Can someone help me understand the point of credit union auto loans?

[abcdefghijklmnopqrstuvwxy]

I've came across a reddit post from someone who was super duper happy with the auto loan they got with their credit union. It was a 5% APR loan for like 80 months lol. Maybe it's different with different car dealerships, but I've been offered 0% APR financing at Toyota everytime for like 24-48 month terms. So what exactly is the appeal of going with credit union vehicular loans? thanks

[JoeRockhead]

For a lot of people, they can get a better rate through a CU than they could qualify for otherwise. Also, NFCU for example will do a used auto loan with a private seller vs dealership only, which ranges from a rarity, to non-existent with mainstream lenders. 

[Slabenstein]

The appeal is that, outside of dealer promotional financing with captive lenders, you're generally going to get a better rate and more flexibility with a credit union than one of the major banks.

[Harvey26]

@abcdefghijklmnopqrstuvwxy Just to piggy back off of what others have said , on average you will get a lower rate with the same term as one of the major banks for instance. I purchased a 2019 Accord in 2022 PNC offer 3.99% , I went to my local credit union and got 2.49 for the same exact term. Also not to be rude but have you looked at the current state of the economy over the past 5 years. The average american can not afford to pay a brand new car loan off in 24-48 months. Even with a 0% interest rate that may just simply not be in their budget. 

[cashorcharge]

While you may get good rates from captive finance companies tied to manufacturers.....and occasionally get see a discounted rate for 60-72 months....a CU usually don't have 0% but will offer lower rates for extended terms like 72 and 84 months and they will also offer lower rates on used vehicles as well.  

It pays to shop around if you aren't predisposed to get X car with a special X rate for X months