Navy Federal extends used-car financing to 84 months

Navy Federal Credit Union has extended used-vehicle financing terms to 84 months and lowered auto loan interest rates in the past week as the overall cost of car ownership continued to rise through May. The financier on May 27 extended the loan term on used cars from a maximum of 72 months as the industry lengthens terms to meet consumers’ monthly payment needs, Kevin Wince , vice president of consumer lending operations, told Auto Finance News . “What we've seen in the industry is that approximately 30% of the car sales are for terms longer than 72 months ; most commonly 84- [to] 96-month terms,” he said. Navy Federal now offers used-car loans starting at 6.98% APR for 73 to 84 months. The credit union also offers rates as low as 4.79% for used cars and 3.89% for new cars with terms of 12 months to 36 months. Loan terms greater than 84 months are limited to vehicles with fewer than 7,500 miles, according to Navy Federal. Navy Federal auto purchase and refinance loan rates [caption id="attachment_58361894" align="aligncenter" width="1024"] (Courtesy Navy Federal)[/caption] Navy Federal has offered terms out to 96 months on new cars for several years, Wince said. Cost of Car Ownership index up 7.2% Lowered rates and longer terms come as all costs tied to owning a car continue to rise, Wince said, noting that the average term on auto financing in Navy Federal’s portfolio has risen to 64 months compared with 61 months in 2019. “Vehicle affordability [has] become one of the biggest financial pressures facing American households." -- Kevin Wince, Navy Federal Credit Union The average vehicle age at origination in Navy Federal’s portfolio, he added, is 6.8 years compared with 6.15 years in 2020. “Vehicle affordability [has] become one of the biggest financial pressures facing American households,” he said. In fact, Navy Federal’s Cost of Car Ownership Index in May rose to 149.5, a rise of 7.2% year over year and 1.3% month over month, according to data provided to AFN . The index tracks 11 of the most significant expenses tied to owning and maintaining a car, benchmarked to January 2020. The index is based on data through the prior month. “It's not just a gas or vehicle price story, it's repair costs, insurance, financing — they're all elevated over this six-year period and that's compounding the challenge for many Americans that are feeling it directly in their wallet,” Wince said. The index has risen by nearly 50% compared with January 2020 and 6% since January 2026, largely driven by higher gas prices and higher costs for car parts and maintenance, Heather Long , chief economist at Navy Federal, told AFN . By comparison, the Consumer Price Index has risen by about 28% since January 2020, she said. CPI was 128.28 in April, up 3.8% YoY and 0.6% MoM. [caption id="attachment_58361893" align="aligncenter" width="1024"] (Courtesy/Navy Federal)[/caption] The index “is up way more than inflation and way more than wages in the past five or six years,” Long said, noting that it is becoming harder for consumers to afford “big-ticket items.” “It's not like [consumers don’t] eat some avocado toast for a couple of weeks and suddenly have a car payment or a down payment,” she said. Navy Federal’s auto portfolio stood at $32.6 billion as of April 30, according to data provided to AFN . The credit union was the 13th-largest auto lender by outstandings at yearend 2025, according to the latest Big Wheels rankings data .

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Navy Federal extends used-car financing to 84 months

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