Dealer Financing vs Credit Union Auto Loan
**Dealer financing** is convenient at purchase—sometimes subsidized 0% APR with rebates. **Credit unions** often beat dealer rates on used cars and borrowers with strong credit, with fewer dealer reserve markups.
Step by step
1. Get CU pre-approval
Walk in with a rate cap before negotiating the car price.
2. Net rebates vs APR
Cash rebate + outside loan may beat 0% with higher price.
3. Read the contract
Dealer may sell add-ons bundled into payment—decline what you do not need.
Dealer vs credit union
Lowest monthly payment is not lowest total cost if term stretches.
- Dealer finance: One-stop; promo rates; possible rate markup.
- Credit union: Member pricing; transparent APR; separate from trade-in talk.
Use our calculators
Common mistakes
- Negotiating payment only
- Skipping GAP/warranty comparison until after rate
FAQ
Can dealers beat 0% CU rate?
Rare on used cars—compare total interest over the full term.