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PenFed Review

Reviews 1,500
PenFed
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PenFed
PenFed
Great
Reviews 1,500
Michael Graw
Nov. 27, 2024
2 min read
Michael Graw
PenFed Summary
PenFed is a national credit union that offers auto loan rates for new and used vehicles. It also offers auto loan refinancing with rates that compete with national banks, plus a car buying service that includes discounted prices and rates. You must be a PenFed member to qualify for a loan, and everyone is eligible to apply to become a member.

Pros

  • Car buying service with even more discounted rates
  • Can borrow over the value of your vehicle
  • 36-84 month repayment terms available

Cons

  • Must join PenFed credit union to receive a PenFed product
  • Rates vary based on credit score

PenFed at a glance

9.2
Editorial score

Online experience

Has learning resources, access to rates, mobile app
10.0

Customer services and support

Multiple ways of reaching lender, wide range of hours
10.0

Loan Types

Offers most loan types
10.0

Repayment Flexibility

Offers multiple repayment plans- but no special repayment programs
8.0

Eligibility (credit score)

Doesn't cover bad credit
8.0

PenFed  PenFed View Rates

Suitable For?

PenFed offers auto loans with relatively low interest rates. As of Tuesday, December 10th 2024, you can buy a new car, for example, with an APR ranging from 5.24%. Actual APR will be determined at the time of disbursement and will be based on your application and credit information. Rates quoted assume excellent borrower credit history. Not all applicants will qualify for the lowest rate. Rates are subject to change and depend on term.

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 on your vehicle—the amount of which varies depending on your vehicle. You’re also eligible for discounted interest rates for new and used vehicles, and loan repayment terms from 36-84 months. You can get additional cash incentives on several brands, from Dodge to Mercedes to INEOS.

In order to get a loan, you must be a PenFed member. Everyone is eligible to apply.

  • Rates from
    5.24% APR for new cars
  • 36-84 month loan terms
  • Shorter loan terms have lowest interest rates
  • Everyone is eligible to apply
  • Loan amounts up to $150,000
  • Up to 125% financing (in U.S.) ; up to 110% (in Puerto Rico and Virgin Islands)
  • Easy online application
  • Longer loan repayment terms available (up to 84 months*)
  • Get pre-approved in just a few minutes!
  • Offers easy refinancing
  • New car** and used car purchase loans

Application Process

PenFed’s easy auto loan application is fully online and decisions are typically made within minutes. Checking if you pre-qualify lets you see your offers with no impact to your credit score***.

Loan Types and Terms

PenFed offers standard loans for new and used vehicles and auto loan refinancing. Standard loans carry low interest rates and allow you to borrow anywhere from $500 to $150,000.

Repayment Options

Standard loans carry terms of 36 to 84 months for new vehicles or 36 to 72 months for used vehicles. 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 member support team is available by phone 6 days a week and email 7 days a week. Phone hours are from 8am to 8pm EST Monday through Saturday.

Phone: 1-(724) 473-6333

Address

7940 Jones Branch Drive

McLean, VA 22102

PenFed  PenFed View Rates

Summary

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. Anyone can join this credit union and you don’t need to be a member to get an offer. Membership gives you access to other products and services such as Deposits, Mortgages, and Personal Loans.

Disclosures

PenFed is federally insured by the NCUA and is an Equal Housing Lender.

* For the 84 month loan term, eligible used vehicles must have model years as new as or newer than the current calendar year minus five years and less than 60,000 miles

** New vehicles are where you are the original owner and the untitled vehicle is model year 2023 or newer with less than 7,501 miles.

*** The initial inquiry will be a soft pull that will not affect your credit score. If you choose to initiate a loan application after checking your rates, you will be required to authorize a full credit report inquiry, which would be considered a hard pull and may affect your credit

Michael Graw
Written by
Michael Graw
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.‎
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