Coastal Credit Union: Member-Owned Cooperative Auto Loans

About Coastal Credit Union

Coastal Credit Union was founded in 1967 by IBM employees with the initial goal of serving the financial needs of their company. Headquartered in Raleigh, North Carolina, Coastal has steadily expanded their services over the decades, evolving into a full-service credit union that caters to members throughout the Triangle region and other states. They state they aim to offer members competitive rates and lower fees on various financial products, including auto loans, business loans, mortgages, checking accounts, credit cards, and home equity loans.

Regarding auto financing, Coastal Credit Union provides options for both new and used vehicles. They also offer auto refinancing services, allowing members to adjust their loan terms or potentially lower their interest rates. Membership is required to utilize their services, which involves opening a savings account with them.

This savings account qualifies you for their financial products and ensures that your deposits are federally insured up to $250,000 by the National Credit Union Administration (NCUA). Coastal highlights that the NCUA conducts regular credit union audits to ensure compliance with federal regulations, providing members with an added layer of security and trust in the institution.

Coastal Credit Union is known for their strong reputation in the financial community. They are accredited and maintain an A+ rating from the Better Business Bureau (BBB), reflecting their commitment to high customer service and ethical business practices. This rating suggests they diligently address customer concerns, further strengthening their trustworthiness among members.

Features & Services

New vehicle auto loan

Coastal Credit Union provides financing options for individuals purchasing a new vehicle. Their new vehicle auto loan offers flexibility with various loan terms, allowing borrowers to select a repayment schedule that meets their financial needs. Applying for preapproval can help borrowers understand their budget before visiting a dealership, which may simplify the buying process.

Used vehicle auto loan

They also offer loans for those purchasing a used vehicle. Similar to the new vehicle loan, preapproval is available, enabling borrowers to understand their spending limits in advance. The loan covers a range of used car models, accommodating vehicles of different ages. This loan is accessible to borrowers with varying credit histories.

Auto refinance

Coastal Credit Union provides auto refinancing options for individuals looking to adjust their current loan terms or reduce their payments. Refinancing replaces an existing loan with a new one that may offer different interest rates or repayment terms. Borrowers can extend or shorten the loan term based on their needs. Coastal also offers cashback incentives for certain refinancing situations.

Auto loan calculator

The auto loan calculator available through Coastal Credit Union allows borrowers to estimate their monthly payments by inputting the loan amount, interest rate, and term length. This tool helps potential borrowers evaluate different loan options and make more informed decisions about financing. It can also assess potential savings from refinancing an existing loan.

Auto insurance

Coastal Credit Union partners with TruStage® to provide members with discounted auto insurance options underwritten by CMFG Life Insurance and other top insurers. In addition to standard auto coverage, members can access GAP Insurance to protect against owing more than the car’s value after a total loss, and Credit Disability and Credit Life Insurance to safeguard loan payments in case of disability or death. Coastal also offers home and vehicle coverage with member discounts and Accidental Death & Dismemberment (AD&D) insurance, which provides cash benefits for covered injuries or loss of life. 

Online application

Coastal Credit Union’s online application process allows borrowers to apply for new or used vehicle loans or refinance existing loans from their computer or mobile device. The application process is designed to be straightforward and efficient, helping borrowers receive quick responses to their loan applications. This platform aims to reduce delays in securing financing or refinancing.

What Are Their Pricing & Plans?

Coastal Credit Union does not offer exact pricing and rates upfront, as these depend on factors like your credit qualifications, the vehicle’s year, mileage, value, the loan amount, the loan terms you choose, and other collateral requirements.

To get a better idea of your payments, you can contact them directly or use their online auto loan calculator, which helps you estimate monthly payments based on your input details. However, based on the information provided on their website, we can give a general overview of their pricing and rates.

For well-qualified applicants, the interest rate for new vehicles can start at 5.49% APR, specifically for cars from the 2023 and 2024 model years. Used vehicle loans have slightly higher rates, depending on the car's age. For example, rates for 2020 to 2022 models start at 5.64% APR, while vehicles from 2017 to 2019 may start at 5.84% APR.

Borrowers can choose loan terms that range from 48 to 84 months. A shorter loan term, like 48 months, typically comes with a lower interest rate, but the monthly payments will be higher. For example, a $25,000 loan at 5.49% APR over 48 months will result in a monthly payment of $582.56. On the other hand, if you opt for a longer term, such as 84 months, the interest rate might be higher, but the monthly payment will be lower. In this case, the same $25,000 loan at 6.99% APR over 84 months would have monthly payments of $378.26.

For their refinancing options, rates start at 5.49%—6.99% APR for well-qualified applicants. They also provide incentives like a potential $200 cashback if they cannot reduce your monthly payment by $100. It’s important to note that all rates and terms are subject to change and depend on individual factors like credit score, loan amount, and the vehicle's value. Additionally, interest accrues daily, so keeping up with payments is essential to avoid paying more over time.

Pros

• Periodic refinance options: Coastal Credit Union allows you to refinance your auto loan after making 12 consecutive payments on a new or used vehicle loan. This flexibility allows borrowers to renegotiate their loan terms or secure a lower interest rate as their financial situation improves
• Simple pre-qualification process: The pre-qualification process at Coastal is straightforward. If you meet the requirements, you can complete the application and receive approval on the same day. By providing all required documents—such as vehicle details and current loan information—borrowers can fast-track the process
• Mobile application: They offer a mobile app that supports many features beyond managing auto loans. The app, available on iOS and Android, allows you to view your account activity in real-time, make payments, deposit checks, transfer funds, and more. This real-time access to account management ensures that borrowers can stay on top of their loans and financial transactions
• Flexible terms: Coastal offers flexible loan terms ranging from 48 to 84 months, allowing borrowers to choose the repayment period that best suits their financial situation. Shorter terms come with higher monthly payments but allow you to pay off the loan faster, while longer terms result in lower monthly payments, giving you more flexibility in your budget
• Lack of pre-payment penalty: Unlike some lenders, they do not charge a penalty fee if you pay off your auto loan early. This is a significant advantage for borrowers who want to reduce their interest payments or complete their loans ahead of schedule. Additionally, Coastal provides a 45-day grace period before the first payment when you refinance or purchase from another lender
• Discounted rates: Coastal Credit Union offers discounted auto insurance rates to their members through a partnership with TruStage. However, they do not provide specific details about these discounts on their website, so it’s recommended that you contact them directly for more information

Cons

• Credit union membership required: To apply for any auto loan or refinancing service at Coastal Credit Union, you must first become a union member. Membership is required to access their loan products, which can be a barrier for individuals
• Charges a membership fee: Becoming a member of their credit union requires a minimum deposit of $25 into a primary savings account. While this is a relatively low entry point, securing a loan is still an added requirement. If you join through the Sustainable Energy Association (NCSEA), there may also be an additional fee associated with membership, depending on the organization you are joining
• Services are not equal nationwide: Coastal Credit Union’s services are primarily centered in North Carolina, and while it is possible to become a member outside of this region, there are certain conditions. For example, you may qualify for membership through your employer if they are partnered with Coastal or if a close family member is already a member. There are also membership options through the NCSEA. However, the limited regional focus means that some services may not be available or as accessible nationwide
• Vehicle restrictions: One limitation of their services is that they do not offer financing for vehicles older than 2012. This restriction could disadvantage individuals looking to finance or refinance older cars. Coastal’s loan products are tailored to newer vehicles, so buyers of older models may need to seek alternative financing options if their car does not meet the vehicle age requirement

Customer Experience & Reviews

Coastal Federal Credit Union holds an A+ rating and is accredited by the BBB. However, based on 17 customer reviews on the BBB website, they have a 1 out of 5 rating. On Trustpilot, they hold a 3.1 out of 5 rating, and on Yelp, they have a 1.8 out of 5 rating.

It’s important to note that Coastal Credit Union offers a wide range of financial services, and most of the reviews available online are focused on their banking services rather than their auto loan or refinancing offerings. Because these reviews may not fully reflect the quality of their auto loan or refinancing services, conducting thorough research is advised. Be sure to ask all relevant questions, address concerns with the provider directly, and seek feedback from past and current customers to ensure you get a more accurate assessment.

Positive reviews

Customers have shared positive experiences with Coastal Credit Union, highlighting various aspects of their service. One customer appreciated the dedication of the staff, noting that they felt well-guided and supported throughout their financial journey. Another customer praised Coastal for consistently delivering excellent customer service and competitive rates.

Other feedback focused on the professionalism and friendliness of the in-person branch staff. One customer was particularly impressed by how patient and thorough the representatives answered their questions. Another customer found the online tools modern and efficient, enhancing their experience.

Negative reviews

Customers have expressed concerns regarding Coastal Credit Union’s auto loan and refinancing services, particularly with insurance handling, payment processing, and communication. Some borrowers reported ongoing issues with Coastal’s insurance verification process, where despite providing proof of coverage, the credit union added forced insurance charges to their accounts. These additional charges increased monthly payments unexpectedly and led to complications with credit scores and account balances. Several customers highlighted that resolving these insurance-related issues required multiple attempts and excessive back-and-forth communication, which frustrated them.

Payment processing problems were another recurring issue. Some customers experienced difficulties setting up automatic payments or had payments delayed or incorrectly processed, sometimes leading to missed payments or late fees. In some cases, customers reported that these issues contributed to vehicle repossessions despite their efforts to make timely payments. There were also complaints about communication with Coastal’s customer service, with long hold times and inconsistent follow-ups mentioned by several reviewers. Additionally, some borrowers felt that the loan payoff process was slow and riddled with unnecessary delays, which resulted in additional interest charges.

While there are fewer positive reviews overall, this does not reflect the quality of their vehicle financing services. It likely suggests that customers are less inclined to leave positive reviews about their experiences with these particular services.

Customer Support & Services

You can contact Coastal Credit Union at 919-420-8000 or 800-868-4262 for customer support. Additionally, they offer a live chat feature on their customer portal, providing quick assistance for inquiries. You can also visit their branches for in-person support or reach out via mail at the following address:

Coastal Credit Union

P.O. Box 58429
Raleigh, NC 27658

Furthermore, Coastal provides a blog and FAQ page to assist with common questions and offer additional guidance on their services.

Final Thoughts

Coastal Credit Union, founded in 1967, offers various financial services, including auto loans and refinancing options designed to fit various financial needs. They provide financing for new and used vehicles and auto refinancing with flexible loan terms. Members can also access tools like an auto loan calculator and discounted auto insurance through a partnership with TruStage®. With competitive rates and a commitment to lower fees, Coastal aims to make vehicle financing accessible to their members. However, becoming a member requires opening a savings account, and some restrictions apply, such as vehicle age limits.

Despite their A+ BBB rating, customer reviews reflect mixed experiences, with some highlighting issues related to insurance handling, payment processing, and communication. Potential borrowers should ask all relevant questions and gather feedback from current customers to ensure Coastal’s auto loans and refinancing options meet their needs.

Before making your final decision, explore our other reviews of top auto loan providers and use our comparison tool to find the best fit for your needs. Don’t forget to check out our blog for expert advice, tips, and insights on how to get the most out of your auto loan financing.