Best Credit Unions for Car Loans in December 2024

PenFed is a nationwide credit union anyone can join. To become a member, all you need to do is open a PenFed savings account and deposit $5. PenFed offers the lowest borrowing costs from our list, with an annual percentage rate (APR) as low as 4.74% for a 36-month loan. Auto loans are available for up to 125% of the car’s value, with a maximum loan amount of $150,000.

PenFed auto loans are available for both new and used vehicles. You can get pre-approved with a quick online application, and the pre-qualification process doesn’t impact your credit score. If you’re still shopping for a vehicle, you can use the PenFed car buying service powered by TrueCar, which may help you find the best vehicle at the best price.

Joining Consumers Credit Union is easy. You just need to pay a $5 membership fee, which may be reimbursed. If you’re still looking for a car, you may find a good deal through the credit union’s relationship with TrueCar and Enterprise car rental. Consumers Credit Union also offers GAP coverage to ensure your loan is fully repaid by insurance if a major accident leads to a total loss and a 24-hour emergency repair service.

Interest rates vary depending on the loan term and age of the vehicle. The best rates are for cars from 2022 or newer with loan terms of 60 months or less. However, older vehicles are also supported, and you may be approved for a loan term of up to 84 months. The lender also offers some borrowers the option to skip up to two payments per year.

Alliant Credit Union offers a range of interest rates depending on your car type and loan term, but for new cars, it features a very competitive rate, as low as 6.15% APR as of this writing. Terms range from 12 to 84 months, and the maximum auto loan amount is $1 million, covering even many of the most expensive sports cars.

You can join Alliant quickly without any additional cost if you live in an eligible community in the Chicago area—or work or retired from one of a long list of eligible employers. If you’re not eligible through your work or home location, you can join with a one-time $5 contribution to the Alliant Credit Union Foundation.

Connexus offers a couple of major benefits for car loan borrowers who don’t want to make a large initial cash outlay. For example, if you need a new car in a hurry and you’re waiting for an insurance settlement to come through, Connexus could help you bridge the gap thanks to loans with no payment required at closing and up to 90 days before your first payment is due.

Loan terms range from 24 to 84 months. Interest rates start at 5.99% and go up with longer loan terms and older vehicles. Residents of certain cities in Illinois, Minnesota, and Wisconsin can join for free, as well as students and employees of certain eligible companies and educational institutions. If you don’t qualify through one of those, anyone can join with a $5 donation to the nonprofit Connexus Association.

Navy Federal is a credit union serving households with ties to the armed forces, Department of Defense, or National Guard. If you’re a member, you can access various banking and lending products, including auto loans. As a military-focused credit union, Navy Federal understands military households' unique challenges, including deployments and frequent moves.

Navy Federal has 350 branches worldwide, primarily near large military populations. You can also join and manage an account online.

Navy Federal auto loan rates are very competitive, with APRs as low as 4.54% for loans lasting up to 36 months. The credit union also offers longer loan terms of up to 96 months, though interest rates and costs increase dramatically with longer terms. Members can borrow up to 100% of the vehicle value for eligible loans, meaning no down payment is required. Navy Federal Credit Union could be a good car loan option if you're active military or a veteran.

First Technology Federal Credit Union, also known as First Tech, is open to anyone nationwide. If you don’t work for one of its tech partner companies, live with or are related to a member, work for the state of Oregon, or live or work in Lane County, Oregon, there are other ways to join, including becoming a member of the Computer History Museum or the Financial Fitness Association. The credit union offers excellent high-yield checking and savings account options with low fees as well as competitive car loan rates.

Loan APRs vary by state, so you’ll have to check the website to find what you may have to pay. The lowest APR of 6.50% is available to Californian residents. In various other states, the APR goes up to 8.40%. Terms range from 12 to 84 months and there is an option to defer your first payment for 90 days, though this may result in you paying a higher APR and more interest.

DCU offers membership to employees of many companies, members of participating nonprofits, and residents of certain areas of Massachusetts and New Hampshire. The interest rates on its loans, which cover new and used vehicle purchases, currently start at 5.99% APY before discounts for loans up to 65 months. For loans up to 84 months, rates go up to 7.99%.

There are, however, discounts and other perks available. DCU offers up to 0.50% off standard rates for Plus and Relationship members when enrolled in automatic payments. You can get an additional 0.25% off if you have a fully electric vehicle. Moreover, payments are not required for the first 60 days after a new loan is issued, and you may be able to borrow more than the car’s value with qualifying credit, up to 130% loan-to-value.