HOW DO AUTO LOANS FOR MILITARY PERSONNEL WORK?
If you are an active or retired member of the military, you can
expect to receive special rates and discounts on auto loans. There
are certain lenders in the industry that offer military auto loans
even if you have less-than-perfect credit.
So if you’re planning on buying a car soon and don’t have any idea
where to get financing, read on to learn more about auto loans for
What are Military Auto Loans?
Military auto loans are car financing programs that are exclusive to
the members of
. These loans usually carry discounts, lower
interest rates and easier terms. They are special because lenders
believe that the members of the military deserve such treat for what
they do for the country.
You just need to show lenders your credit report and a proof of your
membership in the military service, together with other basic car
loan requirements. The application process is not far from that of
regular auto loans.
1) STEADY INCOME
. Lenders know you have steady income;
that’s why they are not so concerned about this aspect of your
application. This is also the reason why you can be given an auto
loan even if you have bad credit.
2) AUTOMATIC PAYMENT
. You can set up an automatic
payment scheme so you will never miss a payment. This allows the
lender to automatically deduct payments from your checking account.
3) U.S. DOMICILE
. You don’t have to be in the U.S. to
process the application. You can authorize someone you trust to
complete the application for you.
4) INSTANT APPLICATION
. The application process can be
done online and can be completed more instantly.
5) STABLE RESIDENCY
. Normally, the length of time an
applicant has been at one address is part of the criteria for
getting a car loan. Some military personnel have trouble
establishing residency since they are always deployed to various
places. Lenders understand this and they waiver this requirement.
What to Keep in Mind
Military auto loans are not provided
by the government or the military. They are underwritten by private
lenders. This means you are subject to the policies and potential
penalties lenders may charge on civilian borrowers.
- Get a copy of your credit report before applying for a
military car loan. You still need to know where you exactly stand
on your credit.
- Shop around to find the best rate. Just because military auto
loans offer special discounts doesn’t mean you can get any offer
you find. Compare at least 3 different offers before settling with
- Although lenders offering military loans seem more considerate
and more lenient, don’t underestimate the terms and policies
discussed in the loan agreement. Stay on track when it comes to
your payments. This will also keep your credit in good standing.
- Do not forget about negotiating for a lower price. You still
need to do this because car prices are often, if not always,
marked up in dealerships.
- Investigate lenders. Not all lenders who say they have special
deals for military personnel are doing business honestly. Make
sure that the lender you’ll be working with has good reputation
and does business fairly and truthfully.