Skyla Credit Union vs. Consumers Credit Union: Which offers better auto loans?

Working with a credit union to get an auto loan has many potential advantages, including more competitive rates. This is especially true as interest rates average 6.73 percent for new vehicles, according to Experian.

Although credit unions require you to be a member, it is an easy hoop to jump through in order to secure a competitive rate. Two options to start your shopping journey with are Skyla Credit Union, which recently merged with Parsons Federal Credit Union, and Consumers Credit Union.

Skyla is the perfect fit for drivers looking to finance an expensive vehicle, while Consumers Credit Union is the better choice for those looking to buy online.

Skyla vs. Consumers Credit Union at a glance

Skyla auto loans

Best for competitive interest rates

Bankrate’s view

Following its full merger in early August of this year, Skyla Credit Union added many benefits for borrowers, including more in-person branches and expanded customer service hours. You’ll need to become a member to get loans from Skyla, which you can do through the American Credit Council.

Its starting auto loan rates are extremely low for the current market. In addition, it has some of the most flexible borrowing terms available — it can be hard to find auto loans for less than $5,000, but Skyla offers them for just $3,000. So while there is no rate discount available, you may still be able to get a good car loan with Skyla.

Pros

• High loan amount: Drivers can finance their next vehicle with Skyla for up to $150,000.
• Customer support: The Charlotte-based credit union offers 24/7 support for its members.
• Advanced underwriting criteria: Unlike most lenders, Sklya considers employment, income and other financial assets when determining rates.

Cons

• No short repayment term: Borrowers can only finance their loans between 48 and 84 months. Many lenders offer 36-month terms.
• No ability to prequalify: Unlike many other lenders, including Consumers Credit Union, you cannot preview available rates and terms through prequalification.
• No autopay discount: There is no incentive for borrowers to sign off on autopay when financing with Skyla.

Consumers Credit Union auto loans

Best for prequalification

Bankrate’s view

Like Skyla, Consumers Credit Union (CCU) offers auto loans with fairly competitive rates. Plus, enrolling in autopay nets you a 0.25 percent rate discount, though the listed minimum rate of 5.99 percent already factors in the discount.

The Illinois-based credit union has branches across the country where members can find assistance and an easy-to-navigate website where borrowers can shop and apply for their cars. Best of all, Consumers Credit Union offers prequalification to preview your rates — a benefit you won’t get with Skyla.

Pros

• Autopay discount: Those who agree to autopay will benefit from a 0.25 percent rate reduction.
• Car-buying service: Consumers Credit Union offers a car-buying service through a partnership with TrueCar.
• Vehicle add-ons: You can bundle vehicle loan add-ons such as mechanical repair coverage through ForeverCar.

Cons

• Unspecified refinance requirements: Vehicle and loan requirements for refinancing can only be found by connecting with a CCU representative.
• Unknown loan amounts: CCU does not disclose its loan amounts for any of its loan products. This can be challenging for those with a specific vehicle budget in mind.
• Limited customer support: Support is only available six days a week, unlike Skyla’s 24-hour coverage.

How to choose between Skyla and Consumers Credit Union

Both credit unions offer the ease of an online application and the option for in-person assistance at a branch location. Although Sklya offers slightly lower starting rates than CCU, that doesn’t ensure a cheaper monthly cost. CCU offers a wider range of financing options, whereas Skyla has only four repayment terms.

CCU might be a better choice if you intend to extend your loan term for a lower monthly payment. However, keep in mind the risks accompanied by a long-term loan, like more interest throughout the loan.

Choose Skyla if you want to finance an expensive vehicle

Vehicle prices have steadily increased following the pandemic, and financing amounts have followed. According to Experian data, the average loan for a new car was just over $40,500. If you plan to finance an expensive vehicle, Skyla is a great option.

Borrowers working with Skyla can finance up to $150,000, leaving a lot of wiggle room for big vehicle expenses. Skyla also considers factors outside of credit scores when determining rates, making it a promising choice for those with poor credit.

Skyla’s maximum rates, 14.75 percent for new and 16.50 percent for used vehicles, are also much lower than the highest interest rates out there.

Choose Consumers Credit Union for finding a car online

If you feel confident in your online navigation skills and have a good idea of what you’re looking for, shopping online can speed up and ease the process.

CCU offers a comprehensive online car-buying tool powered by TrueCar. This tool allows you to see what other drivers spent on a vehicle and receive member discounts. Plus, the loan application is available directly through the shopping platform. If buying online interests you, it is still wise to take a test drive in person to confirm the car is the right fit.

Compare more lenders before applying

If you want to purchase an expensive vehicle or need relaxed requirements, look closely at Skyla. CCU is ideal for a savvy online shopper looking for a seamless online shopping and financing experience.

But if you aren’t sold on the approach of either option, compare more auto loans to see how Skyla and CCU stack up against competitors.