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How much you save on a car loan at a credit union

By Editorial team · 2026-06-18

In short: Credit unions charge roughly 2 percentage points less than banks on car loans. The latest NCUA averages: a 60-month new-car loan is 5.44% (credit union) vs 7.41% (bank), and a 48-month used-car loan is 5.53% vs 7.73%. On a $30,000 60-month loan, that gap saves well over $1,500 in total interest.

Auto loans are where the credit-union advantage is largest in dollar terms. Banks average well over 7%; credit unions sit in the low-to-mid 5% range.

The latest auto loan averages

National average APRs from the NCUA Credit Union and Bank Rates report, rates as of December 26, 2025.

LoanCredit union avgBank avgGap
New car, 48 months5.32%7.33%2.01 pts
New car, 60 months5.44%7.41%1.97 pts
Used car, 36 months5.41%7.69%2.28 pts
Used car, 48 months5.53%7.73%2.20 pts

What 2 points is worth

On a $30,000, 60-month new-car loan, the credit-union average (5.44%) versus the bank average (7.41%) cuts the monthly payment by roughly $30 and saves well over $1,500 in total interest across the loan. On a larger or longer loan the saving is bigger. Model it precisely in the auto-loan calculator.

How to capture it

  1. Check whether you can join an eligible credit union - membership is often a $5-$25 share deposit.
  2. Get pre-approved at the credit union before you visit the dealer.
  3. Compare the dealer’s financing offer against the credit-union pre-approval and take the cheaper APR.

See the new car loan page and the full comparison. National averages, general information, not financial advice - confirm the live rate with the lender.

Frequently asked questions

How much cheaper are credit union car loans?

About 2 percentage points on average. The latest NCUA data shows new-car loans around 5.3-5.4% at credit unions vs 7.3-7.4% at banks, and used-car loans around 5.4-5.5% vs 7.7%.

Do I have to be a member to get a credit union car loan?

Yes - you join by opening a share account, often for a $5-$25 deposit, if you fit the field of membership. Many people join specifically to capture the lower auto rate.

Can I refinance my car loan at a credit union?

Often yes. If your current bank loan is well above the credit-union average, refinancing can cut your rate and monthly payment - run the numbers first.

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Last updated: 2026-06-18