Applying for an Auto Loan
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.
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.
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.
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.
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.
- Find the vehicle you would like to purchase and have the VIN ready.
- 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.
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 firstname.lastname@example.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.
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
What will my monthly payment be?
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.
Managing Your Auto Loan
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.
From the Mobile App:
- Sign in and tap on Transfers on the bottom navigation menu
- Tap View/Add Accounts
- Tap on + at the top right of the screen
- Tap External Financial Institution
- Provide information in all fields and tap Continue
- Confirm information and tap Add Account
- Retrieve confirmation code by email and tap Activate
- Tap Done
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.
Paying Off Your Loan
Where can I get the payoff amount for my auto loan?
- Sign in to digital banking.
- Select Loans & Credit on your Accounts page.
- Select the Auto Loan link listed there.
- Choose the Additional Account Information drop-down.
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.
Titling & Registration
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.:
|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
|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:
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 email@example.com 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:
Guaranteed Asset Protection (GAP) Coverage
What is GAP?1
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?1
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
- 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
Servicemembers Civil Relief Act (SCRA)
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.
Your purchase of Guaranteed Asset Protection (GAP) is optional. Whether or not you purchase GAP will not affect your application for credit or the terms of any existing credit agreement you have with Navy Federal. You may choose to pay the fee in a single lump sum or you may finance it into your loan, which would increase the cost (NOTE: California Active Duty and Active Reserve Duty servicemembers cannot finance the fee). If you cancel your optional GAP coverage within 60 days of enrollment, you will receive a full refund of any fees. Additional information will be provided to you, which will include a copy of the GAP Agreement and Disclosure (NFCU23A) containing the terms of the plan. There are eligibility requirements, conditions, and exclusions that could prevent you from receiving benefits under the plan. You should carefully review the additional information for a full explanation of terms.↵