Pentagon Federal has three great deals on car loans

Flags and used-car banner

Pentagon Federal Credit Union has special financing offers for car and truck buyers with some of the lowest interest rates around, including 0% financing on some used cars.

That's not something you see every day. Free financing is usually only offered on new vehicles.

Here’s a look at the deals the country’s third-largest credit union is offering:

0% APR on four-year used car loans, 0.49% APR on five-year loans

PenFed is partnering with Enterprise car rental’s auto sales arm to offer these low rates to members who finance an Enterprise car with PenFed.

These preowned autos were likely part of Enterprise’s rental program. You can view available vehicles from a link on PenFed’s website (www.penfed.org). If you find a car or truck you like, you would need to apply online

If you borrow $18,000 for a car loan at 0% for 48 months, your monthly payment would be $375 per month.

The national average for used auto loans is 4.28% for four years, according to our latest national survey of lenders. If you financed at that rate, your monthly payment would be more, about $409 per month.

This promotion ends Oct. 31, 2012, so you have to act fast if you want to drive off with this deal. The Alexandria, Va.-based credit union is offering these loans in the 48 contiguous states. Sorry Alaska and Hawaii, you're out of luck.

0 .49% APR on four-year, new- and used-car loans and 0.99% APR on five-year loans

This offer is for members who use PenFed’s car-buying service, and the rate applies to new or used cars. You have to apply for an auto loan online to get the best deal, and this promotion also ends Oct. 31, 2012.

The service is not available in Louisiana.

1.49% APR on a five-year loan

Can't qualify for one of those specials? No problem.

PenFed’s “regular” auto loan rate is 1.49% APR, and it’s still one of the best deals in the country.

It's much lower than the national average for new car loans, which is 4.37% APR for five years, according to our latest national survey of auto lenders.

To get the best APRs, members must borrow at least $7,500 for a 48-month new car loan, and at least $10,000 for a 60-month loan.

PenFed finances up to five years for preowned cars and trucks, too, and at the same low APR of 1.49%.

It’s rare to find a lender that charges the same rate to finance both new and used autos. Most banks and credit unions charge higher rates for used cars.

PenFed offers 100% financing for both new and used auto loans, which means you don’t have to come up with a down payment to qualify.

Search our database of the best auto loan ratesfrom scores of other lenders in your area to see if you can find a better deal.

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

You have to be a Pentagon Federal member to get a loan, but it’s not hard to join. Government employees, people who have served in the military and defense contractor employees can all be eligible.

You could also qualify by making a one-time $15 donation to Voices for America’s Troops or a one-time $20 donation to the National Military Family Association.

You would open a share account for as little as $5 to establish membership.

Scoring a deal like this makes it much easier to judge any loan you're offered by a dealership's finance manager.

If the dealer can beat the credit union’s terms, then you’ll know you’re getting a great auto loan. If not, you’ll still know about PenFed’s offer.

If you're planning to buy a new car soon, our 5 simple steps to the best deal on a new car or truck can help you shop with confidence.

If you’re in the market for a preowned auto, take advantage of our 10 smart moves for buying a used car. We can help you avoid the pitfalls of the used car market and find an affordable, reliable ride.

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