Purchasing a new car is an exciting situation, but not everyone can afford a brand new vehicle. When you are short of cash, it’s possible to turn to an auto loan. If you are approved for a loan, it can make your life much easier in getting your new car sooner while you pay back the loan. One of the companies that offers auto loans is Navy Federal Credit Union. Here is what to expect from this particular loan.
Who is Eligible?
Navy Federal Credit Union auto loans are available with interest rates ranging from as low as 1.79 percent to as high as 17.99 percent. The loans are available for individuals eligible for membership, including any active duty members or those who are retired from a variety of military branches. Individuals who have a credit score of at least 700 can qualify and receive the best auto loan rates as well.
Rates and Terms
The auto loan rates with Navy Federal Credit Union auto loans offer an APR as low as 1.79 percent on both new and late model used vehicles. However, the specific rates and terms on any vehicle depend on the type of car and model year of it, making it a bit confusing to understand.
One of the good things about an auto loan through Navy Federal Credit Union is that you can apply for any amount you want toward your vehicle purchase. After you submit your loan application, NFCU will determine if you are qualified to receive the amount you requested.
Financing a New Vehicle
If you are aiming to finance a new vehicle, it’s important to know the details of what exactly “new” entails. NFCU considers a vehicle new when it is a 2014, 2015 or 2016 model year that has under 7,499 miles on it. The APR for such a vehicle ranges anywhere from 1.79 percent to 13.29 percent for up to 36 months. If the terms are extended to 37 to 60 months, the APR ranges from 1.99 to 15.29 percent. For terms of 61 to 72 months, the APR is 2.29 to 16.09 percent, 73 to 84 months carries an APR of 3.99 to 17.99 percent and 85 to 96 month terms have an APR range of 4.49 to 17.99 percent.
Financing a Late Model Vehicle
NFCU considers a vehicle late model used when it is a 2014, 2015 or 2016 vehicle with 7,500 to 30,000 miles on it. APR ranges can be as little as 1.79 percent on terms for up to 36 months and as high as 2.89 percent on terms 61 to 72 months. Used vehicle financing is done on any vehicle with more than 30,001 miles, with APR ranges of 3.59 to 17.09 percent up to 36 months to as high as 5.89 to 17.99 percent on terms of 61 to 72 months.
Application Requirements and Process
You must be a member of NFCU to be eligible for an auto loan and to even apply for one. You can apply on the company’s official website and must register to fill out an application online. Applying over the phone is also possible, but you must enter an access number and phone password before you are connected with a representative.
The application process is relatively short and takes between five to 10 minutes. You can be approved for your auto loan within a few hours. NFCU states that it takes 24 hours to process pre-approval and approval, but you will generally be approved in only a few hours on average.
You need to provide certain information to apply for your auto loan as well. While shopping for a car, you have to give details such as trade-in details if you’re trading in your current car, total amount you may need for financing and the terms of the loan. You must also provide exact details of any vehicle you are planning to buy.
Overall, getting an auto loan from Navy Federal is a good experience if you are a military service member, present or past. There are no additional hidden fees and rates are based on your credit.