Active duty military with bruised credit can sometimes qualify for a special discount if they can use their auto loan to finance a new car at the right dealer
Coast Guard 215 foot Medium Endurance Cutter image courtesy of the U.S. Coast Guard
Our experience

Members of the active military with problem credit might be able to take advantage of an additional new car discount that could lower the overall interest changes on an auto loan provided they qualify for a new car at the right franchised new car dealer.

Here at Auto Credit Express we understand how this can happen because we've been helping consumers with bad credit for the past two decades find those dealers that can offer them their best chances for car loan approvals.

Vehicle choices

Most borrowers with poor credit will, once they're approved, decide that it makes more sense to finance a low mileage 2 or 3-year-old used car. Considering how much new cars typically depreciate as well as the the current level of vehicle quality and durability, this is usually the best decision. 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 discounts

In this case credit-challenged military personnel that are on active duty or in the active reserve of the Army, Navy, Air Force Marines, or Coast Guard can sometimes use the military discounts offered by select new car manufacturers to lower the purchase price of an eligible new vehicle.

In most cases this discount is in addition to any advertised new car incentives as well as any manufacturer-to-dealer discounts that are being offered on top of the military programs allowing them to save even more.

So if members of the military find themselves in this situation, why wouldn't they take advantage of this? In fact there are a couple of reasons they might not be able to do this.

First, just because they qualify for a military discount doesn't mean they can use it if they need financing from a subprime auto lender. Secondly, finding a dealer that is even willing to work with consumers with bruised credit can frequently be difficult.

Qualification issues

Even though members of the military are eligible for these incentive programs, high-risk auto loans aren't the same as traditional car lending. In this instance, 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 that meet these requirements.

In other words, the “payment call” will determine whether a new car that's eligible for a military discount meets the lender's requirements. In some cases it will and in some cases it will not.

The right dealers

Something else that needs to be taken into account is that just because a dealer happens to sell new cars with a military discount program doesn't mean that dealer works with car buyers with less than perfect credit. That's why we suggest borrowers in the military first find a dealer that's willing to help buyers with credit issues.

It also is no coincidence that Auto Credit Express specializes in matching consumers with damaged car credit to dealers that can offer them their best chances for approved car loans.

So if you're ready to establish your auto credit, you can begin now by filling out our online car loan application.