Best Credit Unions for Car Loans of 2024

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Credit unions often provide more favorable auto loan rates compared to banks or dealerships, making them a smart choice for car financing. Their not-for-profit structure allows for lower rates and more flexible terms, especially benefiting those with fair or poor credit scores. Keep reading to learn about the best credit unions for car loans.

Best Credit Unions for Car Loans

Before choosing which credit union to take out an auto loan with, take the time to compare the APRs and loan terms. Most credit unions require you to meet certain qualifications to apply for a loan, so be sure you qualify before applying.

Here are eight of the best credit unions for car loans. 

BECU

BECU, originally established for Boeing employees, now serves a broader community. BECU provides automatic enrollment in their Reprice Program, offering an opportunity to lower your rates further as your credit score improves. Plus, the convenience of BECU financing directly at participating dealerships makes the car-buying process smoother and more efficient.

Why it stands out: BECU sets itself apart with its member-centric approach, offering exceptionally low-interest rates and fewer fees.

Pros:

• Convenient on-site BECU financing is available at many participating dealerships
• New auto loan interest rates apply to cars up to two years old, offering more flexibility for buyers
• Members are automatically enrolled in the Reprice Program, which can lead to lower rates

Cons:

• While BECU has expanded its membership beyond Boeing employees, eligibility is still limited.

What to look for: BECU’s rates are highly competitive and start at 6.49% for new vehicles and 6.99% for used vehicles. Rates for both can go as high as 18%.

Who can join: Membership is open to employees of Boeing and any credit union, as well as to those who live, work or attend school in Washington state or select counties in Oregon or Idaho. South Carolina residents can join by donating $1 or more to the BECU Foundation through the credit union’s North Charleston financial center.

How to join: Apply online, or schedule an in-person or video appointment with a BECU representative to open an eligible BECU savings account. BECU is free to join.

Pentagon Federal Credit Union

PenFed Credit Union offers its members substantial options for car financing. In addition to standard financing, this credit union also offers an online car-buying service tool.

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Why it stands out: PenFed’s unique car-buying tool allows members to search for new or used cars and get a variety of information such as their values compared with the asking prices, as well as an alert showing any PenFed discounts available. Interest rates on auto loans drop to as low as 4.74% APR on cars purchased through PenFed’s car buying service.

Pros: 

• Loan amounts up to $150,000 with up to 125% financing
• Discounted rates through PenFed’s car buying service

Cons: 

• Its standard APR rates aren’t as attractive as rates some other credit unions offer.

What to look for: PenFed Credit Union offers auto loan terms from 36 to 84 months on new vehicles with APRs from 5.44% to 6.79% (4.74% to 6.79% through their new car buying service).

Who can join: Anyone can join PenFed.

How to join: Complete your auto loan application. If you’re not currently a member, PenFed will open a savings account for you once you receive the loan. The savings account establishes your membership.

SchoolsFirst Federal Credit Union

SchoolsFirst Federal Credit Union has partnered with companies like Autoland and Enterprise to bring customers exclusive savings. Both dealers offer special perks, and SchoolsFirst will discount your loan rate 0.50% when you buy from either.

Qualified first-time car buyers and buyers with no credit histories or limited ones can apply for first-time auto buyer loans with rates that automatically drop 0.50% every year with no missed payment.

Why it stands out: Along with all the different ways to save, SchoolsFirst offers guaranteed asset protection insurance with deductible assistance.

Pros: 

• Offers school employees an auto loan with “Summers Off,” which allows qualifying members to defer one or two consecutive auto loan payments during the summer
• Allows you to finance a car from a private seller

Cons: 

• “Summers Off” program is only available on auto loans with original terms of 60 months or less
• High rates for first-time car buyers

What to look for: SchoolsFirst Credit Union offers new and used auto loans from 36 to 84 months. APRs for new cars start at 6.19%, and APRs for used cars start at 6.39%. Rates for first-time buyer loans start at 8.59%.

Who can join: Membership is open to those in the California educational community, including current and retired school employees, employees of companies that serve California schools and college students in education programs who have student teaching requirements. SchoolsFirst employees and their immediate family members are also eligible.

How to join: Apply online, in person or by mail. You’ll need your government-issued ID, a $5 deposit into your new share savings account to establish membership and a pay stub or college transcript to prove eligibility to join.

Navy Federal Credit Union

Navy Federal Credit Union offers excellent car loans for financing new cars with terms up to eight years and used cars with terms up to six years. Preapprovals are valid for 90 days, giving you plenty of time to shop.

Why it stands out: Borrowers can expect convenience while applying for a loan online and will get a decision in seconds. Other benefits available to members include access to GAP — guaranteed auto protection — insurance.

Pros: 

• Discounts for military members
• 100% financing available

Cons: 

• Preapprovals are not eligible for private sales

What to look for: Navy Federal offers starting APRs as low as 4.09% for new vehicles and 4.99% for used vehicles.

Who can join: You can join if you are affiliated with the military, Department of Defense, Coast Guard or National Guard.

How to join: Apply online. Have your Social Security number, government ID and home address handy. You’ll also need a payment method to fund your new account with at least $5.

NASA Federal Credit Union

This credit union offers flexible terms and competitive rates for both new and used car financing, as well as auto loan refinancing. You’ll also find flexible terms and competitive rates for both new and used car financing, as well as auto loan refinancing.

Why it stands out: One of its features is the ability for members to apply online and get preapproved quickly. By having financing already in place, members have the advantage at the car dealership because they can focus on negotiating the car price instead of the loan terms.

Pros: 

• No payment required for the first 60 days
• Check your rate with no impact to your credit score

Cons: 

• Terms only extend to 84 months

What to look for: NASA Federal offers the same rates for both new and used vehicles — rates start at 5.74% APR. 

Who can join: Membership at NASA Federal Credit Union is open to individuals with affiliations to NASA. This includes current and retired employees of NASA Headquarters, any NASA Center or Facility, or NAS. Additionally, family members of existing NFCU members are also eligible to join.

How to join: To apply, gather your ID, physical and mailing addresses, Social Security number and birth date and navigate to the online application. Select the accounts you want — a primary savings account funded with $5 is mandatory — and follow the prompts to enter your information.

Suncoast Credit Union

This Florida credit union serves up a variety of vehicle-related products to help its members save money. You can join this organization if you live in one of the eligible Florida counties listed by the credit union, you’re an alumnus of Florida College or a family member of someone who does qualify.

Why it stands out: Suncoast will preapprove you for a loan online so you know what your budget is when you walk into a dealership. In addition to financing and selling cars, Suncoast’s Mechanical Repair Coverage includes rental reimbursement, 24-hour roadside assistance and travel expense reimbursement.

Pros: 

• Special savings on eco vehicle loans
• Online approval, buying and delivery options

Cons: 

• Maximum term is 72 months

What to look for: Suncoast Credit Union offers new and used car loans with APRs as low as 7.00% for up to 72 months. Eco-vehicle rates start at 6.75%.

Who can join: You can join this organization if you live in one of the eligible Florida counties listed by the credit union or are an alumnus of Florida College. Members’ family members also are eligible to join.

How to join: Apply online by entering your personal information when prompted and funding your new account.

Randolph-Brooks Federal Credit Union

No matter if you’re buying a new car, used car or refinancing your current vehicle, you’ll get the same great rate at RBFCU. You can search the inventories of partner dealerships from Randolph-Brooks’ website and apply for your loan even before becoming a member.

Why it stands out: This credit union provides online help to members who are preparing to buy a used car or new car, with online calculators to help determine how much they can afford to borrow and whether a new or used car is the best financial choice. Randolph-Brooks also offers mechanical repair coverage and GAP Plus.

Pros: 

• Rates are the same whether you buy new, used or refinance 
• Streamlined title and loan recording process

Cons: 

• Branch locations are only in Texas

What to look for: For auto loans of 24 to 72 months, RBFCU offers a starting APR of 6.29%. For loans with a term of 73 to 84 months, the starting APR increases to 7.25%.

Who can join: Membership at RBFCU is accessible through various avenues, including your employer, place of worship, community organizations or educational institutions. Additionally, you can qualify for membership if you have immediate family members already part of the credit union.

How to join: You can easily apply online for an RBFCU membership and auto loan if you aren’t near a branch or don’t prefer to visit one. Follow the prompts to complete the application and verify your identity with your government-issued ID, and fund your new savings account with at least $1.

Alliant Credit Union

Allliant is a fully digital credit union offering car loans with terms of up to 84 months and no pre-payment penalties. Borrowers who use Alliant’s Car Buying Service receive rate discounts on their loans.

Why it stands out: Alliant Credit Union offers both new and used auto loans with same-day approval and refinancing options. The credit union’s Car Buying Service saves members an average of $2,019 off MSRP.

Pros: 

• 0.50% rate discount when you use Alliant Car Buying Service
• Same-day approval in most cases

Cons: 

• Rates aren’t as low as some other credit unions offer

What to look for: New vehicle rates start at 6.15% APR and used vehicle rates start at 6.87% APR. APRs as low as 5.99% for new Tesla financing with a maximum term of 60 months.

Who can join: Alliant Credit Union will let you join if you are an employee or family member of a qualifying company, live or work in certain Chicago communities or donate to become a member of Foster Care to Success.

How to join: Gather your Social Security number or unexpired ITIN and completed W-8BEN form, along with a government-issued ID and proof of address, and fill out an application on the Alliant Credit Union website. Alternatively, print an application from the site and mail or fax it, or call call the credit union for uploading instructions.

Before choosing a credit union to finance your next vehicle, you first have to make sure you’ll qualify for membership. Next, you’ll need to compare auto loan rates and terms. The make and age of the vehicle and the term length you want will all influence the rate you’ll be offered, but not every credit union will make the same offer. Therefore, it’s wise to rate shop several credit unions to find the best deal. 

Daria Uhlig, Gabrielle Olya, Barri Segal and Ruth Sarreal contributed to the reporting for this article.

The article above was refined via automated technology and then fine-tuned and verified for accuracy by a member of our editorial team.

Data is accurate as of July 22, 2024, and is subject to change.

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