As a credit union, PenFed provides standout APRs for new, used, and refinanced auto loans—often lower than traditional lenders.
Find and finance your vehicle in one place using the PenFed Car Buying Service, with access to exclusive member discounts.
Finance more than just the car—cover taxes, fees, and protection plans with loan options up to 125% of the vehicle’s value.
Becoming a PenFed member is simple—just open a basic savings account and unlock access to all member benefits.
-
How to Join PenFed – Simple & Open to All+
No military affiliation is required to become a PenFed member. Anyone in the U.S. can join by opening a Regular Share (savings) account with as little as $5. This quick step makes you a member-owner of the credit union and unlocks access to all of PenFed’s financial products—including their competitive auto loan rates.
-
Low Rates for New and Used Vehicles+
PenFed is known for offering highly competitive auto loan rates on both new and used cars. Once pre-approved, you can shop at any dealership in the U.S. with confidence—like a cash buyer—knowing your budget upfront. This can strengthen your negotiating power and make the entire car-buying process smoother.
-
Lower Your Rate by Refinancing with PenFed+
If you’re currently paying a high interest rate on your auto loan, refinancing through PenFed could help you save significantly—potentially hundreds or even thousands of dollars over the loan term. U.S. applicants can quickly check online to see if they qualify for a better rate, often in just a few minutes.
-
Extended Financing Coverage – Up to 125%+
Car ownership costs go beyond just the purchase price. That’s why PenFed gives eligible members the option to finance up to 125% of the vehicle’s value. This additional funding can help cover expenses like tax, title, registration, and even extras such as GAP coverage or extended warranties—bundled into a single monthly payment.
Explore why PenFed is one of the top options for low-rate auto loans in the U.S., even for used cars or refinances.
Why Choose PenFed for Auto Loans?
PenFed Credit Union is known for its member-first approach and consistently low APR offers. Whether you’re purchasing new, used, or refinancing, PenFed stands out for transparency and borrower-friendly terms. Their loans are particularly attractive to those with good to excellent credit, but options also exist for mid-tier applicants. Plus, PenFed’s online platform makes managing the loan process extremely accessible.
PenFed also supports a wide range of borrowers including military families, self-employed professionals, and recent graduates—groups often overlooked by traditional banks. With options for both purchases and refinances, PenFed remains competitive across the board.
Additionally, PenFed provides tools like online loan calculators, budget planning guides, and credit improvement tips to empower borrowers before and after loan approval. Their customer service team is U.S.-based and available via phone, chat, and email, which adds another layer of convenience.
Key Benefits of PenFed Auto Financing
- APR as Low as 5.49% for qualified buyers
- Finance Up to 125% LTV: vehicle, taxes, fees included
- Terms up to 84 Months for newer cars
- Prequalification with No Hard Pull
- Membership Open to All U.S. Residents
- Member Discounts on GAP, Insurance, and Warranties
- Streamlined Online Application with e-sign and fast funding
- No Application Fees or Prepayment Penalties
- Dedicated Loan Support Line for application assistance
Real Example: Refinancing a 2021 Toyota Camry
- Loan Amount: $20,000
- APR: 6.29% (for score 700+)
- Term: 60 months
- Monthly Payment: ~$389
- Total Interest: ~$3,340
Compare that to a 10.99% rate elsewhere and you save over $2,100 in interest over 5 years. Even applicants with scores in the mid-600s could qualify for a better-than-average rate around 7.5%–8.25%. PenFed also lets borrowers include sales tax and registration fees into the loan, easing upfront costs.
PenFed vs. National Banks vs. Online Lenders
| Feature | PenFed CU | Big Bank (BoA) | Online Lender (e.g. LightStream) |
|---|---|---|---|
| APR for Good Credit | ✅ From 5.49% | ⚠️ Starting ~7.5% | ✅ From ~6.5% |
| Prequalification | ✅ Soft Pull | ⚠️ Often Hard Pull | ✅ Soft Pull |
| Loan-to-Value (LTV) | ✅ Up to 125% | ⚠️ Up to 100% | ⚠️ Up to 110% |
| Insurance Bundles | ✅ Member Pricing | ❌ Not offered | ⚠️ Varies |
| Membership Requirement | ✅ Required | ❌ None | ❌ None |
| Prepayment Penalty | ❌ None | ⚠️ Sometimes | ❌ None |
| Online Tools | ✅ Robust | ⚠️ Basic | ✅ Moderate |
PenFed combines the savings of a credit union with the convenience of digital lenders. The lack of hidden fees, member support, and transparent terms make it ideal for borrowers focused on value and stability.
➡️ Want to know how to apply, qualify, or refinance with PenFed? Continue to Page 2 for approval tips and alternatives.
You will stay on our website.
