PenFed summary
Pros
- Car buying service with discounts
- Borrow more than the cost of your vehicle
- Longer repayment terms available
Cons
- Must join PenFed credit union to receive a PenFed product
- Strict credit score requirement to receive low rates
Editorial score
Online experience
Has learning resources, access to rates, mobile app
Customer services and support
Multiple ways of reaching lender, wide range of hours
Loan Types
Offers all loan types*
Repayment Flexibility
Offers multiple repayment plans- but no special repayment programs
Eligibility (credit score)
Doesn't cover bad credit
PenFed at a Glance
| Direct lender or marketplace? | Direct lender |
| Loan types | Auto loans |
| Loan amount | $500-$100,000 |
| Repayment terms | 24-84 months |
| APR | 1.04%-6.29% |
| Minimum credit score | 610 |
| Suitable for | Short-term loans with low interest rates |
Suitable For?
PenFed offers auto loans with relatively low interest rates. You can buy a new car, for example, with an APR ranging from 1.39%. The lowest interest rates are reserved for borrowers with excellent credit (over 800) and 24- or 84- month loan terms. So, if you meet the above criteria you can benefit from PenFed's competitive rates and flexible loan terms.
Features
PenFed has a car buying service through a partnership with TrueCar that gives users access to various discounts from select auto manufacturers and dealers. If you use this service, you are eligible for a discount of up to $4,000 on your vehicle. You’re also eligible for discounted interest rates for new and used vehicles. Another plus is that you can borrow up to 110% of the value of your vehicle to cover the cost of taxes and registration.
In order to get a loan, you must be a PenFed member. Membership is free for active duty military or veterans. If you have no past military service and aren’t part of a qualified organization like the American Red Cross, you can join PenFed by making a $17 contribution to the National Military Family Association.
- Rates ranging from 1.04%-6.29% APR for new cars
- Get cash discounts on new and used vehicles
- Shorter loan terms have lowest interest rates
- Membership is open to everyone
- Borrow up to 110% of your vehicle’s cost
- Longer loan repayment terms available
Application Process
PenFed’s auto loan application is fully online. PenFed members who have been with the organization for more than 90 days can get pre-approved through their online account. Once you submit a loan application, PenFed will typically make a decision within minutes.
Loan Types and Terms
PenFed offers standard loans for new and used vehicles, auto loan refinancing, and Payment Saver loans. Standard loans carry low interest rates and allow you to borrow anywhere from $500 to $100,000.
Payment Saver loans have higher interest rates and require you to borrow at least $10,000. These loans come with smaller monthly payments, followed by a balloon payment at the end of the loan.
- Minimum 610 credit score
- $500 minimum for standard loans
- $10,000 minimum for Payment Saver loans
Repayment Options
Standard loans carry terms of 36 to 84 months for new vehicles or 36 to 72 months for used vehicles. Payment Saver loans can be repaid over 24 to 60 months. PenFed offers lower interest rates for shorter loan terms.
How Safe Is It?
PenFed secures your loan application with SSL encryption. All borrower data that PenFed keeps and your online account portal are also encrypted for security. For added security, all PenFed data is managed and stored in the United States.
Help & Support
PenFed’s customer support team is available by phone and email 7 days a week, including from 7am to 11pm ET Monday through Friday, 8am to 11pm ET on Saturdays, and 9am to 5:30pm ET on Sundays.
Phone: 1-(724) 473-6333
How PenFed Compares
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APR
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1.04%-6.29%
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3.49% - 4.27%
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Minimum credit score
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610
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None
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Loan amounts
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$500-$100,000
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$5,000-$300,000
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Loan term
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24-84 months
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12-72 months
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Suitable for
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Short-term loans with low interest rates
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Comparing multiple lenders
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Address
7940 Jones Branch Drive
McLean, VA 22102
Summary
PenFed offers low auto loan interest rates for borrowers with excellent credit. In addition, you can get discounts on your purchase if you use the lender’s car buying service. Anyone can join this credit union and you don’t need to be a member to get an offer.
Michael Graw is a Bellingham, Washington-based writer focusing on finance, tech, and science. His work has been featured in print magazines and high-impact websites. He writes for BestMoney and enjoys helping readers make sense of the options on the market.
