Auto Loan FAQs

How do I apply for an auto loan?

After signing in to your account via online banking or the mobile app, you can apply for your auto loan in just a few minutes. There's no fee to apply and most decisions are instant. In cases where applications require more attention, we'll send you an email and/or a text.

If approved for an auto loan, we’ll mail you a check or you could pick it up at your nearest branch. Once you pay the seller, ensure the title is received by Navy Federal within 90 days of purchase. You can also apply over the phone at 1-888-842-6328 or at a branch.

Do I need to be a Navy Federal member to apply for an auto loan?

Yes, you need to become a member before you can apply for an auto loan. Learn more about joining Navy Federal. 

What type of information do you collect when I apply for an auto loan?

When applying for an auto loan, you'll need to provide the following details for yourself and any co-applicant:

• contact information (phone number and email)
  
• current housing, employment and income information
• any vehicle trade-in information (title or loan information, registration, etc.)
• amount  expected to finance (including vehicle purchase price, taxes, tags, title and warranty, minus any down payment)
• length (term) of the desired loan

And, if you’ve already picked out the vehicle you wish to buy, you’ll also need:

• the 17-character vehicle identification number (VIN)
  
• the state where you’ll register the vehicle
• the exact mileage reading
• the dealer or seller's name

For refinance loans, you'll need to give us specific vehicle information such as the VIN, exact mileage, lender contact information and payoff amount.

Do I need a co-applicant to be approved for an auto loan?

No, but depending on your situation, a co-applicant may help you meet the requirements for credit and the ability to repay.

What kind of credit score do I need to get a car loan?

We don’t require a set credit score to qualify for an auto loan with us. We take many factors into consideration.

Do I need to make a down payment to be approved for an auto loan?

No, a down payment isn't required. In some cases, however, it may improve the loan-to-value ratio, which could help with the approval process.

How long does it take to fill out the form to apply for an auto loan from Navy Federal? 

It typically takes less than 10 minutes to complete an application.

I have limited credit history. Can I still get an auto loan?

Yes, but a co-applicant may be required depending on the loan amount.

What is a VIN?

The vehicle identification number (VIN) is a 17-character string of numbers and letters assigned to the vehicle by the manufacturer. It identifies the year, make, model and other specifications of the vehicle.

Does Navy Federal charge a fee to apply for an auto loan?

No. Navy Federal doesn't charge an auto loan application fee.

How long is my preapproval auto loan check good for?

Your auto loan preapproval is good for 90 calendar days from the date of the check.

How soon will I receive a decision after I submit my loan application?

Within minutes, in most cases! If you provided your email address during the application process, we'll send you a follow-up email with more details.

Can I get approved for an auto loan before I pick out my car?

Yes. That's called a preapproval, and it allows you to know exactly how much car you are preapproved for before you shop. Remember—while you negotiate the best price with a dealer, don’t reveal to them the maximum amount of financing you're pre-approved for.

If I'm at the dealership and have picked out my new car, can I get auto financing quickly through Navy Federal? 

Yes, you can easily apply for an auto loan right from your phone via our mobile app.^{Footnote 1} In most cases, you'll receive a decision seconds. Once you're approved,  stop by our nearest branch to pick up your check.

Are preapproved loans accepted at overseas dealerships?

Our preapproved auto loan may not be accepted at some overseas dealerships. To verify, contact the dealership directly. If the dealer will accept a Navy Federal preapproved auto loan, you can proceed with applying. If not, please follow the steps below on how best to apply for an auto loan instead.

1. Find the vehicle you would like to purchase and have the VIN ready.
2. Apply online or on the mobile app for an auto loan for the vehicle you have selected.

Once my loan is approved, how do I get my check?

You can receive your check the following ways:

• By mail sent to the address you provided (there may be a fee depending on delivery type)
  
• By picking it up at a branch

Note: If the co-applicant's address is different from the primary applicant's address, the loan check and promissory note—or loan contract—are sent to the co-applicant first.

How can I find dealers that will accept my auto loan financing from Navy Federal?

Any dealer you choose should accept financing from Navy Federal. If you want to shop online for your next car, you can use the Navy Federal Car Buying Service, Powered by TrueCar.

Where can I find more calculators to help me evaluate my auto-buying options?

You can find our auto calculators here. 

If my auto loan application isn’t automatically approved, will I still be able to sign my Promissory Note electronically?

Yes. Email notifications are sent with directions on how to electronically sign your Promissory Note.

What if I run out of time to sign the Promissory Note electronically?

If you’re unable to electronically sign your Promissory Note by the specified date, we’ll automatically mail paper loan documents to your address on record.

How can I send my signed Promissory Note?

Once you receive your Promissory Note, please sign it (and initial if Guaranteed Asset Protection was selected) and return it to us in one of the following ways:

• Visit our Document Upload Portal to easily submit any Consumer Loan documents. Once signed in, choose the document file to upload, select the document type and then click Upload to submit.
• Send an attachment through digital banking by signing in to your account and selecting Messages. Then choose Send us a message and select your loan number, or select New/Recent Application, then Vehicles and Other Loans. Finally, you can write a message if you wish, then select the document file to attach and click Continue to proceed with your message.
• Email the document as a PDF attachment to loaninfo@navyfederal.org. Include your name and Access Number in the subject line. In the body of the email, provide your contact phone number and any additional comments you might have. You may send the document as an image from your smartphone, but it may take longer to process.
• Drop off the printed and signed doucument(s) at any of our branches.

What are the current rates for new and used auto loans?

Our advertised rates offered are subject to change at any time and depend on the applicant’s credit, in addition to vehicle characteristics. However, we offer competitive rates and flexible terms. Your actual Annual Percentage Rate (APR) will be based on your specific situation. Check out our auto loan options.

Do you have different rates for buying a new car vs. buying a used car?

Yes, our rates are different for new- or used-car purchases. View our rates here.

How will the interest rate be determined for my auto loan?

Your auto loan rate is based on your:

• credit and financial history
  
• amount financed
• length (term) of the loan
• car’s model year
• car's exact mileage reading

Will shopping around for an auto loan hurt my credit score?

Shopping around for an auto loan generally has little to no impact on your credit score if you complete the rate shopping and get a loan within 45 days. For more information about the effect of shopping around for auto loans, visit the Consumer Financial Protection Bureau website.

What will my monthly payment be?

Your monthly payment will be determined by several factors, including your loan amount, term and interest rate. You can estimate your monthly payment with our Car Payment Calculator.

Can I finance my motorcycle with a Navy Federal auto loan?

No, you can't finance a motorcycle with a Navy Federal auto loan. But we do offer motorcycle loans for new and used motorcycles, which have different interest rates and application processes from our auto loans.

Can I finance my commercial or business vehicle with a Navy Federal auto loan?

No, you can't finance a commercial or business vehicle with a Navy Federal auto loan. But we do offer business and commercial vehicle loans to help keep your business moving.

What does the dealer need to do to validate my preapproval check?

This step is important! Take care to make sure the dealership you're buying from is aware that they need to validate your preapproval check with us before they can deposit it for payment. It's simple—they just need to call us at 1-866-348-8946 and we'll provide them with a 4-digit validation code to include on the back of the check. 

They'll also need to ensure the check is completed, accurate and legible. The front of the check should have the:

• name of the dealer
• purchase amount (numerical and written must be identical)
• borrower's signature and date
• vehicle year, make, model, mileage and VIN

The back of the check must have the:

• dealer endorsement signature or business stamp (identical to the name of the front on the check)
• validation code provided by Navy Federal
• borrower's signature and, if applicable, the co-borrower's/guarantor's signature

For more information, please see our Dealer Instructions.

If you approve my loan application, am I obligated to finance my vehicle with Navy Federal?

No. Getting approved for an auto loan with Navy Federal does not obligate you to use the funds.

When will my first payment be due?

Your first payment will be due between 30 and 60 days from when the loan is finalized. You’ll find your first due date on your Promissory Note—or loan contract.

How can I set up automatic payments to my auto loan?

Sign in to your account and select Transfers. You can schedule transfers from your checking or savings accounts, or even an external account.

How can I add an external account so I can make my payments to Navy Federal?

You can set up an external account through our mobile app or online banking.

1. Sign in and select Move Money from the bottom navigation menu.
2. Choose Manage Accounts.
3. Under External Accounts, select Add Account.
4. Answer Yes or No based on whether you’re the owner or joint owner on this external account and click Continue. Note: If you answer no, you’ll be required to submit further external account details.
5. From here you can:
   
   • Add the external account by signing in with your external credentials. Select the financial institution you’d like to add and provide your login information.
   • Enter your financial institution’s routing and account number to verify your banking information. Select Verify Bank Information and enter so we can verify account ownership. Note: This takes 5 days.
6. You’ll be directed to a new page where you’ll select the accounts you’d like to add—such as Checking or Savings—then select Save and finish.
7. To make sure you can transfer money to and from the external account, select Yes, verify my accounts.

How do I view monthly statements for my auto loan?

You can access your monthly Consumer Loan Statements anytime by signing in to your account. Statements are available for up to 36 months and appear in PDF format, making it easy for you to print or save. You can also update your statement delivery preference so that you no longer receive paper statements. And, if you’ve signed up for automatic or recurring payments, you won't receive paper statements. You may reinstate paper statements at any time.

What information is available in my monthly loan statement?

Your loan statement provides timely details about your account. You can get information about how much you owe and what you've already paid. Find out more to better understand your loan statement.     

How do I switch to paperless statements for my auto loan?

Learn how to enroll in paperless statements.

Can I change my payment due date?

No. loan payment due dates cannot be modified.

How do I contact Navy Federal with a question about my auto loan?

For account specific inquiries, you can:

• Call a stateside member rep at 1-888-842-6328 (or get international contact information)
• Visit a branch for in-person assistance

Can I refinance my existing auto loan through Navy Federal?

Yes, you can apply to refiance your existing auto loan if the loan is currently with another lender. Credit and collateral are subject to approval.

How are payments applied?

Each time a payment is received, we first satisfy the interest that has accrued since the date of the last payment and then apply the remainder of the funds to the principal balance. Therefore, if you pay more than the minimum amount due, the funds reduce the loan balance and are applied as a partial payment toward the next regular payment. 

How much money could I save by refinancing my car loan?

The amount of money you could save depends on many different factors. Use our Auto Refinance Calculator to see how much you could save. 

When should I refinance my car loan?

The timing for an auto loan refinance depends on different factors. You may want to refinance if:

• loan rates have gone down
• your credit score has improved, which means you could qualify for a better rate
• you'd like to shorten or lengthen your loan term

How long should you wait until refinancing a car loan?

There's no set amount of time you need to wait before you refinance your auto loan from another lender with us. 

Are there any fees associated with refinancing a car loan? 

No, we don't charge any fees.

Could refinancing my auto loan negatively affect my credit?

Refinancing your auto loan will lower your credit score temporarily. 

What are your current rates for auto refinancing loans?

View today's auto loan rates here.

What will my monthly payment be when I refinance?

Your monthly payment will be determined by several factors, including your loan amount, term and interest rate. You can estimate your monthly payment with our Car Refinancing Calculator.

How does the title process work when refinancing?

If you refinanced from another financial institution, verify with them that the title was mailed to Navy Federal Credit Union, P.O. Box 25109, Lehigh Valley, PA 18002-5109. Please note that within 3 months of refinancing your car, a Certificate of Title or other proof of ownership indicating Navy Federal Credit Union as the first lienholder must be submitted to Navy Federal. If the lien-recorded title isn’t received within that time frame, your loan’s APR may be converted to Navy Federal’s rate for signature/personal loans, which is typically higher and can increase the monthly payment.

Once Navy Federal receives the title, we'll mail to your address on file any paperwork required for the lien-recorded title application. Navy Federal will debit the DMV titling fees from your savings account upon receipt of the completed and signed paperwork and submit to the DMV on your behalf.

Can I refinance my existing auto loan through Navy Federal?

Yes, if the auto loan is currently with another lender. Credit and collateral are subject to approval.

How can I refinance a car loan with Navy Federal?

You can refinance your car loan in 4 steps. Learn more about how to refinance your auto loan.

How soon will I receive a decision after I submit my loan application?

Within seconds, in most cases! If you provided your email address during the application process, we'll send you a follow-up email with more details.

Where can I get the payoff amount for my auto loan?

1. Sign in to your account.
2. Select your auto loan from the Accounts page.
3. Choose Show More Details. Your payoff amount will be listed under balance details.

How can I pay off my auto loan?

• There are a few ways you can pay off your auto loan.

• Pay using digital banking
  
• Call a stateside member rep at 1-888-842-6328
• Visit a branch for in-person assistance

Will there be a penalty if I pay off my loan early?

No. If you pay off your loan early, you won’t have to pay a penalty. Remember, before you apply a lump sum payment to your loan's principal balance to pay it off, you must pay all accrued unpaid interest, charges or fees that might be outstanding.

How is interest calculated on auto loans? 

We calculate interest daily, using the simple interest method. That means we calculate interest on the unpaid principal balance from the date of receipt of the last payment until the date of receipt of the current payment.

How are payments applied?

Each time a payment is received, we first satisfy the interest that has accrued since the date of the last payment and then apply the remainder of the funds to the principal balance. Therefore, if you pay more than the minimum amount due, the funds reduce the loan balance and are applied as a partial payment toward the next regular payment. 

Can I designate a payment as a principal reduction payment?

No. Payments are applied first to unpaid interest, then to the principal balance. Payments more than the minimum amount due will reduce the loan balance but are a partial payment toward the next payment due.

It's always to your advantage to make extra payments to your loan at any time since you’ll pay the loan off early with less interest over the life of the loan.

What happens if I pay more than the minimum payment?

If you pay more than the amount due, we'll count any extra funds as a partial payment toward your next payment due. Depending on how much extra you pay, your next due date could be a month or more in the future. Interest accrues daily, regardless of the due date, so you can save on interest by continuing to pay extra.

Where can I see how my payments are applied?

Using the digital platforms, view the “Transaction Detail.” Each payment shows the date the payment was applied, the amount applied to principal and the amount applied to interest. A printed version of the payment history can also be requested through member service channels.

Once I pay off my loan in full, how long will it take for me to receive my title?

In most situations, your title will be released within 10 business days of Navy Federal receiving your payoff and can take up to 7 to 10 business days for delivery of the title or lien release. If the title is electronic or other conditions apply, the email or the mailed letter will detail the process of getting the physical title and ensuring that the lien release is properly recorded.

Your state’s processing requirements may also affect the timeline, as some states process titles electronically, while others don't. Contact your local titling or registration authority for more information about their processes and timelines.

What are the acceptable proofs of ownership for my property?

There are a few acceptable proofs of ownership if you need to prove to your state’s Department of Motor Vehicles (DMV) or another legal party that you're the legitimate owner of your vehicle. For collateral located in the U.S.:

Collateral Type	Document Required by Navy Federal
New or Used Vehicle	State-Issued Certificate of Title
Boat, Trailer, Motor	State-Issued Certificate of Title
Collateral Titled in KY, MD, MN, MT, NY, & OK	Security Interest Filing (SIF) or Copy of Title
Vessel/Boat Registered with U.S. Coast Guard	Copy of Preferred Ship Mortgage or Abstract of Title
Collateral Registered but Not Titled Due to State Regulation	Copy of State-Issued Registration or Copy of Bill of Sale
Aircraft	Copy of FAA Registration

For a new or used vehicle or collateral located overseas, Navy Federal requires one of the following:

• Copy of Manufacturer's Statement of Origin
  
• Copy of Military or Foreign Registration
• Copy of Bill of Sale

I’m purchasing my vehicle from a private third-party seller rather than a dealer. What steps do I need to take after I pay?

Check with your state's DMV to confirm taxes, fees and documentation needed to register and record Navy Federal as the first lien holder on your vehicle title. In general, DMVs will require the title signed over to you by the seller, a Bill of Sale documenting the transaction and a copy of your Promissory Note.

What's a lien holder?

A lien holder is someone—usually a financial institution or lender—that has an enforceable right on an asset/property as security for a debt.

What's Navy Federal’s lien holder code for my state?

The following are the most common state lien holder codes:

State	Code
AZ	E00074332
AR	1927
CA	W33
CO	E5301167050001
FL	205930786
GA	001100781442
HI	NAV
IA	530116705
ID	530116705
LA	EMNB
MA	C02299
MD	6803
MS	90016287600
MT	530116705
NC	30958056
NE	10264578
NH	13
NJ	597338238180020
NY	77927
NV	NA0004
OH	E00189
OR	6049513
PA	53-011370501
SC	14499500
SD	530116705
TX	53011670500
VA	ELT45
WA	NFU
WI	44174

What if my vehicle is titled in Kentucky, Maryland, Michigan, Minnesota, Missouri, Montana, New York or Oklahoma?

If Navy Federal is listed on your title as first lien holder, please email a copy of the title to titles@navyfederal.org or fax it to 703-255-7975 or 703-206-4000 within 3 months of purchase.

What's a Bill of Sale?

A Bill of Sale is a document detailing the transaction between a seller and a purchaser. In general, it will include the:

• date of the transaction
• description of what is being sold (e.g., make, model, year, VIN, vehicle weight, exact mileage reading)
• dollar amount of the transaction
• city/county and state of the transaction
• names and addresses of the seller and purchaser
• signatures of both parties

What should I do if it has been over 2 months and Navy Federal still hasn’t received my title?

Contact your state's DMV (or local titling or registration authority), dealership or financial institution to confirm your title was sent to Navy Federal. Additionally, you can notify us of the steps you’ve taken to secure the title and any issues you’ve encountered. To contact us:

• call us at 1-888-842-6328.
• visit a branch

What is GAP?^{Footnote 2}

GAP is an optional loan protection product that can be helpful should you be in an accident and have your vehicle declared a total loss. GAP does not take the place of primary insurance coverage for the vehicle.

What does GAP cover?^{Footnote 2}

GAP may cover the difference between the outstanding loan amount (after the insurance settlement payment has been applied) and the actual cash value of your vehicle, including up to $1,000 of the borrower’s deductible. GAP does not take the place of primary insurance coverage, which must be maintained on the vehicle. Refinanced vehicle loans may also qualify for GAP depending on the loan amount, term and vehicle.

Please note that GAP isn't available for:

• consolidation loans or collection refinance loans
• loans with a loan-to-value ratio less than 70%
• vehicles used for commercial purposes, such as ride-sharing and food delivery
• motorcycles
• loans in the amount of $7,500 or less with a term of 12 months or less 

How much does GAP cost?

A flat enrollment fee of $399 applies for eligible new and used vehicles. You may pay this as a lump sum or finance it by rolling the amount into your loan (California Active Duty and Active Reserve Duty servicemembers must pay the flat fee instead of financing the fee into the loan). Be mindful that adding the fee to your loan will increase the cost. As a comparison, many car dealers charge up to $990 for asset protection products.

Can I transfer GAP from one vehicle to another?

No, GAP is nontransferable from one auto loan to another auto loan.

How much would my payment be if I finance GAP with my auto loan?

Your monthly payments will increase, but by how much will depend on the loan amount, as well as the interest rate and term of your loan.

Can I cancel GAP coverage?

Yes, you'll receive a full refund if GAP is canceled within 60 days of enrolling in the program. After 60 days, the fee is fully earned and non-refundable, and GAP won't be canceled.

In what circumstances would I be able to file a GAP claim?

Your car must be declared a “total loss” by your insurance company or designated appraiser, or there must be “unrecovered theft.” Please see your GAP Agreement and Disclosure for further information.

How do I submit a claim?

You can initiate the claim process by calling Navy Federal at 1-866-258-7298, Option 1, Mon. through Fri., 8 am to 5:30 pm EST. Claims are usually processed within 5 business days of receiving all required documentation.

We'll need the following documentation from you in order to process your GAP claim based on your loss type.

Collision & Theft—Recovered

• The settlement breakdown letter, which should indicate any taxes, fees and deductibles applied
• Any information regarding the cancellation of optional insurance, extended warranties and/or service contracts
• The insurance settlement check posted to the loan account
• Signed and initialed Promissory Note for your loan, if one isn't on file

Theft–Not Recovered (submit the documents above plus the following)

• Police report with vehicle identification number and date of loss

 

What is the Servicemembers Civil Relief Act (SCRA)?

The Servicemembers Civil Relief Act (SCRA) provides legal and financial protection to eligible Active Duty servicemembers. It includes benefits such as a 6% interest rate cap. 

However, effective April 1, 2022, Navy Federal is offering a lower maximum interest rate of 4% to eligible member accounts.

Is my auto loan eligible for these benefits?

Your Navy Federal loan may be eligible for SCRA benefits if it was opened before you started Active Duty. Visit our SCRA page for more information on eligibility and to request benefits.