PenFed Credit Union Auto Loan may be a better option for borrowers with excellent credit seeking the lowest possible APR and smaller loan amounts, especially if they utilize the Car Buying Service. However, potential borrowers should be aware of customer service concerns. Bank of America Auto Loan might be suitable for existing customers who qualify for Preferred Rewards discounts, but borrowers should be wary of potentially high APRs and limited customer service availability.
| Attribute | PenFed Credit Union Auto Loan | Bank of America Auto Loan |
|---|---|---|
| Interest Rate (APR) | As low as 3.79% for new cars with the Car Buying Service. Rates vary based on creditworthiness, loan amount, and term length. | Ranges from 5.64% to 28.00%, influenced by credit history, loan amount, term, and state of residence. |
| Loan Amount Range | $500 to $150,000. Minimum loan amounts may apply for longer terms. | Minimum $7,500 (or $8,000 in Minnesota). Prequalification amounts between $10,000 and $85,000. |
| Loan Term Length | Ranges from 36 to 84 months. | Typically 48 to 72 months; other terms may be available through a loan officer. |
| Credit Score Requirements | No specific minimum. A score of 661 or higher may help qualify for better rates. Excellent credit typically needed for lowest rates. | Applicants with scores of 670 or higher typically qualify for better terms. A score of 661 or higher is generally considered a good credit score. |
| Minimum Income Requirements | Not specified. | Not specified. |
| Fees (Origination, Prepayment Penalty) | Origination Fee: None listed. Prepayment Penalty: None. Late Payment Fee: 20% of the overdue amount, with a $25 max. | No application fee or prepayment penalty. Title and state fees may apply. Loan fees may apply in Indiana or Ohio. |
| Discounts (e.g., for members, autopay) | Discounts available for members who use the PenFed Car Buying Service (0.25% to 0.80% APR discount). Bonus cash offers may be available through the car buying service. Discounts may be available on select models through participating dealerships. | Preferred Rewards members can receive interest rate discounts (Gold Tier: 0.25%, Platinum Tier: 0.35%, Platinum Honors Tier and higher: 0.50%). Discounts not available for applications sourced from car dealerships, car manufacturers, or third-party branded websites. |
| Online Application Availability | Yes, 100% online, including document upload. | Yes, decisions may be made quickly. |
| Funding Speed (Time to Receive Funds) | Funding in one day or less after closing on the loan. | Potentially within one business day. |
| Customer Service Channels (Phone, Online Chat) | Phone, online banking, and a mobile app. | Phone (844-892-6002), online, or at a local financial center. Not available seven days a week. |
| Reputation and Customer Reviews | Overall borrower rating of 2.0 out of 5 based on 24 reviews. | A- rating with the Better Business Bureau. |
| Collateral Requirements | The vehicle being financed serves as collateral. PenFed offers up to 125% financing. | Yes, loan is subject to collateral, terms, and conditions. |