Credit unions tend to offer lower rates than other lenders, and many have specific auto loans for electric vehicles. However, you’ll need to meet membership requirements before you can apply for one. And remember that the cheapest rates may not be the best ones for your situation. It’s often wise to determine the monthly payment you can afford before comparing loan terms and interest rates.

A credit union electric car loan may be an option if you have a solid credit score, a sizable down payment or trade-in and other financial assets, plus discretionary income that you can dedicate to your car payments. In addition, a longer-term loan could reduce your total interest costs over the life of the vehicle.

If you don’t meet the membership requirements for a credit union, consider a nonbank lender that specializes in EV lending. These lenders typically have a smaller range of products, but their expertise can make the buying process easier for consumers. And they can still offer some of the lowest auto loan rates on the market.

Getting an electric car loan is a great way to help the environment and cut your fuel bill. But the financing process can be confusing, and many people have questions about what to expect. Here’s a guide to get you started.

How to Choose the Best Credit Union Car Loan?

Whether you’re buying a new or used vehicle, an EV is a great way to save money on fuel and reduce your carbon footprint. And if you’re going the extra mile, you might want to consider installing a home charging station.

However, a new or used electric car can be more expensive than a traditional vehicle. That’s why it’s important to compare loan terms and interest rates before choosing a lender.

Credit unions tend to have lower rates than banks and online lenders, but the best auto loan for an electric car will depend on your unique situation. In general, it’s a good idea to work with multiple lenders and get preapprovals before you visit the dealership. That will give you leverage when negotiating and limit the number of hard credit inquiries that affect your credit score (as long as you submit them within 14 days).

While the credit union and bank share of the new-car finance market continues to shrink, they have gained a foothold in the rapidly expanding green-car financing sector. In the third quarter of last year, Experian reports that credit unions accounted for 13.7% of EV loans and leases. This is up from 10.5% in the same period the previous year.

The process of obtaining a credit union auto loan works very similar to the process for financing any other vehicle. You’ll need to provide proof of income, such as pay stubs or tax returns, and then select the loan amount you can afford. Once approved, you’ll receive an interest rate and other information that will help you finalize the loan.