When shopping for an auto loan, many borrowers turn to the big banks they already use or online lenders with quick applications and approvals.
But credit unions are an often-overlooked option that can save you money and offer a more personalized borrowing experience. Because credit unions are nonprofit, they often offer lower interest rates and fewer fees than traditional lenders.
They may also be more flexible with borrowers who have less-than-perfect credit.
CNBC Select has chosen the best credit unions for auto loans in a variety of categories, including terms, discounts, approval speed, customer service and more. For more on how we made our selections, read our methodology below.
Best for customer service: PenFed Credit Union
Who's this for? Many PenFed customers on Trustpilot report positive experiences with customer service, remarking on how knowledgeable the staff is and how quickly they resolve issues. In fact, the lender ranks second overall on JD Power's 2026 U.S. Consumer Lending Satisfaction Study. Consider PenFed Credit Union if customer service is top of mind for you when financing your next car purchase.
Standout benefits: Anyone can become a PenFed Credit Union member. You'll just have to open a PenFed savings account (either a Regular Share Account or Premium Online Savings Account) and deposit at least $5 into the account.
- Loan amounts start at $500
- No early payoff fees
- Prequalification available
- Cash incentives through car-buying service
- Co-borrowers allowed
- High satisfaction rating on J.D. Power's 2024 consumer lending study, indicating that this lender has strong customer service
- Credit union membership required
- Late payments subject to fees
Federally Insured by NCUA. To receive any advertised product from PenFed, you must first become a member of the PenFed Credit Union. Rates and offers current as of October 21, 2025, and are subject to change. Actual APR will be determined at the time of disbursement and will be based on application and credit information. Rates quoted assume excellent borrower credit history. Not all applicants will qualify for the lowest rate. Rate depends on term. New vehicles are where you are the original owner and the vehicle is a current 2024 model year or newer and has less than 7501 miles.
Best for long repayment terms: Navy Federal Credit Union
Who's this for? Navy Federal Credit Union is a good option for borrowers looking for longer terms. It offers repayment terms of up to 96 months, longer than any other lender on this list. (The average term for new car loans is just under 69 months, according to Experian's Q4 2025 State of the Auto Finance Market report.)
Standout benefits: Navy Federal Credit Union membership is limited to military members and their family, but active-duty and retired service members can get an interest rate discount. If you refinance an auto loan of $5,000 or more from another lender, you may be eligible for a $200 cash bonus.
Best for refinancing: Service Credit Union
Who's this for? Service Credit Union offers auto refinance loans with lower-than-average rates, and reports that most applicants receive an approval decision within the same day..
Standout benefits: Service Credit Union lets borrowers defer their first payment for up to 90 days. You can also get up to a 0.75% rate reduction when you set up direct deposit from a Service Credit Union checking account.
Service Credit Union Auto Loans
Annual Percentage Rate (APR)
Rates start at 4.99%
Loan purpose
Auto loan refinancing
Loan amounts
Not disclosed
Terms
48 to 84 months
Credit needed
Not disclosed
Early payoff penalty
Not disclosed
Late fee
$35 skip payment fee
Terms apply.
Pros
- Offers loans for refinancing
- Offers terms as long as 84 months
- Skip-A-Pay offered, though you will incur a $35 fee for each payment you skip
- Can submit an application online, over the phone or in-person
- Offers up to a 0.75% rate reduction with direct deposit set up to a Service Credit Union checking account
Cons
- Doesn't disclose all fees on their website
Best for same-day approval: Alliant Credit Union
Who's this for? If you need fast approval, Alliant Credit Union touts that most applicants get a response the same day they apply.
Standout benefits: Alliant Credit Union's debt protection program cancels your outstanding balance in the event of death, disability or involuntary unemployment. (There is a monthly fee ranging from 75 cents to $1.99 per $1,000 of financing.)
Alliant Credit Union Auto Loans
Annual Percentage Rate (APR)
Starting at 5.39% APR
Loan purpose
New vehicles and used vehicles, refinancing
Loan amounts
$4,000 to $100,000
Terms
36 to 84 months
Credit needed
Not specified
Early payoff penalty
None
Late fee
Varies by state
Terms apply.
Pros
- Repayment terms as long as 84 months
- Offers same-day approval
- Offers a debt protection plan in the event of unexpected life changes (like death, disability or involuntary unemployment)
- Loans of up to $100,000
- Offers free membership
Cons
- Late fees can vary depending on your state
Best for APR discount: First Tech Federal Credit Union
Who's this for? While you can't avoid paying interest, First Tech Federal Credit Union offers a 0.50% rate discount on loans for new and used cars and refinancing.
Standout benefits: First Tech offers same-day or next-day approval, depending on the loan amount, your credit history and other factors. You can also defer your first payment for up to 90 days.
First Tech Federal Credit Union Auto Loans
Annual Percentage Rate (APR)
Varies depending on your state
Loan purpose
New and used vehicles, refinancing
Loan amounts
$1,000 to $300,000 (loan ranges vary depending on the loan term but most minimums and maximums fall in this range)
Terms
Up to 84 months
Credit needed
Not specified
Early payoff penalty
None
Late fee
Varies
Terms apply.
Pros
- Offers approval within one business day
- 0.50% auto loan rate discount
- Loans of up to $300,000
Cons
- Minimum and maximum loan amounts can vary depending on your loan terms
- Loan terms available are 60, 72 and 84 months
FAQs
What is a credit union?
A credit union is a not-for-profit financial institution that offers banking services, such as deposit accounts, credit cards and personal loans. Because it is owned by its members, profits are reinvested as lower borrowing costs and higher savings rates, and there are fewer or no fees.
Is there a downside to a credit union?
While some credit unions are open to anyone, many have stricter membership requirements, such as military service or specific employers. Credit unions usually have few branches available for in-person banking.
Should you get a car loan from a credit union?
There are many upsides to getting a car loan from a credit union, especially if you're already a member there. You may qualify for additional perks and enjoy lower APRs, but the best place to get a car loan is from a lender that meets all your needs as a borrower.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice to help them make informed financial decisions. Every auto loan list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto financing products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
CNBC Select analyzed a handful of credit unions that offer auto loans to determine the best ones. We categorized our picks by best for customer service, best for long repayment terms, best for refinancing, best for same-day approval and best for APR discount.
To narrow our search, we focused on the following features:
- Loan amounts and terms: The lenders on this list offer a range of loan amounts and terms to suit a variety of needs.
- Prequalification: When possible, we prioritized lenders that offer online prequalification, allowing you to get a rate estimate without affecting your credit.
- Membership eligibility: We gave more weight to credit unions that had broad membership requirements.
- Fees: We prioritized lenders that limited up-front fees.
- Application process: We evaluated whether lenders offered same-day approval and a fast online application.
- Customer service: The lenders on our list provide customer service via telephone, email and secure online messaging.
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