5 best credit unions for auto loans in July 2026

When shopping for an auto loan, many borrowers turn to the big banks they already use or online lenders with sleek applications and fast 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 not-for-profit financial institutions, they typically offer lower interest rates and fewer fees than traditional lenders. They may also be more flexible with borrowers who have less-than-perfect credit. If you're financing a new car, a credit union could help you secure a more affordable loan. Read on for our picks of the best credit unions for auto loans and see our methodology below. Best credit unions for car loans Protect your vehicle and your budget with a car warranty Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability. CarShield offers seven warranties, including bumper-to-bumper, powertrain, electrical systems, motorcycles and EVs. Contracts are administered by American Auto Shield. 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 staff are and how quickly they resolve issues. In fact, the lender ranks second overall on JD Power's 2026 U.S. Consumer Lending Satisfaction Study . …