PenFed Credit Union Auto Loans: 2022 Reviews, Rates

October 31, 2022

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PenFed PenFed Auto Loan

PenFed PenFed Auto Loan

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No origination fee

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Wide range of financing

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Loans and refinancing for new and used cars are also available

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24/7 customer service

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Rates readily available on PenFed’s site

late fee

Lease buy-back is not available

Must be a member to receive funding

Pros and Cons of PenFed Auto Loans

Strong Points

No origination feeThe origination fee is deducted from the overall loan fee, driving up the overall cost of the loan. PenFed does not charge fees like other lenders.
Wide range of financingPenFed will lend between $500 and $150,000 to borrowers. This is great for borrowers who need a little cash or need to fund more expensive purchases.
Loans and refinancing for new and used cars are also availableMost borrowers looking for auto loans need them for new purchases or refinancing. PenFed can accommodate borrowers with a variety of needs.
24/7 customer serviceYou can always receive a response by filling out the form on PenFed’s website with your question details. Choose to receive a response by email or phone.
Rates readily available on PenFed’s sitePenFed lists fees online and has a calculator on the site to give you an estimate of your monthly payment. Other lenders like Wells Fargo are more opaque about rates.

Cons

late fee. If you are late with your payment, you will pay a late payment penalty of $29. Other lenders do not charge this fee.
Lease buy-back is not availableIf you are currently leasing a car and would like to purchase it for the remainder of the term, PenFed will not allow you to do so. Credit unions finance new and used vehicles and refinance vehicles.
You must be a member to receive funding. Members of the armed forces and employees of eligible organizations are automatically eligible. However, anyone can join a credit union. You can become a member by opening a savings account with a minimum deposit of $5.

Compare PenFed Auto Loans

PenFed comparison

Editor’s rating

4/5

Normal APR

Starting at 4.44% APR

Editor’s rating

4.5/5

Normal APR

Only 4.54% new, used and refinanced

Editor’s rating

3.5/5

Normal APR

From Dealers: 2.14% to 14.54%, From Private Parties: 4.64% to 21.04%, Lease Buyouts: 3.64% to 20.04%, Refinances: 2.64% to 19.04%

The PenFed interest rate is comparable to the Navy Federal Credit Union, but the APR is set higher than the PNC interest rate.

PNC only provides financing for vehicles from model year 2014 onwards. Navy Federal provides financing for cars less than 20 years old. PenFed does not have a maximum age for used vehicles.

See how car loans are evaluated »

Frequently Asked Questions

Ryan Wanman, CEPF

loan reporter

Ryan Wangman is a reporter for Personal Finance Insider, reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).
In my previous experience writing about personal finance, I’ve written about credit scores, financial literacy, and home ownership. He is a graduate of Northwestern University and a former contributor to the Boston Globe.
Find out how Personal Finance Insider selects, evaluates and covers financial products and services here >>

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