In 2025, car buyers in the USA have a wide range of financing options, but the best credit union auto loans continue to win thanks to lower rates and flexible terms. The average auto loan in banks, according to Bankrate, is about 6.8% APR, while credit unions often offer deals below 4%.
Does a credit union give better auto loan rates?
Yes. Credit unions in the USA usually provide rates 1–2% lower than banks or dealerships. A 2% difference on a three-year $25,000 loan can save you more than $800.
Top-5 Credit Union Auto Loans (2025):
- Secure First Credit Union — new cars from 2.99% APR for up to 60 months.
A great option for buyers looking for a fixed low rate. - Navy Federal Credit Union — new car loans from 4.54% APR, used cars from 5.44% APR.
Also, a solid choice with a transparent system and good APR from the largest credit union. - PenFed Credit Union — financing for used cars from 5.19% APR.
Convenient for those who want to buy a pre-owned car while keeping a low monthly payment. - Alliant Credit Union — refinance car loan credit union programs from 4.49% APR.
- Bethpage Federal Credit Union — seasonal promotions with extra discounts, minimum rate on new cars — 3.49% APR. Plus, the option of early repayment without penalties.
When choosing an auto loan, look not only at the rate but also at member benefits: payment deferrals, GAP coverage, and convenient online account management.