DCU Auto Purchase, Refinance and Lease Buyout Loans: 2023 Review
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Auto loan reviews

New auto purchase loan
Used auto purchase loan
Auto loan refinancing
Auto lease buyout loan
The bottom line:
Best for borrowers looking for flexible loan options, possible rate discounts and the benefits of credit union membership.
New auto purchase loan review

Not yet rated
Pros
Application process can be 100% online.
Has a 24-hour access consumer loan call center.
Offers two opportunities for discounts on already low rates.
Provides same-day or instant loan approval.
Allows co-signers.
Cons
Submitting an online purchase loan application results in a hard credit inquiry.
Credit union membership required to get a loan.
Social Security number required with initial application.
Best for applicants wanting fast approval, rate discounts and other credit union benefits.
Full review
Digital Federal Credit Union, also known as DCU, offers new and used car purchase loans, refinance loans and lease buyout loans. Credit union membership is required to finalize and fund a vehicle loan, but individuals can submit a loan application and join DCU after receiving their loan decision. There are many ways to become eligible for DCU membership. Members are also required to open and maintain a primary savings account with a minimum $5 balance. This account can be opened and funded online.
DCU has two different loan applications, one for auto loan refinancing and one for auto purchase loans. DCU’s auto refinancing pre-qualification process, which includes lease buyout loans, stands out for simplicity and speed. From the DCU website, applicants can input their cell phone number to receive a verification code by text. Upon entering this code and Social Security number last four digits, an applicant’s information, including existing vehicle and loan information, automatically populates the auto refinance application. Based on a soft credit inquiry, applicants see estimated rates instantly. A hard credit inquiry is done only after an applicant proceeds with the loan.
DCU’s online application for auto purchase loans is less automated and requires the manual input of information. It does not offer rate estimates with a soft credit inquiry, and submitting the purchase application results in a hard credit inquiry. Usually an approval decision is provided within minutes. Applications for all auto loan types can also be made through a 24/7 consumer loan call center.
DCU rates are the same for both new and used vehicles. Auto loan rates on the DCU website reflect rates available to borrowers with excellent credit and a 0.5 percentage point discount. To qualify for this discount, members must use direct deposit and automatic payment from DCU checking. An additional rate reduction of 0.25 percentage point is available for energy efficient vehicles.
Unlike many credit unions, DCU focuses more on direct lending to consumers than providing loans through car dealerships. The credit union does provide financing for cars purchased through online used car retailer Carvana.
Digital Federal Credit Union may be a good fit for those who:
Need a more flexible lender. For auto loans, DCU has no minimum requirements for credit history or applicant income. Loan repayment terms can be as low as 12 months for purchase loans and 6 months for refinance and lease buyout loans.
Want the benefits of credit union membership. Borrowers who open or have a DCU checking account, add direct deposit and make their loan payments electronically will receive a rate discount on auto and other consumer loans. Accounts and loans can be managed through DCU’s online and mobile banking, including submitting future pre-filled loan applications.
Want to see potential savings from refinancing. In most cases, borrowers can quickly see how much they might save by refinancing their current auto loan through DCU. Using the online refinancing application, applicants can input their cell phone number, have the application pre-fill including their existing vehicle and loan information, and within minutes see their loan offer.
Digital Federal Credit Union at a glance
How does this loan compare?
Est. APR3.39-22.00% | Est. APR5.74-18.54% |
Loan amount$5,000-$100,000 | Loan amount$7,500-$500,000 |
Min. credit score550 | Min. credit score620 |
Used auto purchase loan review

Not yet rated
Pros
Maximum vehicle mileage higher than other lenders.
No maximum vehicle age.
Has a 24-hour access consumer loan call center.
Finances vehicles purchased from private parties.
Offers two opportunities for discounts on already low rates.
Allows co-signers.
Cons
Submitting an online purchase loan application results in a hard credit inquiry.
Credit union membership required to get a loan.
Social Security number required with initial application.
Best for applicants looking for more flexibility and fewer restrictions when financing a used car.
Auto loan refinancing review

Not yet rated
Pros
Offers rate estimates through website using a soft credit check.
Offers shorter term loans.
Has a 24-hour access consumer loan call center.
Application process can be 100% online.
Offers two opportunities for discounts on already low rates.
Will refinance existing DCU auto loans.
Allows co-signers.
Cons
Credit union membership required to get a loan.
Social Security number required with initial application.
Best for applicants wanting a simple, fast application process to refinance their car.
DCU offers cash-out refinancing, meaning borrowers with vehicle equity may be able to receive cash up to 100% of the vehicle’s value with their refinance loan. Borrowers should weigh the pros and cons of cash-out auto refinancing.
» MORE: Auto loan refinancing lenders
Auto lease buyout loan review

Not yet rated
Pros
Offers rate estimates through website using a soft credit check.
Maximum vehicle mileage higher than other lenders.
Offers shorter term loans.
Application process can be 100% online.
Has a 24-hour access consumer loan call center.
Offers two opportunities for discounts on already low rates.
Allows co-signers.
Cons
Credit union membership required to get a loan.
Social Security number required with initial application.
Best for applicants who may need more flexibility to finance the purchase of their leased car.
More from Digital Federal Credit Union
DCU also provides antique car loans and mobility loans for people with disabilities, as well as loans for motorcycles, boats and recreational vehicles. It offers gap insurance, payment protection and auto insurance through an affiliate, DCU Insurance.
The DCU website has many educational resources, including the Streetwise Financial Education program, Auto Loan FAQs and Vehicle Title FAQs.
DCU headquarters are in Marlborough, Massachusetts, but the credit union serves more than 900,000 members and their families in all 50 states. It was chartered in 1979 and, based on assets, is now the largest credit union in New England and one of the top 20 nationwide.
Digital Federal Credit Union auto loan rates
Lenders set their own requirements, but Digital Federal Credit Union’s lowest rates are typically available only to borrowers with good or excellent credit (a FICO score of 690 and above). Borrowers with bad or fair credit won’t qualify for the lowest interest rates.
You can check your credit score before applying for a car loan.
Loan example: According to NerdWallet's auto loan calculator that uses the VantageScore credit model, a borrower with a credit score of 661-780, a $20,000 car loan, repayment term of 48 months, interest rate of 4.5% and $0 down payment would have monthly payments of $457.
To review Digital Federal Credit Union, NerdWallet sent a survey requesting more than 60 data points and followed up with company representatives. The information was compared with other lenders that seek the same customer or offer a similar product.
Frequently asked questions
The DCU website says to become a member, a person must have something in common with other members, such as being related, employed at the same company, members of the same association, or residents of a particular geographic area. The DCU site states it “has many participating employers, organizations, communities and condominium associations and this makes it simple for almost anyone to join.”
On its site, DCU provides a list of nonprofit organizations a person can pay to join to become eligible for DCU membership. For example, a person can join the nonprofit organization Reach Out for Schools for as little as $10 to become eligible for DCU membership.