How to Save on Your Navy Federal Credit Union Auto Loan Monthly Payment

How to Save on Your Navy Federal Credit Union Auto Loan Monthly Payment

If you currently have an auto loan through Navy Federal Credit Union, there are ways you can reduce your monthly payment. Is refinancing your Navy Federal Credit Union loan right for you? Here’s what to consider.

Updated on Jan 2024

Drivers typically save an average of $137* per month, adding up to $1644* annually, when they refinance their Navy Federal Credit Union loan. Switch your auto loan carrier.

Table of Contents

  • flag-rg1.svg
    Navy Federal Credit Union overview​
  • flag-rg1.svg
    Advantages of refinancing an auto loan from Navy Federal Credit Union
  • flag-rg1.svg
    Understanding how the Navy Federal Credit Union auto loan refinance process works
  • flag-rg1.svg
    When should you refinance a Navy Federal Credit Union auto loan?
  • flag-rg1.svg
    Monthly savings when you refinance your Navy Federal Credit Union auto loan
  • flag-rg1.svg
    Important considerations when you refinance
  • flag-rg1.svg
    How to take action to lower your monthly auto loan payment

Key Information About Navy Federal Credit Union

Let’s first look at Navy Federal Credit Union and its auto loan business.

Navy Federal Credit Union is the largest U.S. credit union by asset size. The credit union's auto lending business includes purchase financing for new or used cars, and the refinancing of existing loans. Credit union members may be able to access up to 100% financing and discounts for those int he U.S. military.

How do auto loan customers review Navy Federal Credit Union?

Want to see how other drivers have rated their experience with Navy Federal Credit Union? We’ve compiled links to some of the sites where you can find customer feedback about Navy Federal Credit Union.

Navy Federal Credit Union auto loan reviews:

Key Takeaways

Refinancing your Navy Federal Credit Union auto loan could save you $137* per month

Start the refinance process through RateGenius

Key Takeaways

Refinancing your Navy Federal Credit Union auto loan could save you $137* per month

Start the refinance process through RateGenius

Advantages of refinancing an auto loan from Navy Federal Credit Union

Whether you have held an auto loan from Navy Federal Credit Union for a few years or even just a few days, there are potential benefits to refinancing that loan that you should consider.

An auto loan can be refinanced multiple times over the course of owning a car. Whether you originated your vehicle financing with Navy Federal Credit Union or replaced your original loan with one from them, you can still opt to explore other loan providers that may be able to offer a more competitive pricing that saves you money.

Key reasons to refinance

  • Lock in a lower interest rate. Refinancing may allow you to take advantage of a lower interest rate, particularly when prevailing interest rates have declined since your loan from Navy Federal Credit Union was first created. By accessing a lower interest rate, borrowers may be able to reduce their monthly payments and save money over the life of the loan.
  • Access loan terms that reflect your financial situation. If your financial position has improved since taking out the original loan from Navy Federal Credit Union — for example your credit score has improved, and/or your income is now greater — you may qualify for better loan terms. This could include a lower interest rate, extended loan term, or reduced monthly payments, affording you a repayment schedule that works better for your budget and is more attractive over the life of the loan.
  • Free up cash in your budget. Refinancing an auto loan can also be a strategic move to improve cash flow. By extending the loan term, borrowers can reduce their monthly payment amounts, freeing up more money for other financial obligations or to use as disposable income.
  • Change lenders. You may consider refinancing your auto loan to switch to a lender other than Navy Federal Credit Union for a variety of reasons. You may want a better customer service experience, more flexible repayment options, or additional benefits. Switching lenders gives you the opportunity to work with a financial institution that better aligns with your needs and preferences.
  • Add or remove a co-borrower. For a range of financial or personal reasons, you may find yourself wishing to change who is listed as a borrower on your auto loan. One common scenario: a parent initially serves as a co-borrower on their child’s car loan because the child has limited credit history on their own, but then later wishes to come off the loan because the child has built a sufficient credit profile to hold a loan independently. It won’t be possible to add or remove borrowers listed on your current auto loan from Navy Federal Credit Union, you’ll have to refinance the loan to make a change like that.

Calculate refinance savings on an auto loan from Navy Federal Credit Union

Loan Calculator
Enter current auto loan details


Select new loan details


You would save

by refinancing

Find out how much you could reduce monthly payments with a new rate or an extended term. Enter your current and desired loan details to see estimated payment and savings.
Current monthly payment


New monthly payment


Annual savings


You would save

by refinancing

This calculation is an estimate only. It is intended to show hypothetical loan terms based on the provided information. It is not an offer of credit or a personalized pre-qualification. No potentially personal information you enter is being transmitted or stored.

Want to see what you can really save?


help image
Tips for Using the Payment
Savings Calculator
Original loan amount is what you borrowed at the outset of your auto loan. It includes the purchase price of the car, and possibly other fees due when you bought it.
Remaining loan balance is the amount you still owe on your loan since it began. This information should appear on your loan statement.
Current interest rate is rate you pay on your auto loan, expressed as a percentage. A fixed rate loan’s interest stays the same throughout the life of the loan. If your interest rate is 5%, enter 5, not .05.
Original loan term is the duration of your loan from its inception. Typically auto loan terms are 3 years (36 months), 4 years (48 months), 5 years (60 months), or 6 years (72 months).
Credit score range helps tell us the rate you may be eligible for, based on your credit profile. Well-qualified borrowers are typically those eligible for the lowest available rates.
Length of new loan refers to the duration (in months) of a potential new auto loan. When you refinance, you reset the clock on your loan term.

How the process works to refinance an auto loan from Navy Federal Credit Union

Check for a prepayment penalty clause in your Navy Federal Credit Union loan agreement

If you are considering replacing your current auto loan with Navy Federal Credit Union for another that offers greater affordability, one of the first things you should investigate is what your current loan agreement says about ending the loan early. Look over your loan documents for any clauses that cover prepayment, and specifically prepayment penalties. If your Navy Federal Credit Union auto loan includes a prepayment penalty fee, it’s wise to take that cost into account when weighing your refinance options.

Many states limit what a lender can charge borrowers in prepayment penalties; typically, the maximum fee drivers may face is 2% of the remaining loan balance. For example, say you owe $10,000 on your car loan and your agreement has a 2% prepayment penalty fee in place; your lender may levee a $200 charge when you pay off the loan by refinancing. You can contact Navy Federal Credit Union to get more guidance on what if any prepayment penalty you would face in the event you pay off your auto loan before it is set to end.

Shop and compare rates

A critical question when it comes to refinancing: Can I save money over my current loan by switching? To answer this with confidence, you need to shop around for loan offers from a range of providers. A nationwide lender marketplace like the one built by RateGenius gives drivers access to a broad selection of providers that support a spectrum of credit profiles. Engaging with RateGenius may improve your odds of securing terms that are more competitive and affordable than those offered by your Navy Federal Credit Union auto loan. Plus, you apply for financing through the RateGenius platform but get exposure to multiple financial institutions at once, saving you time and effort.

Consider additional products

When you refinance your vehicle loan from Navy Federal Credit Union, you have the chance to add, upgrade or remove forms of vehicle protection plans. It’s possible that your Navy Federal Credit Union was sold with a vehicle service contract (VSC) or guaranteed asset protection (GAP). VSC works like a warranty, shielding you from out-of-pocket repair and maintenance costs as your car ages. GAP offers drivers financial protection against owing more on their car loan than the vehicle is worth in the event of theft or a total loss due to damage such as from a serious accident.

It's possible that you can add affordable protections like GAP and VSC as part of refinancing your auto loan, where you keep your monthly payment on par with what it is currently. If you already have these coverages built into your Navy Federal Credit Union auto loan, you might be able to swap those products for more affordable options.

Submit an application

Once you are ready to move forward with refinancing, the next step is to submit your credit application. You can apply directly to a lender, or, as noted above, access a lender marketplace through a platform like RateGenius, where your application is presented to multiple lenders.

The application for an auto loan consists of questions about you, your finances, and your vehicle. You’ll also be asked if you wish to include a co-borrower on the loan. It’s important to be careful to provide complete and accurate information. It’s common for the entity taking your application to request copies or photos of documentation from you that verifies your identity and income (usually your driver’s license and paystubs from your employer), along with your car’s registration and proof of insurance. Gathering these materials ahead of time can make the application process go faster.

Await a response from lender(s)

With your application submitted, lenders conduct their review to determine if you qualify for refinancing based on their lending standards. At this point in the process a “hard” inquiry, or hard pull, is made by the lender to access your credit report. This report tells them about your creditworthiness and plays an important part in how lenders evaluate your application.

You can access your credit report for your own review for free once a year from each of the big three credit bureaus, Experian, TransUnion and Equifax. It’s a good habit to check your credit report so you can spot and correct any errors. This is especially important to do before your credit report is pulled by a potential lender as part of any credit application, since you don’t want any negative incorrect information to harm your chances of approval or scoring a competitive rate.

If approved, the lender will provide you with a loan offer outlining the terms, interest rate, and repayment structure.

Evaluate the loan offer

Review the offer carefully. Ask questions so you fully understand the terms. If you find the loan offer acceptable, you can formally accept it by signing the necessary documents.

Pay off your loan with Navy Federal Credit Union

You’ve accepted the new lender’s loan offer and are moving forward. Next, they pay off your existing auto loan with Navy Federal Credit Union.

It’s often the case with refinancing an auto loan that there are no payments due by you to your new lender for 45 days after closing. That said, before the changeover to the new lender is finalized, you should not stop paying the bills coming from Navy Federal Credit Union.

Set up payments with your new lender

By now you’ve reached the end of the refi process and your old loan with Navy Federal Credit Union is in the rear-view mirror. You should expect your new lender to provide instructions on how to start making payments on the new loan.

When should you refinance your Navy Federal Credit Union auto loan?

There are several factors that call help tell you whether it’s the right time for you to refinance.

The state of your auto loan

Generally, a new auto loan provider won’t be interested in assuming your auto loan from Navy Federal Credit Union through refinancing if the remaining balance on the loan is below $10,000.

When you apply to refinance, the lender will also compare your car’s value to the remaining loan balance. This is called the loan-to-value ratio, or LTV. But unlike refinancing a mortgage, you can still qualify for auto loan refinancing even if you owe more than the car is worth. The general LTV maximum around 130%.

To calculate LTV, divide the current remaining balance by the car’s market value. For example, let’s say you owe $15,000 on a car that is worth $13,000. In this case, the LTV is approximately 115%; that factor alone isn’t likely to be disqualifying.

The interest rate environment

Interest rates fluctuate over time based on economic forces. If the interest rate environment becomes more favorable compared to when you secured your current auto loan from Navy Federal Credit Union, there could be an opportunity to refinance at a lower rate.

Changes in your credit

Improvements to your credit score over time may put you in a position to receive more affordable loan terms from lenders. A borrower who has a history of paying bills on time and following other good credit habits pose less of a risk to lenders and may be eligible for more competitive rate offers. So, if your own credit score has seen a substantial uptick since you closed on your Navy Federal Credit Union auto loan, it may be an opportune time to seek a new loan with a more affordable rate.

Changes in your budget

Many drivers refinance their auto loan to lower their monthly payment. The goal may be to free up room in their budget for other expenses, or to set aside more cash. Reducing your interest rate through refinancing is one lever to potentially lower your monthly payment. But it’s also possible to secure a lower payment without necessarily locking in a lower rate; extending the term of your auto loan can have the effect of spreading the cost across a longer timeline, leading to a smaller monthly bill. Just note that with a term extension, you may end up paying more in interest over the life of the loan, all else being equal.

Alternatively, some borrowers take advantage of refinancing to shorten the length of their auto loan by accelerating payoff. If your income has grown since you took out the loan from Navy Federal Credit Union, you may be in the position to make larger payments. Maybe you started with a five-year (60-month) loan and have four years left. Now you want to clear the debt from your balance sheet sooner. You could roll into a three-year (36-month) loan by refinancing and close out the loan in a year’s less time.

The condition of your car

You generally need to have a clean vehicle title to refinance. You can pull a copy of the title from your state’s bureau of motor vehicles to see if it’s clean.

Many auto loan providers have restrictions on the age and mileage of vehicles they will provide financing for. Lenders’ policies vary, but in general if the car you wish to refinance is older that 10 years or has logged more than 100,000-150,000 miles, you may have difficulty finding a lender that will assume its loan. An auto loan typically is a secured form of credit, like a mortgage, where the car is the collateral. Because older and high-mileage cars have already expended a large portion of their value, a lender isn’t as likely to want to accept that car as loan collateral.

Monthly savings when you refinance your Navy Federal Credit Union auto loan

What kinds of savings can drivers expect when they swap out their auto loan from Navy Federal Credit Union for a new on by refinancing? There are a lot of factors that influence the answer. But looking at averages helps provide general guidance.

Last year, drivers who refinanced their auto loans through RateGenius lowered their monthly payment by $137* per month. That means what they paid for their auto loan decreased on an annual basis by $1644*. This is calculated by taking the average monthly payment savings of all the loans that were funded by RateGenius customers during the calendar year. Those customers decreased their interest rate by an average of 3.42%.

Important considerations when you refinance

Here’s a short checklist that can help you navigate your refinance.

  • Have you shopped around and found a rate you’re pleased with? Comparisons allow you to know what’s a competitive offer.
  • Are you comfortable either lengthening or shortening the duration of the loan? The former may reduce what you owe monthly but may add to the overall cost of the loan in the form of higher cumulative interest charges, depending on the rate you secure.
  • Have you shopped around and found a rate you’re pleased with? Comparisons allow you to know what’s a competitive offer.

How to take action to lower your monthly auto loan payment

To jumpstart your auto loan refinance, consult providers you’re interested in. RateGenius is a loan marketplace that connects drivers with 150+ lenders across the country. RateGenius lets you explore offers easily with one application that reaches multiple institutions. Applying takes just a few minutes, and experienced RateGenius loan specialists are available to help guide you through the loan process, every step of the way.

Ready to get going?

We help people save money on their auto loans with a network of 150+ lenders nationwide.

* This value was calculated by using the average monthly payment savings for our customers from March 1, 2024 to August 31, 2024.

We help people save money on their auto loans with a network of 150+ lenders nationwide.

* This value was calculated by using the average monthly payment savings for our customers from March 1, 2024 to August 31, 2024.