Auto Loans for Military Personnel

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 military personnel.

What are Military Auto Loans?

Military auto loans are car financing programs that are exclusive to the members of military service. 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 one.
  • 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.

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