Yes, they can be a good option. Also known as Credit Union Direct Lending, a CUDL car loan is a type of loan that’s funded by a credit union through a dealership. Because credit unions aren’t focused primarily on profits (they’re actually nonprofit organizations), they can usually offer competitive rates or rates that can beat those of other lenders. All you need to do is make sure that the dealership you’re buying from has a CUDL pipeline. From there, you can simply get pre-approved and start shopping for the car you want.