Getting a Military Discount with Credit Problemsby Steve Cypher on Friday, September 7th, 2012
Military personnel with bad credit that are on active duty or, in some instances, even in the active reserves might be eligible for what amounts to be additional new car incentives.
At Auto Credit Express, understanding issues like this is the result of over two decades of helping car buyers with credit problems find car dealers for their best chance at auto loan approvals.
Picking a vehicle
With the cost of new cars rising every year, most poor credit applicants, once they’re approved, usually decide it’s more affordable to finance a 2 or 3-year-old used car. Taking into consideration new car depreciation and the current level of vehicle quality, this decision, in most cases, makes the most sense. But members of the military that find themselves in this situation may discover that financing an affordable compact or subcompact new car is less expensive than they might have thought.
Military new car discounts
Military personnel on active duty or in the active reserve of the Army, Navy, Air Force Marines, or Coast Guard can use the military discounts offered by many new car manufacturers to lower the purchase price of an eligible vehicle.
In most cases they can also deduct any advertised new car incentives as well as any manufacturer-to-dealer discounts that are being offered on top of the military programs to save even more money.
So if you find yourself in this situation, why wouldn’t you take advantage of these programs? Actually, there are a couple of reasons you might not be able to do this.
The fact is, just because you qualify for a military discount doesn’t mean you can use it if you require financing from a subprime auto lender. Secondly, finding a dealer that understands this type of financing can often be difficult.
Even if you are eligible for one of these incentive programs, car loans for people with poor credit scores works differently. With high-risk car loans, once a lender determines the payment range and interest rate you qualify for, it’s up to the dealership finance department to show you vehicles that meet these requirements.
This “payment call” also determines whether a new car that’s eligible for a military discount meets these qualifications. The fact is, in some cases it will and in some cases it won’t.
Locating a dealer
Another important point to consider is that just because a dealer in your area happens to sell new cars with a military discount program doesn’t mean that dealer can get you financed if your FICO scores are poor.
That’s why we suggest that you first locate a dealer that works with buyers that have car credit issues.
Here’s where we come in: Auto Credit Express can help you find a dealer for your best chance at an auto loan approval.
So if you’re ready to begin rebuilding your auto credit, you can begin now by filling out our online car loans application.