PenFed membership is open to all U.S. consumers, not restricted to a specific group.
As a not-for-profit, it offers competitive APRs to its members.
A car buying service is available, which can provide an additional rate discount.
Financing is available for new cars, used cars, and refinancing existing loans.
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Membership and Eligibility+
While PenFed was originally established to serve the military and certain government employees, its membership charter is now open to all U.S. consumers. An individual can become eligible for membership by opening and maintaining a savings account with a minimal deposit, typically five dollars. This open charter makes its financial products, including its auto loans, widely accessible to the general public.
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Financing for New and Used Vehicle Purchases+
PenFed provides its members with direct financing options for both new and used vehicles. Members can apply online and get pre-approved for a loan before they begin shopping at a U.S. dealership. This pre-approval provides the member with a clear budget and allows them to negotiate the vehicle price with the leverage of a cash buyer, which can simplify the purchasing process.
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The PenFed Car Buying Service+
The credit union offers its members access to the PenFed Car Buying Service, a platform powered by the third-party company TrueCar. This service allows members to search for vehicles from a network of certified U.S. dealers and to see upfront pricing information. A key feature of this service is that members who use it to purchase their vehicle may be eligible for an additional interest rate discount on their PenFed auto loan.
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Auto Loan Refinancing+
For vehicle owners who have an existing auto loan with another financial institution, PenFed offers an auto loan refinancing product. Members can apply online to determine if they can qualify for a lower Annual Percentage Rate (APR). The primary goal of refinancing is to reduce the monthly payment or the total interest cost over the remaining term of the loan.
Top Auto Loan Options in the U.S.
- PenFed Auto Loan – Industry-leading rates as low as 3.79 % APR on new cars via PenFed Car Buying Service, up to 125 % financing including add-ons, and quick prequalification without affecting your credit.
- Capital One Auto Navigator – Soft credit pull pre-qualification with real-time dealer inventory access.
- Bank of America Auto Loans – Reliable fixed-rate loans with digital account management and member perks.
- LightStream (Truist Bank) – Unsecured auto loans that allow any vehicle and fast funding.
- Carvana Financing – Fully online car purchasing and delivery, complete with financing options.
Traditional Bank Financing
Banks like Wells Fargo or Chase offer familiar auto loans, but they tend to feature higher rates and shorter terms. PenFed Credit Union, as a nonprofit institution, offers significantly lower APRs, longer options, and digital convenience—even higher-end financing through its Car Buying Service.
Financing with PenFed
PenFed auto loans open the door to competitive borrowing up to $150,000, with terms from 36 to 84 months. Through their Car Buying Service (powered by TrueCar), members can access rates as low as 3.79 % APR for new vehicles and 4.64 % APR on used cars, plus save an average of $2,851 off MSRP. Financing can cover the vehicle price, taxes, warranties—and even gap insurance—up to 125 %. You can prequalify online in minutes with a soft pull, check your estimated APR, and commit only when ready.
Refinancing Made Easy
PenFed’s refinance program can offer significant savings—averaging $191/month in lower payments. You can finance up to $150,000 and include add-ons using the same vehicle value structure. Prequalification won’t impact your credit, and you can extend your repayment term up to 84 months for faster monthly relief.
Unsecured Personal Loans vs. Auto Loans
PenFed’s unsecured personal loans range from 8.99 % to 17.99 % APR—great for general needs, but not ideal for auto purchases. When finance is specifically tied to your vehicle, PenFed’s auto loan rates (as low as 3.79 %) are much more favorable and tailored to long-term car financing.
Protective Coverage & Member Benefits
PenFed offers optional protection add-ons at competitive pricing, including GAP insurance, extended vehicle warranties, and debt protection in case of major life events. Using the Car Buying Service also qualifies you for deductible reimbursements—up to $500, twice a year.
How Auto Loans Impact Your Finances and Credit Score in the U.S.
PenFed’s soft prequalification keeps your credit score untouched until you decide to finalize. Once you proceed, only one hard pull occurs—even if multiple inquiries are done within a few days. Responsible, on-time payments help build your FICO score and improve your Debt-to-Income (DTI) ratio, while missed payments may cause harm. Their user-friendly portal and autopay options support consistent repayment and future financial flexibility.
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