2023 DCU Auto Loan Review
Why use LendingTree?
DCU auto loans at a glance
Although Digital Federal Credit Union (DCU) is based in Massachusetts, you can get an auto loan no matter where you live by becoming a member. The best rates on a DCU car loan are reserved for those with higher levels of membership who have excellent credit and sign up for automatic payments. You can also get a rate discount for financing an energy-efficient vehicle.
- Simple rate structure: DCU offers the same starting APR for new, used and refinance auto loans.
- Delayed initial payment: You can delay the first payment on new and refinance auto loans for 60 days, though interest will still accrue.
- High LTV loan: DCU will finance up to 130% of the car’s loan-to-value (LTV) ratio, so you could add a warranty or other add-on or make a cash-out refinance.
- Online car purchase: DCU finances used vehicles purchased on Carvana.
- Specialty vehicle loans: In addition to traditional auto loans, DCU also offers loans for antique autos, motorcycles, RVs, boats and mobility-adapted vehicles.
- Best for competitive rates on multiple loan types: If you meet the eligibility requirements or are already a member, DCU is a solid option. For used or refinancing buyers, or those looking to purchase a specialty vehicle, DCU should be on your list.
On this page
DCU pros and cons
Although credit union membership is required to finalize and fund a vehicle loan, you can apply and see your rate before becoming a member. There is no way to prequalify for a DCU new or used auto loan, so the application could impact your credit score.
| Pros | Cons |
|---|---|
Easy online application process Free checking and other banking services Apply for a loan before you select a vehicle Instant decisions sometimes available on online applications | Best rates for higher membership levels and electronic payments May have to pay a fee to refinance a DCU auto loan Must complete an application to see your loan rate |
If you don’t mind becoming a member, DCU offers competitive loan rates and convenient online applications. However, DCU does not publicly share its full range of loan rates, minimum or maximum loan amounts or credit score requirements.
Although you don’t have to have a specific vehicle in mind when you apply, you will need an estimate of the total dollar amount for the loan application. To receive an offer and see the APR you qualify for, you must complete and submit the application, which will require a hard credit pull.
A closer look at DCU auto loans
One of the top 20 credit unions in the U.S. as measured by assets, DCU serves more than 1 million members in all 50 states. However, it only has branch locations in Massachusetts and New Hampshire.
Other lenders charge a higher rate for used car and auto refinance loans, but DCU offers the same rates and terms for new and used vehicles, regardless of whether they are purchased, refinanced or a lease buyout. While there is no fee associated with refinancing an auto loan from another lender, you may have to pay an administrative fee to refinance a DCU auto loan.
Notably, DCU also offers loans for an array of specialty vehicles, such as classic cars, RVs, motorcycles and boats, which is unusual to find in one place. Refinancing at DCU could be a good option if you’re stuck in an upside-down car loan, as they will loan up to 130% of the car’s loan-to-value ratio.
DCU auto loans
Digital Federal Credit Union offers competitive loan options for the purchase of new or used cars, auto refinancing and lease buyout loans. DCU’s rates and terms are the same regardless of whether you’re buying a new car or refinancing an older one.
- Starting APRs between 5.99% and 8.24%
- Terms: 36–84 months
- APR discounts:
- 0.5% APR discount for Plus and Relationship members with electronic payments. Discount included in rate quotes.
- 0.25% APR discount for energy-efficient vehicles that have an EPA fuel economy rating of 35 MPG or 35 MPGe combined city/highway.
Special vehicle financing
In addition to traditional auto loan options, DCU also offers loans for a variety of specialty vehicles.
| Loan type | Starting APRs* | Loan terms | Loan amounts |
|---|---|---|---|
| Antique car | 8.24%-10.74% | Up to 120 months | Up to 90% of appraised value |
| Motorcycle (new and used) | 7.25%-8.00% (street) 10.85%-11.35% (offroad) | 36 to 60 months | Up to 125%** |
| Boat (new and used) | 9.99%-11.49% | 60 to 180 months | Up to 125%** |
| Mobility-adapted vehicles | 8.24%-10.74% | 36 to 120 months | Up to 125%** |
| Large RVs (new or used motor homes, travel trailers or camping trailers) | 9.99%-11.49% | 60 to 180 months | Up to 125%** |
| Small RVs (new or used personal watercraft, snowmobiles, all terrain vehicles, scooters or mopeds) | 10.85%-11.35% | 36 to 60 months | Up to 125%** |
* All rates include Plus membership discount
** DCU will finance up to 125% of the purchase price or NADAguide value, whichever is less
Loan add-on options
DCU offers add-on protection services for its auto loans. These services are optional and can be purchased from other providers. Be sure to shop around for the best prices and services before committing.
- GAP insurance: This optional insurance protects you when your car loan balance is higher than its current value. DCU’s GAP insurance is a one-time cost of $599.
- Mechanical Breakdown Insurance: Similar to an extended warranty, this product provides repair coverage on major car systems (like the engine or transmission), emergency roadside assistance and rental car allowance.
- Payment Protection Insurance: This coverage allows borrowers to temporarily cancel loan payments without penalty during certain unexpected events, including death, disability, unemployment or illness.
How to get a loan with DCU
You can apply for a DCU auto loan through the online application or at a branch. If you’re already a member, you can submit your application through the Offers section of the website, which will automatically fill in the information the credit union has from your file.
If you are not a member, you will receive information on how to apply to become a member after you submit your loan application.
Membership is available to employees and their families affiliated with more than 700 companies and organizations, eight of which are open for anyone to join. You are also eligible if you reside in a participating community or condominium association in Massachusetts or New Hampshire. A complete list of partner companies and organizations can be found on the member eligibility section of the DCU website.
To apply for an auto loan, you will need to provide the following information:
- Whether the vehicle is new or used
- The estimated loan amount
- The desired term of the loan
- Your personal information (name, Social Security number, date of birth)
- Physical and mailing address
- Government-issued form of identification
- Co-applicant information (if applicable)
- Employment status
- Gross monthly income
- Monthly expenses
If you decide to finalize and fund the DCU auto loan offer, you must:
- Become a DCU member
- Submit a copy of the purchase & sale agreement (for dealer purchases)
- Submit verification of income, if requested
- Submit any additional requested documents
- Finalize funding details (dollar amount, payment due date, term, interest rate, payment options and to whom the check is payable)
- Sign the Note & Loan Agreement
After finalizing your loan documents, you should receive a physical check in two to three business days.
How DCU auto loans compare
DCU offers the same rate for new and used vehicles, so you don’t have to decide if it’s worth it to pay a higher APR for a less expensive used car. Since DCU doesn’t allow prequalification, you’ll have to complete an application to find out information that other lenders may have on their websites. Use an auto loan calculator to compare rates and terms from multiple lenders.
| Digital Federal Credit Union | PenFed Credit Union | Consumers Credit Union | |
|---|---|---|---|
| APR | 5.99% | 5.24% | 5.94% |
| Terms | 36-84 months | 36-84 months | 36-84 months |
| Amount | Up to $500,000 | $500-$150,000 | $250-$250,000 |
| Min. credit Score | Not specified | Not specified | 550 |
Is a DCU loan right for you?
Like many credit unions, DCU offers competitive rates on a wide range of vehicle types, but there is the hurdle of becoming a member, which may or may not make sense depending on your other banking needs. You can conduct all your business online, and loan approvals are very quick. If you’re looking for a specialty vehicle — such as a classic or antique vehicle, RV or another motorized toy — DCU is a solid option.
While DCU auto loans are competitive, It’s always a good idea to shop around for a lender to determine which is best suited for you. You can fill out a single form with LendingTree and receive up to five auto loan offers from lenders.
Frequently asked questions
DCU does not disclose the credit score it requires for auto loans. Generally, the lowest APRs begin with a very good credit rating, starting at a 740 FICO score.
In many cases, DCU can provide an immediate decision on applications submitted through its online application. Once all documentation is completed, the funding check is typically delivered within two to three days.
Membership is determined by a person’s association with a family, company, association membership or residence in a particular area. DCU’s membership team can help you become a member of an association regardless of where you live in the United States.