May is National Military Appreciation Month and military personnel on active duty, even those with credit issues, can sometimes take advantage of the special military discounts offered by many car manufacturers, which can make a new car more affordable.
Military Borrowers with Bad Credit
Automobile manufacturers have their own way of telling military personnel "thank you for your service," typically by offering them a discount on a new car. The good news is that military discounts, usually offered to active duty personnel in all five branches of the service, can also be used for those with less than perfect credit. This is especially important for these borrowers, because bad credit car loans come with higher than average interest rates and this additional discount will lower the overall interest charges on a car loan.
But at the same time, like all borrowers with bad credit, military buyers can only take advantage of these programs if they qualify for a new car loan at the right franchised new car dealer.
Choosing a New Car
Once they're approved, even if they have the choice of a new or used car, most borrowers with poor credit will decide that it makes more sense to finance a low mileage two- or three-year-old used car. It's hard to argue with this choice, considering how steeply new cars typically depreciate. In addition, the level of vehicle quality and durability means the current crop of used cars is the best it's ever been.
However, members of the military that find themselves in this situation may find out that financing an affordable compact or subcompact new car could be a bit less expensive than they thought.
So, what are these military discounts offered by car manufacturers?
Military personnel that are on active duty (and sometimes in the active reserve) of the Army, Navy, Air Force, Marines, or Coast Guard can, under the right circumstances, use the military discounts offered by some car manufacturers to lower the purchase price of an eligible new vehicle.
Military discounts, in most cases, are offered in addition to any advertised new car incentives as well as any manufacturer-to-dealer discounts - allowing those who serve our country to save even more.
So, if you are currently on active duty in one of those five branches of the service, why wouldn’t you take advantage of this? In fact, there are a couple of reasons you might not be able to use this additional discount – or any other, for that matter.
First, just because you qualify for one doesn’t mean you can use it if you need a car loan. Secondly, if you have bad credit, finding a dealer that is even willing to work with you can also be a problem.
The Subprime Car Loan Process
Even though you may be eligible for a military discount, the subprime car loan process is different that getting a regular car loan. The reason for this is that, instead of picking out a car, the lender first determines the payment range and interest rate you qualify for. Then, it’s up to the dealer's special finance department to determine which vehicles meet those requirements.
That includes any new cars that qualify for a military discount. In some cases, there are vehicles that will work, while in other cases there aren't any.
Finding a Dealer
Something else that needs to be taken into account is that just because a dealer happens to sell new cars that qualify for military discounts doesn’t mean that dealer is willing to help car buyers with credit issues.
That’s why we suggest that if you're in the military and you have bad credit, your first step should be to find a dealer that works with buyers in your credit situation.
In fact, Auto Credit Express works with a nationwide network of car dealerships that are trained in special finance.
Our service is free and puts you under no obligation, plus we work fast because we know these things often can't wait. See what we can do for you by completing our secure car loan request today.