PenFed Auto Loan Review: Low Rates and Plenty of Options

Find out PenFed's auto loan rates.

When you need an auto loan, you might consider getting one from Pentagon Federal Credit Union. In addition to auto loans, PenFed offers a full suite of personal finance products, including checking and savings accounts, credit cards, mortgages, personal loans, overdraft lines of credit and certificates. The credit union has brick-and-mortar locations as well as online and mobile banking options.

Check out this review to decide if PenFed Credit Union auto loans are the best choice for you.

Pentagon Federal Auto Loan Review

PenFed offers several types of auto loans to suit your borrowing needs, whether you’re purchasing a new or used vehicle, or want to refinance an auto loan. Here are the available loans:

  • PenFed New Auto Loan
  • PenFed Used Auto Loan
  • PenFed Auto Refinancing for New and Used Cars
  • PenFed Car Buying New Auto Loan
  • PenFed Car Buying Used Auto Loan
  • PenFed Payment Saver New Auto Loan
  • PenFed Payment Saver Used Auto Loan

Here are the details for each loan option, including the PenFed auto loan rates:

PenFed Auto Loans at a Glance
PenFed LoanAPRTermLoan Amount
New Auto LoanStarting at 2.49%36 to 84 months$500 to $100,000
Used Auto LoanStarting at 3.74%36 to 72 months$500 to $100,000
New Auto Loan RefinancingStarting at 2.49%36 to 84 months$500 to $100,000
Used Auto Loan RefinancingStarting at 3.74%36 to 72 months$500 to $100,000
Car Buying New Auto LoanStarting at 1.99%36 months$500 to $100,000
Car Buying Used Auto LoanStarting at 2.74%36 months$500 to $100,000
Payment Saver New Auto LoanStarting at 3.49%49 to 60 months$10,000 to $100,000
Payment Saver Used Auto LoanStarting at 4.49%49 to 60 months$10,000 to $100,000
Rates are accurate as of June 22, 2018.

The actual APR you receive will be dependent on the loan term and your credit. Only applicants with excellent credit will qualify for the lowest APR rates. No regular fees are associated with the auto loan you receive, but if you make a late payment, you’ll be charged 20 percent of the finance charge due. You’ll also be subject to a $15 fee for a check stop payment.

With an online application process, applying for a PenFed car loan is easy. But if you aren’t already a PenFed member, you’ll need to become one in order to obtain an auto loan. PenFed is a military credit union that’s easy for civilians to join — simply donate to a select charity. Membership also requires you to deposit at least $5 into a share or savings account.

Pros and Cons of PenFed Auto Loans

Taking out an auto loan can help you pay for the car of your dreams — but before you decide on a lender, make sure you know it’s the right fit for you. As with any other loan, there are advantages and disadvantages to PenFed loans.

Find Out: Top 8 Hidden Costs of Taking Out an Auto Loan

PenFed Auto Loan Pros

A PenFed auto loan comes with the following benefits:

  • Low APRs starting at 2.49 percent
  • Loan amounts up to $100,000
  • Financing up to 110 percent
  • Easy online application
  • Terms up to 84 months
  • Preapproved auto drafts available to qualified buyers

PenFed Auto Loan Cons

The biggest disadvantage of PenFed auto loans is that you must be a member of the credit union to qualify for a loan. Membership eligibility depends on your employment, association membership, volunteerism or military affiliation.

See Where PenFed Ranks: 12 Best Credit Unions for Car Loans

Should You Take Out a PenFed Auto Loan?

Determining the best auto loan for you depends on the type of loan you need and the terms of the loan you want, as well as your credit history. A candidate with a high credit score could benefit from PenFed’s low-rate auto loans, and the credit union offers a variety of loans so you can find the right one for your situation.

Before taking out any auto loan, make sure you can afford to make the payments you agree to. It’s also best to compare loans at different lenders based on your needs and credit history to find the best loan for you.

Low Rates and No Fees: PenFed Personal Loan Review 

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This content is not provided by the companies mentioned. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been reviewed, approved or otherwise endorsed by PenFed Credit Union.

About the Author

Gabrielle joined GOBankingRates in 2017 and brings with her a decade of experience in the journalism industry. Before joining the team, she was a staff writer-reporter for People Magazine and Her work has also appeared on E! Online, Us Weekly, Patch, Sweety High and Discover Los Angeles, and she has been featured on “Good Morning America” as a celebrity news expert.