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The bottom line: PenFed Auto Loan is great for borrowers who want to buy a new or used car or refinance their loan. The lender doesn’t charge an origination fee and has 24/7 customer service. However, you won’t be able to buy out your lease with the credit union.
Pros and cons of PenFed auto loans
Pros
No origination fee. Origination fees are taken out of your overall loan fees and raise the overall cost of your loan. PenFed doesn’t charge an origination fee like some other lenders. Wide loan amount range. PenFed will lend between $500 to $150,000 to borrowers. This is great for borrowers who need a bit of cash or those who need to fund a more expensive purchase. Offers financing for new and used cars, as well as refinancing. Most borrowers looking for auto loans need them for new purchases or refinancing. PenFed is able to cater to borrowers with a variety of needs. 24/7 customer service. You’re able to fill out a form on PenFed’s website detailing your question and receive a response any time of the day. Choose to receive a response by email or phone. Rates readily available on PenFed’s site. PenFed lists its rates online and has a calculator on its site to see your estimated monthly payments. Other lenders, like Wells Fargo, are more opaque about their rates.
Cons
Late fee. You’ll fork over a $29 late payment penalty if you fall behind on your payments. Other lenders don’t charge this fee. Lease buyouts unavailable. If you’re currently leasing a car and want to buy out the remainder of the term, you won’t be able to do so with PenFed. The credit union finances new and used cars and does vehicle refinancing. You have to be a member to get your loan. Members of the military and employees of qualifying organizations will automatically be eligible. But anyone can join the credit union. You can become a member by opening a savings account with a $5 minimum deposit.
Who is PenFed best for?
PenFed is best for borrowers who need a range of loan amounts. With a loans as small as $500 and as large as $150,000, borrowers across the spectrum will find a match with the lender. If you value around-the-clock customer service, PenFed is also a good choice, as you can reach someone there 24/7.
If you don’t want to become a member of the credit union or need to buy out a lease, this lender might not be the best choice for you.
How PenFed auto loans compare
PenFed has comparable rates to Navy Federal Credit Union, but its APRs start higher than the rates from PNC.
PNC only offers financing for cars model year 2014 or newer. Navy Federal offers financing for cars less than 20 model years old. PenFed doesn’t have a maximum age for used vehicles.
See our ratings methodology for auto loans »
Frequently asked questions
Is PenFed trustworthy?
PenFed has an A+ rating from the Better Business Bureau, non-profit organization focused on consumer protection and trust. The BBB determines its score by evaluating a company’s response to customer complaints, truthfulness in advertising, and transparency about business practices.
PenFed doesn’t have any recent public controversies.
Between its top-notch BBB score and clean history, you might decide you’re comfortable taking out a personal loan with PenFed.
Is PenFed good for auto loans?
PenFed is a very solid option for auto loans. We’ve given the company a four star out of five rating, with its major pros including its wide range of loan amounts and excellent customer support.
What credit score is needed for a PenFed auto loan?
The credit union doesn’t disclose its minimum credit score, but PenFed is more likely to approve you for a loan with a higher score.
How long does it take PenFed to fund an auto loan?
You should receive your money within one day of the lender approving your loan.