is, the more you’re going to pay over the life of the loan. No one wants to be paying a car loan back for 8 years. Stick to your budget and remember not to focus solely on the monthly payment – take the overall cost of the loan into consideration.

There’s a useful auto loan calculator on NFCU’s page where you can estimate what your payments will be.

How to Apply for an Auto Loan With NFCU

To apply for an auto loan with NFCU, you need to be a member. When you click “Apply Now” on the website, you’re directed to the login page, so you need to register to fill out an online application.

If you want to apply over the phone, you’ll need to enter your access number and telephone password before applying and speaking with a representative.

The application process doesn’t take very long. Customer reviews mention filling the application out in five to ten minutes and being approved within a few hours. A representative we spoke with said pre-approvals and approvals generally take about 24 hours to process, but some customers are approved instantly, while others receive an answer in just a few hours.

Documents and Information Needed to Apply

The information you need to provide depends on what stage of the car-buying process you’re in. You’ll be required to give your personal information either way.

If you’re still shopping for a car and looking for a pre-approval, you’ll need:

  • Any trade-in details if you’re planning on trading your current car in
  • The total amount you think you’ll need for financing (include all fees minus the down payment)
  • Term of the loan

Pre-approvals are only good for 60 days and can’t be used for a private seller. If you use the pre-approval at a dealership, the dealer must call NFCU and obtain a validation code, which has to be written on the pre-approval draft. NFCU needs to receive the draft from the dealer. Once it’s paid, you’ll receive a promissory note.

If you already know the car you want to buy, you’ll need:

  • The VIN of the vehicle
  • The exact mileage
  • The state where the car will be registered
  • The dealer or seller’s name
  • Trade-in details, if applicable
  • The total amount being financed (includes fees)
  • Term of the loan

You can choose to have a check sent to you via Fedex (for free), or you can pick up the check at a local branch.

The Fine Print

There are no additional fees associated with NFCU’s auto loan.

Rates are based on your credit (having a FICO score over 700 helps) and the year model of the car you’re looking to finance.

Pros and Cons of NFCU’s Auto Loan

Pro: Optional guaranteed asset protection (GAP) is offered for a flat fee of $199 that can be rolled into the financing. This covers you in case your vehicle ever gets totaled or is stolen, and the amount the insurance company is willing to pay doesn’t cover the outstanding loan balance.

Con: The membership requirements are a bit strict. If you don’t know anyone that has served in the military, or has civilian connections to the military, you might not be eligible to join.

Pro: Active duty or retirees are eligible for a 1/4% APR discount if they apply at a branch or via phone. Those that have been members of NFCU for 25 or more years are also eligible for the discount. However, this benefit is limited as you can’t go under the 1.79% APR.

Con: The APR range is on the higher side compared with the rest of the lenders on our list. If your credit isn’t the best, you shouldn’t have to settle for a 17.99% APR.

Pro: NFCU offers a live chat feature in case you have any questions about the loan, and it offers phone support as well. For the live chat, all you need to enter is your name – you don’t need to share any personal information beyond that.

Membership Requirements for NFCU

Since NFCU is a credit union, you must meet the eligibility requirements to join and apply for an auto loan. If you’re Active Duty and in the Army, Navy, Marines, Air Force, Coast Guard, Army or National Guard, a member of the Delayed Entry Program, a Department of Defense (DoD) Officer Candidate/ROTC, DoD Reservist, or a retiree from any service branch, you qualify for membership.

You can also qualify if you work at the DoD as a civilian employee, if you’re a U.S. Government employee assigned to a DoD installation, if you’re a DoD contractor assigned to a U.S. Government installation, or a DoD retiree.

Lastly, if you’re an immediate family member of someone who’s a member or who is eligible for membership, you can join. Immediate family members are grandparents, parents, spouses, siblings, grandchildren, children (adopted and stepchildren), and members of your household.

Not surprisingly, there’s a heavy emphasis on military duty with the NFCU. Those who are Active Duty or retired service members are eligible for a 1/4% APR discount, and they’re the ones most likely to benefit from an auto loan with NFCU.

Comparable Auto Loans

Aren’t eligible to join NFCU? There are still great options out there for an auto loan. If none of the below options work for you, or the ones on our auto loan table, we encourage you to reach out to your local credit union, as they tend to offer better rates for auto loans.

LendingTree:  There are hundreds of lenders on LendingTree ready to compete for your business. All you have to do is fill out a short online form. Upon completion, you can see real interest rates and approval information at once. Some lenders may do a hard pull on your credit and this is normal with auto lending. Keep in mind that multiple hard pulls only count as one pull within a specific timeframe, so the best strategy is to have all your hard pulls done at once.

LendingTree

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Jovia Financial Credit Union: Loans are offered on the same terms of 12 to 96 months, but APRs are slightly lower, beginning at 2.89%. The maximum amount you can finance is $100,000, and there is no origination fee. Membership to Jovia Financial is very limited.

APPLY NOW Secured

on Jovia Financial’s secure website

PenFed Credit Union: You can secure financing on terms of 36 to 84 months with APRs from 2.14% to 17.99% on new cars and 2.99% to 17.99% on used cars. You can finance between $500 - $100,000, and there is no origination fee with this loan. Anyone can join PenFed, either by having eligibility under its scope of membership or by making a contribution to one of two designated charitable organizations.

Shop Around Before You Settle on a Lender

Regardless of which lender you go with, make sure you continue to shop around for your best loan possible. All credit inquiries that occur within 30 days are counted as one inquiry, so you won’t be penalized for it. Take advantage of that and secure the best rate you can get.

Compare Auto Loan Offers Here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Auto Loan, Reviews

Review: Jovia Financial Credit Union Auto Loan for New and Used Cars

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

Car_lg (1)

Shopping for a new or used car can be a stressful experience – but it does not have to be.

In order to make an educated and simplified decision it is best to walk into the dealership with low interest financing already preapproved. Knowing that you already have financing taken care of, negotiate the price of your car and then show the dealership your financing offer.

Chances are the dealership will try to beat your financing by offering you 0% financing through the manufacturer – which could save you thousands of dollars in interest over the life of the loan. If you are offered 0% financing, take it and feel good about your savings. If not, you already shopped around for the lowest rate and you can continue on with your vehicle purchase.

The Offer

Jovia Financial Credit Union finances auto loans up to $100,000 with no origination fee and rates for new vehicles starting at 2.89%. You can choose terms of 12 to 96 months.

Membership Requirements

Because Jovia Financial is a credit union, you must be a member in order to apply for an auto loan. You are eligible for Jovia Financial if you:

  • Live in Nassau and/or Suffolk Counties
  • Work in Nassau and/or Suffolk Counties
  • Attend school in Nassau and/or Suffolk Counties
  • Family Sponsorship – An existing Jovia Financial member can sponsor in an immediate family member (mother/father, brother/sister, child, grandparent or grandchild) or any household member

How To Apply

Applying for a Jovia Financial auto loan online requires the same information that an auto loan application at a physical bank would require, you will just be providing the information online. In order to apply, you should have the following information ready:

  • Contact Information: Your address, phone number, Social Security number, email address
  • Personal References: Required in some cases. Jovia Financial will request them if necessary.
  • Financial/Employment Information: Your employer, gross income and expenses, and monthly debt payments.
  • Vehicle Information: Make, model, year, mileage and VIN of the auto you plan to purchase.

Jovia Financial allows you to apply for an auto loan online, at a Jovia Financial branch or by calling their call center.

The Fine Print

Interest rates on new and used auto loans through Jovia Financial are based upon vehicle year and loan term. Those who do not qualify may be offered a higher interest rate. You will not know your rate until you apply.

Not all borrowers will qualify for an 8-year loan term, and you are required to have and maintain a credit score of 670 or higher in order to qualify for the rates shown in the rate chart.

Used auto loans through Jovia Financial must not be older than 9 years, but there are no mileage restrictions. There are no restrictions on vehicle make or model, but Jovia Financial will not finance a purchase of a used auto from a private party seller.

Pros

  • Rates starting at 2.89%, based on creditworthiness
  • Loans up to $100,000
  • Can apply online, at a branch, or by phone
  • No prepayment penalties
  • No make or mileage restrictions for used auto loans

Cons

  • No online preapproval
  • Do not know your rate until you apply
  • Must be a Jovia Financial member to apply
  • Rate chart can be complicated

APPLY NOW Secured

on Jovia Financial’s secure website

How It Stacks Up

Looking for a lower APR? Capital One’s APRs start at 3.39%, and it will finance up to $40,000. Even though its maximum loan amount is lower than Jovia Financial’s, it offers online preapproval, loan terms of 36 to 84 months, and no origination fee. With rates topping out at 11.25% for new car loans, Jovia Financial’s interest rates can be fairly steep, but Capital One is a good alternative.

Capital One

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If you’re looking for the personalized experience of a credit union, but are not eligible to join Jovia Financial, then consider PenFed Credit Union. Anyone can join PenFed Credit Union with a contribution to one of two designated charitable organizations. Its rates range from 2.14% to 17.99% and it will finance loans up to $100,000. PenFed does not allow you to obtain online preapproval, but it charges no origination fee and offers terms of 36 to 84 months.

Check a Variety of Lenders for Your Auto Loan

Credit Unions are now financing more auto loans than traditional banks because of their more personalized customer experience, more competitive rates, and focus on the customer. When shopping for your auto loan, consider shopping credit unions such as Jovia Financial for a more flexible, lower interest auto loan.

Compare other auto loans here. 

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Auto Loan, Best of, Reviews

The 6 Best Auto Loans for a New Car

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Written By

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Shopping for a new car involves a lot of moving parts.

How much can you spend on a new car? What type of car do you want? Are you getting a good deal? Will you be able to obtain financing? Will your auto loan have a good interest rate?

While all of these variables often make car shopping stressful, there are a couple of things you can do to simplify the process.

First, evaluate exactly how much you can afford to spend on a new car. Look at your budget and determine the absolute maximum you can afford to pay monthly. Also be aware of your total debt payments when compared to your income. Generally speaking, the total of all your debt payments – auto loans, student loans and mortgage – should not exceed 50% of your income. Make sure to factor your new auto payment into the calculation.

Next, shop online for the best new auto loan rates and get preapproved for the most attractive offer for which you are eligible. In order to strike the best deal possible on your new car, you should walk into the dealership with financing already taken in place.

Once you get to the dealership and find the car you want, negotiate the price of the car before telling the salesperson that you are approved for financing. Be prepared with information from sites such as TrueCar to back up your negotiation.

After you have come to an agreement about the price of the new vehicle, show the dealer that you are preapproved, and ask the dealership to beat your rate. Often, auto manufacturers offer 0% financing, especially to those with excellent credit. Even if the dealership isn’t able to beat your preapproved financing, at least you know you can proceed with the purchase.

[Borrow Before You Buy a Car]

How To Apply

When shopping online for a new auto loan, the application process is very similar to that of a brick-and-mortar bank, but more streamlined. In general, be prepared with:

  • Your contact information: Name, address, phone number, email address
  • Vehicle information (if known – required for lenders that do not offer online pre approval)
  • Financial Information: employment information, gross income and expenses

The Best Auto Loans for a New Car

LendingTree

With LendingTree, you can fill out one short online form and there are hundreds of lenders ready to compete for your business. Upon completing the online form, you can see real interest rates and approval information instantly. Some auto lenders will do a hard pull on your credit and this is common with auto lending. It’s important to remember, multiple hard pulls will only count as one pull with a specific timeframe, so the best strategy is to have all your hard pulls done at one time.

LendingTree

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LendingTree is our parent company

LightStream

LightStream offers online auto loans with APRs as low as 3.49% to 9.49%*. It’s terms range from 24 to 84* months. LightStream has no origination fee. Before setting foot in a dealership, and if you are approved, you could receive funds into your bank account in as little as one business day.

The APR is dependent upon enrolling in AutoPay. If you choose to not to enroll in AutoPay, your rate will be 0.50% higher. While APRs from LightStream start at 3.49% and go up to 9.49%*, they do depend upon the amount financed.

Because LightStream offers no telephone customer support, it offers a guarantee that you will love its service, from start to finish. If you aren’t completely satisfied with your experience, $100 will be deposited into your account, provided you fill out a questionnaire about your experience within 30 days of closing on your loan.

LightStream

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PenFed

PenFed Credit Union offers rates from 2.14% to 17.99% on new auto loans from $500 - $100,000. It will finance terms of 36 to 84 months with no origination fee. Rates are dependent upon the amount financed, and the terms financed for, as shown in the chart below:

APR as low as

Term

Loan Amount

Approx. Loan Pmt.

2.14% APR

36 months

$500 to
$100,000

$721.42

2.99% APR

48 months

$7,500 to
$100,000

$553.25

3.24% APR

60 months

$10,000 to
$100,000

$451.89

3.49% APR

72 months

$15,000 to
$100,000

$385.35

17.99% APR

84 months

$25,000 to
$100,000

$344.49

Rates as of April 4, 2018

Because PenFed is a credit union, you will need to join in order to apply for an auto loan through it, but anyone can join with a one-time donation of $14 or $15 to a PenFed approved charity supporting the troops. Also important to note is that even though the loan is entirely online, PenFed does not offer online pre approval.

Capital One

Capital One offers auto loans with rates starting at 3.39% and terms from 36 to 84 months. It can finance $4,000 - $40,000, and has no origination fee. Capital One also offers online pre approval. You do need to find eligible dealers before walking onto a car lot with your offer. You can do that here.

Rates are dependent upon the financing terms, as seen in the chart below:

Financing Type

36 mos

48 mos

60 mos

72 mos

Purchase New Vehicle
APR as low as

3.39%

3.39%

3.39%

3.39%

Purchase Used Vehicle
(Dealer)
APR as low as

4.48%

4.63%

4.63%

4.83%

Rates as of April 4, 2018

Capital One

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Jovia Financial Credit Union

Jovia Financial Credit Union is a credit union offering new auto loan rates from 2.89% APR. It can finance up to $100,000 for 12 to 96 months with no origination fee.

Your rate will be determined by creditworthiness, loan amount, year of the vehicle, and loan term.

In order to apply for an auto loan from Jovia Financial, you must be a member. You are eligible for membership with NEFCU if you:

  • Live in Nassau and/or Suffolk Counties
  • Work in Nassau and/or Suffolk Counties
  • Attend school in Nassau and/or Suffolk Counties
  • Family Sponsorship – An existing NEFCU member can sponsor in an immediate family member (mother/father, brother/sister, child, grandparent or grandchild) or any household member

APPLY NOW Secured

on Jovia Financial’s secure website

Navy Federal Credit Union

Navy Federal Credit Union offers new car loans with rates ranging from 1.79% to 17.99% with terms of 12 to 96 months. It can loan $250 - $500,000 and charges no origination fee. Navy Federal Credit Union does offer online pre approval.

Rates from Navy Federal Credit Union are determined by the car’s model year, as well as the loan term.

In the rate chart, new vehicles are year models 2014, 2015, and 2016 with 7,499 miles or less, and the minimum loan amount is $30,000 for terms 85-96 months. Late model used vehicles are described as 2014, 2015, or 2016 models with 7,500 – 30,000 miles. Used vehicles are any vehicle with 30,001 miles or more.

In order to apply for an auto loan from Navy Federal Credit Union, you must become a member. You are eligible if you are Active Duty Army, Navy, Marines, Air Force, Coast Guard, Army or Air National Guard, a member of the Delayed Entry Program, a DoD Officer Candidate/ROTC, a DoD Reservist, or a retiree from any of these service branches. You are also eligible as a civilian if you are a DoD civilian employee, a U.S. government employee assigned to a DoD installation, a DoD contractor, or a DoD retiree. Finally, if you are the immediate family member of anyone eligible to join, you are also eligible to become a member.

Shop Around for your Best Rate

When searching for your auto loan, don’t worry about how multiple credit inquiries will affect your credit score. All inquiries within a 30-day period count as one inquiry, so as long as you do your entire rate shopping within a 30-day period, the inquiries will have only a minimal impact on your credit score.

Even if you walk into the dealership with financing in hand, remember not to mention it until you have successfully negotiated the price of your car. Then, when you do tell the dealership that you already have financing, don’t be surprised if they try to beat it.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.