Auto Loan FAQs

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.^{Footnote [1]}

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 choose one of the following:
   
   • Add the external account by selecting the financial institution you'd like to add and signing in with your external credentials.
   • 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, if the auto 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 auto 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 auto 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 an auto 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 an auto loan?

No, we don't charge any application or origination fees. Plus, we don't have any prepayment penalty fees if the loan is paid off early. 

Could refinancing my auto loan negatively affect my credit?

Refinancing your auto loan can 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, PO Box 659027, Sacramento, CA 95865. 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 an auto loan with Navy Federal?

You can refinance your auto 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 pay off amount for my auto loan?

1. Sign in to digital banking.^{Footnote [1]}
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 of 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 US:

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/a 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:

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

If Navy Federal is listed on your title as first lien holder, please upload a copy of the title using the Document Upload Portal here within 3 months of purchase. For Kansas, you’ll need to provide both the title and registration receipt.

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?

GAP^{Footnote [3]} is an optional plan that may cover the difference between your outstanding loan amount and what your primary insurance company covers in the event your vehicle is totaled in an accident or stolen. GAP doesn't take the place of primary insurance coverage for the vehicle.

What does GAP cover?

GAP^{Footnote [3]} 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 doesn't 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 of 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 $499 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 $1,050 for similar 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 Plan 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, Monday through Friday, 8 am to 5:30 pm ET. 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
• The signed and initialed Promissory Note for your loan, if one isn't on file

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

• The 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 on debts you had before you started Active Duty.

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.

What is the new auto loan interest deduction introduced by OBBBA?

Certain auto loans are eligible for up to $10,000 in paid interest to be tax-deductible. The One Big Beautiful Bill Act (OBBBA), signed into law July 4, 2025, created this temporary tax benefit for taxpayers who took out an eligible car loan after Dec. 31, 2024 to buy a new, American-made vehicle for personal use. Currently, this provision applies to tax years 2025 through 2028. Both taxpayers who take the standard deduction and those who itemize can potentially use this benefit. The goal of the law is to help people use the interest they're paying to lower their taxable income.

Which vehicles do and don’t qualify for this interest deduction?

According to IRS guidelines, vehicles that qualify are generally personal-use vehicles manufactured in the United States—typically include standard passenger cars, SUVs, pickup trucks, minivans and even motorcycles.

However, certain vehicles don't qualify under the law. For example, these vehicle aren't eligible:

• Boats, RVs and leisure vehicles (such as campers and all-terrain vehicles—or ATVs)
• Vehicles assembled outside the US If you’re unsure where your vehicle was assembled, you can often find the country of final assembly on the vehicle’s window sticker or VIN information.
• Commercial-use or very heavy vehicles generally over 14,000 lbs

What types of auto loans are eligible for the deduction?

Here are the specific loan criteria that qualify an auto loan for the deduction:

• The loan must have been opened between Jan. 1, 2025 and Dec. 31, 2028. Only loans taken out after 2024 qualify, as the law took effect starting in 2025.
• The loan must have been used to purchase a “qualified” vehicle. In other words, the financing should be for buying the eligible vehicle itself and nothing else. For example, a general personal loan or a home equity loan used to buy a car wouldn't qualify, nor would a lease.
• You must have paid $600 or more in interest on the loan within the tax year. This threshold is derived from the IRS reporting rules—lenders are required to report interest if it exceeds $600 for the year. If the amount of interest paid was below $600 for 2025, that loan interest isn’t subject to the new deduction.

What about refinanced loans or loans on older cars?

Generally, to qualify, the original loan still needs to meet the above conditions. For instance, if you refinanced an eligible auto loan (from 2025 or later) without taking any cash-out beyond the remaining balance, it can still qualify under OBBBA’s rules. But if your loan originated before 2025 (or was used to purchase a vehicle that isn’t eligible), then the new loan wouldn’t qualify.

How is Navy Federal notifying members about this?

Navy Federal reached out by email to members who appear to have qualifying auto loans under these rules. Specifically, if our records showed that you paid $600 or more in interest during 2025 on an auto loan opened in 2025 for a qualifying personal-use vehicle, we sent you an email informing you that your loan may qualify for the new deduction. These emails were sent in January 2026, before tax filing season.

If you didn’t get an email and believe you should have, it could be due to one of the following reasons:

• Your loan might not meet the date or vehicle requirements (for example, the loan was for a used or non-US-assembled vehicle, or it started before 2025).
• You paid less than $600 in interest for the year 2025 on that loan, in which case the deduction might not apply.
• Your contact information (email) is outdated. Please sign in to your account or call us at 1-888-842-6328 to ensure we have the most up-to-date contact information for you.

Even if you didn’t receive the Navy Federal email, you can still find key information about your 2025 interest paid on your most recent consumer loan statement. All members with an auto loan receive this statement, which details the total interest paid in the previous year, serving as your official tax record, regardless of whether you received an email reminder. Keep in mind that receiving or not receiving the Navy Federal notice isn't a definitive determination of your eligibility. These emails are a courtesy based on the available data to Navy Federal. In the end, your ability to claim the deduction relies on IRS rules and your individual tax circumstances. If you have questions or are uncertain about your eligibility, it’s best to review the IRS guidelines or consult a tax professional for advice.

Why might I not be eligible to claim this deduction?

Even if you have a car loan, you might not be eligible for the new deduction if any of the following are true:

• Ineligible vehicle: The deduction only covers interest on loans for qualifying personal vehicles. If the vehicle you purchased doesn’t qualify (e.g., it’s an RV, boat or assembled outside the US), then the interest on that loan isn’t deductible under this law.
• Loan date is outside the window: If your auto loan originated before 2025 (for example, a loan from 2021 or 2022 that you’re still paying), it predates the OBBBA program and doesn’t qualify.
• Loan isn't used to purchase a personal vehicle: If your loan wasn’t used to buy a personal-use vehicle (for instance, a cash-out refinance where the funds went beyond the car purchase), or if the vehicle is used for business purposes, those scenarios may not be eligible. The law is aimed at personal-use auto purchase loans.
• Low interest amount: If the total interest you paid in the year is below the threshold (under $600 for the year 2025), then you wouldn’t qualify to claim this deduction. 

Does Navy Federal determine if I qualify or provide tax advice on this?

No. Navy Federal doesn't make the final determination of who can take this tax deduction—that’s up to the IRS rules and your personal tax circumstances. Our role is to provide you with information about the interest you paid and to inform those who may be affected by the law. We don’t certify eligibility; we can only tell you when you may meet it, but it’s ultimately up to you (and perhaps your tax advisor or the IRS) to confirm eligibility.

Also, please note that Navy Federal cannot offer tax advice. If you have specific questions about your tax situation or how to claim the deduction on your tax return, it’s best to reach out to a tax professional (e.g., a CPA or tax advisor). They can give you personalized advice. Navy Federal representatives can help with questions about your loan (like interest amounts or getting copies of statements).

Where can I get more information or help regarding this deduction?

The best resource is the IRS itself. The IRS has a webpage about the OBBBA provisions, including the car loan interest deduction, which provides details on eligibility rules and other FAQs. You can visit the IRS site at IRS – One Big Beautiful Bill provisions for more information. In particular, look for the section on “No tax on car loan interest (Section 70203)”, which covers what counts as a qualifying vehicle, loan and other relevant details.