Which is better for an auto loan and auto insurance, USAA or Navy Federal?

SGT Derick J. — Tue, 29 Jan 2019 09:42:48 -0500

Attempting to obtain a auto loan and auto insurance if possible within the same bank/agency. I'll base off the decision on your guys' feedback. To also include Credit Cards in the possible future.

Response by LTC Jason Mackay made Jan 29 at 2019 10:31 AM

LTC Jason Mackay — Tue, 29 Jan 2019 10:31:41 -0500

SGT Derick J. you have to lay out the interest and costs of the loan side by side, figure out the future value (FV) on the same present value (PV - what they are loaning you). If the terms of the loans are the same (periods, duration, payment schedule etc), see which has the higher monthly interest rate and payment. I would put more stock in this than crowd sourcing with Internet trolls.

If you are looking at intangibles like customer service, convenience, etc I personally use USAA for everything except my mortgage (local broker was able to beat them). My brother in law swears by Navy Federal. I found them difficult to use and generally obstinate while getting pre-approved for mortgages. More so than other mortgage lenders. I sure as hell would not switch my checking, savings, investments, etc, to them. USAA has financial products for customers cradle to grave. The App works well. Telephone transactions are very secure and they are very helpful. 3am from Afghanistan? No,problem. Sunday in Korea? No problem.

I've used USAA since 1998. My APG Federal Credit Union did three or four things in a row that screwed up my finances. The last straw was when my wife lost a debit card, we were AT APG. She went to the home branch office with three pieces of ID and our checkbook. She was on my accounts. She was sent away and told to send a letter requesting it, signed by me, photo copies of what she had in her hand, to get a new card. 4 weeks later, I got it. I was TDY. It caused more than a temporary ripple. I wrote that letter, and let them know I was switching to USAA because they sucked as a military oriented financial institution.

I do notice younger soldiers have problems with USAA. Understand that your car insurance will be high until you turn 25. Actuary stuff. Youre more likely to get in accidents statistically. After 25 and a good record in drops sharply.

Response by CAPT Kevin B. made Jan 29 at 2019 1:57 PM

CAPT Kevin B. — Tue, 29 Jan 2019 13:57:42 -0500

Navy Federal customer service, when you can actually get to it, is abysmal. There's never a bank/office most places you'll live. That said, USAA is a full service, full online, full telephone quickly, operation. You get a break on the loan if you also have your insurance with them. Their auto buying service is pretty straightforward as I used it. COSTCO auto program requires the dealers to do a kickback to them so you can figure $500-600 lower by the dealer direct once you figure the price. I've done both USAA and NFCU. The first option was a much better experience. BTW, NFCU did have a great home improvement loan rate which I used to remodel before a sale. Problem was then having to deal with them. And that was at their bank in my town.

Response by SGT Private RallyPoint Member made Jan 29 at 2019 7:05 PM

SGT Private RallyPoint Member — Tue, 29 Jan 2019 19:05:07 -0500

For auto insurance, Geico is hard to beat. Customer service is amazing. I’ve had them for about 20 years.
I was always a little shocked at the rudeness of USAA. Once every few years, I’d call to see if they could compete or beat my Geico policy. They always seemed nearly offended that I wasn’t in a rush to sign up. The last time I called to get a quote and compare policies, the lady actually told me that for my levels of coverage, there was no way I was paying that rate. And that it was wrong to try to lie about a lower rate to get a lower rate from USAA. That was the last time I’ll ever call, even to see what they offer, for anything.

I know a lot of people swear by them, but from my experience, USAA was awful. If you’re looking for customer service, Geico is hard to beat.

Best of luck.

Response by SGT Derick J. made Mar 28 at 2021 7:47 PM

SGT Derick J. — Sun, 28 Mar 2021 19:47:28 -0400

To update this thread
I decided to go with USAA as they offered a 60 day grace period after I started the auto loan. I'm certain other banks offer this as well, but the rate I received with USAA was lower than the one I had with Capitol One. I enjoyed Geico's customer service after receiving my car as they were able to refund me a portion of the unused days of insurance coverage while I switched to another insurance company.

Response by SFC Joe S. Davis Jr., MSM, DSL made Oct 12 at 2022 4:54 PM

SFC Joe S. Davis Jr., MSM, DSL — Wed, 12 Oct 2022 16:54:31 -0400

thanks for sharing