If you’re in the market for a new car and considering financing options, PenFed Credit Union is a name you’ll want to look into. In this PenFed Auto Loan review, we will examine what makes them unique among lenders and why you should give them a try for your next vehicle purchase.
PenFed, known as Pentagon Federal Credit Union, is a credit union that has existed since 1935 and has grown into one of the largest and most trusted credit unions in the USA.
Thanks to their competitive rates and outstanding customer support. They provide a wide spectrum of financial products and services, which include car loans.
How does Penfed Auto Credit work?
PenFed auto online application process is simple and fast. The ability to pre-fill applicant and vehicle details helps speed up the application process.
The amazing part is that they can complete the application process and even upload any required documents all from home; all they have to do is apply, as they are 100% online.
Auto Purchase Loan Benefits
The PenFed New Auto Loan gives plenty of benefits to both new and used car buyers. The company provides excellent rates on new and used vehicles, with flexible interest rates to attract those interested in buying cars or trucks.
The main benefit of this credit is that a borrower can get financing of up to 125%. This additional funding can be used to cover expenses like taxes, registration fees, and an extended warranty.
PenFed Auto Loan Review
New Auto Loans
Starting APR: 5.24%
Loan term: 36 to 84 months
Loan amounts: up to $150,000
Loan terms: 36–84 months
Used Auto Loans
Starting APR: 6.49%
Loan term: 36 to 84 months
Loan amount: up to $150,000
Refinance Auto Loans
APR: 5.94%
Loan Term: 36 to 84 months
Loan Amount: Up to $150,000.
How To Apply For PenFed Auto Loan
- Have your information ready. During the application process, we may ask you to provide your employment and income details, as well as verify your identity.
- To apply for a product, go to PenFed.org, find the product you want, hover over the image, and click the green “Apply Now” button.
- If you are a member, click the green “Login” button to start your loan application. If you are not a member yet, click the blue “Apply Now” button to begin your loan and membership applications.
- Follow the on-screen instructions to complete and submit your application. Keep an eye on your email and phone for updates on the status of your application.
- To be eligible for a new auto loan, you must be a PenFed Credit Union member. This involves opening a new savings account with a minimum deposit of $5, which establishes your membership.
Note:
PenFed’s new auto loans are available nationwide, including in Washington, D.C., and U.S. territories. Regardless of your location, you can apply for a PenFed auto loan and enjoy competitive rates and flexible terms.
Vehicle Requirements
- *APR = Annual Percentage Rate. The annual percentage rate (APR) you receive will be determined when your loan is processed and will depend on your application and credit history. Not every applicant will qualify for the lowest rate.
- New Auto Loans: For new auto loans, the rate applies to vehicles where you are the original owner and the car is a 2023 model year or newer with less than 7,501 miles. Financing of up to 125% is available in the U.S., and up to 110% in Puerto Rico and the Virgin Islands. There are vehicle weight and mileage restrictions.
- Used Auto Loans: The maximum financing amount will be based on the JD Power valuation, plus tags, title, taxes, and extended warranties, up to 125% in the U.S.
- Eligible used vehicles for the 84-month loan term must be model years not older than the current year minus five and have less than 60,000 miles. Rates depend on the loan term, and there are vehicle weight and mileage restrictions.
- Refinance Auto Loans: New vehicles are those where you are the original owner and the car is a current model year or newer with less than 7,501 miles. Used vehicles are pre-owned or have over 7,501 miles.
- PenFed Car Buying Service is available in all 50 states.
PenFed Auto Loan Review For 2024
Model Year 2023 or newer and never titled
| 36
Months |
48
Months |
60
Months |
72
Months |
84
Months |
|
| 5.24%* | 5.44%* | 5.49%* | 6.14%* | 7.29%* | |
New Auto Purchase
Model Year 2023 or newer and never titled
| 5.94%* | 6.04%* | 6.09%* | 6.39%* | 7.29%* |
Pre-owned vehicles or vehicles with over 7,501 miles
| 6.49%* | 6.64%* | 6.64%* | 6.74%* | 7.74% |
Used Auto Purchase
Pre-owned vehicles or vehicles with over 7,501 miles
| 6.79%* | 6.89%* | 6.89%* | 6.99%* | 7.74% |
Read also:Â The Best Car Loans For 2024: Top 5 Lenders
FAQs
How long does it take for PenFed to approve a loan?
PenFed, a credit union, offers a quick loan application process, usually taking 24-48 hours for approval. The low rates and the relaxed terms that PenFed offers make it easier for borrowers to access the credit line in due time. Their quick approval timeline makes them a top choice for those needing a prompt loan decision.
What is the minimum credit score for PenFed?
The minimum credit score required for PenFed loans is normally 650. However, applicants with a score of 720 or higher are more likely to receive the lowest interest rates and the largest loan amounts.
What is the grace period for PenFed auto loans?
They give a grace period of 5 to 15 days. While prompt payment with PenFed is always good, the grace period will help ease your anxiety in case of any unforeseen emergencies that might affect your cash flow.
Conclusion
PenFed loans are an attractive choice for buyers who search for attractive rates and flexible terms. Low APRs, zero application fee, and a number of loan options make PenFed Credit Union among the top lenders for vehicle financing.
A good service reputation and the availability of online applications make the process convenient. If you are in the market for an auto loan, PenFed is certainly a lending institution you should check out.
