PenFed offers auto loans with relatively low interest rates. You can buy a new car, for example, with an APR ranging from 5.39%. 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.
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.
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.
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.
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 $150,000.
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.
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.
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.
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
APR | 5.39% | from 2.49% |
Minimum credit score | 610 | None |
Loan amounts | $500-$150,000 | $5,000-$300,000 |
Loan term | 24-84 months | 12-72 months |
Suitable for | Short-term loans with low interest rates | Comparing multiple lenders |
7940 Jones Branch Drive
McLean, VA 22102
PenFed offers low auto loan interest rates for borrowers with excellent credit. You can get discounts on your purchase if you use the lender’s car buying service, and for a limited time, earn a $350 cash bonus when you purchase through the PenFed Car Buying Service with a PenFed auto loan.¹ Anyone can join this credit union and you don’t need to be a member to get an offer.
¹ The PenFed Car Buying Service rebate of $350 will apply to new and used purchase loan applications with a qualifying vehicle purchase sourced through the PenFed Car Buying Service. Applications and Car Buying Service dealership match must be received during the promotional period, between 2/1/2023 and 4/30/2023. Dealer originated loans and refinance loans are not eligible for this promotion. Loan must be currently active and have at least 2 payments posted in order to qualify for the rebate. The $350 rebate will be deposited to the member share savings account within 60 days of receiving the second payment. PenFed may discontinue or change the promotion at any time. Other restrictions may apply.
