The average car payment is now $770/month — could a credit union's lower rate save you, or is the longer loan quietly costing you more?

The average repayment span of a car loan stands at 69 months, or just under six years, according to Experian. Some credit unions, though, offer much longer payment periods. Navy Federal Credit Union — which serves active-duty servicemembers, their families as well as Department of Defense civilian employees — offers up to a 96-month auto loan. The interest rate, though, is almost double that of a 12-36 month loan, which increases the total amount paid over the long run.

Credit unions have a limited amount of capital available given their smaller size. So their ability to underwrite loans isn’t normally as ample.

Picking the right credit union

Choosing a credit union that best fits your financial needs will first depend on the cost of the car being purchased. Longer loans of 84 months or more are now more common given the average price of a new car is $49,220, just under a record set late last year. A longer term can shrink monthly payments, but it will cost more over the long run as interest piles up coupled with the steadily depreciating value of a car.

A used car could make more financial sense for a borrower who doesn’t want to be on the hook for lengthy, substantial monthly payments.

Credit union members will usually have access to either a direct loan from the institution or in some cases through a credit union partner at a dealership. Some credit unions will allow customers the option to defer a payment in the first 90 days if that suits a customer’s needs.