Navy Federal Credit Union serves up 1.99% auto loan rates

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Navy Federal Credit Union is offering some of the best auto financing deals this season, with rates as low as 1.99% for 5-year, new-car loans.

The country’s largest credit union charges less than half the average cost of these types of loans, which is about 5.47% APR based on our latest survey of lenders.

These loans are available to the 3 million members of the credit union, which has branches in Arizona, Florida, New York, South Carolina and Virginia. You can obtain a loan online or over the phone.

Membership generally is open to active and retired members of the military, eligible contractor employees and people related to a member.

Visit the credit union's website ( to see eligibility requirements.

If you borrow $15,000 at 1.99% APR for 60 months, your payments would be just under $263 a month.

Compare that to borrowing the same amount at the national average of 5.47% APR for five years. You’d pay $286 a month.

That means the more affordable financing from Navy Federal would save you $23 a month, or $1,380 over the life of the loan.

The 1.99% APR rate is for autos that are model 2010 or newer, with less than 7,500 miles. The offer is not eligible for additional interest rate discounts.

Navy Federal’s rates for used-car loans are even more attractive.

Late-model used vehicles (2010, 2011 or 2012 models) with 7,500 to 30,000 miles can qualify for terms as low as 2.99% APR for 3-, 4- and 5-year loans.

The national average for a 3-year, used-car loan is more than twice that rate at 6.51% APR, according to our survey.

If you borrow $15,000 at the average rate, you’d pay about $460 a month. But if you borrow at Navy Federal’s late-model used-vehicle rate of 2.99% for three years, you’d pay about $436 a month.

If you have your eye on a preowned vehicle with a model year that’s older than 2010 or has more than 30,000 miles, Navy Federal can also finance it with a 36-month loan as low as 3.59% APR or a 60-month loan as low as 3.99% APR.

That’s still well below the national average.

Search our database of the best auto loan rates from more lenders in your area to see if you can find a better deal.

Then, use our auto loan calculator to help you budget your monthly payment.

Navy Federal has no origination fee for its auto loans, and you can borrow up to 100% of the value of the car or truck you're buying, which means that you don't have to come up with a down payment to qualify.

Having an idea of how much you’d pay at a credit union means you can negotiate more effectively with a car dealer’s finance manager.

Either the dealer has to beat the loan terms, or you can go with Navy Federal for auto financing. Either way, you're getting a good deal.

If you’re shopping for a new car or truck, use our 6-step plan for driving the best deal. You can shop confidently for a good deal on a new vehicle.

If you’re in the market for a preowned auto, follow our 10 smart moves for buying a used car to help you avoid the costly mistakes.

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