Credit-challenged vets and active duty military that qualify for a new GM vehicle can take advantage of an expanded program that begins on May 1st and ends June 30th
Active and veteran service members with bad credit
Once they're approved, most car buyers with poor credit will choose a low mileage two or three-year-old used car. But in a growing number of cases, these buyers may also qualify for an affordable new car. In particular, military personnel may discover that a new car is less expensive than they may have thought.
According to General Motors, more than 40,000 active and veteran service members took advantage of the GM Military Discount last year so this year, during Military Appreciation Month (and beyond, as the program continues until June 30th of 2015), the manufacturer will be "offering the most comprehensive military pricing program of any automaker to all 22 million active and veteran service members from all branches: U.S. Air Force, Army, Navy, Marines, National Guard and Coast Guard – and their spouses."
How the GM Military Discount program works
The latest GM Military Discount program offers an invoice model and options cost (less than the Manufacturer's Suggested Retail Price) plus destination fees and a $150 program fee for eligible vehicles. In addition, the discount can be combined with most current incentives – including bonus cash, consumer cash, GM Card and trade-in allowance.
Most of the time, GM's military auto loan program is only available to active duty, reserves, veterans within one year of discharge date and military retirees and their spouses. But from now through the end of June, the program has been extended to include retired and veteran military – regardless of separation date.
In addition, current USAA Insurance members are also eligible for an additional $750 discount.
How the program affects problem credit buyers
For active and retired members of the military with damaged credit, the good news is that this discount, plus any added cash incentives, can be used regardless of the borrower's credit scores – saving them money on a new car and reducing the overall interest expenses of a car loan. So if these buyers find themselves in this situation, why wouldn't they take advantage of this enhanced program from GM?
Because there are a few reasons they might not be able to.
To begin with, finding a dealer willing to work with consumers with bruised credit can be difficult.
Secondly, the buyer has to be working with a GM dealer that participates in the Military Discount Program (it's voluntary).
Finally, just because a borrower qualifies for a military discount doesn't mean it can be used. That's because the subprime lending process isn't the same as a regular car loan. In high-risk lending, once a lender determines the payment range and interest rate the borrower qualifies for, it's up to the special finance department to determine which vehicles in inventory meet those requirements.
In other words, the lender's payment decision will determine whether a new car that's eligible for a military discount meets the lender's requirements. The fact is, in some cases it will and in some cases it won't.
The Bottom Line
The expanded Military Discount Program from General Motors that runs through June 30th offers an opportunity for even more active, reserve, retired and veteran military with credit issues to save even more money on a new car while reducing the overall interest expenses of a subprime car loan. But in order to take advantage of the program, these borrowers must first qualify for a new car at a participating GM dealer that also specializes in problem credit car loans.
Here's how we can help: Auto Credit Express helps credit-challenged car buyers find those dealers that can give them their best chances for auto loan approvals. So if you're ready to reestablish your credit, you can begin the process now by filling out our online car loan application.