Consumers Credit Union Auto Loan Review

Consumers Credit Union auto loans at a glance

*Rates include 0.25% autopay discount

If you want a low interest rate on an auto loan, a credit union can be one of the best places to look.

In Illinois, average rates on used auto loans are hovering above 11% annual percentage rate (APR) as of this writing, but the Illinois-based Consumers Credit Union (CCU) offers loans for used cars starting at 5.49%. (Note, you’ll have to meet CCU’s eligibility criteria to get its lowest rates.)

• Autopay discount: If you sign up for automatic payments, borrowers can receive a 0.25% autopay discount on their CCU car loan rates.
• Full financing: CCU offers loans for up to 100% of the purchase price of a car.
• Dealership loans only: Borrowers can only use a Consumers Credit Union auto loan to purchase a car through a dealership. Private-party car loans and auto financing for online car-buying websites like Carvana are not available.
• Membership required: You’ll have to become a member of the credit union before you can get a Consumers Credit Union auto loan. However, unlike with some credit unions, anyone can become a CCU member.
• Skipped payments: Borrowers can skip their car payments twice a year without penalty fees, however, interest charges may still accrue.
• Car buying service: CCU partners with TrueCar to offer a car buying service. Users can search local dealerships for new and used cars then finance them through CCU.
• Same-day funding: In some scenarios, CCU may be able to fund your car loan the same day you apply.
• Best for car dealership shoppers: Since CCU only offers dealership financing, this lender may be best for consumers shopping around with car dealers. The lender may also be a good fit for users who want to shop for their vehicle and auto loan in the same place since you can use CCU’s car buying service.

Consumers Credit Union auto loan requirements

Consumers Credit Union doesn’t disclose some information about how to qualify for their auto loans, such as income and debt-to-income (DTI) ratio. What we do know is that you’ll need to have at least a 620 credit score and become a credit union member.

CCU auto loans are available in all 50 states, and anyone can become a member. To join, you need to pay a $5 upfront fee, then deposit and maintain a minimum balance of $5 in a Membership Share Savings account. This can earn you as much as 5% annual percentage yield (APY).

Since CCU has a low minimum credit score requirement, you may be able to qualify for a bad credit auto loan. To see if you qualify, apply for a CCU preapproved car loan. This can give you an idea of whether the lender may approve you and what terms you may qualify for.

Consumers Credit Union pros and cons

CCU loans offer competitive auto rates and unique features for borrowers, including 24-hour emergency roadside assistance (up to $100 value per incident), but there are some drawbacks.

CCU’s new auto loan rates start at a competitive 5.49%. To get the lowest rates from this credit union, you’ll have to buy a 2022 vehicle model (or newer) with repayment terms of 60 months or less. You must also set up autopay to qualify for their 0.25% interest rate discount.

However, because CCU doesn’t offer private-party auto loans, this lender won’t be a good fit for consumers who, for example, want to buy a car on Craigslist. The credit union membership requirement may also turn off some car shoppers.

A closer look at Consumers Credit Union auto financing

Founded in 1930, Consumers Credit Union is insured by the National Credit Union Administration (NCUA). CCU is headquartered in Gurnee, Ill., and has 25 branches located throughout the state, but you can open accounts and apply for loans online. In 2024, another Illinois-based credit union, KCT Credit Union, will merge with CCU.

Consumers Credit Union auto loans start at 5.49% APR as long as the car is 2022 or newer. Used vehicles — model years 2018 to 2021 — come with starting APRs of 5.49%.

CCU offers both large and small auto loans, ranging from $250 to $500,000. In 2023, the average loan amount for a new car from CCU was just under $40,600. For used cars, it was around $28,077. CCU also provides repayment terms of up to 84 months. These are longer car loan terms than what some lenders offer.

Auto loan refinancing is available for both CCU loans and car loans from other lenders. However, our Consumer Credit Union review found that CCU customers may be limited to just dealership purchases. There is no option for lease buyout loans, private party loans or online car buying services (other than CCU’s car buying platform).

CCU partners with TrueCar and Enterprise to offer car buying services and match consumers with dealerships in their area. You can use these sites to search for new and used vehicles. Then, you can make your purchase by using CCU financing.

Consumers Credit Union auto loan types offered

If you’re looking to use Consumers Credit Union, the lender offers auto loans for a variety of purposes, including for:

• New cars
• Used cars
• Classic cars
• Motorcycles
• RVs
• Refinancing
• Commercial vehicles

How to get an auto loan with Consumers Credit Union

You can apply for an auto loan from Consumer’s Credit Union online, over the phone (847-837-7938) or in person. Here’s the process to apply:

1. Become a member: Pay the $5 upfront fee and deposit at least $5 to a Membership Share Savings account.
2. Get preapproved: Apply for preapproval to see if you may qualify for auto financing. If preapproved, CCU will provide you with a quote including your potential rates, loan amount, terms and monthly payment.
3. Formally apply: Submit your contact information and the details of your income, credit profile and the vehicle you plan to buy.
4. Shop around: With your loan offer in hand, shop for a vehicle that fits your price range.
5. Send the loan documents: Once you choose a vehicle, send CCU the purchase agreement via email or fax and sign the final documents on your phone, online or at a branch.
6. Pay for the vehicle: CCU will send a check directly to the dealership or have you pick it up at a branch.

Is a Consumers Credit Union auto loan right for you?

Since it offers competitive rates and a low credit requirement, CCU auto financing may be a good fit for consumers across the credit spectrum. However, only borrowers with excellent credit will qualify for CCU’s lowest APRs.

CCU’s starting APR is lower than the national average and their used loan rates are particularly competitive. So, if you’re already a credit union member or you want to apply to become one, prequalify for an auto loan and see if you like what CCU offers.

How Consumers Credit Union auto loans compare

If you’re looking for an auto loan with more competitive rates, consider PenFed Credit Union. PenFed offers a lower starting rate on new car loans, and while its credit score requirement isn’t disclosed, the lender offers prequalification.

Alternatively, consider Digital Federal Credit Union (DCU). This credit union offers similar rates to CCU but doesn’t allow prequalification. However, your first auto loan payment won’t be due for 60 days.

As with most credit unions, you’ll need to become a member of PenFed Credit Union or Digital Federal Credit Union to qualify for their auto loans.