Navy Federal Credit Union offers loans for new and used cars, boats, motorcycles, RVs, and trucks. If you’re a member of the credit union, you can take advantage of longer repayment terms, no fees, and low APRs on vehicle loans from this lender if you’re in the market for a new vehicle.

As part of your search for a new or used vehicle, we encourage you to use the Navy Federal auto loan calculator to determine how much you’ll need to pay each month based on your vehicle’s price, down payment, interest rate, and loan term. This is a good way to ensure beforehand that you’ll be able to pay the installment comfortably.

An auto loan involves borrowing money from a lender to purchase a car. Once you’re approved for your loan and purchase your car, you’ll repay the principal amount you borrow, along with interest on that amount, in fixed installments over a predetermined period of time. If you’re planning to apply for a Navy Federal car loan, it’s important to know what your monthly installment payment will be ahead of time.

“As far as how much of a monthly payment you can afford, most Certified Financial Planners recommend that you spend no more than 10% of your take-home pay per month on your vehicle’s principal and interest payment,” explains Brad Reichert, debt expert, and the founder and managing director of Reichert Asset Management LLC.  “When factoring in your total vehicle costs, including gas, insurance, and maintenance costs, you should spend no more than 15%-20% of your take-home pay on your vehicle each month,” Reichert shares. 

Using the Navy Federal auto loan calculator can make budgeting easier once you know what you can expect to pay each month. However, there are a few important terms you should know about before you use the calculator.

Purchase Price

The purchase price of the vehicle will have a major impact on how much you’ll pay in installments each month. A vehicle that costs less will make your monthly payments more affordable. However, a car that costs more may provide you with more value or last longer.

For example, a car costing $20,000 with an interest rate of 5% and a term of 72 months will cost you $322 per month, assuming you’re not putting anything down.

With the same interest rate and loan term, a car costing $30,000 will cost you $483 per month.

Compare cars, the features they offer, and the value they deliver against their purchase price to determine the one that is truly right for you.

Down Payment

Your down payment can reduce your monthly payments and may allow you to negotiate a lower interest rate. Consider saving a larger down payment before you purchase a vehicle to make your auto loan more affordable and increase your chances of getting approved for a loan with the most favorable terms available.

Using the same example as before, the monthly installment for a car costing $30,000 is $483 if you don’t put anything down. When you put down $6,000 up-front, your monthly installment can be reduced to $387 a month.  

When it comes to the effect a down payment has on your monthly loan payment, the size of your down payment will have the same effect on your payment as choosing a lower-priced car would (with no down payment).  This is, of course, because your loan amount will be smaller.  

Putting a larger down payment on a vehicle will not only increase your chances of being approved at a reasonable interest rate but also allow you to afford a newer/nicer car that may be in better mechanical shape than a lower-priced car that is older and/or has more miles on it.

Loan Term

The loan term is the amount of time it’ll take you to repay the loan. A longer term will provide you with smaller monthly payments because these payments will be stretched over a longer time period. However, you may end up paying more in total interest over the life of the term.

A shorter loan term will result in a larger installment each month, but it’ll allow you to save more money in total interest paid.

For example, if you’re purchasing a car worth $30,000 at a 5% interest rate and putting down $6,000, you’ll pay $387 per month with a term of 72 months. The total interest you’ll pay over the life of the loan is $3,829.

If you were to reduce the term by just one year to 60 months, your monthly installment would be $453 per month, but the total interest you’ll pay will be $3,175.

Navy Federal Car Loan Interest Rates

Your interest rate is one of the most important factors that will impact the results generated with the Navy Federal auto loan calculator. The Navy Federal car loan interest rate you’ll qualify for will depend on factors like your credit score, down payment, loan term, whether the vehicle is new or used, and more.

Let’s consider an example. For a $30,000 car with a down payment of $6,000, a loan term of 72 months, and an interest rate of 6.29%, your monthly installment will be $401. The total interest you’ll pay over the life of the loan is $4,875.

If you qualify for a lower interest rate of 4.54%, your monthly installment will be $381. This is only a $20/month difference in your payment, but you’ll notice the total interest you’ll pay over the life of the loan is only $3,462.  This is a savings of $1,413 in interest.

Using the Navy Federal auto loan calculator is easy and straightforward. We recommend keeping the relevant information handy to make the process easier.

  1. Gather all the information you’ll need for using the auto loan payment calculator, such as the vehicle’s price, as well as the amount of your down payment (and/or the value of your trade-in), interest rate, and loan term.
  2. Start by entering the vehicle’s purchase price.
  3. Enter your down payment, loan term, and interest rate for the loan.
  4. If you’re receiving a cash rebate, enter the amount in the calculator.
  5. If you’re trading in your car, enter the trade-in value the dealer has quoted.
  6. If you still owe money on your trade-in vehicle, enter the amount in the calculator. This amount will be rolled over to your new loan.
  7. Once you’ve entered all your information, the calculator will provide an estimate of your monthly car payment.
  8. Click “Show details” to see your total loan amount and the total interest you’ll pay over the life of the loan.
LenderNavy FederalPenFed Credit UnionUS BankBank of America
Loan AmountsNot disclosed$500-$150,000$5,000-$100,000Minimum $7,500
Annual Percentage Rates (APRs)Starting at 4.54%Starting at 5.24%Starting at 7.46%Starting at 6.29%
Repayment Terms36-96 months36-84 monthsUp to 60 months48-72 months

Navy Federal Credit Union offers auto loans with starting rates of 4.54% and repayment terms ranging from 36 to 96 months. Compared to other similar vehicle loans, Navy Federal has the lowest starting annual percentage rate (APR), and also offers the most flexible loan terms.

While members can get competitive rates on Navy Federal personal loans, auto loans, and other financial products, we recommend getting preapproval and comparing loan rates from at least three different lenders to determine which car loan is right for your individual circumstances.

Other than Navy Federal, PenFed Credit Union is another solid choice for auto loans, with APRs starting at 5.24%. PenFed also offers a maximum loan limit of $150,000, which is one of the highest you’ll find anywhere.

If you’re interested in auto loans from traditional banks, Bank of America is another option to consider. However, with APRs starting at 6.29%, it’s more expensive compared to Navy Federal.  

Members can benefit from Navy Federal’s low APRs, flexible repayment terms, and no fees when it comes to loans for almost any vehicle. We recommend using the Navy Federal auto loan calculator to estimate your loan payments as the first step in the car-buying process.

Consider your budget carefully to determine if you’ll be able to repay the loan comfortably. Late payments and defaulting on an auto loan can have a detrimental impact on your credit score.