Best Credit Unions for Car Loans

Also known as PenFed, Pentagon Federal Credit Union serves people in all 50 states, Puerto Rico, Washington D.C., Guam, and Okinawa, Japan. However, most of its branches are concentrated in the greater Washington D.C.-area. The rest of its customers are served digitally, and services include banking products and services, credit cards, car loans, mortgages, and home equity loans.

PenFed was created to serve military members, veterans, and federal employees, but it is now open to anyone, and for $5, you can join by simply opening a savings account. You can finance a new or used car or refinance a current auto loan with PenFed. The credit union also has a car-buying service that helps you search for cars from a trusted network and offers discounted rates if you use the service.

As of March 2023, discounted rates start at 4.89% for new cars for 36 months. Used cars with terms of 36 months start at 5.54% through PenFed’s partnership with TrueCar. PenFed offers many educational resources and step-by-step guides for first-time car and home buyers, financial calculators, mortgage knowledge, an advice center, and a financial hardship center.

PenFed offers perks to its members, including discounts on insurance, discounts on rental cars, and mechanical breakdown protection. It also offers discounts at select retail stores and some tax preparation services.

Consumers Credit Union has physical branches throughout northeast Illinois but services the entire country and is open to members nationwide. It specializes in helping consumers take charge of their finances and works with them to rebuild their credit and improve their credit scores. It's an ideal place to start if you want to get a car loan but don't have good credit. 

The company offers auto loans, home loans, home equity loans, personal loans, business services, and a full range of banking products and services. 

Anyone can join the credit union by paying $5 to become a member of the Consumers Cooperative Association as well as depositing $5 in a savings account. The website is well laid out and easy to navigate and goes into detail on applying for membership and then applying for a car loan. It offers an online car-buying service that claims to save you money and will deliver the car to your home.

As of March 2023, Consumers Credit Union's car loan rates start at 5.24% for up to 60 months for cars manufactured in 2021 or newer. Older vehicles and longer loan terms will increase the interest rates. Lower credit scores will also receive higher rates. You can apply for a car loan online with the step-by-step guide, and then an agent will call you to verify your details.

Navy Federal Credit Union offers banking services for whichever way you want to bank, including branches, ATMs, co-op locations throughout the country, and an app. In addition to new and used car loans, it offers loans on motorcycles, boats, and recreational vehicles.

Navy Federal Credit Union offers some of the lowest rates in the industry to its members. As of March 2023, rates start at 4.54% for new and late-model used vehicles up to 36 months. Rates, of course, go up for longer terms. Terms for used cars go up to 72 months, and terms for new vehicles go up to 96 months. 

Although there are numerous resources and low rates offered by Navy Federal Credit Union, you do have to meet the membership requirements to take advantage of them. Membership is limited to the armed forces, the Department of Defense, veterans, and qualifying family members. Full membership details are listed on the website.

NASA Federal Credit Union is open to NASA employees, NASA retirees, and their family members. However, you don’t have to be a world-class scientist to enjoy membership. It also offers membership to non-employees who join the National Space Society, and the first year is complimentary. After that, your membership will cost $47 a year with automatic renewal. Membership includes their magazine, the latest information on space news, and invitations to conferences and events. 

NASA Federal Credit Union offers new and used auto loans and recreational vehicle loans. As of February 2023, auto loan rates start at 4.89%, and although no payment is due for the first 60 days, interest does accrue. The lowest rates have terms of up to 36 months. Longer terms of up to 84 months are available, but the rates do increase. You can apply online in a few minutes. You can also reach customer service through email, online chat, and phone.

NASA Federal Credit Union has multiple branches in Maryland and Virginia, near the Washington D.C-area, and shared branches at affiliated credit unions. However, the majority of its services are offered online, including digital baking, student loans, credit cards, personal loans, financial planning services, and car loans.

Alliant Credit Union is an online credit union based in the Chicago, Illinois area. It’s the largest credit union in Illinois and one of the biggest in the nation. However, it doesn’t have physical branch locations and instead offers online and over-the-phone banking and loan services. It prides itself on putting its members first, offering personal customer service, competitive rates, and fast loan-approval times.

To join Alliant Credit Union, you can meet certain residency, employment, or relationship requirements, or you can just donate $5 to its partner charity, Foster Care to Success.

In addition to car loans, Alliant Credit Union offers online banking services, IRAs, trust accounts, credit cards, home loans, commercial real estate loans, and more. It has a unique car-buying service that offers 0.50% off your rate for using it to purchase your next car. It also helps you with car research, lists cars from its trusted network, and offers a vehicle service program and loans for recreational vehicles.

Alliant Credit Union offers financing for both new and used vehicles. Its rates, as of February 2023, start at 5.75% for new cars for 60 months and 6.12% for used cars. These rates will be 0.4% higher without autopay. Car loans can be up to 84 months with presumably higher rates. You can apply online or over the phone, and approval is usually done on the same day. The approval process is easy, with detailed instructions on the website.

Suncoast Credit Union is Florida’s largest credit union and has branches throughout Florida’s west coast. In addition to car loans, it offers personal loans, mortgages, complete banking services, and financial tools. It has an easy-to-use website with a lot of consumer educational material, financial calculators, webinars, and how-to blogs. 

As of March 2023, Suncoast Credit Union’s auto loan rates start at 6.0% for new and used vehicles and 5.75% for eco-friendly ones. You can also get financing for watercraft, recreational vehicles, motorcycles, and cars. Max terms are usually 72 months for cars.

Vehicles that qualify for the lowest rate include hybrids, plug-in hybrids, and electric vehicles.

To join Suncoast Credit Union, you must meet its membership requirements: You must live, work, attend school, or worship in one of the counties in the Southwest and the West Coast of Florida that it serves. It does require proof, such as a utility bill or a signed lease.