Meeting needs by incentivizing auto loan refinancing
Data unequivocally shows credit unions save members thousands of dollars over the life of an auto loan. The amount of savings grows exponentially for borrowers with low credit scores, with worse scores leading to more savings. Across the country, credit unions are proactively working to bring those savings to even more members through auto loan refinancing. A recent America’s Credit Unions blog post examines several efforts underway.
This summer, TruWest Credit Union is offering members up to $400 to move their bank or finance company loan to the credit union. Senior Vice President and Chief Lending Officer Farid Farbod said it rewards members who refinance “while helping them potentially save money over the life of their loan.”
Other credit unions including Florida Credit Union, Virginia’s 1st Advantage Federal Credit Union, and Navy Federal Credit Union, are offering similar bonuses.
NCUA rate data shows that at the end of 2025, a 60-month new-car loan averaged 5.44% at credit unions. Compared with 7.41% at banks, this difference indicates that these refinanced loans are another clear way credit unions work to meet their members' needs.