WHY NOT TO USE A CREDIT UNION!

1. They may not report to a credit bureau. If you are trying to establish credit, this is critical.

2. They are not FDIC insured. A bank is.

3. If the loan is connected to your paycheck and you leave or get dismissed, they can "call" the loan, demand the balance to be payable immediately.

4. If you have other accounts there, they can freeze them or take from them to pay your car loan if you fall behind or default.

5. That low rate they dazzle you with, may be arrived at by NOT paying you interest on your checking or savings or 401K. They stop paying you 4% on your sayings to get to that 4.9% rate. The rate really is 8.9% but they don't share those other details unless you read the fine print.
 

edit: Let me add too, that any bank can do what you said above, re accessing your other accounts should you fall behind. Its called a "Farmers Lien" and is the reason why I have no loans at any institution where I have funds on deposit. The thing that CU's can do which a bank cannot, is call the loan if you move out of their member area or lose your membership eligibility via employment etc. Many here around Austin for ex, are limited to taking members who live in any of several zip codes. Relocate to a non-eligible zip code, and that CU has the legal right to "call the loan".