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Auto Loans from Navy Federal?
Old 01-23-2024, 04:00 PM   #1
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Auto Loans from Navy Federal?

After almost 175K miles, it has come time to replace my current car. While I wanted to hold out another 1-2 years until I collect Social Security, that is too limiting lifestyle-wise. I've picked out a Subaru Outback, 2020 or newer. Despite what various YouTubers say about a car market collapse, current used car pricing is unattractive enough that we'll probably buy new.

I'm a member of a local credit union, though they are not my primary bank. Their rate would be 5.94-6.44% for up to 66 months. Based on limited experience, I'd prefer not to move to them for our primary banking. I am eligible to join Navy Federal, and they have a nearby office, but they do not publish their rates online.

Does anyone know how Navy Federal's rates compare with others? How is their quality of service if we chose to bank with them? We have credit ratings that should qualify us for the lowest possible rates.

Subaru's current financing deal on new cars is for only 48 months at 1.9%, and that payment would be too high for our current cash flow. I also understand that any negotiation leverage on the car disappears with such manufacturer's discounted financing.

The other option, of course, is to take the 48 month loan and pay it off from a new monthly retirement account draw.
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Old 01-23-2024, 05:10 PM   #2
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Are any of these loans front-loaded? It is generally a good idea to avoid those.
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Old 01-23-2024, 05:15 PM   #3
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Quote:
Originally Posted by Out of Steam View Post
After almost 175K miles, it has come time to replace my current car. While I wanted to hold out another 1-2 years until I collect Social Security, that is too limiting lifestyle-wise. I've picked out a Subaru Outback, 2020 or newer. Despite what various YouTubers say about a car market collapse, current used car pricing is unattractive enough that we'll probably buy new.

I'm a member of a local credit union, though they are not my primary bank. Their rate would be 5.94-6.44% for up to 66 months. Based on limited experience, I'd prefer not to move to them for our primary banking. I am eligible to join Navy Federal, and they have a nearby office, but they do not publish their rates online.

Does anyone know how Navy Federal's rates compare with others? How is their quality of service if we chose to bank with them? We have credit ratings that should qualify us for the lowest possible rates.

Subaru's current financing deal on new cars is for only 48 months at 1.9%, and that payment would be too high for our current cash flow. I also understand that any negotiation leverage on the car disappears with such manufacturer's discounted financing.

The other option, of course, is to take the 48 month loan and pay it off from a new monthly retirement account draw.
I'm a member at NFCU. "New Auto loans as low as 4.54%."
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Old 01-23-2024, 05:21 PM   #4
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Try this link:

https://www.navyfederal.org/loans-ca...tes.html#rates

PS the rates quoted above are “as low as” so they probably vary based on credit scores and other variables.
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Old 01-23-2024, 05:22 PM   #5
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I also checked my alternate. I'm in Honolulu. Hickam FCU current new auto loan rate for 5 years in 6.5%. Navy is better in this case, right now.
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Old 01-23-2024, 05:47 PM   #6
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If it was me, and I did not want to pay cash, I would take the 1.9% dealer financing. There is no way you will get close to that from anyone else.
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Old 01-23-2024, 06:59 PM   #7
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NFCU is not perfect but I would give them 5 stars. Those rates are currently just OK but for me it is just a convenient way to bypass some of the dealer hoops. The factory deal sounds very good. NFCU has a pretty slick online loan app process. When I apply I always get approved during the application process and usually for more than I am requesting. The actual rate is determined by credit score (I assume) and the age of the vehicle. Newish used csrs might have the same rate as brand new. They use a voucher that is good for the approval amount that you can present to the dealer. The dealer has to contact NFCU to redeem the voucher. It expires after 3 months (?) so you can take your time shopping. I used the voucher once for a private sale but some Individuals might object.
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Old 01-23-2024, 07:11 PM   #8
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Originally Posted by Out of Steam View Post
I'm a member of a local credit union, though they are not my primary bank. Their rate would be 5.94-6.44% for up to 66 months. Based on limited experience, I'd prefer not to move to them for our primary banking. I am eligible to join Navy Federal, and they have a nearby office, but they do not publish their rates online.

Does anyone know how Navy Federal's rates compare with others? How is their quality of service if we chose to bank with them? We have credit ratings that should qualify us for the lowest possible rates.
Once you join Navy Federal, their rates will be available on their website.

Current rates for a new car are 4.99% for 37-60 months and 5.29% for 61-72 months.
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Old 01-23-2024, 09:30 PM   #9
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Originally Posted by Out of Steam View Post
After almost 175K miles, it has come time to replace my current car. While I wanted to hold out another 1-2 years until I collect Social Security, that is too limiting lifestyle-wise. I've picked out a Subaru Outback, 2020 or newer. Despite what various YouTubers say about a car market collapse, current used car pricing is unattractive enough that we'll probably buy new.
I'm guessing your 175K car is paid off. You knew this day was coming for how long? What was your plan? Long before my cars are ready to be replaced, I start saving for the new one. DW right now is getting a new vehicle. Her 2020 Mini Cooper has 75K on it and she is ready to replace. It is worth 20K or so and she has 15K in her MM. She will trade in and put the 15K down so she will have a very small loan of about 15K at most. She will probably make payments for 3-9 months then we'll pay it off with other funds. Good luck. Hope you find a good rate. If you are eligible for NFCU I assume you are eligible for USAA. I have both and currently have a small loan from USAA.
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Old 01-24-2024, 03:49 AM   #10
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I have been banking primarily with NFCU since the late 80's. I have financed numerous cars through them with no issues ever. A few people have posted their current rates for you. Good luck.

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Old 01-24-2024, 04:52 AM   #11
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I have used NFCU for most of my Vehicles, I always know what I'm going to spend and NFCU will send you a check for that amount ...I walk into the dealership with a blank check from NFCU and just fill in the amount I need for the vehicle up to the amount specified when you got the loan, if I use dealer financing just don't use the NFCU check and contact them and it will go away.
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Old 01-24-2024, 08:09 AM   #12
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I'm guessing your 175K car is paid off. You knew this day was coming for how long? What was your plan?
Our plan got off-track in 2022 when our daughter needed a car at the height of pandemic shortages. We replaced my wife's car sooner than planned and gave our daughter my wife's old one (older, but low mileage). The replacement plan was for my car to hold on until I collect Social Security, but I'm now driving too much to make that one work.

Because I was a DoD civilian employee, I'm not eligible for USAA.
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Old 01-24-2024, 08:13 AM   #13
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Originally Posted by friar1610 View Post
Try this link:

https://www.navyfederal.org/loans-ca...tes.html#rates

PS the rates quoted above are “as low as” so they probably vary based on credit scores and other variables.
Thank you, I didn't find that page.
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Old 01-24-2024, 08:14 AM   #14
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I have used NFCU for most of my Vehicles, I always know what I'm going to spend and NFCU will send you a check for that amount ...I walk into the dealership with a blank check from NFCU and just fill in the amount I need for the vehicle up to the amount specified when you got the loan, if I use dealer financing just don't use the NFCU check and contact them and it will go away.
That is a very convenient process.
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Old 01-24-2024, 08:18 AM   #15
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Are any of these loans front-loaded? It is generally a good idea to avoid those.
I took a small loan like that ("Rule of 78s") to buy my first car. Didn't know they still existed, but any scam is possible when working with a dealer.
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Old 01-24-2024, 08:27 AM   #16
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NFCU is not perfect but I would give them 5 stars. Those rates are currently just OK but for me it is just a convenient way to bypass some of the dealer hoops. The factory deal sounds very good.
Thanks for the service review on Navy Federal. I'd prefer to limit my involvement with the dealer, especially if I can get a better price with my own financing. Even though we've almost always paid off car loans early, a price discount worth a 3% interest rate reduction would be hard to come by.

Since a trade-in doesn't reduce one's sales tax on a vehicle purchase in Virginia, I'm planning on selling my car independently or giving it to a family member.
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Old 01-24-2024, 09:42 AM   #17
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I have membership is several CUs. Look for the best rate, get a pre-approval, and when you get to the FI at the dealer, say "I am preapproved by my credit union, but I am open to take your financing if you can make a compelling case." Chances are they can match or beat your CU rate.
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Old 03-01-2024, 07:32 PM   #18
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Have bought my car, a Mazda CX-5. Ended up with manufacturer's financing.
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